Longchen Technology's IPO approved by Beijing Stock Exchange, inquiries over declining operating performance in the second half of 2025

Rui Finance Liu Zhiying On February 27, it was disclosed by the Beijing Stock Exchange that Hubei Longchen Technology Co., Ltd. (hereinafter referred to as Longchen Technology) meets the requirements for issuance, listing, and information disclosure.

During the review meeting, the Beijing Stock Exchange required Longchen Technology to explain the necessity and reasonableness of continuing to expand new capacity in traditional fields such as electricity and home appliances, despite the saturation of capacity in the traditional application areas of film materials. It also asked for an explanation of the reasons and rationality behind the decline in operating performance in the second half of 2025.

Additionally, the Beijing Stock Exchange requested Longchen Technology to analyze whether its financial condition is stable and whether there are liquidity risks, based on net cash flow from operating activities, cash and cash equivalents, accounts receivable, and balances of short-term and long-term interest-bearing liabilities.

The prospectus shows that Longchen Technology was established in 2003. Its main business involves research, production, and sales of BOPP film materials related to film capacitors. The products are mainly divided into two categories: base film and metallized film. The company was listed on the New Third Board in 2015.

For this IPO, Longchen Technology plans to raise 375 million yuan, which will be used for the new energy electronic film material project and to supplement working capital.

From 2022 to the first half of 2025, Longchen Technology’s operating revenues were 344 million yuan, 371 million yuan, 604 million yuan, and 331 million yuan, respectively. The net profits attributable to the parent company were 70.07 million yuan, 43.48 million yuan, 69.31 million yuan, and 49.30 million yuan, respectively. The gross profit margins were 41.07%, 33.37%, 29.39%, and 35.44%.

Before the IPO, Lin Meiyun directly held 53.65 million shares of the company, accounting for 52.61% of the total shares. She also controlled 1.5 million shares (1.47%) through serving as the executive managing partner of Zeming Xincheng. In total, she controlled 54.08% of the company’s shares. Lin Meiyun serves as the company’s chairman and general manager, exerting significant influence over daily operations and major decisions, making her the company’s controlling shareholder and actual controller.

Additionally, the company’s fourth-largest shareholder, Lin Weiliang, holds a 3.48% stake. He is Lin Meiyun’s younger brother and an employee of the company. On February 12, 2026, Lin Meiyun and Lin Weiliang signed a “Agreement on Concerted Actions,” which became effective after both parties signed.

According to available information, Lin Meiyun, female, born in August 1969, is a Chinese national with no permanent residence abroad and has a technical secondary education. She engaged in business before 1998; from April 1998 to May 2017, she served as the general manager of Wenling Huahang Electronic Technology Co., Ltd.; since June 2017, she has been the chairman and general manager of Hubei Longchen Technology Co., Ltd.; from July 2018, she has served as the executive director of Foshan Jiajia Electronic Technology Co., Ltd.; from October 2020, she has been the executive director of Wenling Huahang Electronic Technology Co., Ltd.; since July 2021, she has been the executive director of Jiangsu Zhonglibang Industrial Co., Ltd.; since January 2022, she has been the executive director of Jiangsu Shuangkai Electronics Co., Ltd.; and since April 2022, she has been a director of Anhui Longchen Electronic Technology Co., Ltd.

Related company: Longchen Technology