Negative net operating cash flow, Ligao New Energy makes another attempt to list on the Growth Enterprise Market

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Source: Beijing Business Daily

After the prior IPO application was withdrawn, BMS leader company Li Gao New Energy Technology Co., Ltd. (hereinafter “Li Gao New Energy”) sought a second attempt at entering the ChiNext board. Recently, the company’s IPO has been accepted for review. In its second IPO, Li Gao New Energy’s revenue and net profit both increased year over year during the reporting period. However, behind the impressive performance, the net cash flow from operating activities has continued to be negative, and its accounts receivable has also been on an upward trend. Notably, the company’s secretary to the board of directors, Li Bowen, is a former member of the company’s former sponsor’s advisory team; however, in its second IPO, the company has already replaced its sponsor.

A second attempt to impact an IPO

According to the Shenzhen Stock Exchange website, Li Gao New Energy’s ChiNext IPO was accepted for review on March 27.

It is understood that Li Gao New Energy has long focused on the independent R&D, production, sales, and services of BMS modules. It has also gradually expanded into products such as high-voltage distribution modules and business involving new energy management and control system products, as well as PCBA components, and electronic and electrical comprehensive application solution services related to wiring harnesses.

Looking back at the company’s prior experience of attempting to enter the ChiNext board, Li Gao New Energy’s IPO was accepted for review in June 2023 and entered the inquiry stage on July 17 of the same year, undergoing two rounds of inquiries. However, in August 2024, the company withdrew its IPO application, and its “A-share” bid failed.

A reporter from Beijing Business Daily noted that after restarting the IPO, the company’s full name changed from “Li Gao (Shandong) New Energy Technology Co., Ltd.” to “Li Gao New Energy Technology Co., Ltd.”

On fundamentals, during the reporting period, Li Gao New Energy’s revenue and net profit steadily increased.

Financial data shows that from 2022 to 2024 and the first three quarters of 2025, the company’s revenue was approximately RMB 559 million, RMB 803 million, RMB 1.63B, and RMB 1.92B, respectively; corresponding net profit attributable to shareholders was approximately RMB 90.69M, RMB 96.2591 million, RMB 160 million, and RMB 212 million.

However, along with the growth in performance, the gross margin of Li Gao New Energy’s main business and major products has shown a downward trend.

The prospectus shows that affected by multiple factors including lower retail prices of new energy vehicles, transmission of price reductions to component companies, fluctuations in raw material procurement prices, and changes in product mix, during the reporting period the company’s gross margin for its main business was 44.89%, 41.95%, 34.27%, and 29.87%, respectively. Among them, the gross margin of its main product BMS modules was 45.35%, 44.38%, 42.23%, and 39.99%, respectively.

Operating cash flow under pressure

After reviewing the prospectus, it was found that Li Gao New Energy’s net operating cash flow has remained negative.

Specifically, during 2022 to 2024 and the first three quarters of 2025, Li Gao New Energy’s net cash flow generated from operating activities was approximately -RMB 45.7552 million, -RMB 82.6494 million, -RMB 1.6712 million, and -RMB 271 million, respectively.

In response, Li Gao New Energy explained that this was mainly because the company needs to purchase raw materials in advance based on customer requirements, while delivery of its main products, customer acceptance, and payments all require a certain period. As the company’s operating revenue grew rapidly, inventories and accounts receivable balances increased significantly. Meanwhile, during the reporting period, the cash received from middle and small banks’ bank acceptance bills and commercial acceptance bills, as well as cash received from discounting accounts receivable debt instruments, was approximately RMB 49.4298 million, RMB 69.4811 million, RMB 124 million, and RMB 178 million, respectively. The cash received is presented as cash inflows from financing activities and is not reflected in cash inflows from operating activities.

In addition, the prospectus shows that Li Gao New Energy’s scale of accounts receivable has been trending upward. At the end of each period during the reporting period, the company’s accounts receivable balance was approximately RMB 363 million, RMB 569 million, RMB 977 million, and RMB 1.22B, respectively, accounting for proportions of the operating revenue of 64.9%, 70.82%, 59.86%, and 63.43%, respectively. In response, Li Gao New Energy stated that due to the growth of the downstream new energy vehicle industry, the company’s operating revenue increased by a relatively large amount, and the accounts receivable balance at the end of each period correspondingly increased.

Angel investor and senior artificial intelligence expert Guo Tao said that accounts receivable balances rising year by year can easily trigger liquidity risk. This typically reduces the efficiency of the company’s use of funds, and if collections do not meet expectations, it may affect the turnover of working capital.

In this round of pushing for listing, Li Gao New Energy plans to raise approximately RMB 1.93B. After deducting issuance expenses, the funds will be invested in the Yangtze River Delta new energy vehicle control system intelligent manufacturing center project, the third phase project of Li Gao New Energy industrial park, the R&D center construction project, and replenishment of working capital, in order of priority according to how urgent and important they are.

The secretary to the board previously served on the former sponsor’s advisory team

Behind the “IPO hurdle,” Li Bowen, the current secretary to the board of Li Gao New Energy, previously worked for the company’s former sponsor’s advisory group. He later joined the company and served as the secretary to the board of directors.

Specifically, in December 2024, Li Gao New Energy launched上市 advisory. The advising institution was CITIC Securities. At that time, Li Bowen was one of the advising personnel. As of July 2025, CITIC Securities had completed two rounds of advisory work for Li Gao New Energy.

In August 2025, Li Bowen left CITIC Securities and joined Li Gao New Energy to serve as the secretary to the board of directors. Three months later, Li Gao New Energy changed its sponsor. In November 2025, Li Gao New Energy signed an advisory agreement with CICC Jianlong. The resume shows that from September 2015 to August 2025, Li Bowen held positions at CITIC Securities such as investment banking department manager, senior manager, and vice president.

Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance, said that personnel in sponsor advisory teams have long been deeply involved in the full IPO process, familiar with regulatory rules, filing details, and review focus. For companies planning to go public, the addition of this kind of talent can quickly establish a standardized information disclosure and corporate governance framework, and can significantly shorten the IPO preparation timeline.

Regarding equity relationships, Li Gao New Energy’s controlling shareholder is Yantai Lanfeng Equity Investment Partnership (Limited Partnership) (hereinafter “Yantai Lanfeng”). Yantai Lanfeng directly holds 22.07% of the company’s shares. The company’s actual controller is Wang Han Chao. He is the 100% shareholder of Shenzhen Lanfeng, which is the executive affairs partner of Yantai Lanfeng, and he is also the executive affairs partner of Yantai Wanghui and Yantai Caigao. Wang Han Chao indirectly controls 28.73% of Li Gao New Energy’s voting rights through the above entities.

Wang Han Chao was born in April 1976. He currently serves as a director and chairman of Li Gao New Energy. In addition, several members of the company’s management team, including Wang Han Chao, previously worked at Huawei Technologies Co., Ltd., such as Liu Yong, deputy chairman and general manager; Liu Feng, director, deputy general manager, and sales president; Wang Yun, director, deputy general manager, and PCS product line president; and others.

Regarding related issues of the company, a reporter from Beijing Business Daily sent an interview request letter to Li Gao New Energy, but as of the time of publication, the company had not responded.

Beijing Business Daily reporter Ma Huanshuan Li Jiexue

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