Taipeng Environmental's Beijing Stock Exchange IPO review suspended, second-round inquiry response delayed

A reporter learned that recently, Shandong Taipeng Environmental Protection Materials Co., Ltd. (hereinafter referred to as “Taipeng Environmental Protection,” 874417.NQ) released an announcement stating that, as the validity period of its financial reports is about to expire, the relevant review status of the company for its listing on the Beijing Stock Exchange has been adjusted to “suspended review.” At the same time, the company has applied to postpone its response to the second-round issuance of questions from the review inquiry letter to May 7, 2026.

According to the announcement, Taipeng Environmental Protection passed tutoring and verification in June 2025 and was accepted by the Beijing Stock Exchange the same month; in July of that year, it received the first-round inquiry, and it completed its responses in October. On March 6, 2026, Taipeng Environmental Protection received the second-round review inquiry letter. Due to the large workload of the response work, Taipeng Environmental Protection has applied for a postponement of 20 business days.

Based on the content of the inquiries, the second-round inquiry mainly focuses on corporate governance, the authenticity of profitability, and the reasonableness of the raised-money investment projects.

The inquiry letter pointed out that Taipeng Environmental Protection is jointly controlled by seven natural persons, including Liu Jiansan, Wang Xuhua, Fan Ming, etc. These seven individuals directly hold 17.03% of the shares, and they also indirectly hold 40.36% through Shandong Taipeng Group Co., Ltd. (hereinafter referred to as “Taipeng Group”), for a total controlling interest of 57.39%. The seven people have signed an “Action in Concert Agreement,” with a term of 36 months after the listing.

According to the prospectus disclosures, the seven actual controllers have an average age of about 60, and two of them have already retired. Regulators require the company to explain the long-term and medium-term stability of this jointly controlling structure characterized by advanced age, as well as the practical operability of the “decision-making by shareholding numbers if the three rounds of consultation fail” mechanism stipulated in the agreement.

What is noteworthy is that Taipeng Intelligent (920132.BJ), another company under Taipeng Group that mainly deals in outdoor products such as courtyard tents, successfully listed on the Beijing Stock Exchange in November 2023. Its actual controllers are eight natural persons. Except for Shi Feng, the other seven overlap with Taipeng Environmental Protection’s actual controllers, and the governance structure is highly similar.

In terms of the authenticity of profitability, Taipeng Environmental Protection’s gross margin performance has drawn attention. Financial data show that from 2022 to 2024, the company’s gross margins were 23.13%, 24.50%, and 27.03%, respectively, which were significantly higher than the average values of comparable companies in the same industry—10.02%, 11.93%, and 12.35%, respectively.

The company explained that, in the same industry, comparable companies’ products are mainly used in single-use markets, while the company’s spunbond nonwoven fabric products are more frequently applied to durable products, leaving a relatively larger profit margin space. In response, the inquiry letter requires further demonstration of the rationality and authenticity of this gross margin advantage, and—together with product types, pricing strategies, and other factors—verifying the match between the revenue growth and relevant circumstances.

In addition, Taipeng Environmental Protection has paid dividends multiple times during the reporting period, with a cumulative amount reaching RMB 65.52 million. However, this IPO plans to use RMB 60.00 million raised funds to replenish working capital. Meanwhile, the second-phase project the company plans to raise funds for will add 6,000 tons of capacity, but as of the end of June 2025, the utilization rate of the first-phase project’s capacity is not more than 60%. The necessity and rationality of the added capacity versus the use of funds to replenish working capital need to be explained.

According to available materials, Taipeng Environmental Protection was established in 2003, located in Tai’an City, Shandong Province, and mainly engages in the research, production, and sales of various nonwoven materials. The company’s products are widely used in fields such as filtration and separation, industrial materials, geotechnical engineering and construction.

A reporter noted that this is the second attempt by Taipeng Environmental Protection to pursue an A-share listing. The company was listed on the National Equities Exchange and Quotations (New Third Board) as early as 2015. After it was delisted in 2021, it attempted to list on the main board of the Shenzhen Stock Exchange. However, after submitting the application materials, the company was selected for an on-site inspection the very next month. Subsequently, in March 2022, it proactively terminated its IPO process.

【Source: Dazhongwang】