IPO Observation: Dividend of Over 3 Billion Before Listing! Patent Rights Dispute Arises in Past
Stock rights stability has always been a key focus for IPO reviews, and the existence of stock rights disputes or potential disputes will be closely monitored by regulatory agencies.
Intrepid Platinum Industry Co., Ltd. (hereinafter referred to as "Intrepid") is preparing to list on the Shanghai Stock Exchange's main board. Recently, Intrepid updated its listing application review dynamics, and the company has responded to the first-round audit inquiry letter, with responses including twenty questions about various business models, inventory, historical background, etc.
Among these, the issue of past patent rights disputes that arose during the transfer of patent rights is particularly prominent and receives close attention.
Past Patent Rights Dispute
According to the prospectus, Intrepid was founded on November 2, 2001. The company primarily engages in the development, production, sales, and service of precious metal equipment and related materials, while also providing precious metal trading services. The main products include electronic glass production equipment, glass fiber production equipment, precious metal thermocouple wires, etc., used in applications such as substrate glass, cover glass, and glass fiber production, as well as various precise high-temperature measurement scenarios, involving multiple fields such as flat-panel displays, building materials, and energy conservation.
On June 29, 2023, Intrepid submitted its initial public offering (IPO) application and prospectus to the Shanghai Stock Exchange's main board. The company plans to issue no more than 60 million shares of stock, with an estimated investment of RMB 10.96 billion, which will be used for the year-long production line upgrade project (Phase II), research center project, information technology capability enhancement project, and supplementary working capital project.
Intrepid was established by five individuals, including Hou Zhongxian, Yin Kexin, Chen Mingming, Wang Biankun, and Wu Xianzhong, with an initial investment of RMB 1 million. Over the past two decades, Intrepid has undergone multiple patent rights disputes and transfers, resulting in a significant number of disputes and irregularities.
In its response to the first-round audit inquiry letter, Intrepid explained that all relevant shareholders have confirmed their actual holdings and provided written confirmations, except for Wu Wancong and Wu Xianzhong, who are no longer shareholders. If these individuals were to raise objections in the future, Intrepid would handle them accordingly.
Revenue Decrease
In terms of performance, from 2020 to 2022, Intrepid's revenue increased steadily to RMB 10.28 billion, RMB 14.15 billion, and RMB 17 billion, respectively. Net income attributable to shareholders decreased to RMB 2.02 billion, RMB 0.89 billion, and RMB 1.04 billion, respectively.
Intrepid's revenue has been steadily increasing, while its net income attributable to shareholders has been decreasing. The company attributed this decline to market competition, business structure, and precious metal price fluctuations.