IPO Observation: Easton Technology's Half-Year Cash Dividend Occupies 99% of Net Profit, a "Fantastic" Move

Recently, Easton Technology Co., Ltd. (hereinafter referred to as Easton Technology) applied for listing on the Northbound Market and received approval. Easton Technology relies heavily on exports, with its main clients accounting for 81.41%, 82.59%, 78.77%, and 80.17% of its total revenue.

Dependence on Major Clients

Easton Technology's main business is the research and development, production, and sales of professional mobile lighting tools, including folding lamps, floodlights, pocket lights, pen lights, and headlamps. The company's revenue has been largely dependent on its major clients, with the top three clients accounting for over 80% of its total revenue.

According to the prospectus, Easton Technology faces risks due to its dependence on major clients. If these clients experience operational difficulties or their cooperation relationships with the company change significantly, it may have a negative impact on the company's income sustainability and operating performance.

Sales of Unqualified Products

Easton Technology has also been involved in sales of unqualified products. According to the prospectus, the company's top five suppliers have been found to have various "issues," including selling unqualified products, being listed as individuals subject to compulsory execution, and violating fire safety regulations.

Half-Year Cash Dividend

Easton Technology has also announced a half-year cash dividend of RMB 33.12 million, which is expected to be distributed by September 22nd. The company's financial report shows that its net profit for the first three quarters was RMB 0.61 billion, and its diluted earnings per share was RMB 0.53.