IPO Observation: Luntai Technology's Abnormal Indicators, Multiple Companies Both Supply and Sell!

In recent times, Luntai Technology Co., Ltd. (hereinafter referred to as "Luntai Technology" or the issuer) has made a surprise IPO move. In June 2023, it submitted a prospectus to the Shanghai Stock Exchange's Growth Enterprise Market (GEM) and plans to raise RMB 7.02 billion, which will be used for the construction of its lithium iron phosphate battery production base, research and development center projects, and replenishing working capital.

Luntai Technology is primarily engaged in the research, development, production, and sales of lithium-ion batteries, nickel-hydrogen batteries, and battery packs. Its products are widely used in various fields such as home energy storage, portable energy storage, general-purpose energy storage, electric vehicles, e-scooters, 3C digital products, and personal care products.

In recent years, under the support of new energy industry policies and rapid growth in market demand, the energy storage industry has become a hot track. With capital enthusiastically chasing after it, energy storage companies have seen their valuations soar, with the industry as a whole experiencing overvaluation and hype. Upon careful analysis of Luntai Technology's prospectus, not only does it exhibit overvaluation and hype, but some indicators also show abnormalities.

One: Multiple suppliers become customers, transactions raise suspicions!

According to the prospectus and inquiry responses, Luntai Technology has multiple non-related parties that are both suppliers and customers. In this context, the company's raw material procurement prices have shown anomalies, with its foreign business gross profit margin higher than that of domestic businesses.