IPO Observation | Zhongbang Group's Revenue Growth Rate Exceeds 140%, but Risks Downward Performance by 50%

Recently, Western Securities (002926) was found to have insufficient internal control independence and was required to correct the issue by the China Securities Regulatory Commission.

This has raised concerns about Western Securities' IPO project, as it is the same company that serves as the sponsor for Zhongbang Group's listing on the ChiNext board.

Zhongbang Group is a high-tech enterprise that develops, produces, and sells fine chemical products, including gold nanoparticles and other derivatives. The company plans to raise 5.04 billion yuan to build an intelligent green production line and research center as well as supplement its liquidity.

Rapid Revenue Growth, but Risks Downward Performance by 50%

Pretax Profit Surges, Gross Margin Far Exceeds Peers'

For the same reason, Zhongbang Group's gross margin has been rising steadily. The company attributes this to the continuous expansion of its market share, sales income exceeding that of Minshao Pharmaceutical, and the release of economies of scale.

Zhengbang Group itself has also been frequently penalized. According to the prospectus, during the reporting period, the company and its subsidiaries were subject to nine administrative penalties, with a total fine of 946,000 yuan.

The reasons for these penalties include the failure to respond promptly to emergency alarm calls, the lack of anti-static belts on mixers, and the non-compliance with regulations for the detection of toxic gases at chemical stations.