Geli Technology's Fourth IPO Attempt After Repeated Failures: 400 Million in Massive Dividends Over Three Years, with Fundraising Amount Continuously Shrinking

Questioning AI · How Do Massive Dividends and Shrinking Fundraising Affect Listing Rationality?

“Harbor Business Observation” by Shi Zifu

On March 20, the Beijing Stock Exchange Listing Committee will hold its 29th review meeting of 2026, during which it will review the initial public offering (IPO) of Zhuhai Jieli Technology Co., Ltd. (hereinafter referred to as “Jieli Technology”).

Beyond performance, the company’s IPO journey has attracted market attention. Over nearly 10 years since 2017, the company has attempted four IPOs, experiencing on-site inspections, transfer for investigation, and warning letters. Moreover, the company’s fundraising amounts have fluctuated repeatedly, and the four major controlling shareholders’ cash-out dividends have raised questions about the reasonableness and necessity of Jieli Technology’s listing.

1

2025 Performance Fluctuations, Improvement in Q1

Tianyancha shows that Jieli Technology was founded in 2010. It is an integrated circuit design company focusing on system-on-chip (SoC) products, mainly serving Bluetooth audio/video, smart wearables, and IoT terminals, providing high-spec, highly flexible, and highly integrated chips for global markets.

The SoC chips developed by Jieli Technology are mainly used as main control chips for various smart terminals, including Bluetooth earphone chips, Bluetooth speaker chips, smart wearable chips, IoT terminal chips, and general multimedia chips.

From 2022 to 2024 and January-June 2025 (hereinafter referred to as the reporting period), sales revenue from Bluetooth earphone chips were 1.246 billion yuan, 1.599 billion yuan, 1.454 billion yuan, and 565 million yuan, accounting for 55%, 54.59%, 46.61%, and 41.18% of main business revenue respectively. In the first half of 2025, due to market competition, sales declined somewhat.

Meanwhile, Bluetooth speaker chips generated revenues of 573 million yuan, 648 million yuan, 823 million yuan, and 396 million yuan, accounting for 25.27%, 22.12%, 26.38%, and 28.86% of main business revenue. Smart IoT terminal chips earned 251 million yuan, 328 million yuan, 390 million yuan, and 198 million yuan, representing 11.06%, 11.21%, 12.51%, and 14.46% respectively.

In each period, sales quantities of main models of Bluetooth earphone chips were 967 million, 1.307 billion, 1.219 billion, and 1.077 billion units, with an 11.71% year-over-year decrease in 2025; Bluetooth speaker chips sold 459 million, 553 million, 741 million, and 753 million units, with a 1.64% increase YoY in 2025.

Due to some series of Bluetooth earphone chips being in the upgrade phase, changes in market segmentation and market share, Jieli Technology’s performance has shown significant fluctuations. Specifically, in the first half of 2025, the company’s revenue and net profit both declined.

Financial data shows that during the reporting period, Jieli Technology achieved revenues of 2.267 billion yuan, 2.931 billion yuan, 3.12 billion yuan, and 1.373 billion yuan, with net profits of 336 million yuan, 623 million yuan, 791 million yuan, and 293 million yuan. After deducting non-recurring gains and losses, net profit attributable to parent was 293 million yuan, 574 million yuan, 734 million yuan, and 261 million yuan.

In each period, the company’s operating income YoY changes were 29.29%, 6.47%, and -4.58%; net profit YoY changes were 85.42%, 27.03%, and -22.89%. In the first half of 2025, both revenue and net profit declined.

Additionally, core profitability indicators such as gross profit margin and return on equity (ROE) fluctuated, with gross profit margin below industry average.

During the reporting period, Jieli Technology’s main business gross profit margins were 28.35%, 33.10%, 35.77%, and 30.32%. The weighted average return on equity attributable to parent after excluding non-recurring gains and losses was 13.35%, 22.08%, 22.46%, and 6.86%. In the same period, the industry average gross profit margins were 33.32%, 34.92%, 37.64%, and 38.62%.

The company stated that in January-June 2025, influenced by market competition, it adopted more aggressive marketing strategies to maintain market share. The average selling price of main products decreased, leading to a decline in gross profit margin, which was below the industry average.

The decline continues. In 2025, Jieli Technology achieved revenue of 2.804 billion yuan, down 10.12% YoY; net profit of 596 million yuan, down 24.74%; and net profit after non-recurring gains and losses of 545 million yuan, down 25.83%.

Regarding the reasons for the performance decline in 2025, Jieli Technology explained that it was mainly due to uncertainties in international trade policies, fluctuations in customer procurement demand, fierce competition in the consumer electronics market leading to lower product prices and gross profit margins, and a decline in sales of mid-to-low-end Bluetooth earphone chips affected by market competition. The high gross profit margin and net profit levels in the previous year were also influenced by the low wafer procurement prices at that time.

Preliminary estimates suggest that in Q1-Q3 2026, the company expects to achieve operating revenues of 670 million to 730 million yuan, representing a YoY increase of approximately 14.24% to 24.47%; net profit attributable to parent of about 146 million to 156 million yuan, a YoY increase of approximately 7.22% to 14.56%; and net profit after deducting non-recurring gains and losses of about 133 million to 143 million yuan, a YoY increase of approximately 12.16% to 20.60%.

2

High Dependence on Supply Chain, Continuous Inventory Growth

Jieli Technology’s upstream and downstream segments of the industry chain are both highly concentrated.

Its main suppliers include well-known wafer manufacturers and testing, packaging, and supporting chip companies such as Huahong Group, Huada Technology, Mifitek, Unigroup Tsinghua, and Purun Co.

During the reporting period, the total procurement from the top five suppliers was 1.371 billion yuan, 1.817 billion yuan, 2.113 billion yuan, and 897 million yuan, accounting for 89.54%, 92.61%, 91.29%, and 88.03% of total procurement respectively, indicating high procurement concentration.

On the other hand, during the same period, sales to five major customers totaled 929 million yuan, 1.134 billion yuan, 1.172 billion yuan, and 470 million yuan, representing 40.99%, 38.68%, 37.57%, and 34.23% of total sales.

To ensure smooth operations, Jieli Technology increased procurement and inventory of certain chip models. However, due to market demand fluctuations and product iteration, sales fell short of expectations, leading to long inventory cycles and significant inventory impairment provisions at period-end.

The company’s inventories consist of entrusted processing materials and goods. At each period-end, inventory book values were 659 million yuan, 522 million yuan, 751 million yuan, and 775 million yuan, accounting for 38.24%, 25.45%, 27.07%, and 23.95% of current assets respectively; inventory impairment provisions were 81.76 million yuan, 125 million yuan, 70.33 million yuan, and 47.37 million yuan.

In terms of turnover, at each period-end, inventory turnover rates were 2.11, 3.32, 3.15, and 2.51 times per year.

Due to increased stocking, Jieli Technology’s cash flow has also been affected. At each period-end, net cash flows from operating activities were 778 million yuan, 842 million yuan, 455 million yuan, and 247 million yuan. In 2024, net cash flow from operations decreased compared to previous years, and in the first half of 2025, cash flow further declined.

As of the end of 2025, net cash flow from operating activities was 513 million yuan, up 12.85% YoY.

At each period-end, cash and cash equivalents were 854 million yuan, 1.16 billion yuan, 428 million yuan, and 770 million yuan, with monetary funds of 858 million yuan, 1.161 billion yuan, 429 million yuan, and 772 million yuan respectively, indicating ample liquidity.

Meanwhile, the company’s asset-liability ratio (consolidated) was 15.64%, 13.65%, 8.4%, and 7.14%; current ratios were 4.21x, 4.73x, 8.77x, and 11.32x; quick ratios were 2.6x, 3.53x, 6.4x, and 8.61x, reflecting good short-term debt-paying ability.

3

Challenging IPO Path, Multiple Fundraising Plan Adjustments

The upcoming review has drawn attention to Jieli Technology’s troubled and bumpy IPO history.

In March 2017, Jieli Technology submitted an application to the Shanghai Stock Exchange main board, sponsored by CITIC Securities. In March 2018, its first IPO attempt was terminated by the China Securities Regulatory Commission (CSRC).

In October 2018, the company submitted a second application to the Shanghai main board. In the first half of 2019, Jieli Technology underwent on-site inspection by the CSRC. In September of the same year, it withdrew its application.

In January 2021, the CSRC issued a warning letter to Jieli Technology, citing “the existence of external transactions involving personal bank accounts” during its second application process, as a regulatory measure.

According to the CSRC warning letter, Jieli Technology’s previous application involved using personal bank accounts for transactions during 2015-2016: in 2015, it received 70.84 million yuan and paid 69.99 million yuan outside of its main accounts; in 2016, it received 13.3 million yuan and paid 11.26 million yuan outside. From 2014 to 2018, the personal bank account transferred 3.7327 million yuan to the company’s controlling shareholders, actual controllers, and related parties.

Due to setbacks in both IPO attempts on the Shanghai Stock Exchange, in September 2021, Jieli Technology shifted focus to the Shenzhen Stock Exchange’s ChiNext, sponsored again by CITIC Securities. After three rounds of inquiry and on-site supervision, unresolved internal control issues led to the withdrawal of the listing application in August 2022, ending the ChiNext IPO attempt.

According to the prospectus submitted for ChiNext, the planned fundraising was as high as 2.5 billion yuan. Besides routine expansion projects, the company also planned to raise 1.1 billion yuan for working capital.

After the failure on ChiNext, Jieli Technology decided to reapply to the Beijing Stock Exchange. In December 2024, its IPO was accepted, sponsored by Guotai Haitong Securities. The company adjusted its fundraising plan, reducing the total amount from 2.5 billion yuan to 1.08 billion yuan, and eliminated the replenishment component.

In the current prospectus for the review, Jieli Technology plans to raise 681 million yuan, with 321 million yuan for smart wireless audio technology upgrades and industrialization, 208 million yuan for smart wearable chip upgrades and industrialization, and 152 million yuan for AIoT edge computing chip R&D and industrialization.

Renowned tax and finance expert Liu Zhigeng commented: “The significant reduction of IPO fundraising from 2.5 billion to 680 million yuan mainly results from changes in market environment, ongoing regulatory scrutiny of past internal control issues, and the company’s own solid financial position casting doubt on the necessity of fundraising. Coupled with performance ‘fluctuations’ and doubts about growth potential, the company has had to continually lower its financing expectations to pass review.”

He explained that this adjustment is not merely strategic contraction but a passive correction under multiple pressures, summarized as five reasons:

First, repeated internal control issues and regulatory questioning have repeatedly hindered IPO approval; Second, the company’s financial health is ‘not short of money,’ with large dividends and fundraising raising reasonable doubts; Third, performance ‘fluctuations’ and declining growth and profitability; Fourth, lack of core product competitiveness leading to price wars; Fifth, repeated changes in fundraising use and lack of clear strategic planning.

Previously mentioned, the company has ample cash and low debt ratio. During 2022-2024, it paid cash dividends of approximately 99.63 million yuan, 200 million yuan, and 99.99 million yuan, totaling about 400 million yuan.

As of the signing date of the prospectus, Wang Yihui, Zhang Qiming, Zhang Jinhua, and Hu Xiangjun directly held 9.48%, 3.96%, 2.83%, and 1.27% of shares respectively, controlling 17.54% of voting rights directly. They also held 37.69%, 15.75%, 11.26%, and 4.70% of Zhuhai Gaoqi, the controlling shareholder, totaling 69.40%, thus indirectly controlling 63.01% of voting rights through Zhuhai Gaoqi. Overall, these four individuals directly and indirectly control 80.55% of Jieli Technology’s voting rights.

Given their high shareholding, the four controlling shareholders have benefited from at least 300 million yuan in dividends over three years. The near “cash-out” dividends during the IPO also raised questions about the reasonableness of the company’s fundraising.

Liu Zhigeng believes that the large dividends paid during the IPO by Jieli Technology, while seemingly legal, have triggered market doubts about its motives for fundraising, corporate governance, and protection of minority shareholders’ interests. This “dividing profits while raising funds” approach, though not illegal, raises red flags in business ethics and market trust.

"From public information, since initiating IPO in 2017, Jieli Technology has distributed about 869 million yuan in cash dividends, nearly 400 million yuan from 2022 to September 2024 alone. As of the end of 2025, the company’s cash and cash equivalents reached 1.467 billion yuan, with an additional 865 million yuan in fixed deposits and term deposits, totaling over 2.3 billion yuan, with no bank loans. Such ample financial resources, yet still paying dividends and seeking IPO funds, is hard to justify logically. In fact, this behavior reveals three risks:

First, strong suspicion of controlling shareholders cashing out, potential利益 transfer. Distributing accumulated profits to original shareholders and having the public investors cover the shortfall essentially shifts future risks; Second, serious doubts about the necessity of fundraising, contradicting the core purpose of IPO—raising capital for future development; Third, ongoing governance flaws and unresolved internal control issues, with large dividends serving more as a ‘control benefit’ rather than a means to benefit minority shareholders."

In summary, Jieli Technology’s dividend behavior is not merely a financial arrangement but a tool embedded in IPO strategic interests. It tests regulatory tolerance and market confidence, and investors should be wary of the risks behind the “high dividends + low growth + weak governance” combination.

Additionally, the review draft also highlights litigation issues involving Jieli Technology.

Before the reporting period, Jieli Technology, its controlling shareholders, actual controllers, and some employees were involved in a criminal complaint and three civil lawsuits filed by Zhuhai Jianrong and related parties in Hong Kong, alleging infringement or violation of trade secrets.

Regarding the criminal case, Zhuhai Public Security Bureau issued an appraisal indicating that the involved technology was not classified as confidential, and the case was withdrawn before the reporting period. Regarding civil lawsuits, courts did not find evidence of infringement or trade secret violations; the involved technology was recognized as public and open-source, and the plaintiffs Hong Kong ZhuoRong and Zhuhai Jianrong withdrew the lawsuits before the reporting period.

The first round of review inquiries from the Beijing Stock Exchange focused on whether the company had any illegal operations and related issues.

Jieli Technology responded that during the reporting period, there were no major illegal or irregular management issues affecting operations. Besides the disclosed issues, other concerns included social security and housing fund payments, delays in property registration, lack of signed sales framework agreements with some major clients, procedural issues in document stamping, and internal management irregularities among sales staff.

It emphasized that some employees had misunderstandings of internal management policies, and the company has conducted self-inspections and rectifications, establishing and implementing internal management systems effectively. (Harbor Finance Production)