Longxin Intelligent IPO: Family Control and Three Dividend Payments in a Year, Performance Decline and Being "Held Hostage" by Major Clients

If you want to trade stocks, just look at research reports by the Golden Qilin analysts—authoritative, professional, timely, and comprehensive, helping you uncover potential theme opportunities!

《Electric Eel Finance》By Electric Eel Official

According to the latest information disclosed by the Beijing Stock Exchange, on March 16, 2026, the IPO status of Changzhou Longxin Intelligent Equipment Co., Ltd. (hereinafter referred to as “Longxin Intelligent”) changed from “submitted for registration” to “registered.”

After investigation and research, 《Electric Eel Finance》 found that the company’s prospectus contains many疑points; furthermore, with family-controlled dividends distributed three times in one year, there is a risk that sales from the top five customers have surged to a high level of 69.32%, indicating a severe dependence risk.

Family-controlled dividends distributed three times in one year

As of the date of signing of this prospectus, the controlling shareholder of the issuer is Mo Mingwei. The actual controllers are Mr. Mo Mingwei, Mr. Mo Longxing, and Ms. Jin Guihua. During the reporting period, there was no change in either the controlling shareholder or the actual controllers.

As of the date of signing of this prospectus, the issuer’s largest shareholder is Mo Mingwei, who directly holds 44.1880% of the issuer’s shares, making him the controlling shareholder.

As of the date of signing of this prospectus, Mr. Mo Mingwei directly holds 29.773889 million shares of the issuer, accounting for 44.1880%; Mr. Mo Longxing directly holds 2.997311 million shares, accounting for 4.4484%; Ms. Jin Guihua directly holds 3.563268 million shares, accounting for 5.2883%; Mr. Mo Mingwei indirectly controls 5.659574 million shares of the issuer, accounting for 8.3995%, by serving as the executive affairs partner of Xinqiang Venture Capital. Mr. Mo Longxing and Ms. Jin Guihua are spouses, and Mr. Mo Mingwei is the son of the two; therefore, Mr. Mo Mingwei, Mr. Mo Longxing, and Ms. Jin Guihua directly or indirectly jointly control 41.994042 million shares of the issuer in total, corresponding to 62.3242% of the voting rights. In addition, Mr. Mo Mingwei serves as the company’s director and general manager, and Mr. Mo Longxing serves as the company’s chairman. In summary, the three individuals are the co-actual controllers of the issuer.

《Electric Eel Finance》 noted that during the reporting period, the company distributed dividends three times: on April 8, 2022, it converted retained earnings into paid-in capital by 30.00 million yuan; on December 1, 2022, it distributed cash dividends of 83.20 million yuan; and one month later, on January 16, 2023, the company continued to distribute cash dividends of 43.00 million yuan. That is to say, in just one year, three dividend distributions totaled 156.20 million yuan in dividends. Based on this estimate, the controlling family received roughly more than 97.00 million yuan in distributed dividends.

The advantage of a family business lies in concentrated control and high efficiency; but the disadvantages are also obvious. Once power within the company becomes overly concentrated, oversight inevitably struggles to keep up. Industry insiders say that the impact brought by such a high concentration of equity (i.e., “one share dominates”) is negative; such companies often give rise to illegal and rule-violating issues that harm small and medium investors, such as tunneling listed companies, related-party benefit transfers, and financial fraud. As ordinary investors, we can’t help but ask: between the company and the family, is it truly possible to find a path that both ensures development and balances interests?

Performance decline, and being “held hostage” by major customers

Longxin Intelligent’s roller-coaster performance clearly reveals the fragility stemming from its extreme dependence on a single downstream track.

From 2022 to 2024, Longxin Intelligent’s operating revenue rose from 336 million yuan to 604 million yuan; net profit surged from 87.16 million yuan to 143 million yuan, then fell back to 120 million yuan. In 2025, the company expects operating revenue of 634 million yuan, up 5% year over year; attributable net profit is 118 million yuan, down 1.7% year over year. The core reason for the company’s performance fluctuations is that, starting in 2023, the downstream lithium iron phosphate industry experienced phased and structural overcapacity, intensifying competition in the industry, leading to lower capacity utilization rates and causing company performance to decline.

The sharp compression of profit margins is directly reflected in the collapse of gross margin. Longxin Intelligent’s consolidated gross margin fell from 41.35% in 2023 to 34.26% in 2024—down more than 7 percentage points within one year. In addition, the gross margin of incremental orders representing future profitability space also dropped from a peak of 40.48% (in 2023) to 26.92% in the first half of 2025. Longxin Intelligent explains that this is due to a decline in downstream market conditions, which strengthened customers’ bargaining power. This means that, to maintain market share, Longxin Intelligent was forced to take part in a “price war.” Although this price-for-volume strategy helped preserve revenue scale, it damaged its own “blood-making” capability.

The loss of bargaining power is closely related to Longxin Intelligent’s customer structure. From 2022 to the first half of 2025, the company’s sales to the top five customers accounted for 48.68%, 64.83%, 66.95%, and 69.32%, respectively, showing an upward trend year by year. Moreover, its customers are mainly concentrated among industry giants in the field of new energy battery materials. Currently, Longxin Intelligent has established business cooperation with lithium iron phosphate manufacturers such as Hunan Youneng, Rongtong Hi-Tech, CATL, and Gotion High-Tech. These major customers’ orders form an important pillar of Longxin Intelligent’s revenue. However, a highly concentrated customer structure also puts Longxin Intelligent at risk of being “bound,” and the problem of limited pricing power has become increasingly prominent. An analyst in the new energy industry told a reporter from Jiemian News that “giants like CATL have extremely strong bargaining power over suppliers; they not only compress equipment procurement prices, but may also require suppliers to advance funds and extend payment cycles. More importantly, if major customers in the future choose to build their own equipment production lines or support new suppliers, it will deal a major blow to the company’s performance.”

《Electric Eel Express》

A massive amount of news and precise interpretation—right on Sina Finance APP