Less than five months after its prospectus was formally accepted, Suzhou Langgao Motor Technology Co., Ltd. (referred to as "Langgao Technology") is set to appear before the review committee. According to the schedule, the company's ChiNext IPO will face review on September 22. As a leading player in China's high-performance permanent magnet synchronous motor segment, Langgao Technology has maintained steady growth in performance during the reporting period. However, as the company's revenue growth notably decelerated in the first half of this year, the sustainability of its earnings expansion has drawn close scrutiny from the Shenzhen Stock Exchange. Beyond that, the company also faces issues such as continuously rising accounts receivable book values and R&D expense ratios that have consistently lagged the average of comparable listed companies during this IPO attempt.

Earnings Growth Sustainability Under Scrutiny

According to the arrangement, the Shenzhen Stock Exchange's listing review committee is scheduled to convene its 56th review meeting of 2026 on September 22 to assess Langgao Technology's initial public offering application, at which point it will be determined whether the company's ChiNext IPO receives approval. The company specializes in the research, development, production, sales, and servicing of high-performance permanent magnet synchronous motors, having grown into a sector leader in this niche market in China. Based on Frost & Sullivan data, by sales volume in 2025, the company held over 70% market share in China's new energy mining truck drive motor segment, ranking first in the industry, and approximately 28% market share in the new energy heavy-duty truck drive motor segment, ranking second. Additionally, the company ranks among the top players in market share for new energy bus drive motors and wind power pitch motors. Behind this listing push, from 2023 to 2025, Langgao Technology achieved steady growth in both revenue and net profit. Financial data shows that during those years, the company generated revenues of approximately RMB 385 million, RMB 768 million, and RMB 1.447 billion respectively, with main business revenue accounting for over 99% of the total; corresponding net profits attributable to shareholders were approximately RMB 24.6954 million, RMB 88.547 million, and RMB 131 million. In the first half of 2026, Langgao Technology continued to post growth, but the pace of revenue expansion slowed markedly. Specifically, in the first half of this year, the company recorded revenue of approximately RMB 823 million, up 26.2% year-on-year, a significant decline compared to the revenue growth rates of 99.77% and 88.27% recorded in 2024 and 2025, respectively; net profit attributable to shareholders stood at approximately RMB 86.6819 million, up 46.58% year-on-year, roughly in line with the 47.46% growth seen in 2025. In the review center's opinion implementation letter issued before the hearing, the Shenzhen Stock Exchange highlighted "earnings growth sustainability" as the sole core issue, requiring the company to explain the reasons for the slowdown in first-half revenue growth. In response, Langgao Technology explained that, first, the rapid revenue growth over the previous three years of the reporting period raised the revenue base significantly, thereby reducing the growth rate for the first half of 2026; second, capacity utilization has remained at saturation levels, and building and ramping up new capacity requires time, which temporarily impacts the revenue growth rate; third, the company is actively promoting newer-generation products with stronger competitiveness, and both capacity construction and market promotion require time, thus temporarily affecting the revenue growth rate. By application area, in 2025, Langgao Technology's main business revenue from new energy commercial vehicles, new energy off-road mobile machinery, wind power and rail transit, industrial high-efficiency energy-saving and automation control, and other products and services accounted for approximately 72.19%, 18%, 7.67%, 1.55%, and 0.6% of total revenue, respectively; in the first half of this year, those shares shifted to approximately 65.72%, 22.92%, 8.52%, 2.32%, and 0.52%, respectively.

R&D Expense Ratio Trails Industry Average

As a ChiNext applicant, Langgao Technology's R&D expense ratio has consistently remained slightly below the average of comparable listed companies during the reporting period. The prospectus shows that the company's R&D expenses for each reporting period were RMB 23.7345 million, RMB 32.7679 million, RMB 56.1541 million, and RMB 34.7565 million, respectively, with corresponding R&D expense ratios of approximately 6.17%, 4.26%, 3.88%, and 4.22%. During the same periods, the average R&D expense ratios of the comparable companies listed by the company were approximately 7.26%, 5.56%, 4.43%, and 5.04%, respectively, all slightly higher than Langgao Technology's figures. In response, the company explained in the prospectus that differences in specific R&D focuses and product development stages among peer companies lead to variations in R&D expense ratios; for instance, Jingjin Electric's significantly higher R&D ratio pulled up the industry average. "Overall, the company's R&D expense ratio falls within a reasonable range compared to its listed peers, with no material difference." Regarding major customers, from 2023 to 2025 and in the first half of 2026, sales to Langgao Technology's top five customers accounted for approximately 53.62%, 58.48%, 72.32%, and 64.26% of total revenue, respectively. Among them, Sany Group served as the company's fourth, first, and first largest customer in 2024, 2025, and the first half of 2026, respectively, with sales to Sany accounting for approximately 10.69%, 23.29%, and 27.87% of revenue during those periods, showing a consistent upward trend. Additionally, the prospectus notes that at the end of each reporting period, Langgao Technology's accounts receivable book values were RMB 138 million, RMB 300 million, RMB 356 million, and RMB 508 million, respectively, climbing steadily; these represented 43.13%, 49.69%, 37.01%, and 49.1% of current assets at the end of each period. "Downstream vehicle manufacturers commonly extend payment cycles as an industry practice, and coupled with the varying operational stability of smaller customers, the company's large accounts receivable arising alongside high-growth business is reasonable," said Gao Chengyuan, president of the Tiaoyuan Influence Research Institute. Meanwhile, the company's inventory book values also rose consecutively, standing at RMB 56.2301 million, RMB 117 million, RMB 159 million, and RMB 248 million at the end of each reporting period, representing 17.61%, 19.42%, 16.57%, and 23.99% of current assets, respectively. In the prospectus, Langgao Technology also stated that as operations expand, receivables and inventory amounts may increase further in the future.

Nearly RMB 100 Million in Cumulative Dividends During Reporting Period

The prospectus reveals that Langgao Technology distributed cash dividends repeatedly during the reporting period. From 2023 to 2025 and in the first half of 2026, the company paid cash dividends of approximately RMB 7.5 million, RMB 49.87 million, RMB 25.91 million, and RMB 14.9334 million, respectively, totaling around RMB 98.2134 million. In terms of equity structure, as of the prospectus signing date, Langgao Technology has no controlling shareholder; Cheng Yuping and Ren Huaixun have served as the company's joint actual controllers since its establishment. Each directly holds 38.89% of the company's equity. By calculation, Cheng Yuping and Ren Huaixun together hold approximately 77.78% of the shares directly. In addition to direct holdings, the two control voting rights corresponding to 9.97% of the company's shares through employee stock ownership platforms Langgao Zhongcheng, Langgao Zhonghui, and Langgao Zhongxiang. Therefore, the pair collectively controls voting rights representing 87.75% of the company's shares. Angel investor Guo Tao noted that if a company has ample cash flow and no pressing need for large capital expenditures, dividends represent a reasonable form of shareholder returns; however, with the actual controllers directly holding nearly 80% of shares, most dividend payouts would typically flow to them personally. If the company is in an expansion phase yet continues to distribute substantial dividends, it could face questions about "cashing out" and may impact capital reserves for future operations. In this IPO attempt, Langgao Technology plans to raise approximately RMB 988 million. After deducting issuance and other expenses, the funds will be allocated, in order of priority, to the New Energy High-Performance Drive Motor Intelligent Manufacturing Project (Phase I), the Headquarters Base and New Energy High-Performance Drive Motor Intelligent Manufacturing Project (Phase II), the Annual Production of 15,000 High-Speed Refrigeration Compressor Motors and Industrial High-Efficiency Drive Systems Industrialization Project, and the R&D Center Construction Project. In response to related questions, an inquiry was sent to Langgao Technology, but no reply was received by the time of reporting.