On the eve of the meeting, former COO reported the company's issues under his real name; Yuejiang Technology has accumulated losses of over 300 million yuan in the past three years.

Summary of Key Points

As the first company in the Guangdong-Hong Kong-Macao Greater Bay Area to complete an "H-to-A" listing (moving from the Hong Kong stock market back to the A-share market), Yuejiang Technology is scheduled to appear before the review committee on the Growth Enterprise Market (GEM) on July 22. However, four days before the meeting, co-founder Song Tao filed a real-name report accusing the company of concealing the shareholding details of a platform that should hold 47% of the company's shares, leading to disputes over ownership. Meanwhile, the Shenzhen Stock Exchange's second round of inquiries focused on the company's continuously declining product prices, steadily decreasing gross profit margins, and the feasibility of its forecast for turning a loss into a profit by 2028 (the company has accumulated losses of over 300 million yuan from 2023 to 2025 and relied on a special listing category for unprofitable technology companies). The company denied the allegations but acknowledged the equity dispute, causing the stock price to plummet by 12.84% on the same day. The sponsoring institution also faces the risk of being held accountable for the verification.

I. The Equity Dispute Before the Review: Founder Claims 47% of Shares Have "Disappeared"

Yuejiang Technology's employee shareholding platform is called "Yuejiang Partnership." Co-founder Song Tao stated that a "Change Commitment Letter" dated January 2023 indicated he was supposed to hold 69.7% of the shares, but the prospectus only listed 22.4%, with the remaining 47% seemingly disappearing without explanation.

• Different Perspectives: Song Tao believes this represents his rightful equity as a co-founder, not just ordinary stock incentives; the company claims these shares were intended to be reclaimed after he left the company.
• Legal Controversy: The dispute was originally supposed to be resolved through arbitration in Shenzhen, but the company filed a lawsuit in 2023. The Guangdong Higher People's Court ruled that it should be arbitrated, yet the company did not proceed with the arbitration and instead stated in the prospectus that there were no pending lawsuits or arbitrations, implying no dispute when in fact there was.
• Impact: The report caused the stock price to drop by 12.84% on the day of the announcement. If the arbitration supports Song Tao's claims, the company's equity disclosure would be deemed fraudulent, and the sponsoring institution could face similar consequences as CITIC Securities, which was previously penalized for failing to verify changes in the controlling shareholder's equity during a divorce.

II. The Profitability Forecast for 2028: A Hope Based on Assumptions?

Yuejiang Technology is trying to qualify for the GEM using a second set of criteria designed for unprofitable technology companies, but the Shenzhen Stock Exchange questioned the company's ability to profit by 2028.

• Current Losses: The company expects losses of 103 million yuan, 95 million yuan, and 84 million yuan in 2023-2025, with cumulative losses exceeding 300 million yuan. Its gross profit margin has also decreased from 48.5% to 46.5% year-on-year.
• Prerequisites for Profitability: The company predicts revenue of 1.72 billion yuan in 2028, which depends on three assumptions: annual revenue growth, maintaining a gross profit margin of 40%-45%, and reducing expense ratios to 35%-40%. Failing any one of these assumptions would result in losses.
• Shenzhen Stock Exchange's Doubts: With product prices continuously falling (the CR series' average price is lower due to domestic customers, and the Nova series offers more cost-effective options), there are concerns about whether this trend will continue. The company claims prices will increase by no more than 2% annually, but the market is skeptical given the three-year decline in margins.

III. Sales Performance: Changing Focus and New Business Initiatives

Yuejiang Technology's product portfolio is being restructured:

• Main Products: Six-axis collaborative robots (similar to human arms) have become a core business, with their revenue share increasing from 47% to 61%, and sales reached 300 million yuan in 2025. Four-axis collaborative robots (with simpler functions) are seeing a decline in sales by 6.6% over three years.
• New Business: Bodied intelligent robots (human-like robots) began sales in 2024, with revenue of 20 million yuan in 2025, a fourfold increase year-on-year, but they only account for 4% of total sales. Composite robots (collaborative robots with mobile bases) have seen a stable growth of 38.8%.
• Industry Comparison: The company's collaborative robot sales exceed those of companies like Robodigm and Huayan; its bodied intelligent robot sales are smaller than those of UbiBot, but the gross profit margin (46.5%) is higher than UbiBot's (37.7%). However, it is lower than Yushu Technology's (60.4%), which benefits from self-developed core components and research partnerships with universities (90% of its customers are academic institutions).

IV. The Sponsoring Institution's Challenges: Lessons from Past Cases

The sponsoring institution responsible for Yuejiang Technology's listing must be cautious, as regulatory scrutiny of their duties is becoming increasingly strict:

• CITIC Securities' Experience: In 2023, when Haodida went public, the sponsor failed to verify changes in the controlling shareholder's equity during a divorce. Even though the company withdrew its application, the sponsor was banned from signing for six months, and CITIC Securities received a warning.
• Yuejiang Technology's Risk: If the equity dispute is confirmed to have been concealed and the sponsoring institution failed to detect it, the institution could face penalties regardless of whether the company passes the review or withdraws its application. After all, "responsibility lies with the sponsor at the time of application," and regulators will not overlook such issues.

Conclusion

Yuejiang Technology's path to listing is hindered by two key issues: the authenticity of the equity dispute and the feasibility of its profit forecasts. If the equity issue is confirmed, the listing may be delayed or canceled. If the profit forecasts fail to materialize, even if the company goes public, it will struggle to attract investors. For ordinary investors, companies that are unprofitable and involved in disputes should be approached with extra caution.