IPO Radar | Multiple Risks Converge: Losses at Listing, Chery Dependency, Tianyun Group Holdings

As a company involved in both automotive sunroof and recycled textile industries, Guangde Tianyun New Technology Co., Ltd. (Stock code: 832684, hereafter “Tianyun Co.”)'s IPO application on the Beijing Stock Exchange has attracted significant market attention.

In recent years, Tianyun Co. has experienced rapid performance growth, with 2024 revenue surpassing 500 million yuan and net profit reaching 51.93 million yuan. However, behind these impressive figures, the company faces a 122 million yuan accumulated unamortized loss, heavy dependence on a single customer—Chery Automobile, a contradiction between over 200% capacity utilization and declining revenue, as well as internal control and compliance issues, casting a shadow over the IPO.

Under pressure from special rights-related agreements, the company rushed to list. How will Tianyun Co. respond to investor concerns, and how should its investment value be assessed?

Undistributed profits show a loss of 122 million yuan; is the listing a “blood transfusion” with no dividends?

The most notable issue in Tianyun Co.'s IPO is its “loss-making listing.”

As of June 2025, the company’s undistributed profits stood at -122 million yuan, with a large accumulated unamortized loss. Although Tianyun Co. has been profitable from 2022 to 2024, with net profits of approximately 40.92 million, 23.56 million, and 51.93 million yuan respectively, these profits are still far from offsetting the billion-level historical losses. The company has explicitly stated that it will not pay cash dividends in the short term after listing, meaning investors will likely face a long period without actual returns.

In April 2025, the company’s actual controller, Pan Jianxin, signed agreements with Shenzhen Capital Group and Red Earth Venture Capital: if Tianyun Co. fails to achieve an IPO before December 31, 2026, Pan Jianxin must pay 6 million yuan in cash compensation to the investors and may trigger a share repurchase obligation. Although the agreement states that the repurchase right terminates once the listing application is accepted, failure to list would result in Pan Jianxin facing substantial personal compensation. Based on current shareholding structures, if the full repurchase clause is triggered, Pan Jianxin would need to buy back a total of 14.2% of shares held by Red Earth Venture Capital (9.94%) and Shenzhen Capital Group (4.26%). Using the pre-IPO block trade price of 5 yuan per share, the repurchase amount would be approximately 85 million yuan. For Pan Jianxin, who holds 54.35% of the company, this financial pressure is significant.

Data source: Prospectus

“From the terms of the agreement, this IPO indeed carries a ‘do-or-die’ significance,” said Wang Lei, a primary market investor, to Jiemian News. “But investors are more concerned about whether the company can truly improve its operational quality through fundraising, rather than just avoiding penalty payments. If the fundraising does not lead to expected business growth, the company will face a dilemma of ‘no dividends capability and no performance growth.’”

Dependence on Chery

During the reporting period, Tianyun Co.'s sales to Chery Automobile increased sharply from 29.81% in 2022 to 82.61% in 2024. Although it slightly declined to 72.18% in the first half of 2025, dependence on a single customer remains severe. Under the common industry practice of “annual price reduction” (where customers require suppliers to lower prices each year), such high dependence significantly weakens the company’s bargaining power.

The average selling price of automotive sunroof assemblies dropped from 1,252.55 yuan per set in 2022 to 939.17 yuan in the first half of 2025, a cumulative decrease of 25%. While this downward trend aligns with industry norms, it also reflects the company’s passive position in price negotiations. Although Tianyun Co. has extended its supply chain vertically (such as producing glass edging and guides in-house) to offset some price pressures, with a dominant single customer, how much room for further price cuts remains?

Data source: Prospectus

“Once Chery pushes down prices, Tianyun has almost no bargaining chips,” Wang Lei continued. “More dangerously, if Chery’s sales decline in the future or it develops its own sunroof supply chain or switches suppliers, Tianyun’s performance could suffer catastrophic damage. Although the company mentions entering JAC Motors’ supply system and engaging with SAIC Group, new customers take time from onboarding to mass production, so short-term risk hedging is unlikely.”

Additionally, accounts receivable of 1.9 billion yuan account for 51.07% of total receivables, with collection cycles also worth noting. While Tianyun Co. claims that main customers’ payments are good, such concentrated receivables mean that Chery’s operational fluctuations could directly impact Tianyun’s asset quality. If Chery extends payment periods or faces credit issues, the company faces significant bad debt risks.

Data source: Prospectus

More concerning is deteriorating profitability. In 2024, gross profit margin for air conditioning parts plummeted to 7.30%, far below the approximately 18% in previous years; automotive interior parts’ gross margin declined from 33.95% in 2022 to 28.46%. The company attributes the drop in air conditioning parts margin to product structure changes but provides no detailed explanation. Such a sharp decline in gross margin usually results from multiple factors, including customer price pressure, rising raw material costs, and declining product competitiveness. If not addressed promptly, these two segments could shift from profit contributors to performance draggers.

The paradox of over 200% capacity utilization and revenue decline

Regarding fundraising, Tianyun Co. plans to raise 225 million yuan, with 115 million yuan allocated to expanding automotive sunroof and canopy production, 33.22 million yuan to new functional materials for vehicles, 46.85 million yuan to R&D center construction, and 30 million yuan to working capital. In 2024, the company’s automotive sunroof capacity utilization reached 199.92%, indicating severe overcapacity, making expansion necessary. However, the contradiction is that in the first half of 2025, revenue from automotive sunroofs was only 1.67 billion yuan, down 6.54% year-on-year, with sales volume increasing slightly by 1.73%, but prices dropping by 8.13%. Despite capacity being nearly maxed out, performance declined, casting doubt on the prospects of absorbing the new capacity.

Wang Lei commented, “If capacity utilization is at 200%, it indicates full order books, and the company should be operating at full capacity, with revenue growing in line with sales. But the revenue decline in the first half suggests either insufficient orders or a price war squeezing margins. The company claims it’s due to product price declines, but price drops often result from customer pressure or intensified market competition. In this scenario, investing another 148 million yuan to expand capacity—adding 400,000 sets—who will absorb this extra output?” The automotive parts industry is cyclical; if downstream demand weakens, high fixed asset investments will become a burden.

Tianyun Co. forecasts that after reaching full capacity, annual revenue could reach 416 million yuan with a total profit of 43.14 million yuan. However, this forecast relies on optimistic market assumptions. According to the “2025-2031 China Automotive Sunroof Industry Market Research and Investment Outlook Report” by Zhiyan Consulting, China’s total automotive sunroof sales in 2024 were 16.88 million sets, with Tianyun’s sales at 384,400 units, accounting for only 2.28%. In such a fragmented market, adding 400,000 units of capacity would require doubling market share. The main customer, Chery, is also developing its own supply chain, raising uncertainty about sustained incremental orders.

Data source: Prospectus

Accounts receivable “dam” and inventory impairment risks

Tianyun Co.'s financial statements also highlight concerns regarding receivables and inventories. As of June 2025, accounts receivable stood at 2.38 billion yuan, accounting for 42.5% of total assets and 112.9% of current operating income, indicating significant capital occupation.

More worrying is the quality of receivables. Over 1.2 billion yuan of accounts receivable have been fully provisioned for bad debts, meaning these amounts are unlikely to be recovered long-term. The aged receivables over five years total 1.2 billion yuan. Although the company has not disclosed specific customers involved, such high bad debt provisions reflect weaknesses in customer credit management and collection.

Regarding inventories, at each period-end, inventory balances were 7.13 million, 7.27 million, 7.80 million, and 6.46 million yuan, respectively, remaining sizable. Tianyun Co. adopts a “just-in-time” production model based on sales, but given rapid model updates in the automotive industry, demand fluctuations or model discontinuations could heighten inventory impairment risks. While this approach helps lock in customers, it also shifts inventory risks onto the company. Compared to industry peers, Tianyun’s 2024 inventory turnover rate was 5.20 times, lower than Huizhong Holdings (10.70) and Mosentec (11.32), indicating below-average efficiency.

Additionally, the subsidiary Zhongshan Tianjiao has experienced severe overcapacity, with overproduction rates of 91.28% in 2022 and 111.49% in 2023. Although the company claims to have rectified and closed some production lines, such overcapacity reveals management issues. More critically, Anhui Anjian Sunroof’s capacity utilization rate is also 199.92%, raising concerns about potential environmental or safety hazards from overproduction.

Overall, while the growth potential of the automotive sunroof market and policy support for recycled textiles offer development opportunities, the massive unamortized losses, customer dependence, financial data flaws, and compliance risks make Tianyun Co.'s listing journey uncertain.