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

Port Business Observer by Shi Zifu

On March 20, the Beijing Stock Exchange Listing Committee will hold the 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. Since 2017, over nearly ten years, the company has attempted IPO four times, experiencing on-site inspections, transfer for investigation, and issuance of warning letters. Moreover, the company’s fundraising amounts have fluctuated significantly, and the four major controlling shareholders’ cash-out dividends have raised questions about the reasonableness and necessity of Jieli Technology’s listing.

1

Performance Fluctuations in 2025, Improvement in Q1

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

From 2022 to 2024 and January-June 2025 (hereinafter referred to as the “reporting period”), sales revenue from Bluetooth earphone chips was 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 the main business revenue during each period. The high proportion indicates their importance. In the first half of 2025, due to market competition, sales declined somewhat.

Meanwhile, revenue from Bluetooth speaker chips was 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. Revenue from IoT terminal chips was 251 million yuan, 328 million yuan, 390 million yuan, and 198 million yuan, representing 11.06%, 11.21%, 12.51%, and 14.46%.

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% decrease year-over-year in 2025. For Bluetooth speaker chips, sales were 459 million, 553 million, 741 million, and 753 million units, with a 1.64% increase in 2025.

Because some series of Bluetooth earphone chips are in the upgrade phase, changes in market share and segment market size have caused significant fluctuations in performance. 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.

Year-over-year, the company’s operating income changed by +29.29%, +6.47%, and -4.58%; net profit changed by +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 margin and return on equity (ROE) fluctuated, with gross margin below industry average.

During the reporting period, gross 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/losses was 13.35%, 22.08%, 22.46%, and 6.86%. In comparison, the industry average gross 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 prices of main products decreased, leading to lower gross margins, which fell below the industry average.

The decline continued. In 2025, Jieli Technology’s revenue was 2.804 billion yuan, down 10.12% year-over-year; net profit was 596 million yuan, down 24.74%; and net profit after non-recurring items was 545 million yuan, down 25.83%.

Regarding the reasons for the performance decline in 2025, Jieli Technology explained: mainly due to uncertainties in international trade policies, causing fluctuations in customer procurement demand; fierce competition in the consumer electronics market, leading to lower product prices and gross margins; Bluetooth earphone sales accounting for over 40% of total sales, with sales of mid- and low-end chips declining due to market competition; and the previous year’s low wafer procurement costs temporarily inflated gross margin and net profit levels.

Preliminary estimates suggest that in Q1 2026, the company expects revenue of 670 million to 730 million yuan, a year-over-year increase of approximately 14.24% to 24.47%; net profit attributable to parent of about 146 million to 156 million yuan, up roughly 7.22% to 14.56%; and net profit after deducting non-recurring gains and losses of about 133 million to 143 million yuan, an increase of approximately 12.16% to 20.60%.

2

High Supply Chain Dependence and Rising Inventory

Jieli Technology’s upstream and downstream supply chain features high concentration.

Major suppliers include well-known wafer manufacturers and testing, packaging, and supporting chip companies such as Huahong Group, Huatian Technology, Mifitek, Unigroup TsingTao, 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, indicating high concentration.

On the sales side, the company’s 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 revenue.

To ensure smooth operations, Jieli Technology procured and stocked large quantities 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 the end of periods.

The company’s inventories consist of entrusted processing materials and finished 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. The inventory impairment provisions were 81.76 million yuan, 125 million yuan, 70.33 million yuan, and 47.37 million yuan.

In terms of turnover, inventory turnover ratios were 2.11, 3.32, 3.15, and 2.51 times per year.

Increased stocking has also impacted cash flow. Net cash flows from operating activities were 778 million yuan, 842 million yuan, 455 million yuan, and 247 million yuan, respectively. In 2024, cash flow from operations declined year-over-year; in the first half of 2025, it further decreased.

As of the end of 2025, net cash from operating activities was 513 million yuan, up 12.85% year-over-year.

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

Meanwhile, the company’s asset-liability ratio (consolidated) was low, at 15.64%, 13.65%, 8.4%, and 7.14%. Liquidity ratios were strong, with current ratios of 4.21x, 4.73x, 8.77x, and 11.32x; quick ratios of 2.6x, 3.53x, 6.4x, and 8.61x, indicating good short-term solvency.

3

A Bumpy IPO Path with Multiple Fundraising Adjustments

The most关注 during this review is undoubtedly the company’s troubled and complex IPO history.

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

In October 2018, the company submitted a second application to the SSE 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 the application.

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

According to the warning letter, during 2015-2016, the company used personal bank accounts for transactions, receiving 70.84 million yuan and paying 69.99 million yuan in 2015, and receiving 13.3 million yuan and paying 11.26 million yuan in 2016. From 2014 to 2018, funds totaling 3.7327 million yuan were transferred from this personal account to the company’s controlling shareholders, actual controllers, and related parties.

Due to setbacks in both IPO attempts, in September 2021, Jieli Technology shifted focus to the Shenzhen Stock Exchange 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 application in August 2022, ending the IPO attempt on ChiNext.

The prospectus submitted for ChiNext indicated a planned fundraising of up to 2.5 billion yuan. Besides routine expansion projects, the company planned to raise 1.1 billion yuan for working capital.

After the ChiNext failure, Jieli Technology turned 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.

The latest prospectus shows a planned raise of 681 million yuan, with 321 million for smart wireless audio technology upgrades and industrialization, 208 million for smart wearable chip upgrades and industrialization, and 152 million for AIoT edge computing chip R&D and industrialization.

Renowned tax and finance expert Liu Zhigeng commented: “Jieli Technology’s IPO fundraising amount was sharply cut from 25 billion yuan to 6.8 billion yuan mainly due to market environment changes, ongoing regulatory scrutiny of past internal control issues, and the company’s own solid financial position raising doubts about the necessity of further fundraising. Coupled with performance ‘fluctuations’ and doubts about growth potential, the company has had to continually lower its fundraising expectations to get approval.”

He explained that this adjustment is not simply strategic contraction but a passive correction under multiple pressures, attributable to five main reasons:

First, repeated internal control issues and regulatory questioning have hindered IPO progress; second, the company’s strong financial position—large dividends and fundraising simultaneously—raise questions about motives; third, performance has ‘flipped,’ with growth and profitability declining; fourth, products lack core competitiveness, falling into low-end price wars; fifth, the use of raised funds has been repeatedly changed, lacking clear strategic planning.

Despite ample cash and low debt ratios, the company paid dividends of nearly 996 million yuan, 2 billion yuan, and 999.9 million yuan in 2022-2024, totaling about 4 billion 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 Jieli Technology, controlling 17.54% of shares and voting rights directly. They also held 37.69%, 15.75%, 11.26%, and 4.70% of Zhuhai Gaoqi, respectively, controlling 69.40% of Zhuhai Gaoqi’s shares and controlling Zhuhai Gaoqi. Through this, they indirectly control 63.01% of Jieli Technology’s voting rights, totaling 80.55% control both directly and indirectly.

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

Liu Zhigeng pointed out: “Jieli Technology’s large dividends during IPO, while seemingly legal, have triggered deep market doubts about its motives, 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 paid out about 869 million yuan in cash dividends, nearly 400 million yuan from 2022 to 2024 alone. As of the end of 2025, the company’s cash holdings reached 1.467 billion yuan, with an additional 865 million yuan in large fixed deposits and term deposits, totaling over 2.3 billion yuan, with no bank loans. Such ample funds, yet still paying dividends and seeking IPO funds, is hard to justify logically. Behind this behavior are three risks:

1. Strong suspicion of controlling shareholders cashing out, potential利益 transfer. Large-scale distribution of retained earnings to original shareholders, with public investors filling the gap, essentially shifts future risks onto new investors.

2. Serious doubts about the necessity of further fundraising, contradicting IPO’s fundamental purpose of financing future growth.

3. Continued governance flaws and unresolved internal control issues. Dividend decisions reflect governance imbalance; in an immature governance structure, large dividends resemble ‘control benefits’ rather than shareholder returns.

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

Additionally, the latest prospectus reveals ongoing litigation issues worth noting.

Before the reporting period, Jieli Technology, its controlling shareholders, actual controllers, and some employees were involved in criminal and 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 opinion that the involved technology from Hong Kong Zhuorong does not belong to undisclosed technical information, and the case was withdrawn before the reporting period. For civil cases, courts did not find infringement or trade secret violations; the involved technology was recognized as public and open-source. Hong Kong Zhuorong and Zhuhai Jianrong had withdrawn these lawsuits before the reporting period.

The first round of inquiry from the Beijing Stock Exchange focused on whether the company engaged in 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 what was disclosed in the prospectus, other issues included social security and housing fund payments, delays in property registration, incomplete contractual documentation with major customers, procedural issues in document stamping, and internal management irregularities among sales staff.

The company emphasized that some employees misunderstood internal management policies, and there were flaws in policy enforcement. The company has conducted self-inspections and rectifications, established sound internal management systems, and ensures effective implementation. (Produced by Port Finance)