Under the leadership of founder Meng Changmin, Guangdong Kesheng CNC Technology Co., Ltd. (hereinafter referred to as "Kesheng CNC") is making a push into the capital market. According to the schedule, the company's STAR Market IPO will be reviewed at a hearing on August 17.

Based on the latest prospectus disclosure, Kesheng CNC's accounts receivable have continued to expand. As of the end of 2025, the book value of the company's accounts receivable was approximately 249 million yuan, accounting for 40.84% of current assets. Additionally, in 2021, Kesheng CNC acquired equity in Shanghai RuiNaKe CNC Technology Co., Ltd. (hereinafter referred to as "RuiNaKe"), resulting in goodwill of 71.6906 million yuan.

Accounts Receivable Continues to Climb

According to the arrangement, the Shanghai Stock Exchange's Listing Review Committee is scheduled to convene the 47th Listing Review Committee meeting of 2026 on August 17 to review Kesheng CNC's initial public offering application. The company's IPO application was accepted in June 2025 and entered the inquiry stage in July of that year.

Data shows that Kesheng CNC is primarily engaged in the research, development, production, and sales of all-direct-drive CNC machine tools and CNC system products. Looking at Kesheng CNC's financial data, during the reporting period, the company's revenue and net profit have shown continuous growth. From 2023 to 2025, Kesheng CNC achieved operating revenues of approximately 253 million yuan, 317 million yuan, and 409 million yuan, respectively; corresponding net profits attributable to the parent company were approximately 35.6109 million yuan, 63.2374 million yuan, and 76.4823 million yuan.

However, behind this impressive performance, Kesheng CNC's accounts receivable have persistently risen. At the end of each reporting period, the book value of the company's accounts receivable was approximately 113 million yuan, 170 million yuan, and 249 million yuan, respectively, accounting for 29.13%, 28.96%, and 40.84% of current assets, and 44.61%, 53.83%, and 60.83% of operating revenue. Furthermore, Kesheng CNC's accounts receivable turnover ratio has shown a declining trend. During the reporting periods, the company's accounts receivable turnover rate was 2.82 times/year, 2.23 times/year, and 1.95 times/year, respectively.

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, told a Beijing Business Today reporter that high accounts receivable, on one hand, ties up a significant amount of the company's funds as they are occupied by customers, putting pressure on cash flow; on the other hand, the risk of bad debts may also erode the company's profits. Reviewing the list of Kesheng CNC's top five customers reveals the presence of Foxconn and Changying Precision. In 2025, Kesheng CNC's sales to its largest customer, Foxconn, and second-largest customer, Changying Precision, were approximately 25.0508 million yuan and 14.2707 million yuan, respectively, accounting for 6.13% and 3.49% of operating revenue.

Notably, Changying Precision also has a related-party relationship with Kesheng CNC. As of the signing date of the prospectus, Changying Precision's actual controller Chen Qixing and his daughter Chen Xi collectively held 2.88% of Kesheng CNC's shares through Changyingxin Investment, which also ranks as Kesheng CNC's eighth-largest shareholder.

71.6906 Million Yuan in Goodwill Looms Large

As it approaches its IPO, Kesheng CNC carries over 70 million yuan in goodwill on its books. Specifically, in 2021, Kesheng CNC acquired a 100% equity stake in RuiNaKe. Kesheng CNC acquired a 51.44% equity stake in RuiNaKe through a cash transaction, obtaining control; it then acquired the remaining 48.56% equity stake in RuiNaKe through a share exchange. As of the end of 2025, the goodwill from this acquisition amounted to 71.6906 million yuan, accounting for 6.93% of the company's total assets.

Data shows that RuiNaKe's founder is Yao Dan, who holds 3.67% of Kesheng CNC's equity, ranks as its seventh-largest shareholder, and serves as a director and core technical personnel of Kesheng CNC, as well as the chairman of RuiNaKe. In terms of control, Kesheng CNC's controlling shareholder is Shenzhen Zhongrun Industrial Investment Enterprise (Limited Partnership) (hereinafter referred to as "Zhongrun Investment"); the actual controller is Meng Changmin, who directly holds 17.55% of the company's shares, controls the voting rights of 29.2% of the company's shares by serving as the executive partner of Zhongrun Investment, and controls a total of 46.75% of the company's voting rights. Additionally, Meng Changmin's spouse, Wang Yun, indirectly holds 14.6% of Kesheng CNC's shares through Zhongrun Investment and is a person acting in concert with the actual controller. According to his resume, Meng Changmin, born in 1981, serves as the company's chairman, general manager, and core technical personnel; Wang Yun, also born in 1981, works in the company's general manager's office.

For this IPO, Kesheng CNC plans to raise approximately 719 million yuan, which will be invested in a CNC machine tool production base construction project, a new generation intelligent CNC system research and development construction project, a CNC machine tool overall processing solution research and development project, and supplementary working capital. Regarding these issues, a Beijing Business Today reporter sent an interview request to Kesheng CNC, but had not received a response from the company as of the time of publication.