Beijing Stock Exchange Listing Committee at its 73rd review meeting on August 6 chose not to grant direct approval for the initial public offering of Freedom Holding, instead deferring a decision on the automotive lightweight aluminum components maker.

According to the review opinions released by the Beijing Stock Exchange, the listing committee has requested the lead underwriter, reporting accountants, and issuer's legal counsel to further investigate the following matters.

First, the authenticity and clarity of the equity structure. The regulator requires a look-through examination of the actual controllers, former shareholders holding more than 5%, directors, and senior executives to determine whether the identification of related-party relationships between new and old shareholders during historical changes, subsequent capital increases, and transfers of existing shares is accurate, whether the relevant transactions involve other interest arrangements, whether the issuer's equity is clear, and whether there is any nominee shareholding. The issuer must, based on loan agreements, fund flows, repayment plans, and interview records, further explain the true ownership of the equity.

Second, the compliance of fund flows with major suppliers. The regulatory body is highly focused on the fund flows between the company and its key suppliers, requiring an investigation into whether there is any transfer of benefits or off-balance-sheet fund circulation.

Third, the accuracy of revenue recognition under the consignment model. Whether the issuer's revenue recognition under the consignment model is accurate and whether its internal control procedures are sound have also been listed as key items for review.

At the same time, the listing committee questioned the company about the sustainability of its performance. The issuer was asked to explain, based on factors such as its order backlog, projects under development, industry competitive landscape, cost trends, downstream market demand, and overseas sales outlook, whether its revenue and net profit levels are sustainable and whether there is a significant risk of decline.

From a fundamental perspective, Freedom Holding's revenue continued to expand during the reporting period. For the fiscal years 2023, 2024, and 2025, operating revenue stood at 567 million yuan, 739 million yuan, and 828 million yuan, respectively. The share of new energy vehicle parts in total revenue rose from about 23% in 2023 to about 42% in 2025. The company's main customers are well-known domestic and international vehicle and parts manufacturers. The combined sales revenue from the top five customers accounts for about 78% of total sales, indicating a high degree of customer concentration.

Additionally, the company's gross profit margin on its main business has declined for two consecutive years, falling from 22.16% in 2023 to 17.82% in 2025. In the first half of 2026, the comprehensive gross profit margin further slid to 16.06%. The number of new fixed-point projects from major customers has also been shrinking year by year.