Pure materials "entering the challenge with issues"? The connection between the secretary and the auditing firm draws attention, with performance growth accompanied by multiple controversies

How does the professional relationship between AI, the Secretary of the Board, and auditing agencies affect IPO review?

Phoenix Finance “IPO Observation Watch”

Chengdu Ultra-Pure Application Materials Co., Ltd. is advancing its IPO process. The company was founded by Chai Jie in 2005. As a domestic enterprise in the field of special coating components for semiconductor equipment, Chai Jie currently serves as Chairman and General Manager of the company. Along with his brother Chai Lin, as a concerted action person, they control a total of 68.84% of the voting rights, making them the company’s core controllers.

Relying on the wave of domestic substitution, the company has achieved simultaneous growth in revenue and profit, but the prospectus also reveals multiple controversies such as high customer and supplier concentration, high accounts receivable, weak R&D investment, corporate governance, and fundraising rationality. The quality of its growth and long-term risk resistance capacity have attracted market attention.

From the company’s own operations and compliance perspective, several controversy points are prominent. The background of the company’s Secretary of the Board has also raised concerns about the independence of the audit. It is reported that the current Secretary, Zhou Zhe, previously worked at Tianjian Certified Public Accountants, and during his tenure, he had signed audit projects with Li Yuanliang, the signing accountant from Tianjian CPA for this IPO, with whom he has a clear professional relationship.

According to requirements related to audit independence, the audit institution and signing accountant should maintain sufficient independence from key personnel of the audited entity to avoid any relationships that could affect audit fairness. The past collaboration between the Secretary and the signing accountant has led the market to question the independence of this IPO audit work, worrying that it may influence the objectivity and fairness of the audit conclusions.

Under the background of “strictly controlling the issuance and listing process and preventing ‘diseased applications’,” this relationship has become a core focus of external attention and regulatory inquiry.

On the financial data front, the controversies surrounding Chengdu Ultra-Pure Materials are also concentrated. The company’s accounts receivable remain high, with ongoing pressure on cash collection. From 2023 to 2025, accounts receivable are projected at 90 million yuan, 156 million yuan, and 207 million yuan respectively. The accounts receivable turnover rates are poor: 1.83 times/year in 2023, 1.8 times/year in 2024, and although slightly rebounding in 2025, they remain below the industry average.

Meanwhile, the concentration of customers and suppliers remains high. The top five customers account for over 89% of revenue, with the top two customers alone exceeding 60%, including related parties. The procurement share of the top five suppliers is also high, with weak bargaining power over upstream and downstream partners, and operational stability is significantly affected by reliance on single partners.

Regarding R&D investment, the company’s R&D expense ratio further declined in 2025, which does not align with the high-tech nature of the semiconductor component industry, raising doubts about its long-term technological competitiveness.

Whether Chengdu Ultra-Pure Materials’ IPO can successfully pass depends not only on its solid performance in 2025 but also crucially on whether it can address the core issues mentioned above. The relationship between the Secretary of the Board and the audit institution is particularly prominent and cannot be ignored. As a key factor affecting audit independence, the past professional relationship between the company’s Secretary and the IPO’s signing accountant has become a core focus of regulatory inquiries and market attention. How well it can respond to this controversy and ensure the objectivity and fairness of the audit work is an essential prerequisite for its IPO success.

Meanwhile, the company also needs to focus on optimizing the highly concentrated customer and supplier structure, alleviating accounts receivable pressure, and increasing R&D investment intensity. Only by developing practical solutions and effectively resolving potential risks—including the controversy over audit independence—can it gradually dispel market doubts about its long-term development potential and achieve sustained, steady growth amid the wave of domestic semiconductor substitution.