Bozhong Baoda's IPO on the Shanghai Stock Exchange has been terminated with over 70% of its revenue coming from a single customer.

On August 6, Jiangsu Baozhong Baoda Pharmaceutical Co., Ltd. (referred to as: Baozhong Baoda) terminated its IPO on the Shanghai Stock Exchange. The IPO was terminated because Baozhong Baoda and the underwriters withdrew their application for listing. According to the relevant provisions of the "Shanghai Stock Exchange Stock Issuance and Listing Review Rules" Article 63, the Shanghai Stock Exchange terminated the review process for their IPO. According to the prospectus, Baozhong Baoda is mainly dedicated to providing customized production services for global renowned companies in crop protection, new materials, and pharmaceutical industries, as well as engaging in the production and sales of some animal protection and pharmaceutical products. The customized production services provided by the company to multinational enterprises involve the deep integration of research and production of compound process routes. Currently, the company mainly provides customized production services of crop protection active ingredients and lithium materials for global leading companies such as FMC in crop protection and LIVENT in lithium materials, making it one of the few customized production service providers globally. In recent years, leveraging its competitive advantages in the crop protection and new materials sectors, Baozhong Baoda has actively expanded its customer base and ventured into new areas. It has established business cooperation relationships or engaged in development activities with global renowned companies such as Corteva, BASF, Solvay, Patheon, and Sinochem Pharmaceutical, providing services in the development and industrialization of synthetic process routes for innovative drugs and products, continuously extending its customized production business. In terms of industry competitors, global leading companies like Lonza, Catalent, and DSM cover a wide range of sectors and serve large pharmaceutical companies, biotechnology companies, crop protection enterprises, and chemical groups. In China, companies like HeQuan Pharmaceutical in the pharmaceutical field, Asymchem Laboratories, and Porton Pharma Solutions, as well as companies like Lianhe Chemical Technology, ABA Chemicals Corporation, and Baozhong Baoda in the crop protection field, are actively participating in global market competition. In the crop protection customized production field where Baozhong Baoda operates, major domestic companies include Lianhe Chemical Technology, ABA Chemicals Corporation, and Kingchem. According to Frost & Sullivan's statistics, by 2022, Baozhong Baoda holds a 5.24% market share in the domestic crop protection customized research/production market. Financially, in the years 2020, 2021, and 2022, Baozhong Baoda achieved revenues of approximately 812 million, 908 million, and 946 million yuan respectively, with net profits of around 134 million, 309 million, and 323 million yuan during the same period. As mentioned in the prospectus, Baozhong Baoda faces risks related to high customer concentration. Currently, the company mainly provides crop protection active ingredients and lithium material production services to global leading companies FMC and LIVENT, making it one of the few customized production service providers globally. During the reporting period, sales revenue from the top five customers accounted for 94.01%, 93.74%, and 95.15% of the revenue respectively, with sales revenue from FMC accounting for 77.05%, 73.58%, and 73.64% of the total revenue, indicating a high customer concentration. If there are unfavorable changes in cooperation with downstream major customers in the future, or if market share decreases due to industry cycle fluctuations or increased competition, it may lead to a reduction in purchases from major customers, negatively impacting the company's business development.