: "Ankait IPO 'terminated' the risk of the company's core technology being imitated and replaced."

On February 28th, Jiangsu Ankait Technology Co., Ltd. (referred to as "Ankait") had its IPO status on the Shanghai Stock Exchange changed to "terminated" due to the company and its sponsors withdrawing the application for listing. According to the prospectus, Ankait has been focused on the electrochemical field, mainly engaged in the research, development, production, and sales of electrolysis equipment and its key components. The company's main products are electrolysis electrodes, electrolysis tanks, and accessories, with electrolysis electrodes being the core components of electrolysis tanks determining their efficiency. Both electrolysis electrodes and tanks are consumables. Electrolysis tanks are essential production equipment in downstream customer production processes, serving as the site for electrolytic chemical reactions and can be applied in various fields. The company's products are mainly used in the chlor-alkali industry, with extensions into electrolytic copper foil, environmental protection, and other industries. In the reporting period, the revenue from products used in the chlor-alkali industry accounted for 90.37%, 91.74%, 82.64%, and 74.79% of the company's total revenue. Ankait has independently developed key technologies in the field of ion membrane electrolysis tanks, including electrolysis electrode metal compound coating formulas and production processes, electrolysis electrode structure design, and electrolysis tank structure design. In terms of technological strength and product quality, the company's capabilities are comparable to well-known domestic and foreign manufacturers such as Asahi Kasei, ThyssenKrupp, INEOS, Dow, and Beijer. Leveraging its technological advantages, brand strength, management advantages, and quality advantages accumulated since its establishment, the company has formed strong competitiveness in the field of electrolysis tanks and has high brand recognition in the chlor-alkali industry. As a high-tech enterprise with independent research and development capabilities, Ankait possesses multiple proprietary knowledge and advanced electrode coating technologies in the electrolysis tank industry, giving it a strong competitive edge. According to market data published by the China Chlor-Alkali Industry Association, Ankait's market share in the domestic electrolysis tank stock market from 2019 to 2021 was 19.1%, leading other competitors. The company's domestic customers include large state-owned or publicly listed chemical groups such as Luxi Chemical Group, DONGYUE GROUP, Yihua Group, China National Salt Industry Corporation, and Hengtong Chemical. Moreover, with its technical strength, product quality, service quality advantages, and relatively competitive prices compared to internationally renowned manufacturers, Ankait has achieved positive results in developing foreign customers. In the reporting period, the company's foreign customers mainly included global industrial giants such as Dow Chemical Group, Olin Corporation, and Jinguang Group, establishing a certain level of recognition in Southeast Asia, Europe, the Americas, and other regions. In terms of financials, in the fiscal years 2019, 2020, 2021, and January to June 2022, the company's operating income was approximately 273 million yuan, 246 million yuan, 289 million yuan, and 158 million yuan, respectively. After deducting non-recurring gains and losses, the net profit attributable to the company's owners was 71 million yuan, 55.05 million yuan, 70.66 million yuan, and 37.60 million yuan, respectively. Overall, the company's operating performance showed a growing trend during the reporting period. It is worth noting that Ankait mentioned in its prospectus that the company faces risks of its core technology being imitated and replaced. The production of the company's products heavily relies on core technologies related to electrolysis tank structures, electrode materials, and coatings. During the reporting period, revenue from core technology products accounted for 83.50%, 78.87%, 82.96%, and 81.24% of the total operating income. If competitors imitate the company's core technology or develop superior technologies such as electrolysis electrode coatings, it may impact the company's technological advantages and market position, consequently affecting its business performance.