Chinading Hengsheng's GEM listing IPO "terminated". The company's main business is research, production, and sales of diaphragm compressors and its core components.

On March 4th, Zhongding Hengsheng Gas Equipment (Wuhu) Co., Ltd. (hereinafter referred to as Zhongding Hengsheng) terminated its IPO review status on the Shenzhen Stock Exchange's ChiNext board. This was due to Zhongding Hengsheng withdrawing its application for the issuance of public shares and listing. According to the Shenzhen Stock Exchange's regulations on the review of stock issuance and listing (Article 62), the exchange decided to terminate the review process for its initial public offering of shares on the ChiNext board. The prospectus revealed that Zhongding Hengsheng's main business is the research and development, production, and sales of diaphragm compressors and their core components. The company's diaphragm compressors are mainly used in various fields such as hydrogen and special gas preparation and filling, chemical industry, hydrogenation stations, military industry, and nuclear power. Many key performance indicators of the company's diaphragm compressors are leading in the industry. The average lifespan of its diaphragm can reach over 8,000 hours, far exceeding the industry standard requirement of over 2,000 hours. Its energy efficiency index can be as low as 0.15 kW/(m3/h), much lower than the industry standard requirement of 0.43 kW/(m3/h). In addition, the company's research and production capabilities in producing diaphragm compressors with large volume flow rate and high exhaust pressure can reflect the overall technological level of diaphragm compressor production enterprises. The company's diaphragm compressor products have a maximum volume flow rate of 9,000 Nm3/h, and it is one of the few companies in China that can design and produce diaphragm compressors with exhaust pressure above 90MPa. The company has become a well-known equipment supplier for gas preparation industry leaders such as Suzhou Jinhong Gas Co., Ltd., Peric Special Gases, Guangdong Huate Gas Co., Ltd., Befar Group, as well as leading companies in the chemical industry such as Sinopec, PetroChina, Sinochem, Wanhua Chemical Group, Hangjin Technology, Guangzhou Tinci Materials Technology. It has also established close cooperation with major domestic hydrogen station construction companies such as Shanghai Shunhua, as well as military equipment suppliers like Senlo Shares. Financially, in the years 2020, 2021, and 2022, Zhongding Hengsheng achieved operating revenues of approximately 70.34 million yuan, about 142 million yuan, and about 240 million yuan, respectively. During the same period, the company achieved net profits of 17.18 million yuan, 38.47 million yuan, and 73.6743 million yuan, respectively. It is worth noting that in the prospectus, Zhongding Hengsheng mentioned the risk of fluctuating raw material prices. The company stated that during the reporting period, the main operating costs were mainly composed of direct materials. Among the company's main raw materials, the prices of metal materials such as pump valves, motors, cylinder blocks, and cylinder heads are greatly affected by fluctuations in prices of bulk commodities such as steel. The company considered factors such as price, quality, production supply capacity, and customer specified requirements to reasonably determine the procurement quantities of various raw materials. If there are significant and sustained fluctuations in raw material prices in the future, it will have an adverse impact on the company's operating performance.