Produced by | Frontier of Entrepreneurship

Art Editor | Xing Jing

Reviewed by | Song Wen

On June 22, Zhuhai Fuji Intelligence Co., Ltd. (hereinafter referred to as "Fuji Intelligence") is set to face a pivotal IPO review at the listing committee meeting.

Fuji Intelligence specializes in precision structural components for consumer electronics and automotive applications, boasting a client roster that includes industry giants such as Sony, TCL, Hisense, BOE, and iFLYTEK.

As Fuji Intelligence proceeds with its IPO bid, the Beijing Stock Exchange has raised concerns about the sustainability of the company's performance growth. Furthermore, the company's R&D expenditure ratio falls below the industry average, and despite its name, Fuji Intelligence lacks a corresponding Chinese-registered trademark—issues that have drawn significant market attention.

Additionally, the company's cash reserves are insufficient to cover its short-term debts, placing it under financial strain due to a tight capital chain.

Whether Fuji Intelligence can convincingly address these concerns to regulatory bodies and the capital market remains to be seen.

Fuji Intelligence was co-founded by Lu Shaozhou and Dong Chuntao, both graduates of Guangdong University of Technology in 1996, who later worked together at Qingmu Electromechanical (Zhuhai) Co., Ltd.

In 2004, Lu Shaozhou and Dong Chuntao jointly established the predecessor of Fuji Intelligence, Fuji Co., Ltd. In November 2020, Fuji Co., Ltd. transitioned into a joint-stock company.

Fuji Intelligence has long harbored ambitions to enter the capital market.

As early as June 2022, the company applied for a GEM IPO on the Shenzhen Stock Exchange but voluntarily withdrew its application after just one round of inquiries, marking its initial failed IPO attempt. In 2025, the company made another bid for the capital market, this time targeting the Beijing Stock Exchange.

(Image/Shutterstock, based on the VRF protocol)

As of the prospectus signing date, the company's actual controllers remain Lu Shaozhou and Dong Chuntao, who hold 32.08% and 31.39% of the equity, respectively. Lu Shaozhou serves as the company's chairman, while Dong Chuntao is a director and general manager, steering the company's development.

Notably, in February 2017, Lu Shaozhou and Dong Chuntao signed a "Concerted Action Agreement," stipulating that the agreement's validity extends to 36 months post-listing and may be extended by mutual consent thereafter.

The agreement further specifies that in the event of disagreements, if consensus cannot be reached during the proposal stage, the submission shall be terminated; if a unified opinion cannot be formed during the voting stage, the proposal shall be jointly rejected.

In response, the Beijing Stock Exchange has sought clarification from Fuji Intelligence on the specific implementation of the relevant clauses of the "Concerted Action Agreement" during the reporting period. It has also inquired about the arrangements between Lu Shaozhou and Dong Chuntao for resolving disagreements in internal corporate governance resolutions, whether instances of disagreement have occurred, whether such disagreements can be effectively resolved, and whether the company may face governance failure or decision-making stagnation due to an inability to form effective proposals or make timely decisions.

Under concentrated shareholding, Lu Shaozhou and Dong Chuntao have also appointed their respective relatives to positions within Fuji Intelligence.

Lu Shaozhou's elder brother, Lu Shaohang, serves as the supervisor of the company's administrative and logistics department and holds a 1.96% stake in the company. Dong Chuntao's younger brother is the supervisor of the production department at Taishan Fuguang and also holds a 1.96% stake.

While Fuji Intelligence has appointed relatives of its actual controllers to company positions, it has also faced challenges with an excessively high proportion of dispatched labor employees. During the reporting period, the proportion of dispatched labor employees at Fuji Intelligence once exceeded 10% of the total workforce, violating relevant regulations and indicating past operational and management flaws.

Currently, Fuji Intelligence is primarily engaged in the R&D, production, and sales of precision structural components for consumer electronics and automotive applications, having entered the supplier systems of renowned clients such as Hisense, TCL, BOE, Changhong, and iFLYTEK.

Its core products fall into two main categories. The first category consists of precision structural components for consumer electronics, including those for display terminals, digital cameras, and other consumer electronics, primarily used in smart TVs, digital camera bezels, and buttons.

(Image/Fuji Intelligence Prospectus)

The second category comprises automotive precision structural components, including battery cell structural parts and battery tray profiles, primarily used in new energy vehicle power battery cell top covers, battery pack enclosures, and for connecting the positive and negative electrodes of battery cells.

(Image/Fuji Intelligence Prospectus)

From 2023 to 2025 (hereinafter referred to as the "reporting period"), Fuji Intelligence's operating revenue was 862 million yuan, 975 million yuan, and 1.189 billion yuan, respectively, with net profits attributable to the parent company of 30.932 million yuan, 81.8396 million yuan, and 87.5411 million yuan, respectively, showing consistent growth in both.

(Image/Wind (Unit: 10,000 yuan))

Among these, precision structural components for consumer electronics contributed more than 60% of the main business revenue, while automotive precision structural components accounted for around 30%.

(Image/Fuji Intelligence Prospectus)

Within the precision structural components for consumer electronics, which contribute the majority of the revenue, revenue from other consumer electronics categories has been consistently declining during the reporting period.

It is reported that the primary customers for these products are companies controlled or participated in by iFLYTEK (hereinafter referred to as "iFLYTEK"), Shenzhen Kutefeng Technology Co., Ltd. (hereinafter referred to as "Kutefeng"), and Miqi Intelligence, with the products mainly used in learning machines, translators, and dictionary pens under iFLYTEK's own brand and its subsidiary brand Alpha Egg.

During the reporting period, Fuji Intelligence's sales revenue to iFLYTEK was 40.7297 million yuan, 16.7648 million yuan, and 16.2863 million yuan, respectively, showing a cumulative decline of 60% over the three years.

At the same time, sales revenue from Kutefeng in 2025 was only 5.8988 million yuan, a year-on-year decline of 60%.

(Image/Fuji Intelligence Inquiry Response)

Expanding its customer base, the company's major clients include renowned enterprises such as Sony, Hisense, and TCL Group.

Sony has been a major client of Fuji Intelligence in 2023 and 2024, with the company primarily selling precision structural components for consumer electronics to Sony. During the reporting period, sales revenue from Sony was 142 million yuan, 156 million yuan, and 94.7221 million yuan, respectively, with a year-on-year decline of 39% in 2025, when Sony became the second-largest client.

(Image/Fuji Intelligence Prospectus)

It is reported that Fuji Intelligence's products sold to Sony are primarily used in smart TV bezels. In 2025, Fuji Intelligence sold 1.2596 million sets of bezels for Sony smart TVs, a year-on-year decline of 29.24%.

This decline is mainly attributed to the decrease in Sony's TV shipments. During the reporting period, Sony's global TV shipments were 5.6471 million units, 4.8377 million units, and 3.8389 million units, respectively, showing a rapid decline.

(Image/Fuji Intelligence Inquiry Response)

According to TrendForce's calculations, global TV shipments are expected to reach 196 million units in 2025. However, due to rising storage chip prices increasing overall costs and weakening terminal consumer demand, global shipments are expected to decline to 194 million units in 2026, a year-on-year decline of 1%, falling below the 200 million unit mark and hitting a near-decade low.

The current sluggish global TV sales are inevitably affecting the performance of suppliers like Fuji Intelligence. The Beijing Stock Exchange has also inquired about the sustainability of the company's performance growth, to which Fuji Intelligence responded that its core operational capabilities and market competitiveness have not undergone substantial changes, and that short-term performance fluctuations do not affect the overall sustainability of its profitability.

However, the authenticity of the company's revenue remains a focal point of external concern. The inquiry response shows that Fuji Intelligence confirms revenue through account reconciliation under different sales models for both domestic and foreign sales. Under the general mode of foreign sales, comparable companies primarily confirm revenue upon obtaining customs declaration forms or bills of lading. For goods in transit, Fuji Intelligence and its intermediaries have not conducted inventories or supervision, with the intermediaries confirming with clients through letter inquiries, with response confirmation rates of 53.79%, 57.61%, and 50.49% for each period.

The response confirmation rate of less than 60% has also raised doubts from the Beijing Stock Exchange about the accuracy of revenue recognition. How Fuji Intelligence will ensure the rigor and authenticity of its revenue accounting in the future remains a crucial issue.

Against the backdrop of intensifying industry competition, innovation has become key to maintaining corporate competitiveness. However, Fuji Intelligence does not have an advantage over its peers in terms of R&D investment intensity.

During the reporting period, the company's R&D expenses were 27.7894 million yuan, 34.5846 million yuan, and 33.1442 million yuan, respectively, accounting for 3.23%, 3.55%, and 2.79% of the operating revenue for each period.

In 2025, while the company's operating revenue continued to grow, R&D expenses declined, leading to a decrease in the R&D expense ratio for the period.

During the same period, the average R&D expense ratio of Fuji Intelligence's comparable peers was 5.85%, 5.38%, and 5.26%, respectively, significantly higher than that of Fuji Intelligence.

(Image/Fuji Intelligence Prospectus)

In response, Fuji Intelligence stated in its prospectus that its relatively low R&D expense ratio is primarily due to the company's operating revenue growth rate exceeding its R&D expense growth rate during the period, with the dilution effect from revenue scale expansion leading to a decrease in the R&D expense ratio.

Furthermore, although Fuji Intelligence's products are sold in both domestic and international markets, the company does not own a registered trademark for the Chinese name "Fuji Intelligence." The prospectus shows that as of December 31, 2025, the company has obtained a total of 11 trademark rights, all of which are English trademarks related to "fujichinon."

(Image/Fuji Intelligence Inquiry Response)

As a domestic enterprise, Fuji Intelligence only holds trademarks with English identifiers, which can easily cause market and downstream customers to confuse brand ownership, while also posing potential operational risks for brand rights protection and domestic market promotion.

Under these circumstances, Fuji Intelligence's decision to pursue a second IPO attempt may be related to its tight capital chain.

During the reporting period, the company's accounts receivable were 304 million yuan, 267 million yuan, and 360 million yuan, respectively, accounting for 30.95%, 27.36%, and 30.24% of the operating revenue for each period, meaning that around 30% of the revenue is "paper wealth," also placing certain pressure on the company's liquidity.

(Image/Fuji Intelligence Inquiry Response)

As of December 31, 2025, Fuji Intelligence's monetary funds were 115 million yuan, while its short-term borrowings were 138 million yuan, with monetary funds insufficient to cover short-term borrowings.

(Image/Fuji Intelligence Prospectus)

Fuji Intelligence stated in its inquiry response that although the company currently has a certain amount of monetary funds, given the high-frequency and large-value operational cash payment demands, the coverage period

As per the prospectus (draft) of Fuji Intelligence, the company had originally intended to raise 408 million yuan, out of which 30 million yuan was specifically allocated for bolstering working capital.

Nonetheless, in the most recent draft presented to the listing committee, Fuji Intelligence has opted to eliminate the working capital supplement initiative. Instead, the entirety of the raised funds is earmarked for investment in production expansion and R&D (Research and Development) infrastructure.

(Figure/Fuji Intelligence Prospectus (Application Version), Fuji Intelligence Prospectus (Final Draft))

On the one hand, Fuji Intelligence has witnessed a consistent year-on-year growth in its revenue scale and boasts a diverse portfolio of renowned end customers. On the other hand, the company is grappling with a decline in downstream market demand, a relatively "sluggish" R&D expenditure ratio, and mounting pressure on its capital chain. The outcome of whether Fuji Intelligence can successfully navigate the upcoming review process remains uncertain, and "New Frontiers of Entrepreneurship" will persist in tracking this unfolding narrative.

*The prominent image featured in this article is sourced from the official website of Fuji Intelligence.