Author: Li Li, Researcher from Quanheng Finance iqhcj

Editor: Xu Hui

Escort Technology Co., Ltd. (hereinafter referred to as "Escort Technology"), which has been inquired on May 28, intends to list on the Beijing Stock Exchange, with its sponsor being Capital Securities. The company plans to publicly issue no more than 26,500,000 ordinary shares to unspecified qualified investors (excluding the option of over-allotment for this issuance). The company and the lead underwriter will consider adopting the over-allotment option based on the specific issuance situation, with the number of shares issued through the over-allotment option not exceeding 15% of the total number of shares issued this time. If the over-allotment option is fully exercised, the number of shares issued this time will increase to no more than 30,475,000 shares. The company plans to raise 185.5 million yuan to upgrade its operation and maintenance service capabilities and service platform construction projects, upgrade its R&D center, and supplement working capital (40 million yuan).

Escort Technology's equity is relatively dispersed, with many executives graduating from Peking University and having served in Lenovo and auditing firms; revenue growth is slow, net profit continues to decline, and gross profit margin is higher than peers; nearly 30% of third-party technical service procurement, with only 2 invention patents; suppliers are concentrated, and the quality of the top five in 2020 is questionable, with the top five customers accounting for more than 30%.

Equity is relatively dispersed, with many executives graduating from Peking University and having served in Lenovo and auditing firms.

The company was founded in June 2005 and listed on the stock transfer system for public transfer in November 2016, and was adjusted to the innovation layer in May 2020. From the listing to February 1, 2021, the company's lead broker was China Securities Co., Ltd. From February 1, 2021, to December 8, 2022, the company's lead broker was Minsheng Securities. From December 8, 2022, to the date of signing the prospectus, the company's lead broker is Capital Securities. During the reporting period, the company's annual report auditing institution was Rongcheng, and the auditing institution did not change.

During the reporting period, Escort Technology had two targeted issuance financings. On December 24, 2019, the company issued 4,640,000 ordinary shares, with a price of 3.00 yuan per share, raising a total of 13.92 million yuan. The targeted issuance objects were 11 natural persons, including 6 shareholders, directors, and senior managers of the company, and 5 external investors introduced for strategic cooperation resources. In October 2021, the company conducted its second targeted issuance, issuing 6,760,000 shares, with a price of 4.08 yuan per share, raising a total of 27.5808 million yuan. The main targets were Shenzhen Wanwu Investment Consulting Co., Ltd. and Wang Shiying, with the former's actual controller being Hu Fengrui.

As of the date of signing the prospectus, Chenglixin directly holds 28,768,699 shares of the company, accounting for 27.89% of the company's total share capital before this issuance, making it the company's largest shareholder. Through signing a "Unanimous Action Agreement" with Cai Jing and Yuan Yueling, Chenglixin can control the company's voting rights ratio to 48.37% and simultaneously serves as the chairman and general manager of the company, having a significant impact on the company's shareholders' general meeting, board of directors' major decisions, and business operations. It is the controlling shareholder and actual controller of the company.

Quanheng Finance iqhcj noticed that Chenglixin