Jinge New Materials IPO, R&D team "a bit weak" draws regulatory attention; both CICC underwriters have no prior sponsorship experience

2026-04-03 15:22:48

Source: Fundamental Analysis Force Field

Recently, a company has been applying for an IPO on the Beijing Stock Exchange. Its full legal name is Guangdong Jingo New Materials Co., Ltd. The stock abbreviation is Jingo New Materials (873524.NQ). The sponsor is CICC (601995.SH). The sponsor representatives are Du Shu and Pan Chen.

Public information disclosure shows that Jingo New Materials’ core products are functional fillers among polymer materials. According to a certificate issued based on powder technology by the China Electronic Materials Industry Association, the company’s high-performance thermal conductive fillers for electronic appliances have reached a leading level in performance, and its market share ranks among the top positions in the domestic industry.

In terms of performance, it still looks decent: both 2024 and 2025 achieved double growth in revenue and net profit. The year-over-year increases in net profit were 14.76% and 21.3%, respectively. Compared with these disclosed figures, what caught the attention of Force Field Jun is the situation of the R&D team that had previously been重点关注 by the regulators.

In the first-round review inquiry letter, regulators raised the issue that “among the R&D personnel, there are professionals in management disciplines and other categories.” In the second-round review inquiry letter, they again required the company to explain the “background and reasons for bringing some personnel from non-R&D departments such as production and sales into the R&D department.”

Force Field Jun also took a close look, and it has to be said that Jingo New Materials’ R&D team really has “a bit of water.” Here are a few examples:

For example, the process engineer in the R&D department, a person surnamed Lu, has an associate degree in business administration. Before joining the company, they mainly worked on routine equipment maintenance and troubleshooting. Isn’t that not a job type on the production line?

Another example: the testing engineer in the R&D department, a person surnamed Guo, graduated with a bachelor’s degree in business English. They graduated in September 2021 and then joined the company’s R&D department. So is this to be responsible for translating foreign-language materials?

Yet another example: the technical clerk in the R&D department, a person surnamed He, has an associate degree in human resource management. Before joining the company, they mainly handled data compilation and entry work such as procurement and workshop production scheduling. That’s still a job on the production line!

As for the fact that among Jingo New Materials’ R&D department personnel there are a large number of people without a materials-related background, and who previously also had no experience in R&D in the materials field—whether this results in Jingo New Materials inflating the proportion of R&D personnel, is not something Force Field Jun can conclude.

But what Force Field Jun does know is that the quality of the R&D team and related information disclosure are key points that regulators review. This is also evident from the fact that both rounds of Jingo New Materials’ inquiry letters were focused on this.

Force Field Jun also knows that there have been multiple cases in the past where information disclosure by R&D personnel issues led to the failure of a listing. A typical example is Bette Electronics. The company withdrew its IPO application in 2024. Later, regulator documents publicly released by the SZSE on October 24, 2025 showed that the company had employees that were identified as “full-time R&D personnel,” but in reality they did not engage in R&D work or were non-full-time R&D personnel, leading to inaccuracies in the aggregation of R&D expenses.

In addition, it is also worth noting the sponsor representative for Jingo New Materials’ current IPO application. According to the disclosure in the “Sponsorship Recommendation Letter (submission draft)”, Du Shu obtained the qualification to serve as a sponsor representative in 2019, and previously participated in/executed the IPO project for Lafang Home Chemical; as well as the IPO project for Minsen Health. Pan Chen obtained the qualification to serve as a sponsor representative in 2020 and previously served as the sponsor representative for the A-share directed issuance project of Saiyi Information to specific targets.

Meanwhile, according to the prospectus published by Lafang Home Chemical in February 2017, Du Shu, as another contact person for the Guoxin Securities-sponsored Lafang Home Chemical IPO project; and according to the prospectus published by Minsen Health in December 2017, Du Shu, as the project assisting coordinator for the Guoxin Securities-sponsored Minsen Health IPO project.

That is to say, prior to the Jingo New Materials IPO project, neither Du Shu nor Pan Chen had experience serving as a sponsor representative for an IPO project. Even after Du Shu moved from Guoxin Securities to CICC, and Pan Chen moved from Everbright Securities to CICC, to date they have no experience participating in any IPO projects, nor any other experiences that could serve as professional case references.

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By: Gao Jia

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