On April 10, the Beijing Stock Exchange will review the listing application of Jiangsu Yongda Chemical Machinery Co., Ltd. (hereinafter referred to as &#34;Yongda Shares&#34;).
This is not the first time Yongda Shares has undergone a listing review.
As early as November 2025, Yongda Shares was reviewed by the Listing Committee of the Beijing Stock Exchange, but was eventually postponed due to issues with internal controls related to its photovoltaic business.
Prior to this second review, Yongda Shares implemented significant reforms.
On one hand, facing payment issues, Yongda Shares reached settlements with some customers, such as Xinjiang Hoshine Silicon Industry, to recover accounts receivable at a discounted price.
On the other hand, Yongda Shares has committed to fundamentally exiting the photovoltaic business by 2026.
Although this has cleared some apparent obstacles in the short term, certain issues remain to be resolved.
From a fundamental perspective, Yongda Shares' performance has been stagnant in recent years. In 2025, its revenue and net profit attributable to the parent company were RMB 727 million and RMB 109 million, respectively, with revenue declining by over 10% year-on-year.
Not only that, but from 2023 to 2025, the proportion of overdue accounts receivable has remained around 70%. This persistently high overdue rate, coupled with frequent legal disputes with major customers to recover debts, fully exposes Yongda Shares' lack of bargaining power when dealing with strong downstream customers.
With this listing, Yongda Shares plans to raise RMB 458 million for the construction of a heavy chemical equipment production base.
Against the backdrop of pressure on its fundamentals and deep-seated payment collection difficulties, whether Yongda Shares can successfully knock on the door of the Beijing Stock Exchange is attracting close market attention.
<h2>Clearing Photovoltaic Business</h2>
Yongda Shares' core product is pressure vessels, a key piece of equipment for various physical and chemical reactions, used in fields such as chemicals and photovoltaics.
The basic chemical sector accounts for about half of Yongda Shares' revenue and is its absolute main source. However, this foundation suffered a severe blow in 2025, with sector revenue plummeting from RMB 464 million and RMB 466 million in the previous two years to RMB 349 million, a decrease of over 25% year-on-year.
Dragged down by this, Yongda Shares' overall revenue also experienced a decline of over 10% in 2025.
In stark contrast to the sluggishness of its core basic chemical business, the photovoltaic sector has emerged as a rapidly growing business for Yongda Shares in recent years.
From 2023 to 2025, the photovoltaic sector generated revenues of RMB 26 million, RMB 156 million, and RMB 181 million, respectively, with its revenue share soaring from a mere 3.62% to 25.25%.
However, the soaring revenue figures from the photovoltaic sector stand in dramatic contrast to the industry's current reality.
Currently, the photovoltaic sector is undergoing a brutal phase of capacity reduction, and even the most resilient leading companies are struggling to remain unscathed. Take TCL Zhonghuan as an example, which reported a dismal performance in 2025 with a massive loss exceeding RMB 9 billion.
Regarding the rationality of &#34;growth against the trend,&#34; Yongda Shares believes it adheres to a customer acquisition logic of &#34;not picking fields, only focusing on benchmarks.&#34;
Yongda Shares explains that after obtaining project information, its core strategy is to prioritize participating in the bidding for benchmark projects of industry-leading enterprises, without particular preference for the specific application field of the project.
In other words, the growth of the photovoltaic business is more a result of Yongda Shares &#34;going with the flow&#34; when competing for orders from major clients, rather than a strategic shift towards the photovoltaic sector.
However, in a scenario where leading photovoltaic companies themselves are suffering losses close to 10 billion yuan, it is clearly questionable whether this &#34;not picking fields, only focusing on benchmarks&#34; strategy can continue to deliver tangible performance in the future.
This was the main reason Yongda Shares' initial listing review in November 2025 was postponed.
&#34;Please require the sponsor and the reporting accountant to further verify the reasonableness and effectiveness of the issuer's internal control measures for photovoltaic projects, the sufficiency of revenue recognition basis, the recoverability of accounts receivable, and whether they will have a significant adverse impact on the issuer's operating performance,&#34; the Beijing Stock Exchange Listing Committee pointed out.
To clear the listing obstacles, Yongda Shares took a drastic measure, admitting to actively scaling back its photovoltaic business and emphasizing that it will fundamentally exit this sector by 2026.
Based on the production progress of existing orders, Yongda Shares expects photovoltaic business revenue to be only RMB 7 million in 2026, while non-photovoltaic business revenue will be between RMB 708 million and RMB 750 million.
&#34;The performance of the photovoltaic sector will have a very low impact on the company's performance in 2026,&#34; Yongda Shares stated. &#34;The performance growth in non-photovoltaic sectors from existing orders can compensate for the decline in the photovoltaic sector.&#34;
From &#34;rapid growth with the trend&#34; to &#34;voluntary zeroing out,&#34; Yongda Shares' 180-degree turn in its attitude towards the photovoltaic business has indeed added a safety net for its secondary listing review, but whether &#34;existing orders in non-photovoltaic sectors&#34; can truly support its 2026 performance remains to be verified.
<h2>Debt Collection Tug-of-War</h2>
Perhaps more concerning to the market than the decline in performance is Yongda Shares' payment collection problem.
As of the end of 2025, Yongda Shares' accounts receivable had a book value of RMB 244 million, accounting for 33.58% of its revenue.
This is close to the performance of its peers; for example, comparable company Kexin Electromechanical had an accounts receivable ratio of 39.29% during the same period.
For an equipment manufacturer in the chemical sector, having a certain scale of accounts receivable on the books might simply be industry norm in a B2B business model. However, Yongda Shares' key issue lies in the health of these receivables: widespread and habitual overdue payments.
According to agreements, Yongda Shares typically grants customers credit periods ranging from 30 to 90 days at different stages of equipment delivery. However, these credit terms often prove ineffective.
From 2023 to 2025, the proportion of Yongda Shares' accounts receivable that were outside their credit period (i.e., substantially overdue) was as high as 68.67%, 79.78%, and 73.6%, respectively.
Yongda Shares explains that this is mainly because its downstream customers are mostly large enterprise groups in basic chemicals, refining and petrochemicals, coal chemicals, and photovoltaics, and they hold a dominant position. Downstream customers settle payments based on project execution schedules, and the approval cycle for settlements is long, leading to slow collections and certain overdue payments.
This means that Yongda Shares lacks bargaining power in the face of strong downstream customers, which directly leads to its regular internal collection mechanisms frequently hitting roadblocks in practice.
Despite Yongda Shares having established a standard &#34;tiered collection&#34; system in its internal &#34;Sales and Collection Management System,&#34; which involves sending collection letters for overdue accounts, followed by lawyer's letters if there is no response after three months of overdue, and finally resorting to lawsuits for collection, these preliminary regular collection methods often yield little effect when facing the reality of cash flow difficulties for major downstream customers in sectors like photovoltaics.
To prevent paper wealth from becoming irrecoverable bad debts, Yongda Shares has had to frequently resort to judicial litigation, apply for enforcement, and even offer &#34;discounts to cash&#34; to recover funds.
For instance, photovoltaic customer Inner Mongolia Yuexin Silicon Material (formerly Runyang Yueda, hereinafter referred to as &#34;Yuexin Silicon Material&#34;) owed over RMB 35 million for goods. Yongda Shares filed a lawsuit against it in August 2024.
However, even after the parties reached a civil mediation, Yuexin Silicon Material still defaulted on payment.
In January 2025, Yongda Shares was forced to apply to the court for enforcement, but there has been no result yet.
The same tug-of-war occurred in the traditional chemical sector.
In 2023 and 2024, Yongda Shares sued Henan Longyu Coal Chemical twice and reached mediation, but the latter repeatedly defaulted. It wasn't until March last year that both parties reached a new settlement, agreeing to pay the RMB 9.2278 million debt in installments by June 2026.
Another customer, Anhui Weibo Chemical, also had enforcement applied for by Yongda Shares after defaulting on mediation, and its assets are currently under investigation and control.
Not only that, but Yongda Shares sometimes has to swallow the bitter pill of &#34;discounts for cash.&#34;
In response to the significant backlog of receivables caused by fluctuations in the photovoltaic industry, Yongda Shares made concessions to Xinjiang Hoshine Silicon Industry to speed up cash recovery.
After reaching a &#34;Settlement Agreement&#34; with Xinjiang Hoshine Silicon Industry in November 2025 for installment payments, Yongda Shares signed a supplementary agreement in March 2026, agreeing to a direct discount on this receivable in order to secure a one-time payment.
From lengthy judicial enforcement to discounted collections, Yongda Shares' arduous &#34;debt collection journey&#34; is undoubtedly a true reflection of its high accounts receivable risk and weak position in the industrial chain.
In such a payment collection environment filled with negotiation and compromise, the &#34;gold content&#34; of Yongda Shares' performance clearly needs to be re-evaluated.

Performance stagnation meets collection challenges: what are Yongda Shares' chances in its second attempt at listing on the Beijing Stock Exchange?