IPO Radar | Multiple Risks Converge: Losses at Listing, Chery Dependency, Tianyun Group Holdings

As a company involved in both automotive sunroof manufacturing and the recycling of waste textiles, Guangde Tianyun New Technology Co., Ltd. (Stock code: 832684, hereafter “Tianyun Co.”)'s IPO application on the Beijing Stock Exchange has attracted significant market attention.

In recent years, Tianyun Co. has experienced rapid growth, with 2024 revenue surpassing 500 million yuan and net profit reaching 51.93 million yuan. However, behind these impressive figures, there are concerns such as a cumulative unamortized loss of 122 million yuan, heavy reliance on a single client—Chery Automobile, a contradiction between over 200% capacity utilization and declining revenue, as well as internal control and compliance issues, casting a shadow over the IPO.

Under pressure from special rights-related agreements, the company rushed to go public. How will Tianyun Co. respond to investor concerns, and how should its investment value be assessed?

Unallocated profit shows a loss of 122 million yuan—Is the listing a “blood transfusion” without dividends?

The most notable issue in Tianyun Co.'s IPO is its “loss-making listing.”

As of the end of June 2025, the company’s unallocated profit was negative 122 million yuan, indicating a large accumulated unamortized loss. Although Tianyun Co. has been profitable from 2022 to 2024, with net profits of approximately 40.92 million, 23.56 million, and 51.93 million yuan respectively, the path to offset a billion-level deficit remains long. The company has explicitly stated that it cannot pay cash dividends in the short term after listing, meaning investors will likely face a long period without actual returns.

In April 2025, the company’s actual controller, Pan Jianxin, signed agreements with Shenzhen Capital Group and Red Earth Venture Capital: if Tianyun Co. fails to achieve an IPO before December 31, 2026, Pan Jianxin must pay 6 million yuan in cash to the investors and may trigger a share repurchase obligation. Although the agreement states that the repurchase right terminates once the listing application is accepted, failure to list would mean Pan Jianxin faces significant personal compensation. Based on current shareholding structures, if the full repurchase clause is triggered, Pan Jianxin would need to buy back a total of 14.2% of shares held by Red Earth Venture Capital (9.94%) and Shenzhen Capital Group (4.26%). Using the company’s pre-application block trade price of 5 yuan per share, the repurchase amount would be approximately 85 million yuan. For Pan Jianxin, who holds 54.35% of the company, this financial pressure is substantial.

Data source: Prospectus

“From the terms of the agreement, this IPO indeed carries a ‘do-or-die’ significance,” said Wang Lei, a primary market investor, to JiJie News. “But investors are more concerned about whether the company can truly improve its operational quality through fundraising, rather than just avoiding penalty payments. If the fundraising does not lead to expected business growth, the company will face a dilemma of ‘no dividends and no performance growth.’”

Chery dependency

During the reporting period, Tianyun Co.'s sales to Chery Automobile surged from 29.81% in 2022 to 82.61% in 2024. Although it slightly declined to 72.18% in the first half of 2025, reliance on a single client remains severe. Under the common industry practice of “annual price cuts” (where customers require suppliers to lower prices each year), such high dependence significantly weakens the company’s bargaining power.

The average selling price of Tianyun Co.'s automotive sunroof assemblies dropped from 1,252.55 yuan per set in 2022 to 939.17 yuan in the first half of 2025, a cumulative decrease of 25%. While this downward trend aligns with industry norms, it also reflects the company’s passive position in price negotiations. Although the company has extended its supply chain vertically—such as producing its own glass edging and guides—it is uncertain how much further price reduction room exists given the dominance of a single client.

Data source: Prospectus

“Once Chery pressures on prices, Tianyun has almost no bargaining chips,” Wang Lei continued. “More dangerously, if Chery’s sales decline or it develops its own sunroof systems and switches suppliers, Tianyun’s performance could suffer catastrophic losses. Although the company mentions entering the supply system of JAC Motors and engaging with SAIC Group, new clients take time from onboarding to mass production, so short-term risk mitigation is limited.”

Additionally, accounts receivable amounting to 1.9 billion yuan account for 51.07% of total receivables, with collection cycles also worth noting. While Tianyun Co. claims that main clients have good payment records, such concentrated receivables mean that Chery’s operational fluctuations could directly impact the company’s asset quality. If Chery extends payment terms or encounters credit issues, Tianyun faces significant bad debt risks.

Data source: Prospectus

Worse still, profitability is deteriorating. In 2024, gross profit margin for air conditioning components plummeted to 7.30%, far below the approximately 18% in previous years; automotive interior parts’ gross margin also declined from 33.95% in 2022 to 28.46%. The company attributes the air conditioning component margin decline to product structure changes but provides no detailed explanation. Such a sharp drop in gross margin usually results from multiple factors, including customer price pressure, rising raw material costs, and declining product competitiveness. If not addressed promptly, these two segments could shift from profit contributors to performance draggers.

The paradox of 200% capacity utilization and revenue decline

Regarding the use of raised funds, Tianyun Co. plans to raise 225 million yuan, with 115 million yuan allocated to expanding automotive sunroof and sunshade production, 33.22 million yuan for new functional materials for vehicles, 46.85 million yuan for R&D center construction, and 30 million yuan to supplement working capital. In 2024, the company’s automotive sunroof capacity utilization reached nearly 200%, indicating severe overcapacity, making expansion necessary. However, in the first half of 2025, revenue from automotive sunroofs was only 1.67 billion yuan, down 6.54% year-on-year, with sales volume increasing slightly by 1.73%, but prices dropping by 8.13%. Despite the tight capacity, performance declined, casting doubt on the prospects of absorbing the new capacity.

Wang Lei commented, “If capacity utilization is at 200%, it indicates full order books, and the company should be operating at full throttle, with revenue growing in line with sales. But the revenue decline in the first half suggests either insufficient orders or a price war squeezing margins. The company claims it’s due to falling product prices, but price drops often result from customer pressure or intensified market competition. In this scenario, investing another 148 million yuan to expand capacity—adding 400,000 units—who will absorb this extra output?” The automotive parts industry is cyclical; if downstream demand weakens, high fixed asset investments will become a burden.

The company forecasts that full production of the expansion project will generate annual revenue of 416 million yuan and a total profit of 43.14 million yuan. However, this forecast relies on optimistic market assumptions. According to the “2025-2031 China Automotive Sunroof Industry Market Research and Investment Prospect Evaluation Report” by Zhiyan Consulting, China’s total automotive sunroof sales in 2024 were 16.88 million units, with Tianyun’s sales at 384,400 units, accounting for only 2.28%. In such a fragmented market, doubling capacity means doubling market share. The main customer, Chery, is also developing its own supply chain, raising uncertainty about sustained incremental orders.

Accounts receivable “dam” and inventory impairment risks

Tianyun Co.'s financial statements also highlight concerns regarding receivables and inventories. As of June 2025, accounts receivable stood at 2.38 billion yuan, accounting for 42.5% of total assets and 112.9% of current operating income, indicating significant capital occupation.

More worrying is the quality of receivables. Over 1.2 billion yuan of accounts receivable have been fully provisioned for bad debts, meaning these amounts are unlikely to be recovered long-term. The aged receivables over five years total 1.2 billion yuan. Although the company has not disclosed specific clients involved, such high bad debt provisions reflect shortcomings in customer credit management and collection.

Regarding inventories, at the end of each reporting period, inventory balances were 71.3 million, 72.7 million, 77.97 million, and 64.62 million yuan, respectively, remaining sizable. Tianyun Co. adopts a “just-in-time” production model based on sales, but rapid model iteration in the automotive industry means that demand fluctuations or model discontinuations could heighten inventory write-down risks. While this approach helps lock in customers, it also transfers inventory risks to the company. Compared to industry peers, Tianyun’s inventory turnover in 2024 was 5.20 times, lower than Huizhong Holdings (10.70 times) and Mosentec (11.32 times), indicating below-average efficiency.

Additionally, the subsidiary Zhongshan Tianjiao has experienced severe overcapacity, with overproduction rates of 91.28% in 2022 and 111.49% in 2023. Although the company claims to have rectified and closed some production lines, such overcapacity reveals management issues. More critically, Anhui Anjian Sunroof’s capacity utilization also reaches nearly 200%, raising concerns about potential environmental or safety hazards related to overproduction.

Overall, while the growth potential of the automotive sunroof market and policy benefits for waste textile recycling offer development opportunities, the significant unamortized losses, customer concentration, financial flaws, and compliance risks make Tianyun Co.'s listing journey uncertain.