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This post was last edited by yunrun on 2019-7-31 at 19:16. Source: Changhui Instruments, yunrun.com.cn/. On June 27, Guangzhou Hexin Instruments Co., Ltd. (hereinafter referred to as “Hexin Instruments”) submitted an application for an IPO to the Science and Technology Innovation Board. On July 25, the IPO application status of Hexin Instruments on the Sci-Tech Innovation Board was changed to “under inquiry”. According to the prospectus of Hexin Instruments, the company plans to issue no more than 17.5 million shares this time, with the aim of raising 346 million yuan. All of these funds will be used for projects related to its core business as well as for working capital required for the development of that business. The sponsor for this issuance is Guoxin Securities. According to the available information, the core business of Hexin Instruments is the research, development, production, and sales of mass spectrometers, providing customers with such instruments as well as related technical services. The operating revenues of Hexin Instruments from 2016 to 2018 were 91.7071 million yuan, 103 million yuan, and 135 million yuan respectively ； The net profits were 21.3683 million yuan, 20.113 million yuan, and 24.239 million yuan respectively. As a company planning to list on the Sci-Tech Innovation Board, Hexin Instruments’ ability in independent research and development attracts much attention. In terms of the company’s technological capabilities, the prospectus indicates that Heshin Instruments is one of the few companies in China that fully masters the core technologies related to mass spectrometers, such as electrospray ionization sources, electron impact ionization sources, vacuum ultraviolet single-photon sources, ion detectors, and time-of-flight mass analyzers, and that it focuses on independent research and development. Hexin Instruments not only highlights the advantage of having independent control over its core components in the disclosed prospectus, but also points out that the high-end generic components required for mass spectrometers – such as high-end lasers and molecular pumps – still need to be imported. HeXin Instruments disclosed the purchase prices of the aforementioned high-end general-purpose components in its prospectus. From 2016 to 2018, Hexin Instruments spent 6.7815 million yuan, 9.692 million yuan, and 8.7901 million yuan respectively on purchasing lasers and molecular pumps; these expenses accounted for 31.7%, 48.18%, and 36.28% of its net profits respectively. Hexin Instruments states that significant changes in the business strategies of foreign manufacturers or alterations in the export policies of their home countries could have an adverse effect on the company’s purchases of high-end generic components. Except that high-end general-purpose components still need to be imported, Heshin Instruments performed rather poorly in terms of the \"R&D expense ratio\", a metric that receives much attention for companies planning to list on the Sci-Tech Innovation Board. According to the prospectus, from 2016 to 2018, Hexin Instruments’ R&D expenses were 32.4793 million yuan, 35.1555 million yuan, and 29.8863 million yuan respectively, with R&D expense ratios of 35.42%, 34.28%, and 22.16% respectively, showing a downward trend year by year.