Analysis of Supplier Concentration Risks of Bangze Chuangke and Their Impact on IPO Valuation

Based on collected public information, I will provide you with a systematic analysis of the supplier concentration risks of Bangze Chuangke and their impact on its IPO valuation.

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Bangze Chuangke was founded in March 2005, and is an enterprise engaged in the R&D, design, production and sales of office appliances and household appliances. The company’s main products include office appliance series such as paper shredders and laminators, as well as household appliance series such as vacuum sealers and hand mixers. The company plans to launch an IPO on the Beijing Stock Exchange, with a planned fundraising of approximately RMB 402 million for the intelligent manufacturing base project and the headquarters and R&D center project[1][2].

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According to the audit inquiry letter, the top five suppliers of Bangze Chuangke have obvious qualification flaws[3]:

Supplier Name	Number of Insured Employees	Date of Establishment	Remarks
Guangdong Taiyuan Plastic Technology Co., Ltd.	3	-	-
Hunan Dongchang Motor Co., Ltd.	0	April 2021	Became one of the top five suppliers since 2022

: Core suppliers having 0 insured employees indicates that these suppliers may be “shell companies” or “dummy companies”, and their production and operation capabilities and sustainability are questionable. Hunan Dongchang Motor was established in April 2021, and became one of the company’s top five suppliers within just one year, lacking a sufficient performance verification period, which reflects the issues of high supplier concentration and uneven supplier quality.

According to the prospectus, the company faces the following related party transaction risks[3]:

• Dongguan Weipute Technology Co., Ltd.
  : Simultaneously one of the company’s top five suppliers and outsourcing suppliers
• Former Employee Connection
  : Chen Yuanhong, a former employee of the company, and his spouse Zeng Shuai serve as consultants and senior management (directors, supervisors, and executives) of this company
• Related Party Dongguan Naoli
  : An outsourcing supplier of the company; Zhang Yong, the actual controller, and his wife Cao Ping once held 30% and 50% of the company’s equity respectively

: A high proportion of related party transactions may lead to doubts about pricing fairness and increase the risk of interest transfer. Reliance on related parties for outsourcing processing may affect the company’s independence and the authenticity of its gross profit margin.

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Bangze Chuangke has a serious customer (channel) concentration issue, with extremely high dependence on the Amazon platform[4][5]:

Year	Amazon Sales Revenue (ten thousand RMB)	Proportion of Main Business Revenue
2022	50,788.99	47.51%
2023	68,355.84	58.94%
2024	84,622.75	56.38%

From 2022 to 2024, the proportion of sales revenue achieved by the company through overseas e-commerce platforms such as Amazon in its main business revenue was

respectively[4].

• Platform Policy Risk
  : If Amazon adjusts its third-party seller policies, platform fees, or traffic allocation algorithms, it may have a significant adverse impact on the company’s sales
• No Exclusive Cooperation Guarantee
  : The platform does not require exclusive cooperation, but the company lacks multi-channel redundancy capabilities
• Rising Sales Expenses
  : To maintain its ranking and sales on the Amazon platform, the company’s sales expense ratio has continued to rise to nearly 20%[5]

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Supplier concentration risks and customer channel dependence risks will have negative impacts on IPO valuation from the following aspects:

Risk Factor	Impact Level	Valuation Impact
Supplier Qualification Flaws (0 insured employees)	High	Doubts about supply chain stability, increased risk premium for business sustainability
High Proportion of Outsourcing Processing to Related Parties	Medium-High	Insufficient independence, doubts about pricing fairness
Dependence on Amazon Channel Exceeds 50%	High	Single-channel risk, weak market bargaining power
Doubts about Authenticity of Gross Profit Margin	Medium	Doubts about replicability of profitability

The Beijing Stock Exchange focused on the following issues in its audit inquiry[4]:

1. Required supplementary disclosure of supplier dependence risks
   : Explain the proportion of the company’s purchases in the sales of similar products by major suppliers
2. Channel dependence risk
   : Required to further disclose the risk of dependence on third-party e-commerce platforms
3. Internal Control Standardization
   : During the reporting period, there were non-standard internal control situations such as personal card transactions, cash receipts and payments, third-party fund remittances, and payment collection by related parties
4. Authenticity of Financial Data
   : Regulators have raised inquiries regarding the authenticity and sustainability of revenue

Based on the above risk factors, the IPO valuation of Bangze Chuangke may face the following adjustments:

Expected Valuation Adjustment Range:
├── Supplier Quality Risk: -10% to -15%
├── Channel Concentration Risk: -15% to -20%
├── Related Party Transaction Doubts: -5% to -10%
├── Internal Control Issues: -5% to -8%
└── Comprehensive Valuation Discount: Estimated -25% to -35%

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• Expand the diversified supplier system and increase the proportion of purchases from non-related party suppliers
• Establish a supplier access review mechanism and strengthen on-site verification of suppliers
• Accelerate the construction of independent production capabilities and reduce reliance on outsourcing processing
• Expand other sales channels such as Walmart and Shopify independent sites

1. Focus on Supply Chain Due Diligence
   : Verify the actual production and operation capabilities and financial status of the top five suppliers
2. Assess Channel Dependence Risk Exposure
   : Calculate the sensitivity of revenue and profit to changes in Amazon’s policies
3. Review the Rationality of Related Party Transactions
   : Compare the purchase price differences between related parties and non-related parties
4. Monitor Regulatory Audit Progress
   : The result of the review meeting of the Beijing Stock Exchange will be an important catalyst for valuation recovery

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The supplier concentration risks and customer channel dependence risks of Bangze Chuangke have constituted substantial obstacles to its listing. Issues such as core suppliers having 0 insured employees, a high proportion of outsourcing processing to related parties, and dependence on Amazon exceeding 50% will significantly compress the IPO valuation premium space of the company.

From a valuation perspective, it is expected that regulators and the market will fully price in the above risks negatively, and the company’s IPO valuation may face a

. For investors, it is recommended to make investment decisions prudently after fully evaluating supply chain stability and channel dependence risks.

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[1] Sina Finance - “Bangze Chuangke’s Beijing Stock Exchange IPO to Be Reviewed on January 8” (https://finance.sina.com.cn/jjxw/2026-01-04/doc-inhfcxwn7460498.shtml)

[2] China Economic Net - “Bangze Chuangke’s Initial Listing on Beijing Stock Exchange to Be Reviewed on January 8, Planned Fundraising of RMB 400 Million” (http://finance.ce.cn/stock/gsgdbd/202512/t20251231_2677830.shtml)

[3] Eastmoney - “IPO Radar | Bangze Chuangke’s Overseas Revenue Accounts for 97% of Total Revenue, Core Suppliers Have 0 Insured Employees” (https://finance.eastmoney.com/a/202507103453700555.html)

[4] Rui Finance - “Nearly 60% of Bangze Chuangke’s Revenue Comes from Amazon, Required to Further Disclose Risks of Dependence on Third-Party E-Commerce Platforms” (https://m.rccaijing.com/news-7371722530212214512.html)

[5] Tencent News - “More Than Half of Bangze Chuangke’s Revenue Relies on Amazon: Sales Expense Ratio Continues to Rise to Nearly 20%” (https://news.qq.com/rain/a/20250807A01UZR00)