​​ In the context of the Opinions on Strictly Controlling the Access to Issuance and Listing and Improving the Quality of Listed Companies from the Source (Trial) issued by the CSRC, it is clearly stated that it is strictly prohibited to blindly seek listing and excessive financing for the purpose of "circling money", pay close attention to whether there is a situation of "clearing position" dividend distribution before listing of enterprises to be listed, strictly prevent and investigate, and implement negative list management, Some IPO companies with "hollowed out" dividend distribution and surprise dividend distribution have attracted market attention, and Doyle Road is one of them.

Doerdao's IPO application was accepted by Shenzhen Stock Exchange on June 30, 2023, and it is planned to log on to the main board of Shenzhen Stock Exchange. The predecessor of the company, "Doerdao Technology Co., Ltd.", was established by Shang Wenming in February 2008. On April 29, 2022, Doerdao Technology Co., Ltd. was restructured as Doerdao Technology Co., Ltd. The controlling shareholder is Jiangsu Zhenhua Industrial Group Co., Ltd. (simply referred to as "Zhenhua Group"), and the actual controller is Shang Wenming.

Doerdao Technology Co., Ltd. (hereinafter referred to as "Doerdao") is mainly engaged in the field of vibration reduction and isolation. It is an enterprise integrating R&D, design, production, manufacturing, sales and maintenance of industrial equipment vibration reduction and isolation (isolation) series products such as rail transit vibration reduction, building vibration reduction and isolation, nuclear power, and providing technical solutions.

Doerdo is also a typical family enterprise. According to the prospectus, as of November 27, 2023, Shang Wenming directly holds 22.30% of the shares of Doyle Road, and controls 63.41% of the shares of Doyle Road through Zhenhua Group, controlling 85.71% of the company's shares in total, and is the actual controller of the company.

As the largest shareholder of Dow, Zhenhua Group is jointly held by Shang Wenming, his wife Cai Ming, his son Shang Guojie, and his mother Dai Guangxiu. In addition, Shang Guojie and Cai Ming directly hold 0.93% and 0.93% shares of Dow respectively. Therefore, Shang Wenming and his relatives directly and indirectly hold 87.57% of the shares of Doyle Road in total. The company is a typical family owned enterprise with a "dominant controlling family" equity structure.

According to the company's prospectus, Doyle Road plans to raise 1.19 billion yuan in this IPO, which will be used for four projects, including the key technology of vibration reduction (isolation) system such as the foundation of nuclear power turbine generator and its localization project, and supplement the working capital of 350 million yuan.

Because the company has a plan to replenish working capital, it plans to use 350 million yuan of raised capital to replenish working capital, which makes the "hollowed out" dividend of Dow before IPO particularly attractive. Because from 2020 to 2021, through the resolution of the general meeting of shareholders, Doyle Road will distribute cash dividends of 300 million yuan and 140 million yuan to shareholders, totaling 440 million yuan. According to the prospectus, from 2020 to 2021, Doyle Road's net profit will be 155 million yuan and 155 million yuan respectively, totaling 310 million yuan, far lower than the total cash dividends of the same period (440 million yuan).

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Therefore, the cash dividends of Doyle Road from 2020 to 2021 are not only "clearance" dividends, but also can be described as "overdraft" dividends, which actually overdraw the profits of 2022. According to the prospectus, from 2020 to 2022, the sum of the three years' net profits deducted not attributable to the parent company will be only 447 million yuan, and the dividend of 440 million yuan will basically be all the three years' net profits deducted not attributable to the parent company.

It is precisely because the net profit not attributable to the parent company has been deducted for three years, which leads to the shortage of funds of the company. As of the end of June 2023, the company's monetary capital is only 19187200 yuan. As a result, there was the company's plan to replenish working capital, which was to raise 1.19 billion yuan from the stock market, of which 350 million yuan was used to replenish working capital. Doyle's "daydream" is really complete.

But Doyle's practice is also damaging. Because it is obvious that Doerdao's approach is to let investors in the secondary market pay for the company's "tunneling" dividends, which is totally wrong with public investors.

The purpose of the company's "tunneling" dividend distribution is to clear up the fund occupation caused by the related party's fund borrowing (dividends payable to related parties are formed by dividend distribution, which is offset against other receivables to related parties). According to the prospectus, as of the end of 2021, Doyle Road had lent a total of 652 million yuan to related parties, and the result was "tunneling" dividends, of which 330 million yuan was offset by cash dividends.

Therefore, the "tunneling" dividend of Doyle Road is actually to cover up the problems of the company's financial internal control and many other aspects. But these objective problems can be covered up by "hollowed out" dividends? This is tantamount to self deception. The major shareholders or actual controllers and related parties occupy the company's funds, which are repaid by the company itself through "tunneling" dividends, and ultimately paid by public investors. Isn't that blatantly damaging the interests of public investors? How can such a company protect the interests of investors when it entraps investors? ​​​​