Shandong Yinuo Biomass Materials Co., Ltd. (hereinafter referred to as Yinuo Biotech) responded to the Beijing Stock Exchange's first-round inquiry on September 15. Although registered in Shenxian, Shandong, the company's management team is almost entirely from Nanle County, Puyang, Henan. Chairman Liu Zhanjie, second-largest shareholder Wang Yunsheng, and several core executives all come from the old team of Nanle County Jile Chemical Plant and Henan Hongye Chemical's Puyang Hongjian Chemical Plant. Prior to the filing, Liu Zhanjie controlled a total of 79.30% of voting rights, his younger brother Liu Zhanping held indirect shares and served as deputy general manager of a subsidiary, his two sons Liu Yafei and Liu Yabiao held capital contributions with Liu Yafei serving as securities affairs representative, his spouse Kong Suzhen guaranteed multiple bank loans for the company, and General Manager Fan Huijie's sister Fan Huihua also held indirect shares—a family network deeply embedded in decision-making, key positions, and profit distribution.

In the company's historical development, Shao Guoqiang transferred 12% of his shares to his brother-in-law Jiang Xuelu in 2016 for five-plus years of nominee holding, citing "personal disputes." Shao Guoqiang himself is a department head at Sinopec Zhongyuan Petrochemical Company. The actual controller had previously raised 2.83 million yuan from 20 individuals, repaying approximately 5.09 million yuan, with five of those being former employees. Institutional shareholder Shanghai Lanxin exited at cost just three months after investing. On the compliance front, dihydropyran output exceeded safety production license capacity by 106.75% in 2024 and exceeded environmental assessment capacity by 119.14% in 2025, ultimately resolved by expanding the licenses to cover actual output.

Financially, the company's revenue grew from 964 million yuan to 1.205 billion yuan, net profit rose from 71.39 million yuan to 152 million yuan, and gross margin improved from 15.88% to 21.83%. However, furfuryl alcohol—contributing roughly 60% of revenue—posted a gross margin of -0.81% in 2023 and only 4.38% in 2025. Profits relied entirely on high-margin niche products accounting for just over 30% of revenue, with overall gross margin trailing peers by 5-6 percentage points. Accounts receivable increased from 32.97 million yuan to 65.30 million yuan, while notes receivable and financing expanded from 145 million yuan to 390 million yuan. In 2025, net profit reached 152 million yuan, but operating cash flow was only 27.03 million yuan. The 1,5-pentanediol fundraising project plans to invest 296 million yuan despite only completing laboratory-scale trials, with the implementation entity yet to conduct any business. Prior to filing, the company distributed 30 million yuan in August 2025 and another 40 million yuan in April 2026, totaling 70 million yuan, while short-term borrowings grew 54.9% compared to end-2023.

Institutional shareholder exits at cost; output exceeding safety permits by 106% resolved by expanding certificates

Yinuo Biotech's registered address is in the Guyun Town Economic and Technological Development Zone of Shenxian, Liaocheng, but the company's key figures and management almost all come from Nanle County, Puyang, Henan, just across the river. Chairman Liu Zhanjie, born in 1972, worked at Nanle County Jile Chemical Plant from 1990 to 1998, then held management positions at Nanle Changfu Chemical and Henan Hongye Chemical's Puyang Hongjian Chemical Plant, before crossing the provincial border in 2009 to take over Shandong Yinuo Biochemical Technology Co., Ltd. The company's second-largest natural person shareholder, Wang Yunsheng, holds 20.70% of pre-issuance shares and likewise came from Nanle County Jile Chemical Plant, joining Shandong Yinuo as deputy general manager in 2009 and rising to company director. General Manager Fan Huijie, Marketing Director Wang Tianfu, and CFO Li Zijing have highly overlapping career paths, all having worked together at Henan Hongye Chemical's Puyang Hongjian Chemical Plant. Li Zijing notably first served at Nanle County's daily goods company and cotton hemp company before moving to chemical enterprises as a financial manager, only joining Yinuo Biotech in 2011.

As of the prospectus signing date, Liu Zhanjie directly holds 31.50% of shares and, as executive partner of Dequan Partnership, Haode Partnership, and Baihe Partnership, indirectly controls 47.80% of voting rights, commanding a total of 79.30%. This drops to approximately 54% after issuance but still constitutes absolute control. More noteworthy is how family members are embedded in the corporate structure: Liu Zhanjie's younger brother Liu Zhanping holds more than 5% of shares indirectly through Dequan Partnership while serving as deputy general manager of wholly-owned subsidiary Henan Haosen; Liu Zhanjie's two sons, Liu Yafei and Liu Yabiao, each subscribed 14.81% of Dequan Partnership's capital, with Liu Yafei also serving as securities affairs representative; Liu Zhanjie's spouse Kong Suzhen, though not employed by the company, guarantees multiple bank loans. General Manager Fan Huijie's sister Fan Huihua also holds indirect shares through an equity platform. Decision-making power, key positions, and dividend income are concentrated within the same family network, prompting the Beijing Stock Exchange's inquiry letter to specifically question why Liu Zhanping, Liu Yafei, and Liu Yabiao were not identified as joint actual controllers, and whether there was any circumvention of share lock-up and competition regulation requirements.

The company was established on June 16, 2015, completed its share reform in 2023, listed on the New Third Board in December 2025, filed for listing guidance with the Shandong Securities Regulatory Bureau the same month, completed guidance acceptance in May 2026, and was accepted by the Beijing Stock Exchange on June 9. Only about half a year elapsed from listing to filing. In its historical development, in January 2016, shareholder Shao Guoqiang transferred his 12% equity stake (corresponding to 5.4 million yuan in registered capital) at 1 yuan per yuan of registered capital to Jiang Xuelu—his sister's husband, i.e., his brother-in-law—due to "personal disputes." This nominee arrangement persisted from the completion of industrial and commercial registration changes in February 2016 until November 2021, when it was unwound through the establishment of Haode Partnership. The stated reason for the nominee arrangement was "to avoid adverse impact on the company from holding shares as a direct shareholder." Notably, Shao Guoqiang is employed at Sinopec Zhongyuan Petrochemical Company, serving as deputy department head from 2002 and department head from 2008.

Predating the nominee arrangement, actual controller Liu Zhanjie raised funds from 20 individuals through private lending during his "Biochemical Technology" operations. The principal totaled 2.83 million yuan, with eventual repayment of approximately 5.09 million yuan—an average repayment ratio of about 1.8 times. Among the lenders, five were former employees whose departures spanned from 2017 through 2023. Additionally, in September 2016, Shanghai Lanxin transferred its stake to Dequan Partnership at 1 yuan per yuan of registered capital. As an investment institution, Shanghai Lanxin had invested in June 2015 but signed a transfer agreement just three months later in September to exit at cost. The stated reason was "could not establish a partnership enterprise locally, so went to Shanghai to set one up."

On the compliance front, the company operated beyond both environmental assessment approved capacity and safety production license capacity during the reporting period. Dihydropyran output exceeded safety production license capacity by 106.75% in 2024 and exceeded environmental assessment capacity by 119.14% in 2025. Other main products including furfural, furfuryl alcohol, 2-methylfuran, and tetrahydrofurfuryl alcohol also saw overproduction in various years during the reporting period. The company's ultimate "rectification" was not reducing output but rather obtaining new certificates in July 2025 and March 2026 to expand licensed capacity to cover actual production.

Pillar product barely profitable, yet 70 million yuan distributed before filing

Yinuo Biotech's main business uses corncobs as raw material, extracting furfural through chemical processes, then producing downstream products such as furfuryl alcohol, 2-methyltetrahydrofuran, 1,2-pentanediol, 2-methylfuran, and tetrahydrofurfuryl alcohol—bio-based chemical products applied in foundry resins, pharmaceutical intermediates, electronic chemicals, high-end coatings, and synthetic fragrances. From 2023 to 2025, the company's revenue was 964 million yuan, 944 million yuan, and 1.205 billion yuan respectively; net profit attributable to parent was 71.39 million yuan, 104 million yuan, and 152 million yuan; and comprehensive gross margin improved from 15.88% to 21.83%. In 2025, revenue grew 27.59% year-on-year and net profit grew 45.15%.

In terms of revenue structure, furfuryl alcohol contributes approximately 60% of revenue, yet this business segment's gross margin was -0.81% in 2023, 1.34% in 2024, and 4.38% in 2025. In other words, the company's largest revenue source—its pillar product at 60% of revenue—barely achieved marginal profitability even by 2025. Profit improvement was driven mainly by high-margin niche products like 2-methyltetrahydrofuran, which account for just over 30% of revenue. This category's share rose from 28.19% to 36.49%, lifting overall gross margin from 15.33% to 20.99%. Compared with peers, Yinuo Biotech's comprehensive gross margin remains relatively low. Comparable companies generally achieve gross margins in the 27%-28% range, while Yinuo Biotech's 21.83% in 2025 trails by approximately 5-6 percentage points. The company attributes this to intense competition and low prices in the furfuryl alcohol market.

Regarding the top five customers, revenue concentrations were 43.88%, 38.74%, and 40.35% across reporting periods, with customers including Xingye Co., Japan's Kao Corporation, Shengquan Group, Yangnong Chemical, and Pharmaron. Accounts receivable balances grew from 32.97 million yuan at end-2023 to 65.30 million yuan at end-2025, with growth rates of 31.31% in 2024 and 50.84% in 2025. Simultaneously, notes receivable and financing receivables expanded from approximately 145 million yuan in 2023 to 390 million yuan in 2025—a three-year increase of 63.79%. On operating cash flow, 2025 net profit was 152 million yuan against net operating cash flow of 27.03 million yuan.

For fundraising projects, the 1,5-pentanediol project plans to invest 296 million yuan, representing approximately 45% of total fundraising, yet the product has only completed laboratory-scale trials with product selectivity above 85%. The implementation entity, Liaocheng Huanuo, had not conducted any business as of end-2025. The green hydrocarbon LGR-01 project targets aerospace and new energy materials but currently has only a 500-ton-per-year pilot production capacity. Notably, the company made no distributions in 2023 or 2024, then suddenly implemented a 30 million yuan dividend in August 2025, followed by a shareholders' meeting resolution on April 13, 2026 to distribute another 40 million yuan, completed in May—with IPO materials submitted to the Beijing Stock Exchange on June 9. The two distributions total 70 million yuan, representing approximately 21.4% of cumulative net profit during the reporting period. Meanwhile, the company held approximately 160 million yuan in book cash with 61.49 million yuan in short-term borrowings, up 54.9% from end-2023.