The information about Senhe High-Tech's fundraising projects conflicts with public reports, and key suppliers have no paid-in capital.

[Global Network Finance and Economics Comprehensive Report] Guangxi Senhe High-Tech Co., Ltd. is specialized in the research, development, production, and sales of environmentally friendly precious metal beneficiation agents. Its core products are mainly applied in precious metal production industries such as gold. The company’s independently developed product formula for a cyanide-containing, low-toxicity, environmentally friendly leaching agent has been increasingly applied in the production of gold and other precious metals. Currently, the company is applying to list on the Beijing Stock Exchange.

According to disclosed information, Senhe High-Tech’s core products are environmentally friendly precious metal mineral agents used for gold production without changing the original “cyanide gold extraction” process and equipment. The prospectus discloses that the company continues to strengthen cooperation with well-known domestic end users and gold groups such as China Gold, Zhaojin Gold, Zijin Mining, Shandong Gold, and Chifeng Gold. In addition, it is mentioned in the “Reply to the Audit Inquiry Letter” that regulators require an explanation of the main factors for replacing cyanide agents and the specific impact on the trend of changes in the company’s product market space. In response, Senhe High-Tech disclosed that “the cyanide method occupies a dominant position in the world’s gold production technology and is widely used by various gold enterprises,” and that “currently, the de-cyanidation process in the gold production process still has shortcomings such as complicated procedures, higher processing costs, or poor cyanide removal effects.”

But according to the “Finland Scientists Develop Chloride Gold Extraction Process” issued by the Ministry of Natural Resources as early as October 2021, it was mentioned that researchers from Aalto University in Finland published a paper in the journal Chemical Engineering, introducing a non-toxic, controllable process that can extract gold from ore to replace cyanides. “With the help of our process, using chlorides can increase gold recovery rates to 84%,” said Ivan Korolyov, the first author of this study, at a media briefing. “By comparison, using a standard cyanide process, the gold recovery rate from the same ore is only 64%.”

The Science and Technology Daily recently published a report titled “China Gold Group: Leading Green and Standardized Development of the Industry Driven by Technological Innovation,” which mentions: “The group has been tackling key areas such as deep mining and green ore dressing and smelting, undertaking a number of national-level scientific research tasks. For example, it has developed and utilized bio-oxidation gold extraction technology for the first time globally.” In Senhe High-Tech’s public disclosures, it has not been detailed about the progress of replacing cyanide agents; for this, the company has also not responded to reporters’ interview requests.

Public disclosures also show that the main fund-raising projects for Senhe High-Tech’s IPO application are “Annual production of 80,000 tons of environmentally friendly precious metal extraction agent construction project (Phase I).” According to the prospectus, the construction period of this project is 24 months. After it goes into production and reaches full capacity, it will add production and manufacturing capacity for an additional 40,000 tons per year of environmentally friendly precious metal beneficiation agents. Also, according to the detailed information disclosed for projects under construction, as of the end of 2025, the balance of the projects under construction was 169 million yuan, and the project progress was 64.82%.

It is also mentioned in a report released by Nanguo Morning News in October 2024 titled “Annual output value of about 1.28 billion yuan—this environmentally friendly project starts in Nanning,” which states: “On October 22, the Guangxi Senhe High-Tech annual production of 80,000 tons of environmentally friendly precious metal extraction agent construction project (Phase II) held a groundbreaking ceremony in the Wuxiang New District of Nanning. After this project is completed and put into operation, it is expected to achieve an annual output value of about 1.28 billion yuan, becoming the largest environmentally friendly precious metal extraction agent production base in the country.”

Judging from this report and the on-site photos, Senhe High-Tech’s “Annual production of 80,000 tons of environmentally friendly precious metal extraction agent construction project” started Phase II construction as early as October 2024. However, before the listing, the Phase I project still had not been completed.

Also, according to the disclosure in the “Reply to the Audit Inquiry Letter,” Senhe High-Tech purchased 63.5682 million yuan from Guangxi Shunwangfa Construction Engineering Co., Ltd. in 2024, and purchased 142.2220 million yuan from the same supplier in 2025. This supplier was established in August 2023 and has no information on paid-in capital. Regulators require an explanation of the basis for selecting suppliers for projects under construction and fixed assets, the basic profile of the major suppliers, the proportion of the issuer’s purchases, the reasons for cooperating with a supplier established for a relatively short time and a supplier that is an individual, and whether the contractors’ qualifications and scale match the size of the procurement by the issuer.

In response, Senhe High-Tech disclosed that Guangxi Shunwangfa Construction Engineering Co., Ltd. obtained a license from the Housing and Urban-Rural Development Department of Guangxi Zhuang Autonomous Region in October 2023, which states “construction general contracting qualification (Level II).” It can undertake industrial and civil construction projects with heights below 100 meters, structures with heights below 120 meters, construction projects with a total construction area below 150,000 square meters, and construction projects with a single-span length below 39 meters.

But according to “People’s Finance,” published on November 5, 2025, “Anhui Wutong Technology has been officially approved by the Anhui Provincial Department of Housing and Urban-Rural Development to obtain a Grade II general contracting qualification for construction engineering. According to the qualification standards, the company can undertake business such as industrial and civil buildings below 100 meters in height, structures below 120 meters, single-unit building projects below 40,000 square meters, and single-span projects below 39 meters.” From this, it can be seen that the “construction general contracting qualification (Level II)” can undertake “single-unit building projects below 40,000 square meters,” which is a significant difference from Senhe High-Tech’s disclosed “construction area of below 150,000 square meters.”

What is noteworthy is that the “Annual production of 80,000 tons of environmentally friendly precious metal extraction agent construction project” contracted to “Guangxi Shunwangfa Construction Engineering Co., Ltd.” has its building area within the range of “below 150,000 square meters” disclosed in the “Reply to the Audit Inquiry Letter,” and also within the range of “below 40,000 square meters” mentioned by Wutong Technology. According to the “Approval Notice on the Environmental Impact Report for the Annual Production of 80,000 Tons of Environmentally Friendly Precious Metal Extraction Agent Construction Project” (Nan Zheng Wu Xiang Huan Shen [2025] No. 1) issued by the Nanning Municipal Government Service Bureau, the project has a total land area of 124,000 square meters and a total building area of 87,635 square meters.