Recently, the 16th issuance review committee meeting of the 18th Issuance Review Committee of the China Securities Regulatory Commission was held in 2022, and the results of the review showed that the first offering of Mingke Precision Technology Holdings Co., Ltd. (hereinafter referred to as "Mingke Precision Technology") was approved and intends to land on the main board of the Shenzhen Market, and the sponsor is Hualin Securities.
Mingke Precision Technology specializes in the research and development, production and sales of precision stamping dies and metal structural parts, mainly for the automotive, office equipment, electronic products and building fire protection and other industries to provide precision stamping molds and metal structural parts. In the automotive field, the company's main customers are Magneti Marelli, Hiroshima Technology, Gestamp and other auto parts tier 1 suppliers; in the automotive field, the company's products are mainly used in Ricoh, Kyocera, Panasonic, Mitsubishi, Victaulic and other brands.
According to the prospectus, Xia Lurong directly holds 49.518 million shares of the Company, accounting for 46.69% of the total share capital of the Company before issuance; indirectly holds 3.88% of the Company's shares through Dongguan Shengrong, controls 5.80% of the Company's shares through Dongguan Shengrong, holds a total of 50.57% of the Company's shares, and controls 52.50% of the Company's shares in total, making it the controlling shareholder and the actual controller.
The proposed fundraising of 507 million yuan is mainly used for qingyuan Mingke automobile (new energy) parts industry base project, R&D center construction project and supplementary working capital.
The automobile industry is one of the pillar industries of the national economy of the mainland, and the automobile parts manufacturing industry is the foundation for the development of the automobile industry and an important part of the automobile industry. With the prosperity of the automobile industry, it has led to the rapid development and technological progress of the mold industry and the auto parts industry in the mainland.
During the reporting period, the revenue of Mingke Precision Technology was 645 million yuan, 745 million yuan, 732 million yuan and 379 million yuan, and the net profit was 47.6555 million yuan, 89.2975 million yuan, 107 million yuan and 46.9596 million yuan, respectively.
Specifically, the company's main business income mainly comes from the sales of metal structural parts and molds, and other business income is mainly from the sales of scrap materials and housing rental income. Among them, the gross profit margin of the main business is 26.94%, 30.45%, 29.66%, 26.15%, there are certain fluctuations, and in terms of the gross profit margin of metal structural parts, the gross profit margin of metal structural parts of Mingke Precision in 2018 is at the intermediate level of comparable companies in the same industry, and the gross profit margin of metal structural parts in 2019, 2020 and 2021 from January to June is higher than that of comparable companies in the same industry, mainly affected by the issuer's dashboard assembly business, and the value chain of the assembly business is longer. Gross margin is higher.
It is worth noting that the main raw material required for the company's production is steel. Changes in steel prices are one of the main factors in the change in their production costs. Steel, on the other hand, is a commodity, and its supply-demand relationship and price fluctuations are related to economic cyclicality. Although the impact of material costs is fully considered in the company's product quotations, if steel prices continue to rise sharply in the future, and the company's product prices are not adjusted in time, it will directly affect the company's production costs and gross profit margins, or adversely affect the level of profitability.
At the same time, compared with general industrial product enterprises, the current mold production enterprises have a large number and an overall small scale, most of which are small and medium-sized enterprises, and the concentration is low. By the end of 2020, there are about 14,018 enterprises with an output value of more than 20 million yuan in mainland auto parts and accessories, and the main business income of mainland auto parts manufacturing industry in 2020 is 3,631.065 billion yuan, with a large industry scale and a small market share of single auto mold or parts enterprises. Under the huge market scale, single automotive mold or parts companies usually serve stable customers, and maintain an orderly competitive relationship between enterprises.
This means that if the company cannot continue to maintain its advantage in customer development, product research and development, manufacturing process, production management, quality control, etc., the market competitive position may be adversely affected. Especially in terms of research and development, Mingke Precision Technology needs to take customer needs as the center, keep up with the development of the industry, and constantly carry out technological innovation and process improvement in order to obtain further development space. During the reporting period, the R&D expenses of Mingke Precision were 27.2762 million yuan, 32.8372 million yuan, 32.1504 million yuan and 16.6695 million yuan, accounting for 4.23%, 4.41%, 4.39% and 4.40% of the operating income, respectively, and there is still room for improvement.
In addition, during the reporting period, the book value of the accounts receivable of Mingke Precision was 166 million yuan, 201 million yuan, 221 million yuan and 196 million yuan respectively, accounting for 21.13%, 22.89%, 23.22% and 20.99% of the total assets, respectively. Once the customer is not well managed, there may be a risk that the receivables will not be recovered in time.
epilogue
At present, in the future, with the completion and use of the R&D center in the fundraising project of Mingke Precision, the R&D software and hardware facilities will be further upgraded, which will bring strong support to its technological innovation capabilities, and the company needs to be driven by technological innovation, continuously enrich its own product line, optimize the product structure, and expand the market scale to obtain more business opportunities and improve the profit level and core competitiveness of the enterprise.