"Electric Eel Finance" Liu Yunfeng/Wen
The application for the initial listing of Scitech Information Technology Co., Ltd. (hereinafter referred to as "Citex") on the Science and Technology Innovation Board was approved on March 2, 2022, and the company submitted for registration on March 14. As of July 11, the company's listing process has not progressed.
It is reported that Satus is a provider of software-defined communication products and solutions, providing customers with information network infrastructure and technical services for data centers, communication networks and intelligent operation and maintenance. "Electric Eel Finance" paid attention to the fact that the revenue of the three major telecom operators of Setters accounted for a relatively high proportion, and there were differences between the data of the company's main customers and major suppliers on the new third board and the registration draft. During the reporting period, Saters had a higher balance of bank deposits, but the company had borrowed from related parties at high interest rates.
The three major telecom operators account for a high proportion of revenue
According to the prospectus, the company's main products and services include cloud platform products, cloud technology services, virtual routers, software-defined WAN products, edge computing products, IPTV monitoring and supervision systems, business operation support systems, and monitoring and inspection systems.
The company's main customers are the three major operators, and in each period of the reporting period, the company's sales to the three major telecom operators accounted for 22.47%, 24.98%, 40.72% and 66.58% of the operating income in the current period, respectively, and the proportion continued to rise. Compared with the three major operators, The bargaining power of Satus is relatively weak, and if the company's product or service quality does not meet the requirements of the main customer, resulting in a material adverse change in the relationship between the two parties, or the demand for direct orders of the company due to the deterioration of the operating conditions of the main customer in the future, it may have a significant adverse impact on its operating performance.
In addition, with the continuous expansion of business scale and the rapid growth of operating income, The accounts receivable of Scitech have also increased accordingly. At the end of each reporting period, the original value of the company's accounts receivable was 553 million yuan, 766 million yuan, 893 million yuan and 1.067 billion yuan respectively, accounting for a relatively high proportion of the operating income of each period, 76.81%, 83.23%, 100.13% and 130.17% respectively. More importantly, at the end of the reporting period, the company's overdue accounts receivable amounted to 819 million yuan, accounting for 76.78% of the accounts receivable, of which the proportion of accounts receivable overdue for more than 1 year reached 44.24%. Higher accounts receivable and longer collection cycles will have a greater impact on the company's asset quality.
There are differences between the data of the New Third Board and the registered draft
"Electric Eel Finance" paid attention to the fact that Scitech is a company listed on the New Third Board, but some of the data in its sci-tech board declaration materials are different from the data disclosed on the New Third Board.
Scitech Science and Technology Innovation Board Registration Draft Procurement of the Top Five Suppliers
Scitech New Third Board 2018 annual report of major customers and major suppliers
SatX New Third Board 2019 annual report of major customers and major suppliers
Scitech New Third Board 2020 annual report on the main customers and major suppliers
Taking 2019 as an example, in the registration draft of the Scientus Science and Technology Innovation Board, the first largest supplier is Jiangsu Baide Service Outsourcing Co., Ltd. The procurement amount is 69.9218 million yuan, but in the 2019 annual report disclosed by its new third board, the procurement amount of Jiangsu Baide Service Outsourcing Co., Ltd. is 59.5179 million yuan, and the difference between the two is 10.4039 million yuan.
In addition, the company's inconsistencies between the registration draft of the Science and Technology Innovation Board and the disclosure data of the New Third Board have also occurred in its customer sales data. Taking 2019 as an example, the sales of China Telecom in the registration draft of the Science and Technology Innovation Board were 157 million yuan, but the sales of China Telecom in the 2019 annual report of the New Third Board were 156 million yuan, and the difference between the two was nearly one million.
Information disclosure violations have "previous convictions"
On November 5, 2021, the National Equity Transfer Company issued the "Reminder on the Supervision of Satus Information Technology Co., Ltd. and Related Responsible Entities" (Company's Second Department Tip [2021] No. 014) to Satus, Chairman LU LIJUN and Secretary of the Board of Directors Li Xu. Due to the company's failure to disclose the announcement of the change of concerted actors in a timely manner, resulting in information disclosure violations, the National Stock Transfer Company gave regulatory reminders to the company, chairman LU LIJUN (Lu Lijun), and li Xu, secretary of the board of directors.
Although the prospectus points out that the regulatory work reminders taken by the National Stock Transfer Company against Saters and related responsible entities are made in accordance with the "Information Disclosure Rules for Companies Listed on the National Small and Medium-sized Enterprise Share Transfer System", which is not an administrative penalty and does not constitute major violations of laws and regulations, and the company has taken corresponding rectification measures, so the above-mentioned regulatory work prompts will not constitute a legal obstacle to the issuance and listing, but the above situation reflects that Satus still needs to be improved in the management of letter Phi.
Bank deposit balances are higher borrowing from related parties at high interest rates
The prospectus shows that with the continuous expansion of the scale of operations, the demand for funds has also increased significantly. In order to alleviate the tight capital demand and timely replenish the operation and research and development funds, in November 2018, Satus borrowed 80 million yuan from Tianjin DINGhui Tianwei Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "Tianjin DINGhui Tianwei") for a contract period of 2 years. On December 20, 2018, December 16, 2019 and December 31, 2019, the Company paid a total of RMB94.2027 million in principal and interest of the above loans to Tianjin DINGHUI Tianwei, and it is reported that Tianjin DINGhui Tianwei is a related party of Tianjin DINGHUI Wenfeng Equity Investment Fund Partnership (Limited Partnership), a partner of Nanjing Meining, the controlling shareholder of Satus, and Tianjin DINGHUI Tianwei is a related party of Satway, and the above borrowing behavior constitutes a related party transaction.
The above-mentioned related party transactions have also attracted the attention of regulators, and the response to the inquiry pointed out that in 2019, Satus raised funds by means of targeted issuance of shares in order to continue to develop 5G projects. Setx has raised a total of $479 million, and as of December 31, 2019, the company has received $254 million. Considering that the R&D investment of 5G projects in the short term can basically be covered by the funds raised by the fixed increase, coupled with the high interest rate of Tianjin DINGHUI Tianwei, Satus repays the principal and interest of the above loans to Tianjin CDH Tianwei for a total of 94.2027 million yuan.
After an interview with the relevant person in charge of Tianjin DINGhui Tianwei, when determining the borrowing interest rate, it mainly refers to the internal rate of return indicators. Based on the good relationship between Tianjin CDH Tianwei and Satex and the recognition of SATEX's 5G project research and development, the two parties negotiated the loan and finally determined that the annual interest rate of the loan was 16%. The response to the inquiry pointed out that the interest rate is similar to the interest rate at which Tianjin CDH Tianwei provides loans to other enterprises.
However, it is worth noting that the prospectus shows that at the end of 2018 and the end of 2019, the deposits of Saters Bank were 604 million yuan and 757 million yuan. At the end of 2018, the company's bank deposit balance was relatively high, and Saters also purchased wealth management products in that year, the specific purchase amount was not announced in the prospectus, in this case, is it still reasonable for Saterx to borrow from related parties at a high interest rate of 16% per annum?
On the other hand, 100 million yuan of Saters' fundraising projects were used to supplement working capital, but at the end of 2020 and the end of September 2021, the company's bank deposits were 866 million yuan and 789 million yuan, and in 2020, from January to September 2021, the company's wealth management products earned as much as 3.4637 million yuan and 3.0668 million yuan.
In response to the above questions, Electric Eel Finance sent a letter of verification to Saters, but as of press time, it had not received a reply from the company.
This article is from Electric Eel Express