"Harbor Business Watch" Liao Ziwen
It has been one year since Jiangsu Jiangshun Precision Technology Group Co., Ltd. (hereinafter referred to as Jiangshun Technology) passed the main board meeting in 2022, and the company has not yet obtained the listing approval of the China Securities Regulatory Commission.
After the implementation of the comprehensive registration system, Jiangshun Technology has been transferred to the Shenzhen Stock Exchange for review, and has now completed a round of inquiries and updated the corresponding prospectus of the Shenzhen Stock Exchange, and on August 24, the Shenzhen Stock Exchange has issued a letter of implementation of the opinions of the review center.
01
The top five customer changes are unusually interesting
Jiangshun Technology is mainly engaged in the research and development, design, production and sales of aluminum profile extrusion dies and accessories, aluminum profile extrusion supporting equipment, precision mechanical parts and other products. The company's main products are aluminum profile extrusion dies and accessories, aluminum profile extrusion supporting equipment, precision mechanical parts.
From 2020 to 2022 (hereinafter referred to as the reporting period), Jiangshun Technology achieved revenue of 549 million, 742 million and 892 million; The net profit attributable to the parent was 69.9165 million, 103 million and 139 million; The net profit was 67.852 million, 99.624 million and 137 million.
At the same time, the company expects that the operating income from January to September 2023 will be 710 million to 750 million, the net profit attributable to the parent will be 107 million to 113 million, and the net profit will be 103 million to 109 million.
From the perspective of the composition of main business income, aluminum profile extrusion dies and accessories, extrusion supporting equipment, are the company's core products, from 2020 to 2022, the total sales amount of the two types of products is 418 million, 599 million and 728 million, accounting for 77.88%, 83.01% and 83.64% of the main business income in each year.
The inquiry letter of the Shenzhen Stock Exchange pointed out that there were great changes in the sales revenue of the main customers of aluminum profile extrusion supporting equipment during the reporting period of Jiangshun Technology, among which, the sales revenue of customers such as Dongliang Aluminum and Haomei New Material declined in 2022, and the sales revenue of customers such as Minth Group, Yttrium New Material and CITIC Bohai increased.
For the large changes in sales revenue of major customers, Shenzhen Stock Exchange requires Jiangshun Technology to further explain the sustainability of subsequent sales of aluminum extrusion supporting equipment and whether there is a risk of significant decline based on the prosperity of major downstream industries, product service life, changes in the business scale of major customers, customer expansion and changes in orders in hand by issuers.
As far as the change of the business scale of major customers is concerned, starting from the detailed data, during the reporting period, the sales of the top five customers of the company's aluminum profile extrusion supporting equipment products were 87.8675 million yuan, 162 million yuan and 196 million yuan, accounting for 57.15%, 53.94% and 52.94% of the revenue of aluminum extrusion supporting equipment products.
From 2020 to 2021, Dongliang Aluminum ranked first and second among the company's top five customers, achieving sales revenue of 29.3988 million and 75.3639 million respectively, accounting for 5.35% and 10.16% of revenue respectively; In 2021, Haomei New Material became the second among the company's top five customers, achieving sales revenue of 43.0572 million, accounting for 5.81%.
In 2022, Dongliang Aluminum and Haomei New Materials did not appear in the top five customers, replaced by Minth Group, Huaythorn New Materials, and CITIC Bohai rushed into the top five, of which CITIC Bohai, which ranked fifth, achieved sales revenue of 37.7726 million, accounting for 4.23% of revenue.
In other words, Dongliang Aluminum and Haomei New Materials, which contributed more than 70 million and 40 million in revenue in 2021, respectively, contributed sales revenue of less than 37.7726 million in 2022.
Song Qinghui, a well-known economist, said that the changes in the top five customer lists indicate that the lack of stability of large customer groups means that it is difficult for the company to obtain customers in the future, and it will undoubtedly affect the company's core competitiveness in the long run.
In response to the Shenzhen Stock Exchange's inquiry, Jiangshun Technology said that benefiting from the continuous growth of terminal demand, the company's downstream aluminum manufacturers continue to invest in expansion. The main customer Xinbo (003038. SZ, listed in February 2021), Haomei New Materials (002988. SZ, listed in May 2020), Xusheng Group (603305. SH, listed in July 2017), Minth Group (0425. HK, listed in December 2005), Shandong Innovation Precision Technology Co., Ltd. (innovative new materials 600361. SH Sun Company, backdoor listing in November 2022) During the reporting period, the overall performance showed a growth trend.
On the other hand, Jiangshun Technology said that due to the development of the downstream industry and the iterative demand for product upgrading, the frequency of product updates for aluminum extrusion supporting equipment has accelerated. And the business scale of major customers continues to grow, due to the need to increase production capacity and accelerate the automation upgrade of production lines, the company's aluminum profile extrusion supporting equipment orders, production and sales are also growing. At the same time, the company attaches importance to customer development, and the orders in hand remain stable. In summary, the subsequent sales of aluminum profile extrusion supporting equipment are sustainable, and there is no risk of a significant decline.
02
The gearing ratio far exceeds that of peers
According to the prospectus disclosed in 2021, from 2018 to 2019, the asset-liability ratio of Jiangshun Technology was 82.71% and 82.23% respectively; During the same period, the asset-liability ratios of comparable listed companies in the same industry were 24.69% and 25.56% respectively; Obviously, Jiangshun Technology's asset-liability ratio is much higher than that of its peers.
The latest disclosure of the prospectus shows that although the asset-liability ratio of Jiangshun Technology has declined, it is still much higher than that of its peers on the whole.
In detail, during the reporting period, the asset-liability ratio of Jiangshun Technology was 75.78%, 67.28% and 52.22%, and the asset-liability ratio of the consolidated caliber was 78.29%, 70.75% and 62.53% respectively; During the same period, the average asset-liability ratio (consolidated) of comparable listed companies in the same industry was 31.77%, 34.26% and 35.36%, respectively.
In addition, during the reporting period, the company's current ratio was 1.00, 1.15 and 1.07, and the quick ratio was 0.65, 0.71 and 0.68, respectively. The average current ratios of comparable companies in the same industry were 3.78, 3.34 and 3.24, and the average quick ratios were 2.69, 2.27 and 2.24.
On the whole, the company's asset-liability ratio is higher than the average of comparable listed companies, and the current ratio and quick ratio are lower than the average level of comparable listed companies.
Jiangshun Technology said that the main reasons are: on the one hand, the company's shareholder equity is relatively small, no external investment institutional shareholders have been introduced since its establishment, and the working capital mainly relies on its own operation accumulation in the early stage. With the continuous increase in the number of orders in hand, the demand for working capital has also increased relatively, and in the current situation of limited financing channels, the company mainly uses debt instruments such as bank borrowing to ensure the normal flow of funds, resulting in relatively low current ratio, quick ratio and relatively high asset-liability ratio.
At the same time, Jiangshun Technology pointed out that after signing the sales contract for the company's aluminum profile extrusion supporting equipment business, the customer will pay a certain percentage of the total price in advance as the equipment prepayment, so the company's contract liabilities during the reporting period are relatively large, 152 million, 203 million and 180 million respectively. Unlike cash payment obligations for other liabilities, advance receipts/contractual liabilities are resold with revenue recognition from product delivery and generally do not adversely affect the company's financial position.
Song Qinghui believes that the asset-liability ratio is a key data to measure the operation of enterprises. The high debt ratio indicates that the ability of the enterprise to repay its debts is very low, the financial risks are huge, and the future development ability of the enterprise is correspondingly weakened.
03
Some suppliers are traders and there are differences in purchase prices
During the reporting period, some steel material suppliers of Jiangshun Technology were traders, and the purchase prices of different suppliers were different.
SZSE requires the company to further explain the specific situation of purchasing from traders during the reporting period, the purchase amount and proportion, the basic information of traders and the final supplier, and quantitatively analyze the fairness of relevant procurement.
According to steel categories, during the reporting period, the company's round steel purchases from traders were 30.8991 million, 28.336 million and 57.2766 million, accounting for 42.55%, 34.30% and 56.00% of the total procurement of similar materials; The purchase amount of ordinary steel from traders was 26.8586 million, 50.9194 million and 36.1571 million respectively, accounting for 100% of the total procurement of similar materials in three years.
Jiangshun Technology round steel traders include Jiangsu Xiangqing International Trade Co., Ltd. and Wuxi Jiaruixin Machinery Technology Co., Ltd., during the reporting period, the average purchase prices of the company's traders were 16.48 yuan/kg, 16.50 yuan/kg and 16.53 yuan/kg respectively; The average market price is 15.83 yuan/kg, 16.21 yuan/kg and 16.37 yuan/kg. The difference rates were 4.08%, 1.80% and 1.01%, respectively.
Among them, during the reporting period, the purchase price of Jiangsu Xiangqing International Trade Co., Ltd. was 16.79 yuan/kg, 16.50 yuan/kg and 15.94 yuan/kg; The purchase price of Wuxi Jiaruixin Machinery Technology Co., Ltd. is 15.98 yuan/kg, 16.50 yuan/kg, 17.17 yuan/kg.
Jiangshun Technology said that the proportion of round steel procurement of different specifications affects the average annual purchase price of different suppliers, and under normal circumstances, the average price of round steel with specifications above 400mm is higher.
During the reporting period, the proportion of round steel purchased by the company from Jiangsu Xiangqing International Trade Co., Ltd. with specifications above 400mm accounted for 37.23%, 36.42% and 8.14% of the supplier's purchase amount, respectively; Wuxi Jiaruixin Machinery Technology Co., Ltd. purchased round steel of this specification, accounting for 17.98%, 30.94% and 61.12% of the supplier's purchase amount.
Jiangshun Technology proposed that the difference in the average purchase price of the company from Jiangsu Xiangqing International Trade Co., Ltd. and Wuxi Jiaruixin Machinery Technology Co., Ltd. was mainly affected by the procurement specifications of the year.
On the other hand, all the company's purchases of ordinary steel from traders were 3.88 yuan/kg, 4.89 yuan/kg and 4.52 yuan/kg respectively.
Among them, the company's procurement of ordinary steel (section steel, steel plate) is mainly Q235 ordinary steel, and the proportion of Q235 ordinary steel in the purchase of ordinary steel is 66.00%, 65.05% and 63.60% respectively. Among them, there is a certain difference in the price of Q235 ordinary steel purchased by the company from major traders.
During the reporting period, the price of Q235 ordinary steel purchased by the company from Wuxi Tongning Iron and Steel Trading Co., Ltd. was lower than the average purchase price. In detail, during the reporting period, the company's purchase amount from Wuxi Tongning was 6.1678 million, 6.1216 million and 10.6337 million respectively, and the average purchase price was 3.30 yuan/kg, 4.20 yuan/kg and 3.70 yuan/kg respectively. During the same period, the average purchase price of Q235 was 3.34 yuan/kg, 4.24 yuan/kg and 3.83 yuan/kg respectively.
And in 2021, the average purchase price of Q235 of Jiangshun Technology is 4.24 yuan / kg, while the average purchase price of Jiangyin Chuangmai Materials Co., Ltd. is 4.72 yuan / kg, and the average purchase price of Jiangyin Yanyi Metal Materials Co., Ltd. is 3.78 yuan / kg.
The company pointed out that the average purchase price of Jiangyin Chuangmai Materials Co., Ltd. and Jiangyin Yanyi Metal Materials Co., Ltd. in 2021 was different, mainly due to the impact of market price changes, the average price of ordinary steel in 2021 fluctuated greatly, of which the price from May to October 2021 was at a high level, during the month, the amount of Q235 ordinary steel purchased by the issuer from Jiangyin Chuangmai Materials Co., Ltd. and Jiangyin Yanyi Metal Materials Co., Ltd. accounted for 71.08% of its procurement in 2021 、29.31%。
Jiangshun Technology said that the company's steel purchase from steel traders is based on the same pricing basis and refers to the market price, the average purchase price is consistent with the market price change, and the average purchase price is different in different traders, mainly affected by material specifications and procurement time.
Song Qinghui said that suppliers are traders, and there may be many hidden risks, such as related interest arrangements, tax transfers and other issues, which may have a certain impact on their IPO process.
04
The secretary of the board who left suddenly during the IPO
It is reported that the former secretary of the board of directors served as a staff member of the Jiangsu Securities Regulatory Bureau from July 2013 to May 2020 before joining Jiangshun Technology.
From December 2020 to April 2023, Xiao Yongpeng served as the company's board secretary. The prospectus disclosed that in 2022, Xiao Yongpeng's salary will be 548,900 yuan.
The prospectus disclosed that Xiao Yongpeng joined in June 2020 as the core management personnel introduced by the company based on its own development needs and standardized operation needs, with the aim of further expanding the management team and ensuring the company's standardized operation.
In April 2023, based on the company's personnel arrangement adjustment and Xiao Yongpeng's personal career development plan, the company terminated the labor relationship with Xiao Yongpeng after negotiation, and Chen Jinhong, director and financial director, concurrently served as the secretary of the board of directors. Jiangshun Technology said that the change of senior management is in line with the company's business development needs.
Obviously, at the critical point of listing, as an extremely important board secretary of the company, the departure will undoubtedly trigger speculation from the outside world. For Jiangshun Technology, this is by no means good news.
Jiangshun Technology implements equity incentives for employees through Tianfeng management, and the objects of equity incentives include the company's senior managers and key employees. At present, Tianfeng Management has 9 partners, of which Chairman Zhang Ligang and Board Secretary Chen Jinhong hold 30.05% and 9.09% of the property under management of Tianfeng, and indirectly hold 3.31% and 1.00% of the company's shares respectively.
At the same time, according to the "Employee Equity Incentive Agreement" signed by all parties in July 2020, Xiao Yongpeng transferred his share of the property managed by Tianfeng to Zhang Ligang and no longer indirectly held the company's shares.
Song Qinghui said that for companies planning to IPO, board secretary is one of the company's most critical positions. In the future, once the company is successfully IPO, its value may increase several times. If the secretary leaves during the IPO, it may make people suspect that the secretary is not optimistic about the company's future development prospects, which in turn makes people doubt the authenticity of the company's financial data. At the same time, this move will also attract the attention of the audit department. (Produced by Harbor Finance)