China Fund News reporter Nan Shen
In the context of the phased tightening of IPOs in the second half of this year, the listing application of Dongguan Youbang Material Technology Co., Ltd. (hereinafter referred to as "Youbang Technology") was accepted on September 6, once breaking the "zero declaration" situation of more than two months on the Shanghai and Shenzhen stock exchanges. But what I didn't expect was that the hard-won IPO acceptance quickly came to an end in just three months.
On the evening of December 18, the website of the Shenzhen Stock Exchange disclosed that due to the withdrawal of the issuance and listing application documents by Youbang Technology and the sponsor Huatai Securities, the Shenzhen Stock Exchange decided to terminate the review of its initial public offering of shares and listing on the Growth Enterprise Market in accordance with relevant regulations. It should be noted that on September 22, half a month after the listing application was accepted, Youbang Technology received the first round of inquiries, but the company did not reply to the inquiries until this withdrawal.
Youbang Technology is mainly engaged in the R&D, production and sales of electronic assembly materials and supporting automation equipment, and its revenue and net profit have maintained a rapid growth rate during the reporting period (2020 to the first half of 2023). However, the company's customer concentration is relatively high, and the revenue contribution of the top five customers in the first half of this year has been close to 50%, and it is dominated by Taiwanese enterprises. As the largest customers, Hon Hai and Foxconn contribute 27% to the company's revenue, and the company is also inextricably linked with Foxconn in terms of personnel and equity.
According to the prospectus, during the reporting period, Youbang Technology and its subsidiaries had many records of violations of laws and regulations, involving environmental protection, customs, production safety, transportation, taxation and other aspects.
It has a close relationship with Hon Hai and Foxconn
According to the prospectus, Ubang Technology is a high-tech enterprise mainly engaged in the research and development, production and sales of electronic assembly materials and supporting automation equipment, mainly including electronic adhesives, electronic welding materials, wet chemicals, automation equipment and other four business segments.
From 2020 to June 2023 (reporting period), the operating income of Youbang Technology was 419 million yuan, 589 million yuan, 854 million yuan, and 394 million yuan respectively, and the net profit attributable to the parent company after deducting non-profits was 43.9551 million yuan, 47.2078 million yuan, 72.6099 million yuan, and 36.9698 million yuan respectively, with a rapid growth rate in revenue and net profit.
During the reporting period, an average of 80% of Ubang's revenue came from smart phones, laptops, wearable devices and other smart terminals, and its direct customers included Foxconn, Delta, Pegatron and other companies, and its products ultimately served well-known brand customers such as Apple, Sony, HP, and Dell. The sales revenue of the top five customers accounted for 42.42%, 39.23%, 42.73% and 49.2% of the main business income respectively, and the company's customer concentration was relatively high.
During the reporting period, the company's sales to Hon Hai and Foxconn Group were 54.3666 million yuan, 81.0611 million yuan, 195 million yuan and 107 million yuan respectively, and Hon Hai and Foxconn Group were the company's largest customers, accounting for 12.97%, 13.77%, 22.88% and 27.19% of the company's operating income respectively, showing a year-on-year upward trend.
In addition to being the largest customer, Hon Hai and Foxconn have many connections with the company.
During the reporting period, Liu Yanghui, who had served as a director and deputy general manager of the company, and his brother Liu Yangwei were currently the chairman of Hon Hai. Liu Yanghui resigned in October 2022 and changed his status to a consultant of Youbang Technology, and Liu Yanghui's spouse, Zhou Caijie, also served as a consultant of Youbang Technology during the reporting period. Liu Yanghui is also the fourth largest shareholder of Youbang Technology, holding 3.19 million shares of the company, accounting for 4.02%.
In addition, the seventh largest shareholder, Jinjihu Investment, which holds 3.46% of the shares, and its legal representative, Du Moxi, is actually an executive of Foxconn's parent company, Hon Hai Technology Group.
In this listing, Youbang Technology originally planned to raise 1.001 billion yuan, of which 533 million yuan was used for semiconductor and new energy special materials projects, 163 million yuan was used for special adhesive upgrade and construction projects, 174 million yuan was used for R&D centers and information construction and upgrading projects, and 130 million yuan was used to supplement working capital.
There are many records of administrative punishments
The reporter noted that during the reporting period, the company and its subsidiaries had more administrative punishment records, involving more fields.
In terms of environmental protection, on August 13, 2020, the Dongguan Municipal Bureau of Ecology and Environment issued an administrative penalty decision of 10,000 yuan for the illegal act of handing over industrial solid wastes such as waste tapes, waste plastic barrels and waste rags to individuals who do not meet environmental protection requirements without taking harmless disposal measures.
In terms of customs, on November 27, 2020, Huanggang Customs of the People's Republic of China issued an administrative penalty decision, imposing an administrative penalty of a fine of 5,700 yuan on Dongguan Younuo for the illegal act of declaring flux to the customs in the form of general trade supervision on November 21, 2020 without reporting for inspection of hazardous chemicals.
In terms of production safety, on June 2, 2022, the People's Government of Huangdai Town, Xiangcheng District, Suzhou City, issued the "Administrative Penalty Decision (Unit)", and imposed an administrative penalty of 53,750 yuan on the storage methods and methods of Suzhou Younuo's hazardous chemicals that did not comply with relevant national regulations.
On July 4, 2022, the Emergency Management Bureau of Xiangcheng District, Suzhou City, issued the "Administrative Penalty Decision (Unit)", which imposed an administrative penalty of 6,000 yuan and a fine of 6,250 yuan respectively for Suzhou Younuo's failure to take measures to eliminate potential accidents and fail to incorporate safety risk identification and control into the annual safety production education and training plan.
In terms of transportation, on June 12, 2020, the Kunshan Municipal Transportation Bureau issued an administrative penalty decision, ordering correction and fining 2,000 yuan for the illegal behavior of the dangerous goods carrier failing to make a dangerous goods waybill or the retention period not meeting the requirements of the dangerous goods carrier in accordance with the regulations or the storage period did not meet the requirements of the driver of Dongguan Younuo on the morning of June 11, 2020 at No. 888 of the G2 Beijing-Shanghai Expressway.
In terms of taxation, on May 16, 2023, the First Taxation Branch of the Rudong County Taxation Bureau of the State Administration of Taxation issued the "Tax Administrative Penalty Decision (Simple)", which imposed a penalty decision of 50 yuan on Jiangsu Youbang for the illegal act of failing to declare individual income tax on time from March 1, 2023 to March 31, 2023.
In addition, the company also has violations such as exceeding the production capacity approved by the EIA and exceeding the permitted scope of the "Safety Production License". However, the Company believes that during the reporting period, the Company and its subsidiaries did not have any major violations of laws and regulations, nor did they receive major administrative penalties from the relevant competent authorities for violating relevant laws and regulations.
Editor: Captain
Review: Chen Mo