Jiling Yizhi Manufacturing (002600.HK) SZ) 2.1 billion yuan of convertible bonds were subject to the third round of inquiries by the Shenzhen Stock Exchange, and on the evening of December 25, the company replied to the content of the inquiry letter.
In May this year, Lingyi Zhizao threw out a convertible bond plan, and the original plan was to raise no more than 3.696 billion yuan, of which 1.1 billion yuan was used to replenish the flow. It is worth mentioning that in 2020, the company successfully raised 3 billion yuan, but with the change of the previous fundraising project and the "miscarriage", nearly 2.5 billion yuan was used to replenish the flow. Under the question of the Shenzhen Stock Exchange's "necessity of refinancing in the case of a large amount of replenishment of the previous fund-raising funds", the company reduced the amount of funds raised to 2.123 billion yuan and canceled the replenishment project.
In the secondary market, as of the close of trading on December 26, the company's share price closed at 6.32 yuan, down 2.32%, and the current total market value is 44.29 billion yuan.
The former fundraising project was changed first, then "aborted", and finally used to replenish the flow
Lingyi Intelligent Manufacturing is a consumer electronics parts company and one of the members of the "fruit chain". The company is mainly engaged in precision functional parts, structural parts and modules, and its main products are divided into die-cutting products, CNC products, stamping parts, fasteners and assembly products, etc., which are mainly used in consumer electronics, automobiles and photovoltaic energy storage industries.
The company plans to raise 2.1 billion yuan for the construction of six major projects, namely Tianxin Manufacturing Center Construction Project (hereinafter referred to as Project 1), Pinghu Manufacturing Center Construction Project (hereinafter referred to as Project 2), Carbon Fiber and Heat Dissipation Precision Parts R&D and Production Project (hereinafter referred to as Project 3), Smart Wearable Device Production Line Construction Project (hereinafter referred to as Project 4), Precision Parts Process Intelligent Upgrade Project (hereinafter referred to as Project 5), and Intelligent Information Platform Upgrade Construction Project (hereinafter referred to as Project 6).
Among them, projects 1 to 4 are expansion projects, Lingyi Intelligent Manufacturing will add 7.92 million pcs/year of plastic structural parts and metal structural parts through project 1, 11.4 million pcs/year of high-power adapters will be added through project 2, 6.889 million pcs/year of carbon fiber structural parts and 39.936 million pcs/year of ultra-thin vapor chambers will be added through project 3, and 2.8754 million pcs/year of AR/VR equipment will be added through project 4.
It should be noted that except for the plastic structural parts, which are the expansion of existing products, the other products are new products, among which metal structural parts, high-power adapters, carbon fiber structural parts and ultra-thin vapor chambers are upgrades of existing products, and AR/VR equipment is a new product developed by the company using existing technology.
Therefore, regarding the construction of the company's fundraising project, the Shenzhen Stock Exchange has questioned whether it meets the requirements for raising funds to invest in the main business, and requires the company to explain whether the relevant technology is mature and the expansion and certification of customers.
Titanium Media APP noted that before this fundraising, the company had raised 3 billion yuan in 2020, of which 1.56 billion yuan was used for precision metal processing projects, 544 million yuan for electromagnetic functional materials projects and 890 million yuan for replenishment. After the previous fundraising project underwent changes and "miscarriages", nearly 2.5 billion yuan of raised funds were finally used to replenish the flow.
Specifically, on December 27, 2021, Lingyi Zhizao changed the "electromagnetic functional materials project" to raise 490 million yuan to invest in the "new touchpad and keyboard module project", and at the same time adjusted the amount of funds raised for the "electromagnetic functional materials project" to 54 million yuan.
Subsequently, Lingyi Zhizao first terminated the implementation of the "precision metal processing project" in April 2022, and then on April 27 this year, the company terminated the implementation of the "new touchpad and keyboard module project".
On April 29 this year, all the investment and construction of the "Electromagnetic Functional Materials Project" was completed and completed, and the remaining raised funds of 1.9191 million yuan were permanently replenished, and the remaining raised funds of the above-mentioned terminated projects were used for permanent replenishment.
The amount of the previous raised funds to supplement the working capital project was 862 million yuan, the amount of the terminated and closed projects was 1.594 billion yuan, and the actual amount of the previous raised funds was 2.457 billion yuan, accounting for 81.82% of the total funds raised in the previous round.
In addition, in the first half of this year, the "electromagnetic functional materials project" achieved a benefit of 3.1535 million yuan, which has not yet reached the expected benefits.
The issuance of convertible bonds was subject to three rounds of inquiries
In the first two rounds of inquiry letters, the Shenzhen Stock Exchange mainly focused on the company's fundraising and investment projects, while in the third round of inquiry letters, the Shenzhen Stock Exchange mainly focused on the company's financial data.
In 2018, Lingyi Technology achieved a backdoor listing through a reverse acquisition of Jiangfen Magnetics, and the company's securities abbreviation was changed from "Jiangfen Magnetics" to "Lingyi Intelligence". In that year, due to the unrecoverable commodity trading business of Jiangfen magnetic material sector, Lingyi Zhizao made an asset impairment loss of more than 1.8 billion yuan, resulting in a huge loss of 680 million yuan in that year.
After the overdue prepayment in 2018, Lingyi Zhizao successively carried out a comprehensive rectification of the problems existing in the bulk commodity trading business and divested the business.
However, it is precisely because of this business that it has attracted the third round of inquiries from the Shenzhen Stock Exchange. From 2020 to the first three quarters of 2023, the book balances of prepaid bulk trade payments in the company's other receivables were 1.067 billion yuan, 1.043 billion yuan, 897 million yuan and 670 million yuan respectively. The Shenzhen Stock Exchange requires the company to explain the reasons for the formation of the book balance of bulk trade advance payments in combination with the specific counterparty and the content of the transaction.
In fact, it is usually difficult for "fruit chain" companies to get rid of their dependence on Apple, and the same is true for Lingyi Intelligent Manufacturing, which is also reflected in the company's revenue structure.
From 2020 to the first half of this year, the company's operating income was 28.143 billion yuan, 30.384 billion yuan, 34.485 billion yuan and 15.289 billion yuan respectively, of which the sales amount of overseas customers was 16.644 billion yuan, 18.656 billion yuan, 23.368 billion yuan and 10.881 billion yuan respectively, accounting for 59.14%, 61.4%, 67.76% and 71.17% of the total sales respectively.
Secondly, the sales of Lingyi Zhizao's largest customers from 2020 to 2022 will be 5.958 billion yuan, 7.246 billion yuan, and 8.425 billion yuan respectively, and the revenue of the largest customers will account for 21.17%, 23.84%, and 24.43% respectively.
Or in order to reduce the dependence on large customers, Lingyi Intelligent Manufacturing is also expanding its business scope, expanding its business to clean energy fields such as new energy vehicles and photovoltaic fields through the acquisition of companies. In the first half of 2023, Lingyi's intelligent automobile business achieved revenue of 713 million, a year-on-year increase of 72.46%, and a year-on-year increase of 0.23 percentage points in gross profit margin, which has been effective. (This article was first published on the Titanium Media App, by Li Ruohan)