Interface News Reporter |
Marco Polo Holding Co., Ltd. (hereinafter referred to as Marco Polo or the company), a local architectural ceramic tile enterprise company packaged as a "foreign brand", has sprinted to the main board of the Shenzhen Stock Exchange and has gone through a round of inquiries.
Marco Polo's main business is the research and development, production and sales of architectural ceramics, and is one of the largest manufacturers and sellers of architectural ceramics in China, mainly owning two private brands of "Marco Polo Tiles" and "Weimei L&D Ceramics". The company has five production bases in Dongguan, Guangdong, Qingyuan, Fengcheng, Jiangxi, Rongchang, Chongqing and Tennessee, USA, the main products are glazed bricks and unglazed bricks, glazed bricks mainly include glazed bricks, antique bricks, rock slabs, porcelain tiles and cultural ceramics, and unglazed bricks mainly include polished tiles.
From 2020 to 2022 (the reporting period), Marco Polo's operating income was 8.591 billion yuan, 9.365 billion yuan and 8.661 billion yuan respectively, and the net profit attributable to the parent company after deducting non-profits was 394 million yuan, 1.460 billion yuan and 1.360 billion yuan respectively.
It is worth noting that the company stepped on a number of real estate industry customers to explode, and carried out a large amount of accounts receivable bad debt provision, in order to preserve assets, Marco Polo and related real estate companies reached a real estate debt repayment plan. In this listing, Marco Polo plans to raise 4.018 billion yuan, of which 860 million yuan will be used to supplement liquidity. In 2020 and 2022, Marco Polo will pay a total of 580 million yuan in cash dividends.
Declining performance
Although Marco Polo has a foreign name, it is a real local brand. Marco Polo, formerly known as Guangdong Marco Polo Ceramics Co., Ltd., was established on November 5, 2008 by Du Yueran, Huang Yanbin and Xiao Gang with a cash contribution of 10 million yuan.
Marco Polo focuses on the R&D, production and sales of architectural ceramics. The company adopts the sales model of "distribution + direct sales". Among them, the direct sales model is divided into engineering sales model, entrusted production sales model, trade customer sales model, and retail model.
The industry in which the company operates is closely related to the real estate industry. Under the project sales model, the company directly signs a product sales agreement with the engineering party to sell products directly to the engineering party, and the company's engineering customers mainly include real estate developers, municipal engineering, commercial chain engineering, home improvement engineering, etc. According to different sources, engineering customers can be divided into engineering customers independently developed by Marco Polo and engineering customers recommended by dealers.
According to the prospectus, the company has established long-term strategic cooperative relations with a number of real estate companies, such as Vanke Real Estate, Poly Real Estate, China Overseas Real Estate, etc., and has successively settled in the Olympic Games, World Expo, Beijing Daxing International Airport and many other "big country projects" and landmark buildings.
According to data released by national statistics, the national real estate development investment in 2022 will be 13.29 trillion yuan, a decrease of 10.0% from the previous year. In 2022, Marco Polo's operating income will be 8.661 billion yuan, down 7.52% year-on-year, and its net profit will be 151 million yuan, down 8.40% year-on-year.
In each period of the reporting period, the sales revenue of the company's direct sales model was 4.988 billion yuan, 4.307 billion yuan and 4.019 billion yuan respectively, and the revenue of the engineering sales model was 4.088 billion yuan, 3.768 billion yuan and 3.281 billion yuan respectively, accounting for 47.67%, 40.36% and 38.09% of the main business income respectively.
Since the beginning of 2021, Marco Polo's engineering business revenue has continued to decline. The company said: Mainly affected by the national macro policy, the overall demand of the real estate industry has declined.
stepped on Lei Evergrande, and defaulted customers to repay their debts with houses
During the reporting period, Marco Polo's operating income was 8.591 billion yuan, 9.365 billion yuan and 8.661 billion yuan respectively, and the overall income was large, but there was "moisture", because the company had more than 30% of its revenue in each period as receivables.
From 2020 to 2022, the balance of Marco Polo's accounts receivable was 2.475 billion yuan, 2.863 billion yuan and 2.871 billion yuan respectively, the balance of notes receivable was 1.278 billion yuan, 362 million yuan and 59 million yuan respectively, and the financing amount of receivables was 5.9734 million yuan, 1.315 million yuan and 8.5272 million yuan respectively. The total balance of notes receivable, receivables financing and accounts receivable accounted for 43.75%, 34.45% and 33.31% of the operating income of each period, respectively.
Among them, Poly Real Estate, Vanke Real Estate, China Overseas Real Estate and Sunac Real Estate were the top five accounts receivable balance in the reporting period, accounting for 47.76%, 42.63% and 42.46% of the accounts receivable balance respectively.
The company's receivables mainly come from engineering customers such as large real estate enterprises. Under this type of business model, the sales scale is relatively large and the payment cycle is long, and most of them are settled by accounts receivable or commercial paper. Since the second half of 2020, due to the debt crisis of some real estate companies, the real estate industry has faced a situation such as declining sales, tightening of payment deadlines by suppliers, and strengthening supervision of pre-sale funds by local governments, and the risk of repayment has further increased.
Therefore, from 2020 to 2022, Marco Polo adopted a separate provision for bad debts for the accounts receivable of some real estate-related customers with a high risk of debt default, prudently taking into account the risk of bad debt losses, and making a separate provision for the receivables. From 2020 to 2022, the amount of accounts receivable provided for bad debts by individual items was 1.2544 million yuan, 264 million yuan and 410 million yuan respectively.
In addition, at the end of each reporting period, the company also has notes that are transferred to accounts receivable due to the drawer's non-performance In 2021, the company's notes receivable of 121 million yuan were transferred to accounts receivable, mainly due to the overdue transfer of some commercial acceptance bills of Evergrande Real Estate, Sunac Real Estate and Greenland Group. At the end of 2022, the company's notes receivable of 162 million yuan were transferred to accounts receivable, mainly due to the overdue transfer of some commercial acceptance bills of Shimao Real Estate, Sunac Real Estate and Greenland Group.
Due to the credit default or overdue credit of real estate customers such as Marco Polo Evergrande and Sunac during the reporting period, in order to preserve assets, Marco Polo reached a real estate debt repayment plan with the relevant real estate company, and at the same time, in order to repay the historical debts to the related parties, Marco Polo requested the relevant real estate companies to directly offset the real estate to Marco Polo's related party Weimei Decoration and its related parties.
The specific plan is as follows: Marco Polo and the related party Weimei Decoration signed a creditor's rights transfer agreement to transfer the creditor's rights to the relevant real estate company to Weimei Decoration, and used the original value of the creditor's rights as the creditor's rights transfer price. Weimei Decoration and other related parties signed a real estate sales contract with the relevant real estate company at the market price, and paid the relevant real estate company with this part of the creditor's rights as the purchase consideration for the relevant real estate, and the transaction price of the relevant debt assets was 814 million yuan.
The company stated that the total value of the bonded assets calculated according to the market price of the bonded assets was 992.9417 million yuan, and the transaction price was lower than the market price because of the consideration of factors such as the construction status of the real estate, the delivery risk, and the large-scale purchase, and the project customers would generally give a certain discount on the basis of the market price; 6.1336 million yuan, the appraisal price is lower than the transaction price because the appraisal value is reasonable after deducting relevant taxes and intermediary commissions on the basis of the market price.
1.6 billion yuan was invested from related parties, and 500 million yuan was paid out in cash dividends
As of the date of issuance of the prospectus, Huang Jianping directly held 0.90% of the company's shares. Huang Jianping holds 64.01% of the shares of Meiying Industrial, and is the controlling shareholder and actual controller of Meiying Industrial, which holds 64.36% of the voting rights of the company's shares, and Huang Jianping directly controls 64.36% of the voting rights of the company through Meiying Industrial.
In addition to controlling Marco Polo, Huang Jianping also controlled another company, Weimei Decoration. As a related party of the company, Weimei Decoration had frequent related party transactions with Marco Polo during the reporting period.
Founded in 1988, Weimei Decoration has been engaged in the production and sales of ceramic products since its establishment, and has certain sales channels and customer resources. Marco Polo was established in 2008, in order to make full use of the customer resources of aesthetic decoration and expand the scale of business, Marco Polo accepted its commission to process and produce ceramic products during the reporting period.
In 2019 and 2020, Marco Polo was commissioned to produce ceramic products and sold 730 million yuan and 405 million yuan to Weimei Decoration and the companies controlled by it, accounting for 8.98% and 4.71% of sales revenue respectively.
During the reporting period, the company had related purchases with Weimei Decoration, mainly entrusting Weimei Decoration and related parties to process ceramic tile products, purchase raw materials and transportation services, with 295 million yuan and 117 million yuan in 2020 and 2021, accounting for 6.11% and 2.20% of the current operating costs respectively.
It is reported that Marco Polo and Weimei Decoration have 359 overlapping customers and 198 overlapping suppliers, in order to solve the competition in the same industry and standardize related party transactions, since the beginning of 2021, Weimei Decoration has stopped the ceramic sales business.
In addition, Marco Polo also borrowed funds from Weimei Decoration and its related parties at the beginning of the reporting period, with an amount of 1.295 billion yuan. According to the prospectus, as of the beginning of the reporting period, due to the company's production and construction needs in history, the balance of funds provided by related parties was 1.651 billion yuan. In order to repay the above-mentioned debts, the company successively cleared the relevant debts through debt transfer and bank transfer payment from 2020 to 2022.
Interestingly, Marco Polo did not actually pay interest on the borrowings of funds obtained from related parties during the reporting period. The amount of interest payable to related parties in 2020, 2021 and 2022 is 63.5131 million yuan, 33.9054 million yuan and 2.9989 million yuan respectively based on the bank loan interest rate of the same period. According to the prospectus, the above-mentioned interest expenses were not actually paid and were included in the capital reserve.
In this listing, Marco Polo is also expected to raise 4.018 billion yuan, plan to invest in 7 projects, in addition to 860 million yuan will be used to supplement liquidity.
In each period of the reporting period, Marco Polo's asset-liability ratios were 71.53%, 55.45% and 44.11% respectively, although they decreased year by year, but still at a high level. The interface news reporter noticed that Marco Polo was also paying large dividends, with cash dividends of 80 million yuan and 500 million yuan in 2020 and 2022 respectively.