Kunlun New Materials is suspected of inflating fixed assets for listing, and the official document data of Wanda Bearing are contradictory

Company dynamics:

【芯谷微终止科创板IPO】

On April 17, the Shanghai Stock Exchange terminated its issuance and listing review due to the withdrawal of Hefei Xingu Microelectronics Co., Ltd. (hereinafter referred to as "Xingu Microelectronics") and its sponsor from its issuance and listing application. Xingu Micro focuses on the R&D, design, production and sales of semiconductor microwave millimeter wave chips, microwave modules and T/R components, and it is reported that Guoyuan Securities Co., Ltd. is the sponsor of Xingu Micro.

[Termination of the IPO of Ketong Technology GEM]

On April 17, the Shenzhen Stock Exchange decided to terminate its issuance and listing review due to the withdrawal of Shenzhen Ketong Technology Co., Ltd. and the sponsor from the issuance and listing application. Ketong Technology is a well-known chip application design and distribution service provider, and this application for listing is a spin-off issuer of Ingdan Innovation, a listed company on the main board of the Hong Kong Stock Exchange.

[Zhida Technology terminates the IPO of the Beijing Stock Exchange]

On April 17, the website of the Beijing Stock Exchange announced the decision to terminate the review of the public offering of shares of Zhida Xinke Technology Co., Ltd. (hereinafter referred to as "Zhida Technology") and listing on the Beijing Stock Exchange. Zhida Technology focuses on the overall solution of smart travel, with the self-developed "digital base" as the core technology, and the product line covers the three major customer groups of "enterprise, government and public", providing solutions for the digital transformation of the industry.

Corporate Public Opinion:

[Kunlun New Materials GEM IPO: Suspected of Simultaneously Inflating Fixed Assets and Capital Reserve to Meet Listing Standards]

Xianghe Kunlun New Energy Materials Co., Ltd. (hereinafter referred to as "Kunlun New Materials"), located in Xianghe Economic and Technological Development Zone, submitted a statement to the GEM in June 2023, proposing to publicly issue no more than 12,974,138 ordinary shares and raise 1 billion yuan, which will only be used for the project with an annual output of 240,000 tons of lithium-ion battery electrolyte. According to the prospectus information, Kunlun New Materials has only one product for lithium-ion battery electrolyte, and its main business is not only single, but also lacks the layout of key raw materials for lithium hexafluorophosphate, resulting in low profitability.

The listing criteria selected by Kunlun New Materials this time are "(2) the expected market value is not less than 1 billion yuan, the net profit in the latest year is positive and the operating income is not less than 100 million yuan". The research prospectus found that from 2020 to January to June 2023, Kunlun New Material's net assets experienced a huge mutation process from less than 80 million yuan to nearly 1 billion yuan, and its capital reserve ending balance was abnormal, which was suspected to meet the listing standards.

At the same time, as of the end of June 2023, the original value of Kunlun New Material's machinery and equipment is 185.1875 million yuan, a difference of 133.4631 million yuan from the total original value of its main production equipment of 51.7244 million yuan, and the original value of the main production equipment accounts for only 27.93% of the original value of machinery and equipment.

According to the balance sheet principle, combined with the capital reserve that may increase abnormally before the reporting period, Kunlun New Materials may have the problem of inflated fixed assets, and there is a possible correspondence between the two. It is not excluded that Kunlun New Materials may increase the level of net assets by simultaneously inflating fixed assets and capital reserves, thereby increasing the valuation level and the output and income of products. (Source: Valuation House)

[Wanda Bearing Beijing Stock Exchange IPO: Sponsored by China Securities Construction Investment, the official document data contradictory]

Jiangsu Wanda Special Bearing Co., Ltd. (hereinafter referred to as "Wanda Bearing") applied for the IPO of the Beijing Stock Exchange in November 2023, and after the first round of inquiries, it quickly passed the meeting and submitted a registration application in January this year.

A study of Wanda Bearing's public documents found that there were contradictions in many of its data. Page 313 of the inquiry reply shows that during the reporting period, the total amount of outsourcing processing included in the operating cost of Wanda Bearing was 20.5342 million yuan, 30.5449 million yuan, 31.4542 million yuan and 14.0336 million yuan respectively. The 11th page of the inquiry reply shows that during the reporting period, the outsourcing processing fees included in the main business cost of Wanda Bearing were 9.1725 million yuan, 12.4427 million yuan, 13.3922 million yuan and 5.9932 million yuan, which were 11.3617 million yuan, 18.1022 million yuan, 18.062 million yuan and 8.0404 million yuan less than the outsourcing processing amount in the operating cost.

At the same time, Wanda Bearing is expected to raise 3000000000 yuan, of which 16000000000 yuan will be invested in the vehicle bearing project. According to the prospectus, the project will add 8 million sets of special bearings for industrial vehicles, with a total production capacity of 21 million sets. However, the reply to the inquiry shows that as of the end of the reporting period, the maximum production capacity of each processing process after the completion of the Wanda Bearing vehicle bearing project is 20 million sets, and there is a gap of 1 million sets with the data disclosed in the prospectus. (Source: Yicaixin)

[Ruili Kemi's accounts receivable account for more than 70% of revenue, and it is difficult for the controlling shareholder to collect the money, resulting in capital occupation]

Guangzhou Ruili Bureau of Automotive Electronics Co., Ltd. (hereinafter referred to as "Ruili Bureau of Technology"), an auto parts manufacturer, plans to sprint to the main board of the Shenzhen Stock Exchange for listing. Ruili Kemi is affiliated to Ruili Group Co., Ltd. (hereinafter referred to as "Ruili Group"), and during the critical period of listing, that is, in 2021 and 2022, the company's net profit attributable to the parent company declined for two consecutive years, especially in 2022, which decreased by 50.91% year-on-year.

Not only that, the company's performance is largely related to the controlling shareholder Ruili Group. From 2020 to 2022, Ruili Group and its subsidiaries were both the largest customer and the largest supplier of Ruili Bureau. However, a large number of related party transactions on the part of the controlling shareholder have been difficult to recover, and the company has also frankly admitted that it constitutes capital occupation.

As of the end of 2023, the balance of accounts receivable from Ruili Group and its subsidiaries has decreased to 55.0148 million yuan, accounting for 8.82% of the company's accounts receivable balance. However, the company's high accounts receivable is still unsolved: at the end of the reporting period, they were 601 million yuan, 426 million yuan, 622 million yuan and 566 million yuan respectively, accounting for 47.29%, 30.82%, 46.92% and 71.36% of the revenue in the same period. As of the end of the first half of 2023, the book value of the company's accounts receivable has reached more than 70% of revenue. (Source: National Business Daily)