Company dynamics:
【Jusheng Technology Launches IPO Counseling】
Recently, Suzhou Jusheng Solar Energy Technology Co., Ltd. (hereinafter referred to as "Jusheng Technology") has gone through the counseling registration with the Jiangsu Securities Regulatory Bureau, and intends to make an initial public offering of shares and go public, and the counseling brokerage is Guotai Junan. Founded in 2012 and located in Zhangjiagang, Jiangsu, Jusheng Technology is mainly engaged in the R&D and manufacturing of photovoltaic intelligent tracking bracket systems, and has independently developed a full set of electronic control systems from power modules to communication modules.
【China Resources Beverage Sprints to the Hong Kong Stock Exchange】
China Resources Beverage (Holdings) Co., Ltd. (hereinafter referred to as "China Resources Beverage") officially submitted a prospectus to the Hong Kong Stock Exchange on April 22, China Resources Beverage owns the well-known brand "Cestbon", which is mainly engaged in the manufacture and sales of packaged drinking water products and beverage products. BOFA Securities, BOCI, CITIC Securities and UBS AG acted as joint sponsors for the IPO.
Corporate Public Opinion:
[Jingyang Electromechanical Beijing Stock Exchange IPO: Quality Declines Under Rapid Revenue Growth, Supply and Marketing System is Full of Doubts]
On December 26, 2023, Zhejiang Jingyang Electromechanical Co., Ltd. (hereinafter referred to as "Jingyang Electromechanical") submitted listing application materials to the Beijing Stock Exchange, officially launching an impact on the Beijing Stock Exchange. According to the prospectus, the total assets of Jingyang Electromechanical increased from 174 million yuan on December 31, 2020 to 506 million yuan on December 31, 2022, with an average annual compound growth rate of 70.63%. The operating income in 2020 was only 106 million yuan, and in 2023, it will be as high as 155 million yuan from January to June alone, and many of its financial indicators have achieved staggering growth. After looking at the revenue growth content, it was found that the quality of the revenue growth was not satisfactory.
What is puzzling is that in stark contrast to the extremely stable performance of sales-side customers, the top five suppliers of Jingyang Electromechanical change very frequently. At the same time, there are quite a lot of related party transactions of Jingyang Electromechanical, and the degree of dependence of the procurement side on related parties is too high.
Through combing, it is found that the sales side of Jingyang Electromechanical is too dependent on individual customers, and the procurement side has not established a stable supplier system, the former is not conducive to enhancing its own bargaining power, and the latter is difficult to reduce its own procurement costs. What is even more worrying is that issuers are very dependent on specific related parties at both the supply and marketing ends. In the case that the most basic supply and marketing system is not mature, it is obviously very difficult for the issuer to ensure the long-term and stable development of the company. (Source: Valuation House)
[Changde Technology's IPO Strange Phenomenon: Valuation Doubled, All Depends on the Evaluation Agency Walkerson's "One Mouth"]
Changde New Material Technology Co., Ltd. (hereinafter referred to as "Changde Technology"), which has replied to the second round of review inquiry letter of the exchange, relies on the "one mouth" of Walkerson (Beijing) International Asset Appraisal Co., Ltd. (hereinafter referred to as "Walkerson"), and in just five months, the company's valuation has easily doubled, from 214 million yuan to 408 million yuan.
Before Changde Technology applied for the IPO, Dis Manvine and Kangkai Environmental Protection increased the company's capital in the form of equity upturning. However, the capital increase price was much lower than the capital increase price of other shareholders in the same year, and the company did not determine that it constituted an equity incentive and did not make equity payment.
When determining the shareholding price of Dis Manteng and Kangkai Environmental Protection, Walkerson, the appraisal agency of Changde Technology, valued the value of all the company's shareholders' equity on July 31, 2020 as the base date, and the calculation result was 214 million yuan. But strangely, after 5 months, the company's valuation has nearly doubled. On February 15, 2021, Walkerson assessed the value of all shareholders' equity of Changde Technology as of December 31, 2020 at 408 million yuan. (Source: Huacai Information)
[Wuhan organic: net profit fell 78.59% year-on-year, and dividends were paid during the declaration period]
Recently, Wuhan Organic Holdings Co., Ltd. (hereinafter referred to as "Wuhan Organic") disclosed a prospectus to be listed on the Hong Kong Stock Exchange. However, before it was listed, its performance has begun to change significantly, especially in 2023, the company's net profit will decline by 78.59% year-on-year. Not only that, Wuhan Organic also paid a large amount of cash dividends during the reporting period, resulting in a soaring asset-liability ratio.
From 2021 to 2023 (hereinafter referred to as the "reporting period"), Wuhan Organic achieved operating income of 2.789 billion yuan, 3.134 billion yuan, and 2.677 billion yuan respectively, and net profit of 309.137 million yuan, 340.47 million yuan, and 72.902 million yuan respectively, and the performance of Wuhan Organic in 2023 has changed significantly, of which revenue and net profit decreased by 14.57% and 78.59% year-on-year respectively.
As of the end of 2021, the end of 2022, and the end of 2023, the net asset value of Wuhan Organic was 1.52 billion yuan, 726 million yuan, and 530 million yuan respectively, which continued to decline, and the main factor that led to the significant decrease in Wuhan Organic's net asset value was dividends. According to public information, in February, December 2022 and 2023, Wuhan Organic declared dividends of 1.013 billion yuan, 89.8 million yuan, and 270 million yuan respectively, totaling about 1.373 billion yuan. Due to cash dividends, Wuhan Organic's asset-liability ratio is also soaring, of which the company's asset-liability ratio has increased by 32.1 percentage points in 2023 compared with 2021. (Source: Titanium Media APP)
[With continuous losses and insufficient market rate, Yunzhisheng may face internal and external troubles if it is not listed]
AI voice unicorn Yunzhisheng Intelligent Technology Co., Ltd. (hereinafter referred to as "Yunzhisheng") was revealed to have updated its prospectus to the Hong Kong Stock Exchange again to continue its application for listing, with CICC and Haitong International as joint sponsors. It is worth noting that as one of the players in the vertical track, Yunzhisheng has even lost money year after year due to its small market share and low market presence. Moreover, the AI mountain and sea model launched by it did not show superhuman competitiveness. As a result, industry insiders are also concerned about its future.
In the past three years, Yunzhisheng's revenue has continued to grow, but its net profit has not risen. On the contrary, the company has been in the quagmire of losses. According to the prospectus, from 2021 to the end of 2023, Yunzhisheng's adjusted net profit losses will be 172 million yuan, 183 million yuan, and 137 million yuan respectively, with a cumulative loss of 492 million yuan in three years.
According to the data, Yunzhisheng's R&D expenditure increased from 188 million yuan in 2021 to 287 million yuan in 2022, an increase of more than 50%. However, the R&D investment of less than 300 million yuan is still a drop in the bucket compared with technology giants such as iFLYTEK. On the one hand, its market share is only 0.6%. The top two competitors have market shares of 15.5% and 4.1% respectively. On the other hand, Yunzhisheng's financing costs, operating expenses, and R&D investment remain high, which also leads to its losses. Moreover, with the launch of the "Shanhai Model" and continuous research and development, the related research and development expenses are bound to further increase. Therefore, it is still unknown when Yunzhisheng will turn around and make a profit. (Source: Yu See column)
[Jinghua Electronics' IPO is terminated, and the spin-off listing is sinking!]
In 2023, Shenzhen Holdings decided to spin off Jinghua Electronics (Shenzhen Jinghua Display Electronics Co., Ltd.), which focuses on innovative manufacturing business. The following month, Jinghua Electronics received the first round of inquiries, but after only one round of inquiries and the second round of inquiries were not answered, Jinghua Electronics withdrew and terminated the IPO. Regarding the reason for the withdrawal of termination, Shenzhen Holdings said: Considering the current review environment and new review standards for A-share listing applications, as well as the market environment, the board of directors decided to apply to the Shenzhen Stock Exchange to withdraw the proposed A-share listing application.
The IPO raised about 530 million yuan, of which 100 million yuan was used to supplement liquidity. What is amazing is that from 2020 to 2021, Jinghua Electronics has paid dividends twice, totaling nearly 30 million. At the same time, from the perspective of Jinghua Electronics' cash flow, the cash flow generated by Jinghua Electronics' operations in 2021 will be an outflow of nearly 16 million yuan, indicating that the company's cash flow from operating activities is very tight. In this case, the dividend and then the listing are somewhat suspicious of making shareholders pay for it.
In addition, Jinghua Electronics is deeply dependent on foreign brand customers and supply chains, and the proportion of raw material procurement from overseas is close to 20%. From the perspective of customers, customers and end customers mainly include large customers of smart home such as Gree, Midea and Panasonic. Schneider, Eaton, Fuji Electric and GE for industrial control and automation. OA office customers, Canon Fuji, etc., basically the top five customers account for nearly half of the company's operating income. The concentration of sales revenue sources, and most of them are international brands, along with the fragile trend of overseas supply chains, may affect the company's development stability in the future. (Source: Wandian Research)
[The prospect of the IPO of Kemi, which was acquired by Ruili, is unpredictable, the revenue has peaked, and the gross profit margin has declined for three consecutive years]
Ruili Co., Ltd. plans to be listed on the main board of the Shenzhen Stock Exchange, and the sponsor is CITIC Securities, and the review status is suspended as of March 31. The total holding of the three members of Ruili Kemi is more than 7%, and arbitration disputes have occurred due to equity transfer, revenue has peaked, gross profit margin has declined for three consecutive years, and net profit will fall by 47.42% in 2022.
From 2020 to January to June 2023 (hereinafter referred to as the "reporting period"), the company achieved operating income of 1,270.8 million yuan, 1,383.5 million yuan, 1,325.6 million yuan and 792.8 million yuan, and net profit of 248 million yuan, 199.3 million yuan, 104.8 million yuan and 128.8 million yuan respectively, with certain fluctuations in operating performance, and net profit in 2022 decreased by 47.42%.
During the reporting period, the gross profit margin of the company's main business was 33.32%, 27.00%, 21.66% and 31.90% respectively. In addition, Ruili Bureau and its subsidiaries Yangzhou Shengsaisi and Guangzhou Ruiyue received a total of 3 administrative penalties. (Source: Weigh Finance)