"Electric Eel Finance" article / Li Ruifeng
On March 19, the IPO of Baiqida Intelligent Technology (Ningbo) Co., Ltd. (hereinafter referred to as Baida Intelligent) on the Beijing Stock Exchange accepted the third round of inquiries and suspended the listing process on March 28. According to the prospectus, Baida Intelligent is mainly engaged in the research and development, production and sales of permanent magnet material production equipment and permanent magnet material hydrogen crushing services, and its products mainly include semi-automatic magnetic field forming presses, automatic magnetic field forming presses, all-electric magnetic field forming presses and hydrogen crushing furnaces.
When reading the listing information provided by the company, "Electric Eel Finance" noticed that in this IPO, Baida Intelligent plans to use 43 million yuan to raise funds to supplement liquidity, and in the past few years, the company's cash dividend of 15.09 million yuan, more than seventy percent fell into the pocket of the actual controller couple. In addition, the capacity utilization rate of the company's second largest product is only more than 70%, and it is worth paying attention to how the new capacity will be digested in the future. In addition, the company has only one invention patent in the past six years.
Cash dividends of 15 million yuan and 43 million yuan of fund-raising replenishment
According to the prospectus, in this IPO, Baida Intelligent plans to raise 200 million yuan, of which 104 million yuan will be used for the digital workshop project with an annual output of 500 permanent magnet materials and equipment, 53 million yuan will be used for the construction project of the R&D center, and 43 million yuan will be used to supplement working capital.
It can be seen that in this IPO, Baida Intelligent will use 43.32 million yuan to supplement liquidity, more than 20% of the total funds raised. It is worth noting that in 2019 and 2021, the company paid cash dividends of 5.07 million yuan and 10.02 million yuan respectively, totaling 15.09 million yuan.
As of the signing date of the latest prospectus, Wang Hanquan, the largest shareholder of Baida Intelligence, directly holds 55.5814% of the shares of the issuer, and he serves as the executive partner of Chisheng Investment, and can actually control the voting rights of 9.3023% of the company's shares held by Chisheng Investment, and Wang Hanquan directly and indirectly controls 64.8837% of the shares of the issuer and serves as the chairman and general manager of the company; Shareholder Wang Shuang directly holds 3,670,000 shares of the company, accounting for 8.5349% of the company's total share capital, and serves as a director of the company; Wang Hanquan and Wang Shuang are husband and wife, and the two together control 73.4186% of the company's equity and are the actual controllers of the company.
It can be seen that more than 70% of the above-mentioned cash dividends fell into the pockets of the actual controller and his wife. But it's worth noting that Pitek Smart's money is not rich. At the end of each period from 2020 to 2022 (hereinafter referred to as the reporting period), the company's monetary funds were 2.4697 million yuan, 6.8386 million yuan and 15.0906 million yuan respectively.
However, in the case of insufficient funds and plans to supplement liquidity with raised funds, the company also uses monetary funds to purchase wealth management products. As of December 31, 2022, the company invested 2.17 million yuan in equity instruments and 19.51 million yuan in wealth management products.
In addition, Wang Hanquan, the actual controller of Baida Intelligence, also borrowed the company's funds. According to the prospectus, at the beginning of 2020, the balance of funds occupied by Wang Hanquan was 178,200 yuan, mainly because Wang Hanquan borrowed 5 million yuan from the company to repay his loan due to the expiration of his personal bank loan in March 2019, forming the interest accrued for capital occupation, and the principal of the loan was returned to the company in December 2019, and the interest was returned to the company in April 2020.
Baida Intelligence stated in the prospectus that from March to December 2020, the actual controller occupied the company's funds mainly for personal investment and financial management, and there was no situation of whitewashing the company's performance through extracorporeal capital circulation. In December 2020, the company recovered the principal of 5 million yuan and the interest of 118,400 yuan.
The second largest product capacity utilization rate is low, how to digest the new production capacity?
According to the prospectus, during the reporting period, Baida Intelligence's revenue from magnetic field forming presses accounted for 53.4%, 50.84% and 60.48% respectively, and the revenue from hydrogen crushing furnaces accounted for 6.22%, 10.32% and 6.03% respectively in the same period; The revenue of permanent magnet material hydrogen shredding services accounted for 36.48%, 35.31% and 29.87% respectively.
In this IPO, Baida Intelligent plans to use 104 million yuan to raise funds to expand production capacity. During the reporting period, the capacity utilization rates of Baida Intelligent's magnetic field forming presses were 90.64%, 91.11% and 99.57% respectively; In the same period, the poor energy utilization rate of hydrogen crushing furnace was 86.67%, 93.33% and 100%, respectively, and the capacity utilization rate of hydrogen crushing service of permanent magnet material was 74.25%, 78.08% and 71.16%, respectively.
It can be seen that although the capacity utilization rate of Baida Intelligence's first business is as high as more than 90%, the capacity utilization rate of its second largest business's permanent magnet material hydrogen crushing service is not high, only a little more than 70%.
According to the prospectus, at the end of the reporting period, the book value of Baida Intelligence's inventory was 39.6279 million yuan, 61.9783 million yuan and 58.9552 million yuan respectively, accounting for 29.75%, 43.92% and 28.12% of current assets respectively, and the inventory at the end of the period accounted for a relatively high proportion.
Baida Intelligent said that with the expansion of the company's production capacity and production scale, the inventory balance is likely to rise further. The inventory balance is large, which occupies the company's operating funds, resulting in low current ratio and quick ratio, bringing certain liquidity risk and financial risk. In addition, if the selling price of products declines significantly, there may be a risk of inventory impairment, which may adversely affect the company's operating results.
It is worth noting that during the reporting period, the book value of inventory goods in Baida Intelligence's inventory was 103,000 yuan, 4.79 million yuan and 7.78 million yuan respectively, accounting for 0.26%, 7.73% and 13.2% respectively, and the proportion continued to rise.
In the case that the capacity utilization rate of the second largest business is only 70% and the inventory proportion is relatively high, how to digest the capacity utilization rate of Baida Intelligent Fundraising?
In the past six years, there has only been one invention patent
According to the prospectus, during the reporting period, the R&D expenses of Baida Intelligent were 7.2138 million yuan, 8.4964 million yuan and 11.9253 million yuan respectively, accounting for 6.65%, 6.09% and 6.37% of the operating income in the same period.
During the reporting period, the R&D expense ratios of Baida Intelligence's peer comparable companies were 5.02%, 5.06% and 5.54%, respectively. Baida Intelligent said that the company's R&D expense rate is higher than the industry average, mainly because the company attaches importance to R&D and innovation, and continues to increase investment in technology research and development in order to maintain and improve the technical advantages of special equipment for permanent magnet materials.
According to the prospectus, Baida Intelligent has obtained 10 invention patents, 80 utility model patents, 5 appearance patents and 5 software copyrights.
It is worth noting that the most recent invention patent obtained by Baida Intelligence was in December 2022, while the last invention patent was obtained in May 2018. It can be seen that in the past six years, Baida Intelligence has only one invention patent.
In response to the above situation, "Electric Eel Finance" sent a letter of verification to Baida Intelligence, and the company said in its reply that for the above questions, please refer to the company's prospectus and public disclosure information.