China Fund News reporter Nan Shen
The net profit exceeded 350 million yuan to hit the main board listing, but it still failed.
On the evening of April 23, the website of the Shenzhen Stock Exchange was updated, and the Shenzhen Stock Exchange decided to terminate its issuance and listing review in accordance with the relevant rules due to the withdrawal of the application for issuance and listing of Guangzhou Ruxing Technology Co., Ltd. (hereinafter referred to as "Ruxing Technology") and the sponsor CITIC Securities.
Ruxing Technology is mainly engaged in the research and development, production and sales of photovoltaic electronic paste, which is the leader in the industry segment, and the company's shipments of silver paste and aluminum paste products are ranked first in the world. During the reporting period, the company's performance also maintained stable growth, with revenue increasing from 2.189 billion yuan in 2020 to 2.824 billion yuan in 2022, and net profit attributable to the parent company increasing from 225 million yuan to 356 million yuan.
However, the company also has several major problems, the first of which is the risk of iteration of the technical route. During the review inquiry, the Shenzhen Stock Exchange asked the company to explain whether there is a risk of replacing the use of silver and aluminum paste due to the iteration of battery technology, or a significant decline in the demand for paste. In addition, the gross profit margin of the company's main products continued to decline, and accounts receivable accounted for a relatively high proportion.
The company paid a surprise dividend of 450 million yuan before listing, and this time it plans to raise 1.5 billion yuan, of which 418 million yuan is used to supplement liquidity, and the reasonableness and necessity of this situation have also been questioned by regulators.
The main product shipments are the world's first
There is a risk of technical iteration
According to the prospectus, the company is mainly engaged in the research and development, production and sales of photovoltaic electronic paste. The company's photovoltaic electronic paste products cover crystalline silicon solar cell silver paste and aluminum paste, and the main products include back silver paste and aluminum paste, which are mainly used in the photovoltaic industry.
In fact, the company is a leading enterprise in the field of photovoltaic paste, which has been deeply involved in the photovoltaic industry for more than 20 years and continues to be in a leading position in the field of photovoltaic paste. According to the statistics of the China Photovoltaic Industry Association (CPIA), the company's shipments of silver paste and aluminum paste products are ranked first in the world.
During the reporting period (2020 to 2022, and the first half of 2023), the company's performance was also good.
The total income of the company's main business was 2.189 billion yuan, 2.72 billion yuan, 2.824 billion yuan and 1.805 billion yuan respectively, showing a steady growth trend, the company's net profit attributable to the owners of the parent company was 225 million yuan, 223 million yuan, 356 million yuan and 199 million yuan respectively, and the net profit attributable to the parent company after deducting non-recurring gains and losses was 211 million yuan, 297 million yuan, 329 million yuan and 195 million yuan respectively, and the profit was good.
However, there is a risk of technological replacement in the company's core business.
The company's products are mainly used in crystalline silicon solar cells, which have the characteristics of fast upgrading. At present, new cell technologies such as TOPCon cells, IBC cells, and HJT cells have made certain breakthroughs in photoelectric conversion efficiency, which puts forward higher requirements for the products of upstream photovoltaic paste manufacturers.
To this end, in the review and inquiry, the Shenzhen Stock Exchange requires the company to distinguish the battery technology route, explain the type of paste product required and the company's product adaptation, further explain the company's technical reserves, production capacity, sales and customer expansion during the reporting period for the corresponding technical route, and further demonstrate the sustainability of the company's performance, as well as the competitive advantages and disadvantages in the field of mainstream and new battery paste products in combination with the production, production and sales, market share, product price and other conditions of comparable companies.
Gross profit margin continued to decline
Accounts receivable are high
In recent years, affected by the development trend of cost reduction and efficiency increase in the photovoltaic industry, the gross profit per unit of the company's paste products has shown a downward trend.
During the reporting period, the gross profit margin of the company's main business was 22.76%, 20.64%, 20.45% and 18.58% respectively, of which the gross profit margin of silver paste business was 13.08%, 11.19%, 9.99% and 9.48% respectively, and the gross profit margin of aluminum paste business was 47.75%, 49.38%, 47.76% and 46.77% respectively.
During the audit inquiry, the company was required to explain the main factors affecting the fluctuation of raw material prices, and conduct a sensitivity analysis on the impact of raw material price fluctuations on gross profit margin, the specific reasons for the decline in silver paste processing fees and the change in the competition pattern of aluminum paste market during the reporting period, and analyze whether there is a risk of decline in the gross profit margin of major products and countermeasures in combination with product changes, bargaining power and sensitivity analysis.
The Shenzhen Stock Exchange also requires the company to analyze whether there is a risk of overcapacity in the aluminum paste business, whether the provision for the decline in the price of relevant inventories and the provision for impairment of fixed assets is sufficient in combination with the decline in the price and gross profit margin of aluminum paste products and the forecast of aluminum paste market demand, the company's existing production capacity, and the expansion of competitors during the reporting period.
The company also has certain accounts receivable recovery and inventory risk impairment risks.
At the end of the reporting period, the book value of the company's accounts receivable was 869 million yuan, 809 million yuan, 758 million yuan and 964 million yuan respectively, accounting for 34.82%, 27.65%, 23.40% and 27.20% of the total assets respectively. At the end of the reporting period, the company's accounts receivable bad debt provisions were 111 million yuan, 110 million yuan, 93.6749 million yuan and 99.2613 million yuan respectively.
At the end of the reporting period, the carrying value of the company's inventory was 179 million yuan, 193 million yuan, 267 million yuan and 264 million yuan respectively. At the end of the reporting period, the company's provision for inventory decline was 2.5385 million yuan, 4.5778 million yuan, 4.6419 million yuan and 7.5664 million yuan respectively.
Surprise dividend of 450 million yuan
The fundraising plan is 418 million yuan to replenish the flow
The just-released "National Nine Articles" make it clear that enterprises must disclose dividend policies when they are listed, and include pre-listing surprise "clearance" dividends and other situations into the negative list for issuance and listing. There was a surprise dividend before the listing of Ruxing Technology, which was unexpectedly concerned by regulators.
According to the prospectus, the company plans to raise 1.5 billion yuan, of which 623 million yuan will be invested in the construction of production lines, 459 million yuan will be invested in research and development, and 418 million yuan will be used to supplement working capital. The amount of replenishment is close to 30% of the total amount of funds raised.
The Shenzhen Stock Exchange requires the company to explain the reasonableness and necessity of supplementing liquidity in combination with production and operation plans, working capital requirements, monetary fund balances, cash dividends and asset-liability ratios.
The regulator should also explain the background and reasons for the cash dividends during the reporting period, whether the review procedures for the performance of the previous dividends comply with the internal regulations of the company such as the Articles of Association, the flow and use of the funds of the previous cash dividends, and whether there is a situation in which the external capital circulates to form sales receipts and bear costs.
Editor: Huang Mei
Review: Xu Wen