Series of articles: Yitong Sealed Wireless Media Weishuo Henderson
Producer: Sina Finance Listed Company Research Institute
Author: IPO Refinancing Group/Zheng Quan
Recently, the regulator has repeatedly emphasized "strict access to issuance and listing". In practice, many companies planning to IPO have a long queue period, and some companies do not take the initiative to withdraw due to problems that may affect the issuance conditions.
As of April 26, 2024, the number of companies in the A-share IPO queue is 564 (based on the acceptance of the exchange, excluding listed and terminated projects), of which 33 companies have been in the queue for more than two years.
Source: The official website of the exchange
Among the 33 companies, Shenzhen Jingchuang Technology Electronics Co., Ltd. (hereinafter referred to as "Jingchuang Technology") has been queuing for more than 1,000 days and has not submitted for registration after 20 months.
Behind the IPO jam of Jingchuang Technology, the weak core business tortures the sustained profitability, and the new business revenue surges, but there are many doubts. For example, it is difficult to find large customers in the sweeping robot business, some customers have high incomes but the number of employees insured is 0, and the largest supplier has just been established to sell huge products to the company. In addition, the company's innovative product business is actually a "big platter", with many product categories but stability to be examined.
Innovative products are really a "big platter" to help net profit "step on the line and meet the standard"
According to the prospectus, Jingchuang Technology's main business is the R&D, design and intelligent manufacturing of game peripherals, innovative consumer electronics and other products. Among them, the proportion of game peripheral business revenue in total revenue was as high as 90%, and it has gradually decreased to about 70% over the years, but it is still a core product.
In 2022, the revenue and proportion of Jingchuang Technology's game peripherals business will further decline, which will also lead to a decline in the company's overall revenue and net profit.
According to the announcement in response to the inquiry letter, Jingchuang Technology's revenue in 2022 will be 595 million yuan, a year-on-year decrease of 0.83%, and the net profit deducted from the non-attributable parent company will be 62 million yuan, a year-on-year decrease of 6.94%.
Despite the weakness of its core products, Jingchuang Technology relied on the significant increase in revenue from innovative consumer electronics products to maintain overall performance growth and profit targets during the IPO period.
The net profit of 62 million yuan deducted from the non-attributable parent has just met the latest revised listing standards of the GEM selected by Jingchuang Technology: "the net profit in the last two years is positive, the cumulative net profit is not less than 100 million yuan, and the net profit in the latest year is not less than 60 million yuan"
However, it is worth noting that the innovative consumer electronic products referred to by Jingchuang Technology are actually a collection of several different types of electronic products with low relevance, including smart monitors, personal care products, smart meter modules, sweeping robots and other products.
Source: Jingchuang Technology announcement
In addition to the high revenue of smart monitor products, the revenue of other innovative products of Jingchuang Technology is small or unstable. For example, the revenue of the company's sweeping robot products in 2021 is almost 0, and the revenue in 2022 will surge to 82.638 million yuan, but the order amount at the end of 2022 is only 16.8855 million yuan, and the sustainability needs to be verified.
Behind the surge in revenue of sweeping robots, it is difficult to find a trace of large customers, and suppliers are full of doubts
In 2022, the revenue of Jingchuang Technology's sweeping robot products surged to 82.6387 million yuan, accounting for 38.24% of the total sales of innovative consumer electronics products in the current period, which is one of the important factors that the company's revenue and net profit in 2022 have not declined too much, and it is also the key to the net profit being able to barely "step on the line to meet the standard".
However, the company's main customers of sweeping robots are full of doubts. For example, Micromis Technology, Tianyancha shows that there is a company called Shenzhen Micromis Technology Co., Ltd., and the 2022 annual report shows that there are no insured employees. In 2022, Micromis Technology will bring 13.9833 million yuan of revenue to Jingchuang Technology, accounting for 2.42% of the total revenue in the current period.
Another example is the company's sweeping robot customer Xincheng Innovation, Tianyancha shows that Shenzhen Xincheng Innovation Technology Co., Ltd. was established on November 17, 2021, and Xincheng Innovation, which has just been established, will contribute 3.6583 million yuan of revenue to Jingchuang Technology in 2022. Tianyancha shows that the 2022 annual report of Xincheng Innovation shows that there are no insured employees.
Another example is CECOTEC, the largest customer of Jingchuang Technology's sweeping robot in 2022 (contributing 35.5914 million yuan in revenue in 2022), which is difficult to find in the industrial and commercial information system, and the second largest customer, Ruichang Technology (contributing 22.7895 million yuan in revenue in 2022), its abbreviation corresponds to many companies in industrial and commercial information, and I don't know which one is a customer of Jingchuang Technology.
There are also doubts about the suppliers of Jingchuang Technology, such as Dongguan Wande Technology Co., Ltd. (Dongguan Wande), the largest supplier of sweeping robot business, and the transaction amount between the two parties in 2022 is as high as 12.0082 million yuan. Tianyancha shows that Dongguan Wonder was established in April 2021. Interestingly, Jingchuang Technology found Dongguan Wonder cooperation in September 2021, and purchased 12 million yuan of sweeping robot parts from Dongguan Wonder in 2021.
Jingchuang Technology's second largest supplier in 2021, Weizhan Electronics, which was established in September 2019, sold 11.7466 million yuan of products to Jingchuang Technology in 2020, and sold as much as 26.5647 million yuan in 2021. However, Tianyancha shows that the 2022 annual report of Weizhan Electronics shows that there are no insured employees and the paid-in capital is 0.
Source: Tianyancha
In addition to Weizhan Electronics, Beihai Ruisheng Electronic Technology Co., Ltd. (hereinafter referred to as Ruisheng Electronics), the second largest supplier of Jingchuang Technology in 2020 (hereinafter referred to as Ruisheng Electronics, with a purchase amount of 9.3433 million yuan that year), is also quite suspicious. What's even more strange is that Ruisheng Electronics was enforced by the court for failing to fulfill its legal obligations on time, and the enforcement amount was as high as 1.9922 million yuan. In July 2020, Ruisheng Electronics was also included in the list of abnormal business operations for failing to submit annual report information as required.
Suspicious suppliers and customers test the authenticity of Jingchuang Technology's financial data, which is already weak.
Internal control and compliance issues are frequent
According to the prospectus, the actual controllers of Jingchuang Technology are Liu Dongsheng and Lin Jie, who directly or indirectly control 89.25% of the company's shares and have absolute control.
In A-share listed companies, the actual controller enjoys absolute control, and compared with other types of enterprises, problems such as benefit transfer and hollowing out of listed companies are more likely to occur. In order to prevent the occurrence of such problems, it is necessary to establish a sound corporate governance structure and internal control system.
However, Jingchuang Technology's internal control and compliance problems are frequent, and one problem is the quality of the company's information disclosure. For example, most enterprises will disclose internal control irregularities such as third-party payment collection in the prospectus, but Jingchuang Technology did not disclose it in the prospectus, and it was not disclosed in the reply announcement until the exchange inquired, but it was not synchronized to the updated prospectus.
According to the announcement of the reply to the inquiry letter, in 2020 and 2021, the amount of third-party payment from Jingchuang Technology will be 30.3968 million yuan and 14.996 million yuan respectively, which is not small, but the company did not disclose it in the prospectus. Third-party payment collection is not only a problem of non-standard financial internal control, but also a reference signal for the authenticity of the company's performance.
In addition, Jingchuang Technology was punished for Haiyin's environmental protection problems and water leakage problems during the reporting period, which shows that the company's awareness of compliance operation needs to be improved.