Huihan shares IPO cast a shadow on whether Chen Guoying and his wife's worth of 3.662 billion yuan can resist "internal and external troubles"

"Electric Eel Finance" text / Yin Qiutong

Following the failure of the IPO on the Science and Technology Innovation Board in 2021, Huihan Microelectronics Co., Ltd. (hereinafter referred to as "Huihan Shares") aims at the second IPO of the Growth Enterprise Market this time. The plan is to raise 713 million yuan, which will be used for the R&D and industrialization project of intelligent vehicle safety system, the R&D and industrialization project of 5G Internet of Vehicles TBOX, and the construction project of R&D center.

"Electric Eel Finance" found that there are many doubts in the company's IPO prospectus, and people are envious of Chen Guoying and his wife's "one-share" worth of 3.662 billion yuan, and they are also shocked by the "internal and external troubles" of the company to be listed.

Selling to competitors is hard to dispel

According to the prospectus, during the reporting period, Huihan shares were sold to competitors Desay SV and Lianchuang Automotive Electronics Co., Ltd. (hereinafter referred to as "Lianchuang Automotive Electronics"). It mainly sells Bluetooth modules, multi-functional modules and software products to Desay SV; It mainly sells cellular modules to Lianchuang Automotive Electronics. In each period of the reporting period, the sales revenue to Desay SV accounted for 5.81%, 6.97%, 9.29% and 11.32% respectively.

It is worth noting that Desay SV is a competitor of the company in the same industry.

According to the disclosure, Desay SV is mainly engaged in the intelligent cockpit business, in 2011 cooperated with Huihan shares, the earliest mainly to purchase Bluetooth module products from Huihan shares, and at the same time purchased Bluetooth modules, multi-functional modules and other products from Huihan shares during the reporting period, Lianchuang automotive electronics is mainly engaged in the vehicle wireless terminal business. In the first half of 2023, Huihan sold 29.2028 million yuan of functional modules to Desay SV, accounting for 8.91%; sales of Bluetooth modules were 7.8793 million yuan, accounting for 2.40%; sales of software products were 23,300 yuan, accounting for 0.01%.

This abnormal sales behavior naturally attracted the Shenzhen Stock Exchange's doubts, and the Shenzhen Stock Exchange required Huihan shares to explain the specific sales to competitors, the reasons for selling to competitors, and the reasons for the substantial increase in the proportion of sales to them.

In response to the exchange's inquiry, Huihan admitted that the main competitors in the industry include Desay SV, Jingwei Hengrun, Hongquan IoT, Quectel Communications, Huawei, Bosch, Valeo and LG Electronics. Faced with the continuous increase in the proportion of sales to competitors, the company still insists that the transaction is based on real business needs of both parties and is a normal business practice. In fact, is it a normal business practice? The company did not provide any explanation of the relevant data.

3.662 billion yuan worth and joint and several liabilities

On July 28, 2021, the plaintiff, Zhongcai Yufu, filed a lawsuit with the Beijing Financial Court due to matters related to the provision of income guarantee for the subscription amount of Guomai Technology's non-public issuance of shares, requesting that Fujian Taitong be ordered to pay Zhongcai Yufu 230 million yuan and overdue liquidated damages, and that Chen Guoying and his spouse Lin Huirong be ordered to bear joint and several liabilities for repayment.

The exchange attaches great importance to the joint and several repayment of the company's actual controller and his wife, and requires the company to explain whether the equity of Guomai Technology and the issuer held by the actual controller Chen Guoying and his spouse has been pledged or frozen, and whether the actual controller has the ability to repay if the compensation obligation arises due to the relevant litigation.

In response to inquiries, the company said that "the market value of Guomai Technology's equity held by the actual controller Chen Guoying and his spouse far exceeds the amount of the disputed debt", which has the flavor of "I am afraid of who I am afraid of".

The tone is so loud that the market has to estimate how high the value of Chen Guoying and his wife is.

According to the share pledge announcement disclosed by Guomai Technology and the announcement on the completion of the transfer registration of the transfer of shares by agreement, Chen Guoying and his spouse Lin Huirong hold 492,879,300 shares of Guomai Technology, of which Chen Guoying pledged 12,000,000 shares and Lin Huirong pledged 32,000,000 shares, accounting for 30.84% of the pledged shares. Chen Guoying and his spouse have a total of 340,879,300 unpledged shares, and the market value of the unpledged shares is 2.533 billion yuan based on the average closing price of 7.43 yuan per share in the 20 trading days before August 31, 2023, far exceeding the above cases

The amount of the disputed debt (RMB 230 million and related liquidated damages).

According to the above-mentioned transfer announcement, the market value of Chen Guoying and his spouse Lin Huirong holding Guomai Technology has reached 3.662 billion yuan, which is really the envy of ordinary investors. However, the joint and several liabilities of hundreds of millions of yuan at every turn cannot have any impact on the company.

The chairman is riddled with hundreds of risks

In terms of equity, the actual controller of the company is Chen Guoying, who currently holds a total of 82.58% of the company's equity. Due to the high concentration of equity, for Chen Guoying, who is "one share", the surrounding risks are particularly concerned.

According to Tianyancha, Chen Guoying currently has 8 pieces of employment information, 4 shareholders, 5 executives, and actual control of 16 companies. What is particularly noteworthy is that Chen Guoying has as many as 17 risks himself, as many as 244 peripheral risks, and 102 early warning reminders.

In terms of its own risks, Chen Guoying has 17 equity pledge information in Guomai Technology Co., Ltd., of which on August 16, 2023, Chen Guoying pledged 45 million shares, with a market value of 346.05 million yuan, accounting for 20.71% of the shares.

In fact, on March 2, 2024, Chen Guoying's wife Lin Huirong also pledged 34 million shares, with a market value of 243.44 million yuan, accounting for 12.33% of the shares.

In terms of surrounding high risks, Putian Guomai Network Technology Co., Ltd., where he used to be an executive, has cancellation filing information, and the reason for cancellation is "resolution to dissolve".

In terms of litigation, Guomai Technology Co., Ltd., of which it is a shareholder, was sued for a dispute over liability for motor vehicle traffic accidents; Guomai Technology Co., Ltd., as a shareholder, was sued for a dispute over a vehicle leasing contract; Huihan Microelectronics Co., Ltd., as a shareholder, has been sued for a contract dispute......

In addition, Guomai Technology Co., Ltd., of which it is a shareholder, has as many as 207 external guarantee information, of which hundreds of millions of yuan of joint and several liability guarantee have been provided for Fuzhou Institute of Technology in the near future.

The chairman of the board of directors is entangled in hundreds of risks, actually controls 16 companies, and is not only pledging shares, external guarantees, and a number of lawsuits, but the market is worried about the internal governance level of the company under his management.

"Electric Eel Finance" will continue to pay attention to the progress of the IPO of Huihan shares.