Source | Times Business School
Author | Chen Che
Edit | Sun Yiming
On May 13, according to the official website of the China Securities Regulatory Commission, because Jin Tongling (300091. SZ), the Jiangsu Securities Regulatory Bureau issued an administrative penalty decision to Dahua Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Dahua"), fined 41.32 million yuan, and suspended all securities service business for six months.
With the suspension of Dahua's "business qualifications", the IPO prospects of Jiangxi Effenda HVAC Technology Co., Ltd. (hereinafter referred to as "Effenda") are becoming more and more uncertain.
According to the official website of the Shenzhen Stock Exchange, Effenda passed the meeting on April 27, 2023, and plans to land on the GEM, and the audit institution is Dahua Exchange, but after more than a year, there has been no action to submit for registration.
From the perspective of performance, from 2021 to 2023, the compound growth rate of Effenda's revenue will only be 1.86%, and the revenue in 2022 will decline year-on-year. In addition, at the end of 2023, the company's monetary funds were no longer able to cover the short-term borrowings at the end of the current period.
It should be noted that from 2021 to 2023, hundreds of employees of Effenda have failed to pay pension insurance, work-related injury insurance, unemployment insurance, and medical insurance every year, and the Shenzhen Stock Exchange has questioned whether the labor employment is legal and compliant.
On April 30, Times Business School sent a letter to Effenda to inquire about the decline in performance, the ability to repay debts due to maturity, and the failure to pay provident fund for some employees, but as of press time, the other party has not replied. On May 14, Times Business School called Effenda again to inquire, but the phone could not be connected.
Formulated the first group standard for electric towel racks in China
Effenda belongs to the HVAC home furnishing industry, and its main products are bathroom towel racks and HVAC spare parts.
According to the prospectus, Effenda is a high-tech enterprise, with the "Provincial Enterprise Technology Center" recognized by the Jiangxi Provincial Commission of Industry and Information Technology, and the "2019 Jiangxi Provincial 'Specialized, Special and New' Small and Medium-sized Enterprises" and "2020 Jiangxi Provincial Industrial Design Center" recognized by the Jiangxi Provincial Department of Industry and Information Technology.
In addition, as the editor-in-chief, he drafted the group standard "Electric Towel Rack" (T/CCMSA50104-2018) of the China Construction Metal Structure Association, which is the first group standard for electric towel racks in China.
According to the prospectus, as of December 31, 2022, Effenda had 626 domestic patents, including 58 invention patents and 67 overseas patents.
The three-year revenue compound growth rate is only 1.86%
On May 13, an administrative penalty announced by the China Securities Regulatory Commission showed that the Jiangsu Securities Regulatory Bureau issued an administrative penalty decision to Dahua on May 10.
According to the administrative penalty letter, the Jiangsu Securities Regulatory Bureau believes that when Dahua audited Jin Tongling's annual financial statements from 2017 to 2022, there were major deficiencies in the risk assessment and internal control testing procedures, failure to take appropriate audit measures to deal with fraud risks, material defects in substantive procedures, violations of relevant practice standards, failure to perform due diligence obligations, and false records in the audit reports issued, in violation of the relevant regulations of the Securities Law. The Jiangsu Securities Regulatory Bureau ordered Dahua to make corrections, fined 41.32 million yuan, and suspended its securities service business for 6 months.
On May 13, a number of listed companies issued announcements announcing the cancellation of the reappointment of Dahua as an auditor in 2024.
The fine imposed on UOB for being involved in a financial fraud case has also raised the attention of the outside world to the performance disclosed by Effenda.
According to the official website of the Shenzhen Stock Exchange, Effenda's IPO application was accepted on June 20, 2022. In 2021, before the declaration, Effenda's revenue increased by 43.76% year-on-year, and its net profit increased by 442.08% year-on-year, with outstanding performance.
However, in 2022, Effenda's revenue will decline. According to the prospectus, from 2021 to 2022, Effenda's revenue will be 800 million yuan and 762 million yuan respectively, and its net profit will be 70 million yuan and 93 million yuan respectively. Among them, the revenue in 2022 will decline by 4.73% year-on-year.
On March 28 this year, Effenda disclosed its 2023 annual report on the New Third Board. According to the data, in 2023, Effenda will achieve an operating income of 830 million yuan and a net profit of 164 million yuan.
Judging from the data, from 2021 to 2023, Effinga's revenue scale will hover at 800 million yuan, with a three-year compound growth rate of only 1.86%.
On April 30, the Shenzhen Stock Exchange officially issued 9 rules including the "Rules for the Review of Stock Issuance and Listing". It is mentioned that the growth requirements of the GEM are emphasized, and the compound growth rate of operating income in the positioning evaluation criteria of the GEM has been increased from 20% to 25%.
The comparison shows that the three-year compound growth rate of Effenda's revenue is far from the new standard.
Monetary funds at the end of 2023 could not cover short-term borrowings
In addition to the year-on-year decline in revenue in 2022, Effenda's debt service risk is also a concern.
According to the prospectus and 2023 annual report, at the end of each year from 2020 to 2023, Effenda's monetary funds were 70.6639 million yuan, 77.9159 million yuan, 104 million yuan, and 91 million yuan respectively; short-term borrowings were 136 million yuan, 110 million yuan, 110 million yuan and 140 million yuan respectively; The non-current liabilities due within one year were 0 yuan, 11.7049 million yuan, 20.0455 million yuan and 22.4651 million yuan respectively.
After calculation, at the end of the same period, the total short-term borrowings plus non-current liabilities due within one year were 136 million yuan, 122 million yuan, 130 million yuan and 162 million yuan respectively, and the shortfall with the monetary funds at the end of the current period was 65 million yuan, 44 million yuan, 26 million yuan and 71 million yuan respectively.
In other words, at the end of each year in the past four years, Effenda's monetary funds could not cover the sum of short-term borrowings and non-current liabilities due within one year, and the monetary funds at the end of 2023 could no longer cover the short-term borrowings at the end of the current period.
Along with the debt repayment pressure, hundreds of employees have not paid pension insurance, work-related injury insurance, unemployment insurance, medical insurance and housing provident fund.
According to the response documents to the first round of inquiry letters, as of June 30, 2023, Effenda had a total of 1,771 employees, of which 473 employees had not paid pension insurance, work-related injury insurance, and unemployment insurance, 726 employees had not paid medical insurance, and 305 employees had not paid housing provident fund.
And in fact, this has been going on for three years. According to the prospectus, from 2020 to 2022, hundreds of employees of Effenda have not paid pension insurance, work-related injury insurance, unemployment insurance, and medical insurance every year.
At the end of each period from 2020 to 2022, the number of employees who did not pay pension, work-related injury and unemployment insurance were 558, 505 and 530 respectively. The number of employees who have not paid medical insurance is 739, 733 and 756 respectively; The number of employees who have not paid the housing provident fund is 391, 237 and 304 respectively.
In this regard, the Shenzhen Stock Exchange required Effenda to explain whether the labor and employment were legal and compliant, whether there was a risk of being punished and relevant countermeasures; The reasons for the low proportion of employees' social security and housing provident fund contributions, and the impact of full payment of social security and housing provident fund on the performance of Effenda in each period of the reporting period is calculated.
According to the reply document to Aifenda's inquiry letter, it is estimated that from 2020 to the first half of 2023, the company's impact on the total profit after paying social security and housing provident fund in full will be -3.6397 million yuan, -4.0366 million yuan, -4.145 million yuan, and -2.1894 million yuan respectively, and the total amount affected in three and a half years will reach 14.0107 million yuan.
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