Breton has lost more than 500 million yuan in three years, and the balance of accounts receivable of Jingqi Network continues to increase and is overdue

Company dynamics:

[Shanghai Stock Exchange suspends the issuance and registration procedures of Jiachi Technology]

On May 14, the Shanghai Stock Exchange disclosed that the sponsor hired by Chengdu Jiachi Electronic Technology Co., Ltd. (hereinafter referred to as "Jiachi Technology") was taken regulatory measures by the China Securities Regulatory Commission to restrict business activities, and its issuance and registration procedures were suspended in accordance with the regulations. The IPO sponsor of Jiachi Technology is Huaxi Securities, and the company was suspended for 6 months due to the lack of diligence in the practice process of Jin Tongling's non-public offering of shares in 2019, the false records in the sponsorship letter for the issuance of shares to specific objects, the false records in the relevant reports issued during the continuous supervision stage, and the inadequate implementation of the on-site inspection work of continuous supervision, the company was taken to suspend the sponsorship business qualification for 6 months, and the suspension period is from April 28 to October 27, 2024.

【Old shop gold table submitted to the Hong Kong Stock Exchange】

On May 13, according to the disclosure of the Hong Kong Stock Exchange, Laopu Gold Co., Ltd. (hereinafter referred to as "Laopu Gold") submitted listing documents to the Hong Kong Stock Exchange, with China Securities Construction Investment International as its sole sponsor. According to the prospectus, Laopu Gold is the first brand in mainland China to promote the concept of "ancient gold" certified by the China Gold Association, and is the first professional brand of ancient handmade gold in China. As of April 2024, Laopu Gold has 32 stores in 13 cities across the country.

Corporate Public Opinion:

[Wenchang Technology Beijing Stock Exchange IPO: Significant dependence on BYD, main fixed assets are at risk of relocation]

As one of the suppliers of BYD air conditioning system parts, Wenchang Technology benefited from BYD's performance growth in the reporting period from 2020 to 2022, with a significant increase in sales revenue and profits, and wants to raise 150 million yuan from the Beijing Stock Exchange for the production of new energy vehicle air conditioning compressor parts. However, looking through the prospectus and public information, it is found that Wenchang Technology has become a major dependence on a single customer, and there is also a risk of relocation of the main business production site.

The performance of automotive air-conditioning compressor parts in Wenchang Technology has grown rapidly in the reporting period, accounting for 86.20% in 2022, which is the main source of Wenchang Technology's revenue. Among them, the revenue growth rate of the vortex disk is the fastest, with a compound growth rate of 383.13%. The main customer of Wenchang Technology Vortex Disk is BYD, and the proportion of its sales revenue to BYD in its total revenue from 2020 to 2022 (hereinafter referred to as the "reporting period") is 2.53%, 24.30% and 48.73% respectively, and the proportion is gradually increasing.

From the perspective of profits, Wenchang Technology's gross profit from BYD's sales exceeds 50% of Wenchang Technology's total gross profit, and has touched the red line of 50% of a single customer's significant dependence. Wenchang Technology's revenue from BYD's sales of scroll disks accounted for a proportion of its total scroll disk sales revenue, reaching 72.55% in 2022. The sales revenue of the scroll plate also accounted for 69.37% of its revenue in the same period, and the gross profit of Wenchang Technology from the sales of BYD scroll plate has accounted for 56.80% of its total gross profit in 2022. From the perspective of gross profit proportion, Wenchang Technology's dependence on BYD has long formed a major dependence on a single customer, and the risk cannot be ignored.

On July 5, 2011, the land use of an area of 20 acres under the name of Wenchang Technology was changed from "industrial land" to "residential commercial land", after which Wenchang Technology still used the standard factory buildings and office buildings that had been built on the land for production and office, and its actual use was inconsistent with the use of the land certificate, and there may be a risk of relocation of above-ground ancillary buildings. What's more, the 20 acres of land carried an average of 69.80% of Wenchang Technology's performance in the reporting period, and it reached a high of 78.14% in 2022. For such an important land, once there is an emergency relocation request, Wenchang Technology will face the risk of shutdown, which will have a significant adverse impact on its performance. (Source: Valuation House)

[Jingqi Network terminated the GEM IPO: the balance of accounts receivable continued to increase and was overdue after two and a half years of submission for registration]

On the evening of May 13, the official website of the Shenzhen Stock Exchange announced that the China Securities Regulatory Commission decided to terminate its issuance registration process due to the initiative of Jingqi Network and the sponsor to withdraw the registration application documents. The company submitted the application documents in December 2020 and was accepted, passed the meeting in August 2021, and submitted for registration in October of that year, but two and a half years later, the company still did not register and take effect until the IPO was terminated.

The recovery of accounts receivable from Jingqi Network is one of the key issues concerned by the Exchange's inquiry letter and the GEM Listing Committee. At the end of the reporting period, the balance of accounts receivable of Jingqi Network was 150 million yuan, 225 million yuan, 318 million yuan and 371 million yuan respectively, which exceeded the growth rate of the company's operating income during the reporting period, especially at the end of 2022 and the first half of 2023, the company's accounts receivable balance even exceeded the scale of the company's operating income.

In terms of accounts receivable recovery, at the end of the reporting period, the company's accounts receivable with an age of more than 1 year were 52.4698 million yuan, 78.5006 million yuan, 139 million yuan and 177 million yuan respectively, accounting for 34.92%, 34.94%, 43.66% and 47.60% of the accounts receivable balance respectively. At the end of the reporting period, the company's overdue accounts receivable amounted to 84.7025 million yuan, 96.4405 million yuan, 169 million yuan and 192 million yuan respectively, of which the accounts receivable with an overdue age of more than 2 years accounted for 27.58%, 32.16%, 25.06% and 29.24% respectively. As of the end of June 2023, the cumulative overdue amount of the company's top ten overdue accounts receivable customers was 77.8854 million yuan. (Source: National Business Daily)

[Brayton submitted to the Hong Kong Stock Exchange, with a loss of more than 500 million in three years, and a high concentration of suppliers]

Recently, Brayton submitted a prospectus to the Hong Kong Stock Exchange to be listed on the main board of the Hong Kong Stock Exchange, with CICC and CMB International as its joint sponsors. From 2021 to 2023, Breton's operating income will be about 201 million yuan, 360 million yuan, and 464 million yuan respectively; The corresponding net losses were about 97 million yuan, 178 million yuan and 229 million yuan respectively, with a cumulative loss of more than 500 million yuan in three years. According to the prospectus, in 2021, 2022, and 2023, Bolrayton's gross profit margin will be 3.7%, 2.3%, and 2% respectively, showing a downward trend year by year.

From 2021 to 2023, the company's purchases from the top five suppliers accounted for more than 60% of the total procurement in each year, of which the purchases made to the largest suppliers accounted for 20.9%, 35.4% and 39.4% of the total procurement in each year, respectively, accounting for a relatively large proportion, if the company's cooperative relationship with major suppliers changes, it may affect the company's production and operation. In 2021, 2022 and 2023, the revenue realized by Brayton through dealer sales accounted for 32.9%, 55.6% and 40.3% of the total product sales revenue, respectively, accounting for a relatively large proportion.

In recent years, Brighton's operating income has shown an increasing trend, but its net profit has continued to lose, and the gross profit margin has been declining year by year. Although the company ranks high among domestic manufacturers of new energy loaders and new energy wide-body dump trucks, if it wants to be recognized by the capital market, it may have to improve its "self-hematopoiesis" ability in the future. (Source: Gelonghui IPO)