Deju Technology was tortured for borrowing 30 million small loans to contribute capital while financing dividends and dividends

Company dynamics:

[Qiaofeng Intelligent IPO registration takes effect]

On May 13, the Shenzhen Stock Exchange disclosed that the China Securities Regulatory Commission approved the registration of the initial public offering of Qiaofeng Intelligent Equipment Co., Ltd. (hereinafter referred to as "Qiaofeng Intelligent"). Qiaofeng Intelligent specializes in the research and development, production and sales of CNC machine tools, the company has been deeply involved in the machine tool industry for many years, and has been committed to the development of high precision, high reliability, high efficiency, intelligent domestic modern "industrial machine tools".

【Jingqi Network Terminates GEM IPO】

On May 13, according to the official website of the Shenzhen Stock Exchange, because Anhui Jingqi Network Technology Co., Ltd. (hereinafter referred to as "Jingqi Network") submitted an application for withdrawal of relevant listing materials in accordance with the relevant regulations and regulations, the CSRC decided to terminate the issuance and registration procedures of Jingqi Network in the process of reviewing its initial public offering of shares and listing on the Growth Enterprise Market in the process of the CSRC's review of its initial public offering and listing application documents on the GEM.

【Jianerkang IPO Submission for Registration】

According to the official website of the Shanghai Stock Exchange, Jianerkang Medical Technology Co., Ltd. (hereinafter referred to as "Jianerkang") has submitted for registration on May 13. According to the prospectus, Jianerkang is a high-tech enterprise mainly engaged in the research and development, production and sales of disposable medical devices such as medical dressings and disinfection and hygiene products. Its sponsor is China Securities Construction Investment, which plans to raise 720 million yuan.

【Taiying Technology Terminates IPO on the Main Board of the Shanghai Stock Exchange】

On May 13, the website of the Shanghai Stock Exchange was updated, and the Shanghai Stock Exchange decided to terminate the review of its initial public offering and listing on the main board in accordance with the relevant regulations due to the application of Taiying Technology Group Co., Ltd. (hereinafter referred to as "Taiying Technology") and the sponsor China International Capital Corporation Limited to withdraw the application documents. Taiying Technology is a business process outsourcing service provider, focusing on providing digital middle and back office operation management services for enterprises.

Corporate Public Opinion:

[Gangdi Technology IPO: Related party transactions were questioned three times, and the actual controller was tortured for borrowing 30 million small loans to make capital contributions]

On March 31, one and a half months after the financial data recorded in the IPO application documents had expired and needed to be supplemented, that is, on May 12, 2024, Gangdi Technology returned to the team that continued to promote the listing and registration. With Gangdi Technology's revenue and non-net profit in 2023 finally settled at 547 million yuan and 79.0938 million yuan, the growth rate of its revenue and non-net profit has slowed down to 7.83% and 5.11% respectively, and the bottleneck of performance growth may have arrived.

Compared with the slowdown in performance growth, the related party transactions of Gangdi Technology are more interesting. According to the prospectus, before the issuance, Weng Yaogen held 5.0677 million shares of Gangdi Technology, with a shareholding ratio of 12.14%, followed by the company's four actual controllers, who were the actual controllers of East China Heavy Machinery. The data shows that from 2020 to June 2023, there are 10 overlapping customers between Gangdi Technology and Huadong Heavy Machinery.

In September 2015, the four actual controllers of Gangdi Technology signed a loan agreement of 30 million yuan with Wuxi Binhu District East China Rural Microfinance Co., Ltd., which was controlled by Weng Yaogen at that time, for the establishment of Gangdi Co., Ltd. and Gangdi Intelligence. As of August 2022, the above-mentioned loans and interest have been repaid at the market-based interest rate of 13% agreed in the agreement, which has attracted questions from regulators.

In the two rounds of audit inquiries in the early stage and the implementation letter of the audit center's opinions, the related party transactions between Gangdi Technology and Huadong Heavy Machinery were tortured by the regulator three times. According to the reply letter, from 2021 to 2023, the related sales amount of Gangdi Technology's sales of products to Huadong Heavy Machinery will be 2.1536 million yuan, 39.2781 million yuan, and 22.1268 million yuan respectively, accounting for 0.50%, 7.74%, and 4.05% of its operating income respectively. (Source: Huiju Finance)

[Ruihua Technology's major customers were inquired, and cash flow was tight but still dividends]

According to public information, Ruihua Technology was established in April 2007 and listed on the New Third Board on July 31, 2018. In March last year, the IPO of Ruihua Technology on the Beijing Stock Exchange was accepted and successfully passed in February this year. The sponsor of Ruihua Technology's IPO cooperation is China Securities Construction Investment, and the auditor is Lixin Zhonglian.

It is worth mentioning that the transaction between Ruihua Technology and Heze Yuhuang, a major customer, has received the attention of the exchange. According to the reply to the inquiry, Heze Yuhuang cooperated with Ruihua Technology in the year of its establishment. The client faced bankruptcy restructuring in the fourth quarter of 2020. After the crisis was resolved, Heze Yuhuang and its affiliates purchased patented proprietary equipment from Ruihua Technology in 2021, with an amount of 15.8317 million yuan, becoming the third largest customer of Ruihua Technology that year. During November and December 2021, due to the guidance of Ruihua technology and the operation of Heze Yuhuang personnel, the polystyrene project accident occurred in Heze Yuhuang, and there was a large material loss.

From 2020 to January to June 2023 (hereinafter referred to as the "reporting period"), Ruihua Technology has raised 99.412 million yuan through directional issuance of shares, and the funds raised are mainly used to supplement liquidity, and as of December 31, 2021, the previous raised funds have been used up. At the same time, Ruihua Technology also issued cash dividends of 110 million yuan twice during the reporting period, which also led to large fluctuations in the cash flow of Ruihua Technology during the reporting period. Among the two dividends issued, Xu Zhigang, the actual controller of Ruihua Technology, took 63.188 million yuan from them. It should be noted that Ruihua Technology was quite short of money during the reporting period. In 2020, in order to support the company's business development, the company borrowed 15.2336 million yuan from 22 shareholders, of which 14.7536 million yuan was borrowed from related parties. (Source: Yicaixin)

["Not bad for money" Baili Tianheng plans to IPO in Hong Kong stocks, and the cash anxiety of innovative pharmaceutical companies continues]

On the evening of May 13, Baili Tianheng announced that the company is discussing with relevant intermediaries on the issuance of H shares and listing on the main board of the Stock Exchange of Hong Kong Limited. As of now, the relevant matters are still under discussion, and the specific details of the H-share issuance have not yet been determined. Previously, it was reported that the preparation of the IPO of Baili Tianheng Hong Kong stocks does not exceed 500 million US dollars, and Goldman Sachs and JPMorgan Chase have been hired to arrange the Hong Kong listing for it. Trading could take place as early as early next year.

According to the first quarter report of 2024, Baili Tianheng's monetary funds increased from 404 million yuan to 5.825 billion yuan, a year-on-year increase of 689.82%. Since Baili Tianheng has a huge amount of cash in hand and the current pharmaceutical capital market environment is not hot, why should it be listed on the Hong Kong stock market at this time to raise funds? Behind this, it is the long-term investment required by Baili Tianheng in innovative drugs and the lack of full confidence in its own hematopoietic ability. With the arrival of the cold winter of innovative drug capital, many innovative pharmaceutical companies have begun to find ways to refinance on the one hand, and on the other hand, they have begun to reduce R&D and sales expenses in order to reduce cash pressure.

First, the overseas model chosen by Baili Tianheng is to share the global development expenses of BL-B01D1 and the profits and losses in the U.S. market with Bristol-Myers Squibb. This means that Baili Tianheng needs to have enough cash to support the pipeline advancement. Second, Baili Tianheng retains the global production and supply rights of BL-B01D1. This also implies that the construction of Baili Tianheng's future production line also needs financial support. In addition, although Baili Tianheng also has a generic drug business that can earn a certain amount of cash, this part of the revenue cannot cover all the costs and expenses of Baili Tianheng's pipeline. If the Hong Kong stock fundraising can be realized, it can also provide financial support for the promotion of other pipelines. (Source: Jiemian News)

[Deju Technology's sales expense rate is high, and it is replenished while managing dividends]

Deju Technology, with CITIC Securities as the sponsor, plans to list Chongke. The company plans to invest 875 million yuan to raise funds this time, and as of June 30, 2023, the company's total assets are 894 million yuan and net assets are 771 million yuan. The proportion of sales expenses of Deju Technology is much higher than that of its peers, and the top five material suppliers account for a large proportion; There are differences in the production capacity of fund-raising and investment projects, and the fund-raising and replenishment flow is carried out while the financial management dividends are paid.

From 2020 to January to June 2023 (hereinafter referred to as the "reporting period"), the company's sales expenses were 7.8696 million yuan, 38.5099 million yuan, 49.5147 million yuan and 32.5884 million yuan respectively, accounting for 7.45%, 11.15%, 13.90% and 18.64% of the operating income in the same period, which was higher than the average of 7.65%, 6.72%, 6.10% and 6.30% of comparable peers. During the reporting period, the top five material suppliers accounted for 59.91%, 62.76%, 58.99% and 57.24% respectively.

According to the prospectus, after the completion of the Deju high-end composite functional materials production project, it is mainly engaged in the production of high-end electronic adhesives for intelligent terminals, new energy, semiconductors and other industries, with an annual design capacity of 5790.40 tons of electronic adhesives. According to October 16, 2023, the company's corresponding project announced by the Dongguan Ecological Environment Bureau - Deju high-end composite functional materials production project is under approval, with an annual output of 5171.1 tons of organic silicone adhesive, 1973.9 tons of epoxy resin adhesive, 1074.7 tons of acrylic adhesive, and 3361.1 tons of polyurethane adhesive;

At the end of the reporting period, the balance of the company's monetary funds was 42.4118 million yuan, 79.1518 million yuan, 299.1 billion yuan and 336.8 billion yuan respectively, accounting for 20.87%, 22.22%, 58.76% and 62.29% of the current assets at the end of each period, mainly bank deposits. The company's trading financial assets are structured deposits and wealth management products purchased by the company, which are 3.0882 million yuan, 95.8993 million yuan, 8.0222 million yuan and 16.0399 million yuan respectively. In 2020 and 2022, the company's cash dividends will be 30 million yuan and 76 million yuan, respectively. The company plans to use the raised funds of 190 million yuan to supplement the company's working capital. (Source: Weigh Finance)