Source: Yicaixin
Author: Zhu Zimiao
Qiaofeng Intelligent Equipment Co., Ltd. (hereinafter referred to as Qiaofeng Intelligent) is a high-tech enterprise specializing in the R&D, production and sales of CNC machine tools, and its GEM listing application was accepted by the Shenzhen Stock Exchange on June 21, 2022, and received the green light for IPO registration on April 24 this year. The Company's products are used in a variety of industries, including general equipment, energy, medical devices, aerospace and 5G communications, among others.
There are risks associated with aggressive capacity expansion
In this IPO, Qiao Feng Intelligent plans to issue no more than 30,190,000 shares through listing, raising 1.355 billion yuan for CNC equipment production base construction projects (hereinafter referred to as production base construction projects), R&D center construction projects, and supplemental working capital.
According to the Guangdong Provincial Investment Project Online Approval and Supervision Platform, the total investment of the production base construction project is 891.1419 million yuan, and the annual output of 5,100 CNC machine tool production lines will be invested after investment, including vertical machining centers, horizontal machining centers, gantry machining centers, etc. According to the EIA approval document of the production base construction project, after the completion of the project, Qiaofeng Intelligent will produce 10,000 sets of CNC machines per year.
(Screenshot from Guangdong Province Investment Project Online Approval and Supervision Platform)
(Screenshot from the EIA approval document of the production base construction project)
In addition, according to the WeChat public account released by Lishui, in an article published on February 14, 2024 titled "Provincial List! Lishui +8" article reported that Qiao Feng Intelligent Equipment (Nanjing) Co., Ltd. (hereinafter referred to as Nanjing Qiao Feng, a holding subsidiary of Qiao Feng Intelligence) has a total planned investment of 680 million yuan in the high-end CNC machine tool project, and is expected to form an annual production capacity of 5,000 Jingdiao machining centers, 6,000 drilling and tapping machining centers, 9,000 vertical machining centers and 400 CNC grinding machine models, with a total number of about 20,000 units.
(Screenshot from Lishui public account)
According to the registration draft of the prospectus, Qiaofeng Intelligence's main business products include vertical machining centers, gantry machining centers, horizontal machining centers, and other CNC machine tools. Wherein, the vertical machining center comprises a drilling and tapping machining center and a general machining center (the general machining center refers to other vertical machining centers other than the drilling and tapping machining center); Other CNC machine tools include CNC lathes, CNC grinding machines, and engraving machines.
In 2023, Qiaofeng Intelligent's vertical machining center will have a production capacity of 5,538 units, an output of 5,343 units, a sales volume of 5,733 units, a capacity utilization rate of 96.48%, and a production and sales rate of 107.30%; The production capacity of the gantry machining center is 328 units, the output is 175 units, the sales volume is 164 units, the capacity utilization rate is only 53.35%, and the production and sales rate is 93.71%; The production capacity of the horizontal machining center is 131 units, the output is 79 units, the sales volume is 80 units, the capacity utilization rate is 60.31%, and the production and sales rate is 101.27%; The production capacity of other CNC machine tools is 902 units, the output is 210 units, the sales volume is 279 units, the capacity utilization rate is only 23.28%, and the production and sales rate is 132.86%.
From the perspective of Nanjing Qiaofeng's high-end CNC machine tool project, it is expected to achieve an annual output of 15,000 vertical machining centers, which is very impressive. When Qiao Feng Intelligent also further expanded its production capacity through fundraising plans, the market's doubts about whether its new production capacity could be quickly digested became more and more prominent. And Qiao Feng Intelligent also disclosed in its prospectus registration draft that the company is also facing the risk that the new production capacity cannot be digested in time.
The data is inconsistent
It is worth noting that there are also inconsistencies in the data in Qiao Feng's application materials.
In the first round of inquiry reply documents (updated 2023 semi-annual report), when Qiao Feng Intelligent disclosed the overlap between direct sales customers and dealer end customers in 2020, it also accidentally typed an extra line of distribution data, and the distribution data was the same as 12.7181 million yuan.
(Screenshot from the first round of inquiry response document (updated 2023 semi-annual report))
Further research found that in the first round of inquiry response documents of Qiao Feng Intelligence, there were also some data inconsistencies.
In the first round of inquiry response documents (updated 2023 semi-annual report), in 2021, Qiao Feng Intelligent sold 206,200 yuan to Jiangyin Stark Electromechanical Equipment Co., Ltd. (hereinafter referred to as Stark), and in the first round of inquiry response documents (2023 annual report financial data update), in 2021, Qiao Feng Intelligence's sales to Stark became 213,600 yuan.
(Screenshots from the updated inquiry response documents of the 2023 semi-annual report and annual report respectively)
Further research on the suppliers and customers of the two inquiry response documents found that in the first round of inquiry response documents (2023 annual report financial data update version), Qiao Feng Intelligence also made modifications to the main transaction content of the overlap between customers and suppliers, resulting in different data in the two inquiry response documents. However, the content of the transaction with Stark in the two inquiry response documents is the same, which is the sale of vertical, horizontal, and gantry machining centers, and for some reason the data of the two documents are different.
In addition, also in the first round of inquiry response documents, Qiao Feng Intelligent also changed the data in the disclosure of the sales quantity, unit price, unit cost and gross profit margin of vertical machining centers of the company and comparable companies in the same industry.
(Screenshot from the first round of inquiry response documents (updated 2023 semi-annual report)
(Screenshot from the first round of inquiry response document (2023 annual report financial data update))
Although the data inconsistencies in Qiao Feng's inquiry response documents have not changed much, they should still be worth paying attention to as a public company to be listed, and it is necessary to further improve the accuracy of information disclosure in the future.