Shenzhen Business Daily · Reading Client Reporter Cheng Ruxin
According to the official website of the Shanghai Stock Exchange on August 9, the Listing Review Committee of the Shanghai Stock Exchange is scheduled to hold a meeting on August 16, 2024 to review the initial offering of Jiangsu Pioneer Precision Technology Co., Ltd. (hereinafter referred to as "Pioneer Precision") on the Science and Technology Innovation Board.
Image source: Shanghai Stock Exchange official website
According to the prospectus, Pioneer Jingke was established in 2008 and is a key component manufacturer in the field of semiconductor etching and thin film deposition equipment in China, and its main customers include China Micro Corporation, North Huachuang, Tuojing Technology, etc.
In the first half of the year, revenue and net profit soared
Net operating cash flow decreased sharply
In terms of performance, from 2021 to 2023, Pioneer Jingke's revenue will be 424 million yuan, 470 million yuan, and 558 million yuan respectively, with a compound annual growth rate of 14.74%; The net profit attributable to the owners of the parent company was 105.2 million yuan, 104.8 million yuan, and 80.27 million yuan respectively, and the net profit continued to decline, of which the decline in 2023 will be more obvious.
Image source: Pioneer Precision Prospectus
The latest data shows that in the first half of 2024, Pioneer Precision's revenue and net profit both soared, with a year-on-year increase of 147.04% and 314.23% respectively. Pioneer Jingke said that in the first half of 2023, affected by the cyclical fluctuations of the downstream industry, the company's revenue and net profit will decline more. Since the second half of 2023, the company's operating income and net profit have increased significantly in the first half of 2024 as the downstream semiconductor equipment market has re-entered the upward cycle and the localization process continues to advance.
It is worth mentioning that although the net profit of Pioneer Jingke's revenue increased sharply in the first half of 2024, the net cash flow generated by the company's operating activities decreased by 211.57% year-on-year, turning from positive to negative. In this regard, Pioneer Jingke explained that the main reason is that in the downstream industry boom cycle, the company's cash outflow from operating activities such as purchasing materials and paying employee salaries has increased significantly, while there is a certain lag in customer collection.
After throwing 108 million dividends
The proposed replenishment of 208 million is questionable
Shenzhen Business Daily · Reading Client reporter noted that in 2021 and 2022, Pioneer Jingke will continue to pay large dividends, with a total cash dividend amount of 108 million yuan, accounting for 51.43% of the total attributable net profit in the two years.
Image source: Pioneer Precision Prospectus
According to the prospectus of Pioneer Precision, You Li, chairman of the company, directly holds 21.36% of the company's shares, and actually controls the voting rights of 52.64% of Pioneer Precision through Youzheng Partnership, Yingruiqi and other companies. This also means that more than half of the above two large dividends went to the pocket of the company's actual controller.
Image source: Pioneer Precision Prospectus
In addition, the prospectus submitted by Pioneer Precision for the first time shows that the company intends to raise 700 million yuan, of which 208 million yuan will be used to supplement liquidity. In this regard, the Shanghai Stock Exchange expressed concern and required it to analyze the necessity and rationality of the fund-raising project to replenish the flow based on the company's scale, monetary fund balance, and the existence of large cash dividends during the reporting period.
In response to the letter of inquiry, Pioneer Precision said that the company's cash dividends in 2021 will be 82.675 million yuan and 25 million yuan in 2022, which are mainly used for relevant shareholders to pay investment funds to the issuer, pay dividends and equity transfer taxes, and share the company's development results with employees.
Pioneer Jingke emphasized that overall, since 2020, the company has been in a relatively tight state of funds, and the financing scale in 2021 is large, with the company's new technology and new product R&D investment continues, business scale continues to expand, and product categories continue to be enriched, it is expected that there will still be continuous capital demand in the future.
According to its latest prospectus, the amount of funds to be raised by the company has been updated to 587 million yuan, and the amount of supplementary liquidity projects has been adjusted to 94.9494 million yuan.
In addition, the Shenzhen Business Daily · Reading Client reporter noticed that during the reporting period, Pioneer Jingke was subject to administrative punishment. On July 12, 2022, the Taizhou Emergency Management Bureau issued the "Administrative Penalty Notice", imposing a combined penalty of RMB 142,500 on the company's storage and use of hazardous chemicals for failing to conduct regular safety assessments of its safety production conditions in accordance with regulations, and the hazardous chemicals warehouse not meeting the requirements of national standards.