Shenzhen Business Daily · Reading Client Trainee Reporter Xue Tingyang
On October 20, 2023, Yangde Huanneng (833755), a company listed on the New Third Board, submitted for registration and planned to land on the Beijing Stock Exchange.
The delay in obtaining the registration approval means that it is still "far away" from listing. According to relevant regulations, the IPO registration approval is valid for 12 months, and if it is not issued after the expiration date, it means that the IPO has failed.
According to public information, Beijing Yangde Environmental Protection Energy Technology Co., Ltd. was established on June 6, 2007, the legal representative is Huang Chaohua, and its main products include low-concentration gas comprehensive utilization, distributed photovoltaic power generation, distributed natural gas heating, etc.
It is worth mentioning that during the listing of the New Third Board, Yangde Huanneng changed the sponsoring brokerage many times. The frequent change of lead brokers not only affects the stability of the company, but also reflects the company's major deficiencies in internal control and governance.
On February 28, 2019, Yangde Huanneng carried out the listing counseling and filing, and on February 18, 2021, the company negotiated with Zhongtai Securities to terminate the counseling and filing work. Since 2016, the sponsoring brokerages have been China Securities Construction Investment, Zhongtai Securities, Zheshang Securities, China Securities Construction Investment, and Kaiyuan Securities, of which the sponsoring securities firms will be changed three times in a row in 2021, and they will be changed to Kaiyuan Securities on August 13, 2021.
In terms of performance, from 2020 to January ~ June 2023 (hereinafter referred to as the reporting period), Yangde Huaneng achieved revenue of 301 million yuan, 332 million yuan, 343 million yuan, and 151 million yuan respectively; the net profit was 66.4347 million yuan, 72.659 million yuan, 72.4496 million yuan and 33.5543 million yuan respectively; The gross profit margin was 45.22%, 44.52%, 41.60% and 40.19% respectively, showing a downward trend year by year.
Yangde Huaneng's financial data source prospectus
From the perspective of revenue, from 2020 to January ~ June 2023, the sales of the company's top five customers accounted for 78.69%, 74.70%, 69.42% and 66.75% of sales revenue respectively, and there is a risk of high customer concentration.
Among them, according to the prospectus, Huayang New Material Technology Group Co., Ltd. (hereinafter referred to as "Huayang New Material") is not only the top five customers of Yangde Huaneng but also its top five suppliers during the reporting period, playing a dual role. In each period of the reporting period, Yangde Huaneng's sales to Huayang New Materials were 19.3328 million yuan, 16.507 million yuan, 13.1624 million yuan and 8.2356 million yuan respectively; The purchase amount of Huayang New Materials was 9.3088 million yuan, 11.148 million yuan, 8.6754 million yuan and 5.8936 million yuan respectively.
Yangde Environmental Energy's major customers and suppliers (taking the first half of 2023 as an example) Source: prospectus
In addition, YMC also faces the risk of receivables and contract asset recovery. During the reporting period, the balance of accounts receivable and contract assets (hereinafter referred to as "corresponding assets") continued to grow.
At the end of the reporting period, the total balance of the company's corresponding assets was 140 million yuan, 171 million yuan, 172 million yuan and 181 million yuan respectively, and the balance of bad debt provisions corresponding to the corresponding assets was 4.4538 million yuan, 6.2793 million yuan, 6.5526 million yuan and 6.6984 million yuan respectively. Yangde Environmental Energy explained that it was mainly due to the delay in the issuance of renewable energy electricity price subsidies brought about by the distributed photovoltaic power generation business.
In terms of operation, a number of wholly-owned subsidiaries and grandchildren of Yangde Huanneng share contact numbers with other enterprises controlled by the actual controller, and their operational independence is doubtful or "tortured".
Yangde Huaneng's shareholding structure diagram Source: Prospectus
According to the prospectus, as of October 18, 2023, Huang Chaohua directly held 3.79% of the shares of Yangde Environmental Energy, and indirectly controlled 27.68% of the voting rights of Yangde Environmental Energy through Beijing Yangde Ecological Technology Group Co., Ltd. (hereinafter referred to as "Yangde Ecology"), holding a total of 31.48% of the voting rights of the shares, and was the actual controller of Yangde Environmental Energy.
Tianyancha shows that Yangcheng County Jialin Agricultural Co., Ltd. (hereinafter referred to as "Yangcheng Jialin") is another enterprise controlled by Huang Chaohua, with a registered capital of 10 million yuan, and the company is 100% owned by Yangde Ecology and is a related party of Yangde Environmental Energy. According to the company's annual report for industry and commerce, during the reporting period, Yangcheng Jialin and many companies under Yangde Huaneng shared the same contact number and mailbox.
It is worth noting that during the reporting period, Yangde Huanneng was subject to a total of 9 administrative penalties for construction without approval and violation of the "Safety Law", and the effectiveness of internal control was repeatedly questioned by the Beijing Stock Exchange.
For example, in April 2020, the 8MW gas power generation project of Jining Coal Mine of Xiangning County Yangde Coalbed Methane Utilization Co., Ltd., a subsidiary of Yangde Environmental Energy, was illegally built without applying for a construction permit, resulting in a fine of 33,700 yuan and an order to make corrections.
In December 2021, the Liulin County Energy Bureau issued the "(2021) Energy Penalty [1]" "Administrative Penalty Decision", which imposed an administrative penalty of 50,000 yuan on Yangde Huanneng Baijiapo Low Concentration Power Station due to problems such as the solenoid valve lead of the inlet pipe of the 8# unit falling off, the leakage of the optical tile detector, the gas inspector not holding a certificate, and the inspection of insulating gloves and insulating shoes has expired.
In view of the issues of business standardization and effectiveness of internal control, in the second and third rounds of review inquiry letters and the deliberation opinions of the Listing Committee, the Beijing Stock Exchange asked Yangde Huaneng questions, requiring Yangde Huanneng to explain whether it has established the relevant internal control system for project approval and construction, whether the internal control measures for production and operation are sound and effective, and whether they can be effectively implemented.
In the second round of inquiry responses, Yangde Huanneng said that gas power generation projects need to cooperate with coal mines, and coal mines do not allow long-distance transmission of low-concentration gas, and power stations need to be built near the coal mine gas pumping station.
According to the prospectus, Yangde Huaneng intends to raise 185 million yuan this time, and the raised funds will be used for the company's gas power station construction and operation projects, R&D center construction projects, repayment of loans from financial institutions, and replenishment of working capital after deducting the issuance costs.