Yangtze River Business Daily reporter Cai Jia
Under the registration system, A-shares are no longer "lying and earning". Following Jianlong Micro-Nano, the Sci-Tech Innovation Board has reproduced new stocks that broke out on the first day of listing.
On October 22, Zhongzi Technology (N Zhongzi, 688737.SH) issued 21.5087 million shares at an issue price of 70.9 yuan per share and listed on the Science and Technology Innovation Board. On the same day, Zhongzi Technology opened at a price of 70 yuan / share, fell below the issue price at the opening, and closed at the end of the market at 66.03 yuan / share, down 6.87%, becoming the second new stock that broke on the first day of listing since the opening of the science and technology innovation board.
Behind the break at the opening of the first day of listing, Zhongzi Technology has changed its performance face. After reaching the highest level of performance in 2020, in the first three quarters of this year, Zhongzi Technology expects its net profit attributable to the mother to fall by 75.33% to 70.4% year-on-year, and said that in 2021, the company faces the risk of a sharp decline in operating performance.
In fact, the rapid growth of Zhongzi Technology's performance may be mainly driven by "credit". In 2020, when the performance exploded, the company's accounts receivable increased by 288% to 672 million yuan at the end of the period, and the accounts receivable and bills receivable totaled 905 million yuan, accounting for more than 70% and 60% of current assets and total assets, respectively. This also turned the net cash flow from technology operating activities into a net outflow of -306 million yuan in 2020, which deviated from the performance growth.
After the listing of the performance of the big "change of face"
In the context of the continuous deepening of the registration system reform, the breaking of new shares is not a new thing.
According to the prospectus of Zhongzi Technology, the company issued a total of 21.5087 million new shares, accounting for 25% of the total share capital after the issuance, the issue price was 70.9 yuan per share, the price-earnings ratio was 27.94 times, the total amount of funds raised was 1.525 billion yuan, and the net amount of funds raised after deducting related expenses was 1.407 billion yuan.
On October 22, Zhongzi Technology stock was listed and traded on the Science and Technology Innovation Board, becoming the first stock of fuel cell electrocatalyst. On the first day of listing, Zhongzi Technology opened at a price of 70 yuan per share, and the opening price fell below the issue price. The lowest price in the session was 58.88 yuan per share, down 17%.
At the close of the day, Zhongzi Technology reported 66.03 yuan / share, down 6.87%, becoming the second new stock that broke on the first day of listing since the opening of the science and technology innovation board. Based on this calculation, the first day of the first sign of the self-technology stock, the first day of the floating loss of 2435 yuan.
Before Zhongzi Technology, on December 4, 2019, Jianlong Weina was listed for the first time at a price of 43.28 yuan per share. At the close of the first day, Jianlong Weina reported 42.35 yuan / share, down 2.15%, becoming the first new stock to break on the day of listing on the science and technology innovation board.
According to the data, Zhongzi Technology is a high-tech enterprise focusing on the research and development, production and sales of environmental protection catalysts, and is one of the few major domestic manufacturers in the field of tail gas treatment catalysts for mobile pollution sources (motor vehicles, non-road machinery, ships, etc.) in China.
Before the listing, the performance of Zhongzi Technology has steadily improved. From 2018 to 2020, Zhongzi Technology achieved operating income of 337 million yuan, 1.001 billion yuan and 2.577 billion yuan respectively, net profit attributable to shareholders of the parent company was -59.2921 million yuan, 86.5537 million yuan and 218 million yuan, and net profit attributable to the mother after deducting non-recurring gains and losses was -66.2485 million yuan, 72.587 million yuan and 229 million yuan, respectively.
Among them, in 2020, the operating income and net profit of Self-technology reached the highest level in recent years, an increase of 157.4% and 152.27% respectively year-on-year. Zhongzi Technology's IPO price-to-earnings ratio is also calculated based on the audited net profit before and after deducting non-recurring gains and losses in 2020 and the total share capital after issuance.
But in 2021, the performance of Zhongzi Technology has suddenly changed its face. In the first half of this year, the company achieved operating income of 625 million yuan, a year-on-year decrease of 54.61%; net profit attributable to the mother and net profit after deduction of non-attributable to the mother of 28.713 million yuan, 23.2578 million yuan, down 81.76% and 86.31% year-on-year.
In this regard, Zhongzi Technology said that it was mainly due to the impact of short-term unfavorable factors such as the terminal sales of downstream natural gas heavy-duty trucks due to the reduction of oil and gas price differentials at the beginning of the year and the sales of China V diesel heavy-duty trucks in the first half of the year. As of the date of the prospectus, the company's natural gas vehicle catalyst sales have not seen a significant improvement.
Based on this, Zhongzi Technology expects to achieve operating income of 860 million yuan to 950 million yuan in the first three quarters of this year, down 57.48% to 53.03% year-on-year; net profit attributable to the mother of 45 million yuan to 54 million yuan, down 75.33% to 70.4% year-on-year; deduction of non-attributable net profit of 30 million yuan to 39 million yuan, down 84.63% to 80.02% year-on-year. In fiscal 2021, the company faces the risk of a significant decline in operating performance.
Operating cash flow is well below net profit
Behind the performance rushing to the highest point in the year before the listing, Zhongzi Technology is suspected of "credit" sales thickening performance.
According to the prospectus, from 2018 to 2020, the net cash flow of Zhongzi Technology's operating activities was -58.5374 million yuan, 10.4096 million yuan and -306 million yuan, respectively, which were lower than the net profit. In 2020, when operating performance has exploded, the company's net cash flow from operating activities has instead experienced a large net outflow.
The Reporter of Changjiang Business Daily noted that the sales of Zhongzi Technology's products are mainly credit sales, while the procurement of precious metals is mainly cash, the company is facing greater pressure on operating capital turnover, accounts receivable and inventory have also increased significantly, which is the main reason why the net cash flow of operating activities continues to be lower than the net profit.
At the end of each reporting period, the book value of the accounts receivable of Zhongzi Technology was 174 million yuan, 173 million yuan and 672 million yuan respectively, accounting for 37.34%, 22.64% and 44.8% of the company's total assets at the end of each period, respectively. Among them, the company's accounts receivable at the end of 2020 increased by 288% compared with the end of 2019, significantly exceeding the revenue growth rate in the same period.
At the end of each reporting period, the book value of the bills receivable of Zhongzi Technology was 0.42 billion yuan, 0.91 billion yuan and 233 million yuan respectively, and the total bills receivable and accounts receivable were 215 million yuan, 264 million yuan and 905 million yuan respectively, accounting for 72.86%, 43.95% and 70.04% of the current assets, and the proportion of total assets was 46.24%, 34.5% and 60.33% respectively.
At the same time, Zhongzi Technology focuses on the layout of commercial vehicle exhaust gas treatment catalysts, which are currently mainly matched with heavy-duty natural gas commercial vehicles, and have a high degree of dependence on large customers. The Reporter of Changjiang Business Daily combed and found that from 2018 to 2020, the sales revenue of Zhongzi Technology to the top five customers accounted for 67%, 82.42% and 90.04% of the operating income, respectively.
Among them, in 2018, Weichai became the largest customer of Zhongzi Technology, and its contribution to the sales revenue of Zhongzi Technology was 28.49%. In 2019 and 2020, the largest customer of Zhongzi Technology was Sinotruk, with sales of 483 million yuan and 1.473 billion yuan, accounting for 48.2% and 57.15%, and the sales revenue of a single largest customer accounted for more than 50%, and there was a significant dependence on a single customer.
It is worth mentioning that from April 2021, Sinotruk has added Weifu Environmental Protection as a catalyst supplier for its natural gas engines, and the competitive pressure for Zhongzi Technology is increasing.
In addition, from the perspective of R&D investment, from 2018 to 2020, the R&D investment of Zhongzi Technology was 40.9901 million yuan, 34.5385 million yuan and 68.8311 million yuan respectively, with a total R&D investment of 144 million yuan in three years. However, due to the rapid growth of revenue scale, the proportion of the company's R&D investment in operating income in each reporting period was 12.18%, 3.45% and 2.67% respectively, which continued to decline.
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