Forex Tianyan APP News : "Mom-and-pop Shop" Beijing Jingyeda Digital Technology Co., Ltd. (hereinafter referred to as Jingyeda) is making the last effort for the sprint IPO. On June 11, the company, which specializes in education informatization and subway security, will be subject to the review of the CSRC's Review Committee, can it be successfully listed?
From the performance point of view, Jingyeda is good, from 2016 to 2018, the company's revenue increased by 516 million yuan from 326 million yuan; Net profit increased from RMB44 million to RMB105 million for the same period. In the first half of 2019, Jingyeda's revenue was 376 million yuan and net profit reached 102 million yuan.
However, behind the beautiful performance of The Competition, many of the company's "puzzles" need to be solved. Including a number of TOP3 customers, in the year of establishment, the registered capital is small, but can purchase millions or even tens of millions of goods from the company; as well as the financial data disclosed by the company, there are obvious differences between the financial data disclosed by the relevant customers.
It is undeniable that in the field in which Jingyeda is engaged, it is currently more sought after by the capital market, and the price-earnings ratio of listed companies in the same industry is often tens of times or even hundreds of times. However, in this field and the country's innovative development needs, scientific and technological research and development is crucial, but Jingyeda's R&D investment rate has declined all the way, and is significantly lower than its peers, or even more than 10 percentage points. In addition, there are also risks such as high debt ratio.
There are "shell" companies that have become the biggest customer financial data fights within a few months of their establishment
Jingyeda was co-founded by Qian Rui and Jiang Yuandong. The two were alumni of Beijing Jiaotong University, and in 1997 the two gave up their jobs at the university to start a business together. Starting from the "mom-and-pop shop", the Qian couple still controls more than 70% of the equity of the competition. According to the prospectus, Qian Rui and Jiang Yuandong hold 39.03% and 34.43% of the equity of the competition respectively, and hold a total of 73.46% of the shares.
In the past few years, with the help of the rapid growth of the business in the field of urban rail transit security, Jingyeda's performance has been good. From 2016 to 2018, Jingyeda's revenue was 326 million yuan, 425 million yuan and 516 million yuan, respectively, and the revenue in the first half of 2019 was 376 million yuan. In the same period, Jingyeda's net profit was 44.46 million yuan, 52.76 million yuan and 105 million yuan, respectively, and in the first half of 2019, the company's net profit was 102 million yuan.
It can be seen that the performance of Jingyeda has grown significantly in recent years, but this is inseparable from the support of many customers. However, the author's research has found that there are many suspicious points in the business of Jingyeda in recent years. Including many "shell" companies in the year of establishment, it became the company's top five customers.
According to the prospectus, in 2016, Jingyeda sold 6.764 million yuan of software and hardware equipment to Anhui Longsheng Information Technology Co., Ltd. (hereinafter referred to as Anhui Longsheng), which also ranked as the largest customer of Jingyeda that year. In the following years, Jingyeda's sales to Anhui Longsheng continued to increase, and the transaction volume between the two parties reached tens of millions of yuan by 2018.
According to Tianyan, Anhui Longsheng was established in March 2016, which means that the company became the largest customer of Jingyeda within a few months of its establishment. Maybe Anhui Longsheng is powerful? However, this is not the case. At present, the registered capital of Anhui Longsheng is only 5 million yuan, and there are only 4 employees participating in social security, and the company's strength is basically mediocre. But it was such a company that was once the biggest customer of Jingyeda.
This isn't the only suspicious case. According to the prospectus, Sichuan Shu wanda technology co., LTD. (hereinafter referred to as Sichuan Shu Wanda) is an important customer of Jingyeda, and in 2018 and the first half of 2019, Jingyeda sold 3.885 million yuan and 5.2301 million yuan of software and hardware equipment to Sichuan Shuwanda respectively.
Tianyan check shows that Sichuan Shuwanda was established on September 20, 2018, and the number of insured people in the company is only 4. This means that this small company has become an important customer of Jingyeda in just 3 months of its establishment. Sichuan Shuwanda is just a small company controlled by Liu Hongcen with 100% equity, but it can win many orders from the Mianyang Self-Examination Committee and the Mianyang University Secondary School Admissions Committee.
In addition, there is also a situation of financial data fighting. The prospectus disclosed that as of the end of 2017, Jingyeda owed Qianyeda 24.1741 million yuan; however, Qianfang Technology disclosed that by the end of 2017, the company's accounts receivable to Jingyeda were 28.283 million yuan. There is a significant gap of more than 4.1 million. So why?
Lack of money + high debt Research and development is not half as low as its peers
In the past few years, although the compound growth rate of jingyeda's revenue and net profit is more than 25%, the company is in a state of extreme lack of money. According to the prospectus, as of the end of June 2019, the cash on the account of Jingyeda was only more than 65 million yuan, and the company's debt ratio exceeded 50%.
Most of the debt ratios of companies like Jingyeda are not high, but Jingyeda is an exception, from 2016 to 2018, the company's debt ratios were 62.37%, 67.97% and 60.28%, which were at a high level and significantly higher than the level of peer companies. At present, the debt ratio of Jiafa Education and Tuowei Information is below 20%, while iFLYTEK has a higher debt ratio due to its huge business, but it is more than 10 percentage points lower than that of the competition.
From the perspective of rail transit business, the debt ratio of the listed companies in the same industry of Jingyeda is generally below 25%, and only the oriental network power is higher. On average, the debt ratio of interbank companies in these years is about 30%, which is 20 to 30 percentage points lower than the average of non-compete.
In the field of education informatization and urban rail transit security, the technical level is an important criterion for measuring a company. However, unfortunately, in recent years, Jingyeda's R&D investment has not only been significantly inferior to the level of its peers, but also in a state of rapid decline. According to the prospectus, at the end of June 2019, the proportion of R&D investment of jingyeda companies in the same industry was about 14.44%, but the company's R&D accounted for only 4.14%
In fact, from 2016 to 2018, the proportion of Jingyeda's R&D expenses was 7.51%, 6.21% and 6.3% respectively, showing an overall downward trend. The average R&D expenses of comparable listed companies in the same period were 10.34%, 10.97% and 11.41% respectively, a gap of nearly double the difference between the two sides.
There is a shortage of money, but there are many accounts receivable. According to the prospectus, in 2017, Jingyeda's accounts receivable soared from 65.2338 million yuan to 123 million yuan and rose by 88.23%; in 2018, it further increased by 28.44% to 158 million yuan; in the first half of 2019, it increased to 228 million yuan, accounting for 55% of the company's net assets in the current period.