Recent new listings have broken down one after another, and next Monday will usher in a new stock carrier group (001288. SZ), will there be good luck this time?
On October 29, Yunji Group disclosed the listing announcement that the company's shares will be listed on the main board of the Shenzhen Stock Exchange on November 1, and the public offering of 40 million shares, the total share capital after the public offering is 160 million shares, and the total amount of funds raised by the issuance is 582 million yuan.
Red Star Capital noted that the main asset of yunji group came from a bankrupt state-owned enterprise acquired, and it ushered in a moment of listing more than a decade after re-operation. But the company now faces many problems such as weak performance, high accounts receivable and poor recycling.
Carrier Group, according to the official website
Weak performance and high accounts receivable
The full name of the transport machinery group is Sichuan Zigong Transport Machinery Group Co., Ltd., founded in 2003, mainly engaged in belt conveyor-based energy-saving and environmental protection of the conveyor complete sets of equipment research and development, design, production and sales, the products are mainly used in mines, ports, thermal power generation, grain deep processing and other fields.
Belt conveyors are very common in mines, and after the ore is mined, it needs professional conveyor belt transportation and mining. It is also common in the express delivery industry, where a large number of parcel parcels are quickly sorted and conveyed by belt conveyors, which greatly saves labor. In recent years, the state has strengthened environmental protection supervision and governance, and the market demand for belt conveyors has gradually expanded by virtue of green environmental protection advantages. With the support of national industrial policies and market demand, the conveyor machinery industry is expected to reach 53 billion yuan in 2023, of which the market size of belt conveyors will reach 28.6 billion yuan.
According to the prospectus of Yunji Group, from 2018 to 2020, the company's operating income was 782 million yuan, 775 million yuan and 691 million yuan, respectively; the net profit attributable to the mother in the same period was 98.9 million yuan, 94.2 million yuan and 101 million yuan, respectively. In the first half of this year, the company achieved revenue of 260 million yuan and net profit attributable to the mother of 33.34 million yuan.
Key financial figures of the Shipping Machinery Group
Judging from the company's financial reports in recent years, Red Star Capital Bureau's performance is weak, and its revenue continues to decline, but its net profit is relatively stable. The company said that the market concentration of the material transportation industry is not high, and the competition in the industry is fierce. At the same time, since 2020, due to the impact of the epidemic, the overseas business undertaken by the company in cooperation with large state-owned enterprises has also been affected.
With the improvement of the epidemic situation, the operating conditions of the Shipping Machinery Group have also improved. The company expects to achieve operating income of 380 million yuan to 420 million yuan in January-September this year, an increase of 30.88% to 44.66% over the same period in 2020; and is expected to achieve a net profit of 45.60-50.4 million yuan, an increase of 8.86% to 20.32% year-on-year.
At the same time, the accounts receivable of the Shipping Machinery Group have also risen. From 2018 to June 2021, the balance of accounts receivable of the company was 698 million yuan, 965 million yuan, 930 million yuan and 796 million yuan, respectively. The company said that according to the characteristics of the industry, the payment of customers to the company is generally affected by factors such as the scale of project investment, the length of the construction period, etc., so it will form a situation where the customer collection cycle is longer, and the balance of accounts receivable at the end of the company is large.
Accounts receivable are high
The company's net accounts receivable accounted for a relatively high proportion of total assets at the end of each period, 34.72%, 47.90%, 40.89% and 35.23% respectively. The company said that if the receivables cannot be effectively controlled or managed in the future, or the payment ability of downstream customers will decline, it will lead to the recovery risk of accounts receivable, which will adversely affect the company's sustained profitability and cash flow situation.
However, the recovery of large amounts of receivables is not optimistic. Red Star Capital Found from the Prospectus that the Company's provision for bad debts during the reporting period was RMB112 million, RMB133 million, RMB146 million and RMB152 million, respectively. The company also faces a number of lawsuits initiated due to the difficulty of recovering the money, taking the company's lawsuit with Qinghai Salt Lake Haina Chemical Co., Ltd. as an example, and its accounts receivable balance is 11.752 million yuan. At present, Haina Chemical has entered bankruptcy reorganization, and the company has made a provision for bad debts of 11.6094 million yuan.
During the reporting period, the company's accounts receivable turnover rate was 1.21, 0.93, 0.73 and 0.30 respectively, and the turnover rate was low, resulting in a longer average account period of accounts receivable, which was lower than the average level of listed companies in similar industries.
The bankruptcy assets of state-owned enterprises were acquired in the past and are now listed
The controlling shareholder of Yunji Group is Wu Youhua, and the actual controllers are Wu Youhua and Zeng Yuxian. Wu Youhua is the chairman of the company and directly holds 63.86% of the company's shares; Zeng Yuxian indirectly holds 6.97% of the company's shares.
Wu Youhua was born in 1969, a native of Zigongrong County, Sichuan, with a college degree and a senior economist. From November 1998 to December 2010, Wu Youhua served as the director of Dongfang Machinery Factory in Gongrong County. In September 2003, Mr. and Mrs. Wu Youhua founded Sichuan Zigong Transport Machinery Co., Ltd. (hereinafter referred to as "Carrier Limited"), the predecessor of the listed company.
Red Star Capital Bureau noted that the main assets of the limited transport machine stemmed from the acquisition of the bankruptcy assets of the former Zigong Transport Machinery General Factory in Sichuan Province (hereinafter referred to as the "Transport Machinery General Factory"). Originally established in 1966 as a national ownership enterprise, the General TransportEry Washikyard, but due to poor management, in September 2003, the assets of its production part were leased to the transport machine limited by way of bidding.
On December 2, 2008, the severely insolvent Shipping Machinery General Plant was declared bankrupt by the court. At the time of bankruptcy, the total assets were 73.23 million yuan, the total liabilities were 120 million yuan, and the asset-liability ratio was 164.44%. Its bankruptcy assets are to be liquidated and repaid to creditors through public auctions. The bankruptcy auction of the general transport plant was initially listed at a reserve price of 46 million yuan, but no one cared, and after the price was lowered, It was auctioned by Wu Yuhua and his wife for 40.6 million yuan.
However, when the transfer of assets was transferred, it was confirmed that there were duplicate assessments, omissions and misappraisals of machinery, equipment and real estate of the bankrupt enterprise, and the court finally confirmed that the transfer price was lowered to 36.6703 million yuan. In May 2012, the general factory of the transport machinery went through the deregistration and terminated the legal personality.
Although the general engine factory went bankrupt as a state-owned enterprise, a large number of executives joined the carrier limited. He Dali, the current general manager of the company, once served as the deputy director of the operation of the general plant of the transport machine, but left in September 2003 and joined the transport machine limited as the deputy general manager; the company's current deputy general manager and chief engineer Gong Xinrong, who served as the chief engineer and executive deputy director of the transport machine general plant, also joined the deputy general manager and chief engineer of the transport machine limited in October 2003. In addition, the company's current deputy general manager Liu Shunqing, deputy general manager Liu Jihong, financial director Fan Mo and other senior executives, also after the establishment of the carrier limited, almost before and after the resignation of the carrier factory, and joined the carrier limited in October 2003 and May 2004.
An old state-owned enterprise went bankrupt and collapsed, but after being acquired by a private company, it succeeded, which also caused many voices of doubt. The rationality of the appointment of many directors, supervisors and senior personnel of the company has also been questioned by the CSRC. In the CSRC's feedback, the company was required to combine he Dali and Gong Xinrong's time as directors, supervisors and senior management personnel of the issuer, as well as whether they were personally responsible for the bankruptcy of the general engine plant; and to verify whether He Dali and Gong Xinrong's appointment complied with the relevant provisions of the Company Law.
The CSRC also pointed out that Wu Youhua, the actual controller and chairman of the board of directors of the company, was the director of Rongxian Dongfang Machinery Factory from 1998 to December 2010. During this period, in September 2003, Wu Youhua set up the predecessor of the company, Shipping Aircraft Co., Ltd. and served as the general manager. The CSRC requires that, in light of the nature of the enterprise of Rongxian Oriental Machinery Factory, it be verified whether the issuer established by Wu Youhua during his term of office complies with the regulations of the original unit, whether the consent of the original unit is required, whether there is a violation of the non-compete obligation, and whether there is a dispute or potential dispute with the original unit; the nature of the enterprise of Rongxian Oriental Machinery Factory is whether it is a collectively owned enterprise, whether the issuer has assets originating from rongxian Oriental Machinery Factory, and whether there is any situation that harms the interests of the original unit.
Its small loan company quickly changed its name
In the initial feedback, the CSRC also inquired about the microfinance companies associated with the Shipping Machinery Group.
According to the prospectus, Wu Youhua and his close family members collectively hold 40.87% of the equity of Huashang Microfinance Co., Ltd. (hereinafter referred to as "Huashang Microfinance Company") in Yantan District, Zigong City, and serve as the chairman of the board. The microfinance company was established in May 2012 with a registered capital of 115 million yuan, and Wu Youhua himself served as the chairman.
In recent years, small loan companies have become infamous, suspected of illegal operations, usury, violent collection, etc., seriously disrupting economic order and social stability, and triggering a regulatory storm in September 2020.
The CSRC requested additional clarification on whether the Huashang Microfinance Company had the operating qualifications required for business development, the compliance and risk control of the business, whether the risk control measures were sound, whether there were any violations such as overdue payment or violent collection, and whether there were any capital transactions with the Yunji Group. It also asked to verify whether Wu Youhua had received administrative penalties of fines or above in the past three years, and whether it constituted a major illegal act.
The Red Star Capital Bureau found that, perhaps in order to rush to clear up the relationship with the small loan company, the name and business scope of the Chinese microfinance company had been changed to "Zigong Huashang Enterprise Management Consulting Co., Ltd." In January this year, the business scope simply deleted the loan issuance business and added enterprise consulting and other related businesses.
However, Yunji Group said that during the reporting period, the operating income of Huashang Microfinance Company was low, the loss was continuous, and there were no violations such as violent collection. On January 15, 2021, the company changed its corporate name and business scope and stopped engaging in the lending business, which is not a disguised circumvention of supervision. Wu Youhua, the actual controller of the company, also does not have the risk of being punished for matters related to small loans of Chinese businessmen.
However, according to the Tianyancha APP, There are currently more than 60 legal proceedings against Huashang Microfinance Company, involving a large number of loan contract disputes and corporate lending disputes.
Red Star News reporter Li Weiming
Edited by Yu Dongmei
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