On July 28, 2023, the IPO of KONE Technology Co., Ltd. *** hereinafter referred to as "KONE Co., Ltd.")* on the main board was successfully passed, and the company has submitted registration to the Shenzhen Stock Exchange on November 6, 2023, if it goes well, the company will be listed on the main board of the Shenzhen Stock Exchange.
However, we studied its relevant data and found that the company is facing the problem of "double high" customer concentration and accounts receivable. At the same time, the company is still raising funds to replenish the flow of funds when it has abundant funds, or there is a suspicion of "circle money". In addition, the quality of the company's information disclosure needs to be improved.
Customer concentration and accounts receivable are "double high".
KONE Co., Ltd. is an ODM platform enterprise specializing in the design, development, manufacturing and sales of acoustic products and intelligent products, the company's products mainly include speaker products, wearable devices, AIoT products, precision components and accessories.
From 2020 to 2022 and from January to June 2023 (hereinafter referred to as the reporting period), KONE achieved operating income of 85 respectively0.8 billion yuan, 975.4 billion yuan, 1003.1 billion and 409.4 billion yuan, net profit was 35.5 billion yuan, 28.5 billion yuan, 37.2 billion and 20.9 billion yuan.
It can be seen that KONE's revenue in 2021 increased slightly, but its net profit declined.
From the perspective of customer composition, the prospectus shows that KONE shares also have the risk of large customers being concentrated, and during the reporting period, the company's sales revenue from the top five customers was 634.7 billion yuan, 676.2 billion yuan, 735.1 billion and 322.4 billion yuan, accounting for the proportion of main business income respectively. 38% and 8027%。
In particular, the proportion of total sales revenue to Harman and Samsung has increased rapidly, accounting for 41 percent of the main business revenue87% rose to 5548%。
Further, KONE's accounts receivable have also been in a high position. At the end of the reporting period, the book value of accounts receivable of KONE was 250.6 billion yuan, 180.3 billion yuan, 229.8 billion and 212.1 billion yuan, accounting for the proportion of total assets at the end of the reporting period. 64% and 3568%。
It is worth mentioning that more than 80% of the accounts receivable balance is owed by the top five customers.
At the end of the reporting period, the balance of accounts receivable of KONE to the top five customers was 185.4 billion yuan, 122 billion yuan, 187.5 billion and 174.7 billion yuan, accounting for the balance of accounts receivable at the end of the reporting period. 50% and 8110%。
The funds are abundant and still raising funds to replenish the flow, and the company may be suspected of "circle money".
In this IPO, KONE intends to raise 101,536$8.62 million, of which $20,000000,000 yuan is used to supplement liquidity.
Paradoxically, KONE has repeatedly paid large dividends. From 2019 to 2021, KONE has paid dividends three times, and the cash dividends of KONE are 2900 million yuan, 12.3 billion and 57.6 billion yuan, with a cumulative dividend amount of 9$8.9 billion.
It is worth noting that from 2019 to 2021, the net profit of KONE shares after deducting non-attributable to the parent company was 07.8 billion yuan, 17 billion and 25.9 billion yuan, a total of about 50.7 billion yuan. In other words, the dividend amount of KONE shares in 2021 exceeded the sum of the non-net profit deducted in the three years.
In addition, KONE shares also have abundant funds on the account. First of all, the company's liquidity is good. During the reporting period, the balance of bank deposits of KONE Technology was 33,363120,000 yuan, 59,974070,000 yuan, 50,883230,000 yuan and 107,679600,000 yuan. At the same time, the company's net cash flow from operating activities during the reporting period was 35,699950,000 yuan, 14,083680,000 yuan, 38,379500,000 yuan and 82,801130,000 yuan.
Secondly, the company's asset-liability ratio is declining year by year. As of the end of 2022. The company's asset-liability ratio and solvency are generally better than those of comparable companies in the same industry.
Screenshot**: KONE share prospectus (registration draft).
To sum up, KONE shares in the account of abundant funds, strong liquidity, KONE shares still raise a large amount of funds to supplement liquidity, its rationality is doubtful, or there is a suspicion of "circle money".
Questionable information disclosure
In terms of information disclosure, there are also discrepancies between the disclosure data of KONE shares and the data of customers and merchants, and the quality of information disclosure may need to be improved.
According to the prospectus, Anker Innovations is the fifth largest customer of KONE in 2020, and the sales amount of KONE to Anker Innovations is 39,888720,000 yuan.
We understand that Anker Innovations is a listed company on the Growth Enterprise Market, however, according to Anker Innovations' regular report, there is no sales data matching KONE shares in the purchase amount from the top five unnamed ** merchants in 2020, and the closer data is 40230170,000 yuan, but there are also 341450,000 yuan gap.
Screenshot**: Anker Innovations 2020 Annual Report.
In addition, there are also discrepancies between the procurement data of KONE shares and the data disclosed by the leading merchants.
Highpower was one of the top five merchants in the reporting period, and from 2020 to 2022, the purchase amount of KONE from Highpower was 26,668540,000 yuan, 25,023320,000 yuan and 26,064700,000 yuan.
According to the prospectus previously disclosed by Highpower Technology (001283), the sales amount to KONE Electronics Holdings, the original indirect shareholder of KONE shares) was 26,460880,000 yuan, which is 208 less than the purchase amount of Highpower Technology disclosed by KONE220,000 yuan.
Screenshot**: Highpower Technology prospectus.
According to another report, in the 2022 annual report of Highpower Technology (001283), there is no purchase data matching KONE shares in the sales amount to the top five unnamed customers, and the closer data is 25641150,000 yuan, but there are also 423550,000 yuan gap.
Screenshot**: Highpower Technology's 2022 annual report.