Recently, Shenzhen Huaqiang Electronic Network Group Co., Ltd. (hereinafter referred to as "Huaqiang Electronic Network") submitted for registration on the GEM. Huaqiang Electronic Network was spun off from Shenzhen Huaqiang, a ** main board company, and its prospectus was accepted in June 2021 and approved by the Listing Committee meeting on December 22, 2022. However, after waiting for nearly a year, the company still did not approve the registration application. 
In this sprint listing, Huaqiang Electronic Network plans to raise 40.1 billion yuan will be used for data middle platform projects, procurement service platform upgrade projects, SaaS service platform upgrade projects, information service platform upgrade projects, and replenishment of working capital. Although the company has already passed the meeting, the IPO** found that compared with the meeting, the company's performance has declined to a certain extent, and the dependence on overseas markets is becoming more and more obvious. What's even more puzzling is that the salary of the general manager is a double jump, and in 2022, it is close to one-tenth of the total profit. 
*:Tension. Performance fluctuates greatly
According to the data, Huaqiang Electronic Network is an Internet B2B integrated service provider for the vertical industry chain of electronic components, providing professional global procurement services and comprehensive information services for industry chain participants through the B-end operation service model combining online and offline. The reporter found that the company's predecessor, Jieyang Xunke, was actually a subsidiary acquired by Shenzhen Huaqiang. At the end of December 2015, Shenzhen Huaqiang announced that it planned to acquire 70% of the shares of Jieyang Xunke, with a transaction of 190.86 million yuan. In December 2019, Jieyang Xunke increased its capital to 1306060,000 yuan, with an additional registered capital of 750510,000 yuan was contributed by Shenzhen Huaqiang at a price of 416.9 million yuan with 100% equity of the electronic network company, and was renamed electronic network Co., Ltd. After the completion of the capital increase, the company became a wholly-owned subsidiary of the issuer. More than a year after the completion of the integration, in June 2021, Huaqiang Electronic Network launched a listing impact on the GEM. In terms of financial data, from 2020 to 2022 and the first half of 2023 (hereinafter referred to as the "reporting period"), the operating income of Huaqiang Electronic Network was 69.9 billion yuan, 312.9 billion yuan, 385.5 billion yuan, 85.3 billion yuan, net profit was 6478200,000 yuan, 29.4 billion yuan, 28 billion yuan, 08.9 billion yuan, net profit after deducting non-profit was 5910680,000 yuan, 25.6 billion yuan, 27.5 billion yuan, 08.6 billion yuan. Combined with the previously disclosed data, from 2018 to 2019, the company achieved an operating income of 72,050650,000 yuan, 52,223520,000 yuan, net profit was 5386420,000 yuan, 3,200280,000 yuan,It can be found that the company's performance fluctuates greatly. The company's net profit first fell by 40% in 2019, and then doubled directly in 2020In 2021, both revenue and net profit showed explosive growth, and the net profit was 45 times. In this regard, the company explained that the company's revenue will increase significantly in 2021 and 2022, mainly due to the significant increase in long-tail demand in the market due to the "shortage tide" of electronic components in 2021, and the increase in the mismatch between supply and demand in the electronic components market. However, in the first half of 2023, the prosperity of the electronic components industry will decline, all links in the industrial chain will continue to destock, the overall demand will be weak, and the electronic components market will generally decline, so the company's revenue will decline year-on-year. In other words, the company's performance is greatly affected by the prosperity of the industry. The business is relatively simple
According to the business division, Huaqiang Electronic Network includes two major businesses: B2B integrated services and authorized distribution business. The company said in the prospectus that its authorized distribution business has competition problems with its parent company, Shenzhen Huaqiang, and in order to enhance its independence, the business has been spun off to Shenzhen Huaqiang Semiconductor Technology in 2020In other words, the B2B integrated business has become the only performance pillar of Huaqiang Electronic Network. In 2020, Huaqiang Electronic Network's revenue from this business accounted for 9301%, accounting for 100% in both 2021 and 2022. During the same period, the proportion of the company's global procurement business was as follows: 51% and 9639%, the concentration is becoming more and more significant. It is worth mentioning that the company's dependence on overseas markets has gradually deepened. During the reporting period, the company's overseas revenue accounted for the proportion of main business income respectively. 06% and 5363%, mainly in Hong Kong, Taiwan, the United States, Europe, Southeast Asia and other regions. In this regard, the company also pointed out that in the face of the increasingly complex international environment, if the company cannot timely and effectively respond to the changes in supply and demand of the electronic components market caused by changes in the international policy environment, there may be a risk of significant fluctuations or even declines in operating performance. The R&D expense ratio has dropped significantly
IPO** found that although the company met the requirements of the Shenzhen Stock Exchange for R&D expenses for GEM listing, the company did not attach much importance to R&D. From 2018 to 2022 and the first half of 2023, the company's R&D expenses were 2437700,000 yuan, 2279060,000 yuan, 2607600,000 yuan, 5619940,000 yuan, 6187090,000 and 2210860,000 yuan, accounting for the proportion of operating income respectively. 60% and 259%。It can be seen that although the company's R&D expenses have increased significantly, the R&D expense rate has continued to decline since 2019. As of the latest disclosure, the issuer and its controlled companies have 104 computer software copyrights and 4 patents related to their main business. The reporter inquired and found that the peer company Yunhan Xincheng currently has 16 invention patents and 207 software copyrights, far exceeding the number of companies. In addition, the salary level of the company's R&D personnel is much lower than that of sales personnel. As of the end of June 2023, the company has 734 employees. Among them, there are 124 technicians, accounting for 1689%；There are 417 business personnel, accounting for 5681%。From 2020 to 2022, the average salary of the company's sales staff is 21870,000 yuan, 114390,000 yuan, 7360,000 yuan;The average salary of R&D personnel is 18740,000 yuan, 35010,000 yuan, 34820,000 yuan. The comparison found that since 2021, the salary of the two major departments has opened a significant gap, and the salary of sales staff is 2 3 times that of R&D personnel. 
In this regard, the company explained that the average salary of sales personnel increased significantly in 2021 and was higher than that of R&D personnel, mainly due to the impact of the rapid income in 2021, and the personal performance bonus linked to sales performance of sales personnel was also increased simultaneously, which increased the average salary of sales personnel. Salaries skyrocketed
As of the latest disclosure, Electronic World Development holds 34478292 shares of the company, accounting for 57% of the company's total share capital46%, which is the direct controlling shareholder of the company. Shenzhen Huaqiang directly holds 17865196 shares of the company, accounting for 29 of the company's total share capital78%, and holds 100% of the shares of Electronic World Development, the direct controlling shareholder, and is the indirect controlling shareholder of the company. Liang Guangwei is the actual controller of the company. However, Liang Guangwei is not currently in the company, and the salary increase of general manager Xie Zhiquan is worth paying attention to. IPO** found that Xie Zhiquan is the founder of the company's predecessor Jieyang Xunke, and now serves as the company's director, general manager, and CTO, and is one of the company's core technical personnel, who manages the company's technology research and development as a whole. From 2020 to 2022, Xie Zhiquan's salary is 169080,000 yuan, 2102740,000 yuan, 3104640,000 yuan, with a growth rate of 1,736 in 2022 compared with 20202%。
Annual salary of executives in 2020
According to the "China Entrepreneur Value Report (2023)" released by Rongzheng Group, Li Bin, vice president of Tongwei Co., Ltd. (86.53 million yuan), Li Qiang, general manager and core technical personnel of Sany Renewable Energy (54.98 million yuan), and Li Ge, chairman and president of WuXi AppTec (41.97 million yuan), are the three executives with the highest annual salaries among A-share listed companies in 2022. In contrast, Xie Zhiquan's salary is second only to the above three, and his salary is also among the best among the executives of listed companies. Although the salaries of the rest of the company's executives are also increasing, the increase is far less than that of Xie Zhiquan. From 2020 to 2022, Deputy General Manager Liu Yugui's salary is 125780,000 yuan, 136970,000 yuan, 133460,000 yuan;The remuneration of Zhu Yi, the chief financial officer, is 43970,000 yuan, 77280,000 yuan, 94210,000 yuan;Wu Guoliang, supervisor and manager of the process information department, is paid 5340,000 yuan, 3970,000 yuan, 57790,000 yuan. So, why can Xie Zhiquan's salary achieve such a high increase?What special contribution did he make to the company?Is this increase reasonable?Even compared with the increase in the company's performance, Xie Zhiquan's salary increase is better. Compared with 2020, the company's revenue growth rate in 2022 is 4515%, with a net profit growth rate of 33223%，About one-fifth of the increase in its salary. From 2020 to 2022, Xie Zhiquan's remuneration accounted for the proportion of total profit. 58%。This can't help but make people wonder whether Xie Zhiquan's high salary encroaches on the company's interestsAt the same time, Xie Zhiquan is also the majority shareholder of the company. Up to now, Xie Zhiquan directly holds 5104571 shares of the company, accounting for 8 percent of the company's total share capital51%；In addition, Xie Zhiquan holds Hezhiqu 2888% of the capital contribution, thus indirectly holding the company through Hezhiqu123% of the shares. To sum up, Xie Zhiquan holds a total of 974% equity. From 2018 to 2019, the cash dividends of Huaqiang Electronic Network were 30 million yuan and 140 million yuan respectively, totaling 1700 million yuan. This means that before the company went public, Xie Zhiquan had already received a large amount of dividends. With large dividends and high salaries, from April 2019 to June 2022, the sum of Xie Zhiquan's large capital flow is as high as 247130,000 yuan. Among them, Xie Zhiquan's largest expenditure was 7 million yuan, which was lent to a friend surnamed Zhu to buy ** and buy a house. In addition, Xie Zhiquan also paid 2.02 million yuan in membership fees at Shenzhen Xili Golf Club and paid 1.6 million yuan in alimony to his ex-wife. It is worth noting that the above-mentioned turnover is a large amount of capital flow expenditure of more than 1 million yuan in addition to the transfer of personal cards, purchases** and wealth management products, and does not include expenditures of less than 1 million yuan. 100 help plan