Will you be able to get your wish this time?
Every year in the college entrance examination, there are students who "crowd the single-plank bridge", and some of them do not hesitate to step on the single-plank bridge many times, just to be admitted to their favorite colleges and universities. According to reportsIn order to enter Tsinghua University, a candidate in a certain place actually took the college entrance examination more than a dozen times in a row, but unfortunately he still failed to do so!
The capital market has a similar wonderful story. Because the attraction of listing for a company is too huge, some companies still do not give up and plan to make a comeback even if they have failed many times!Recently, there is such a company, playing the role of the capital market version of "Fan Jin", but I don't know if it can be lifted this time.
Three reports and three withdrawals, a comeback?
On November 27, Jiangsu Jinyuan High-end Equipment Co., Ltd. (hereinafter referred to as "Jinyuan Equipment") was registered with the Jiangsu Securities Regulatory Bureau for counseling, and the counseling agency was Guojin. Although there is still a long way to go before the prospectus is submitted, it is enough to show the determination of the company to sprint to IPO!
It is worth noting that Jinyuan Equipment has been "reported three times and withdrawn three times"!In November 2009, it applied for the IPO of the Growth Enterprise Market and in May 2011, it applied for the IPO of the small and medium-sized board. The sponsors of these two brokers are Ping An**, but the sponsors are different, and the same is that they all ended in withdrawal.
In September 2021, Jinyuan Equipment replaced Debang** and broke through the GEM again, but the result remained the same - withdrawn. This time it has been 14 years since the company's first declaration, and this time Jinyuan Equipment has changed brokerages again, and launched an impact on A-shares for the fourth time.
Looking back on the road to the IPO of Jinyuan Equipment, it can be described as a twist and turn, and each time it is different, it sounds difficult to refute the reason.
As early as 14 years ago, when the GEM market opened, the company submitted an application for an IPO on the GEM to the Securities Regulatory Commission, but after a year of review, the company withdrew the application materials in November 2010. As for the reason for this withdrawal, the company explained on page 96 of the reply to the SSE inquiry letter during the third shock in 2022.
According to Jinyuan Equipment, the parent company of the company's largest customer at that time (China High-speed Transmission) acquired the main first-class business (Hongsheng Heavy Industries) in September 2008, and the company was not informed of the matter in time. In 2009, the company's largest customer and the largest business were the same actual controller. In order to reduce the company's operating risks, starting from the second half of 2010, the company decided to reduce the proportion of procurement of a single ** business, but the change in the procurement model may bring uncertainty to the company's business development and profitability, so the company chose to withdraw voluntarily.
A year later, in 2011, the company announced that it had withdrawn from the SME Board for the second time, and the reason for the withdrawal was on page 97 of the reply letter, which was summarized as "although I have corrected it, I have not carefully checked it, and there is negligence in the work, so I chose to withdraw voluntarily".
After the second withdrawal, the reason given by Jinyuan equipment.
2022 Response Letter.
More than ten years have passed, and in September 2021, Jinyuan Equipment once again hit the Shenzhen Stock Exchange's GEM after the registration system, and also submitted a prospectus, and issued a reply to the first round of regulatory inquiries in March of the following year
At the same time, Jinyuan Equipment also explained other issues of the exchange, but this reply letter does not seem to fully convince the Shenzhen Stock Exchange. On April 7 of that year, the Shenzhen Stock Exchange issued a second round of inquiry, but a few days later, Jinyuan Equipment submitted its voluntary withdrawal application again, and it was officially approved in June, and the reasons are also very credible:The impact of the pandemic.
Three trials and three withdrawals, and now the fourth impact on the listing, this company's dream is commendable, but as mentioned above, the previous several setbacks are because there are still some inconsistencies between the company's operation and listing requirements, even if the stars change, after many years, in 2021, the company's operation is still subject to many questionsEspecially after the second round of inquiries by the Shenzhen Stock Exchange, it was withdrawn without a reply, which made people feel that they were under the melon field.
Since the fourth listing is still in the counseling stage, the current financial analysis of the company in this article is mainly based on the prospectus of its third listing application and the subsequent correspondence with the Shenzhen Stock Exchange.
The performance of 2021 has dropped slightly, and it is all to blame
According to the prospectus, Jiangsu Jinyuan high-end equipment shares was founded in May 1997, the main business for high-speed and heavy-duty gear forgings research and development, production and sales, the main products include high-speed heavy-duty gear forgings, gear shaft forgings, gear ring forgings and other free forging and die forgings, is a high-tech enterprise for high-end equipment manufacturing industry to provide key components, its downstream used in wind power, construction machinery, rail transit, marine engineering and other industries.
In 2019, 2020 and 2021, the company's operating income was 97.5 billion yuan, 126.3 billion yuan, 116.1 billion yuan, net profit deducted from non-attributable to the parent company was 72.33 million yuan, 119.35 million yuan and 116.82 million yuan respectively. Visible,Its 2021 revenue and net profit data failed to maintain the continuous growth trend of the previous two years, and both fell slightly. At the same time, the net cash flow from operating activities in each of the three years of the reporting period was -3,503060,000 yuan, 4,000910,000 yuan, 11,501120,000 yuan, and there was also a cash outflow in 2019.
Jinyuan Equipment's performance in the three-year reporting period.
Prospectus.
So why did the performance decline slightly in 2021?It turns out that this is related to the industry that the company is engaged in, and there is a problem that the growth rate of installed capacity has declined after the "rush to install" wind power.
The prospectus also explains this problem, according to the prospectus, in 2020, with the "rush to install", the issuer's performance will also be significantly **. In 2021, after onshore wind power entered grid parity, the newly installed capacity of domestic wind power declined, and the wind power market demand may still fluctuate in the short termIn the long run, with the full implementation of grid parity, the cost pressure will gradually be transmitted to the entire wind power industry chain, and the issuer provides forging products for downstream wind power parts manufacturers, and there is a risk of decline in related wind power products.
Obviously, if the company's revenue mainly comes from the wind power field, then the wind power industry policy trend is not generally strongly related to the company's performance, so even the inquiry letter of the Shenzhen Stock Exchange reflects serious concerns about this issue. In the letter of inquiry, the Shenzhen Stock Exchange clearly requires enterprises to explain "the changes in the issuer's income from the wind power field, the impact of the rush on the issuer's short-term and long-term performance, and whether there is a risk that the short-term performance will rise sharply and the performance will decline sharply after the rush to install".
In the reply, the company explained:"In order to cope with the short-term fluctuations in the wind power industry, the issuer has appropriately adjusted the product structure and increased the business expansion of construction machinery, and the revenue of construction machinery and equipment forgings in 2021 will be 45 compared with the previous year06%, the overall main business income decreased by 7 compared with 202044%”，And the proportion of wind power revenue during the reporting period is also listed, which shows that it does occupy the largest proportion of main revenue, and in 2021, wind power business revenue will indeed decline year-on-year. However, the reply to the following also believes that "on the whole, the relevant risks are controllable".
Wind power accounts for the largest proportion of the company's main revenue.
2022 Response Letter.
If the development of industrial policy is beyond the influence of a single enterprise, then enterprises should know better than anyone about their own business conditions. As mentioned above, the first listing withdrawal of the company is because there are some "cut-in, rationalized and chaotic" relationships between the company and the customer, and in 2021, the company should always attach great importance to this aspect and try to disperse the business and the customer. However, judging from the prospectus, the company still has many problems in terms of the proportion of first-class merchants and customers.
The proportion of revenue from large customers is too high
According to the prospectus, from 2018 to 2021, the proportion of the company's procurement amount to the total procurement amount was respectively. 09%, at the same time, the company's sales to the top five customers accounted for the proportion of revenue. 86%, accounting for more than one year.
Among them, the sales revenue generated to the largest customer, Nanjing High Speed Gear Manufacturing, NGC) was 42.1 billion yuan, 47.4 billion yuan, 64.3 billion yuan, 15.1 billion yuan, respectively, the current operating income. 41%。That is to say,At least 60% of Jinyuan Equipment's annual revenue comes from the top five customers, and at least 40% of its revenue comes from NGC, the largest customer. NGC is a subsidiary of China High Speed Transmission.
Is this an industry practice?The comparison of the proportion of operating income of the top five and the largest customers of comparable companies in the same industry is as followsThe proportion of revenue from the largest customer, which is NGC, is too high!
In the letter of inquiry, the Shenzhen Stock Exchange also requires enterprises to "explain whether the high concentration of issuers' customers is in line with the characteristics of the industry based on the customer concentration of comparable listed companies in the same industry and the proportion of the largest customer in its operating income".
Comparison of the proportion of operating income between the company and the top five and largest customers of comparable companies in the same industry.
Reply Letter.
There are many explanations for this, the main reason being the difference in industry type with comparable listed companies. According to the explanation of the enterprise,The issuer's products are mainly targeted at gearbox manufacturers, and the concentration of gearbox manufacturers is higher than that of other wind power system products, with NGC, the largest customer, reaching 24% of the world's gearbox production capacity, ranking firstThe products of comparable companies are mainly wind power components such as bearings, flanges, towers, etc., which are different from those of issuers, and the concentration of customers is relatively scattered compared with the gearbox field. Therefore, the company believes that "compared with comparable companies in the same industry, the higher customer concentration is in line with the characteristics of the industry".
The customer is highly concentrated, what is the situation of the first business?According to the prospectus,During the reporting period, the enterprise did not have a procurement ratio of more than 50% of the total procurement from a single ** merchant or heavily relied on a small number of ** merchants. Taking 2021 as an example, the largest ** merchant accounted for about 2818%。
The top five ** enterprises in 2021.
Prospectus.
However, there is a very "special" ** business - that is, Sanxin Heavy Industry, which ranks 4th in the above table!The reason why it is special is that it plays the dual role of the first business and the customer at the same time, and the relationship between it is worth playingThe first application for listing is also a "failure" in this kind of problem.
Correspondence with Sanxin Heavy Industry
According to the prospectus statistics, from 2019 to 2021, Sanxin Heavy Industry has been one of the company's top five leading merchants, with a total purchase amount of 33,270220,000 yuan. During the same period, Sanxin Heavy Industry is also a major customer of the company, and the company sells forgings, scrap steel and provides processing services with a total amount of 12,373730,000 yuan. In the back and forth, the company not only did not make money from Sanxin Heavy Industry, but also "pasted" about 200 million yuan to Sanxin Heavy Industry. Of course, this may be related to the market of the different products themselves**, but it also has to make people wonder whether the transaction is completely fair.
The first is the purchase unit price. According to the reply letter, during the reporting period, the issuer purchased continuous casting billet nickel alloy steel from CITIC Special Steel and Shanghai Richangsheng, and the unit price was higher than the average ** mainly due to the issuer's purchase of continuous casting billet mainly for wind power gearboxes, which has the advantages of high utilization rate and stable performance, and the quality has been widely recognized by downstream customers. The die ingots produced by Linhong Special Steel and other steel mills are reasonable.
Comparison of the purchase unit price of major nickel alloy steel manufacturers.
Reply Letter.
Not only that, the scrap rate of Jinyuan Equipment during the reporting period was also higher than that of its peers.
In each period of the reporting period, the amount of scrap steel produced by Jinyuan Equipment was 35,06469 tons, 41,97151 tons, 32,93209 tons, and the product processing volume was 84,04000 tons, 108,41962 tons, 90,99880 tons, the scrap rate is: 19%, the scrap rate in 2019 was higher, more than 40%. Comparing the 2019 and 2020 data disclosed by peers, it is found that the average scrap rates of comparable companies in the same industry in 2019 and 2020 were respectively. 75%, all lower than Jinyuan equipment. According to the company's own explanation in the prospectus, the reason why the scrap rate is higher than that of Zhonghuan Hailu and Haiguo shares is mainly due to certain differences in product types, product structures, and raw material types of different companies.
Scrap rates of comparable public companies in the same industry.
Prospectus.
However, the problem lies in the whereabouts of the scrap: as mentioned above, the scrap steel generated in the production process of Jinyuan equipment is mainly to Sanxin Heavy Industry, which is also one of the top five merchants of Jinyuan Equipment, that isAfter purchasing various steel materials from Sanxin Heavy Industry, Jinyuan Equipment sells the scrap steel generated in the production process back to Sanxin Heavy IndustrySuch a closed loop has once again formed a situation where large customers and large ** businessmen overlap, which in turn has also triggered detailed inquiries from the Shenzhen Stock Exchange. Even if, as stated in the company's reply, the transaction process is indeed completely fair, it is worth noting.
There are also a few small problems:On page 259 of the inquiry reply, it was disclosed that the total amount of forgings or processing services purchased by Sanxin Heavy Industry from the enterprise in 2021 was 0, but on page 261, it was disclosed that the average price of forgings sold by the company to Sanxin Heavy Industry in 2021 was 1060,000 tons. Such inconsistencies make people pay attention to the quality of the prospectus.
After the third trial and three withdrawals, can Jinyuan Equipment's dream come true for the fourth time?Let's wait and see.
Disclaimer] The content of the article is for research and Xi purposes only and does not constitute any investment advice.