Text: Qian Fenfang, researcher at IQHCJ
Editor: Xu Hui
On December 21, 2023, Guangdong Hongjing Optoelectronics Technology Co., Ltd., which replied to the second round of inquiry letter and updated the prospectus, plans to be listed on the GEM, and the sponsor is Shenwan Hongyuan**. The public offering of new shares does not exceed 1,588670,000 shares, accounting for no less than 25% of the total share capital after issuance. The company plans to invest in raising funds 48.8 billion yuan, which will be used for optical lens and module capacity expansion projects, R&D center construction projects, and replenishment of working capital (12.5 billion yuan).
The actual controller of Hongjing Optoelectronics has been transferred to holding on behalf of the company due to competition, and has been the general manager of Sunny Optics for six years; Recently, camera module products account for more than half, and the gross profit margin is higher than that of Sunny Optics; Recently, the top five customers account for more than 8 percent, and they rely heavily on Yingshi innovation; Inventory climbing, inventory turnover rate overall downward trend, accounts receivable high; The production capacity letter is not clear.
The actual controller has been transferred to holding on behalf of the company due to competition, and has been the general manager of Sunny Optics for six years
On August 1, 2012, natural persons Zeng Wei and Rao Longjun jointly established Hongjing Co., Ltd. with a registered capital of 1000000000 yuan, of which Zeng Wei invested 90000,000 yuan, Rao Longjun invested 10000,000 yuan, all of which are contributed in currency. When the company was established, Zeng Wei was an employee of the company, and his equity was held on behalf of Zhao Zhiping. Zeng Wei's 90 this time000,000 yuan was provided by Zhao Zhiping, and Zhao Zhiping first put 90000,000 yuan was remitted to Zeng Wei's personal bank account, and Zeng Wei then used the money to contribute to Hongjing Co., Ltd. to form an equity holding. The nominee shareholding was fully dissolved in July 2014.
The main reasons for this equity holding are: on the one hand, because the "Confidentiality Agreement" signed by Zhao Zhiping when he joined Sunny Optics (Zhongshan)** stipulates the non-compete obligation for a period of one year after resignation, although when Zhao Zhiping resigned from Sunny Optics (Zhongshan)** in June 2012, Sunny Optics (Zhongshan)** did not require Zhao Zhiping to perform the non-compete obligation, nor did he pay Zhao Zhiping compensation for the non-compete in accordance with the "Confidentiality Agreement", but Zhao Zhiping considered that he should try to avoid the non-compete with Sunny Optics (Zhongshan)** unnecessary legal disputes; On the other hand, Zhao Zhiping is worried that the industry status of Sunny Optical Technology will adversely affect the normal business development.
As of the signing date of this prospectus, Zhao Zhiping directly held 1,339110,000 shares, accounting for 28 of the company's total share capital0971%, the largest shareholder of the company; At the same time, Zhao Zhiping controls a total of 2,036830,000 shares, accounting for 42 of the company's total share capital7365%。Zhou Dong directly holds 562 of the company910,000 shares, accounting for 11 of the company's total share capital8110%, the second largest shareholder of the company; At the same time, Zhou Dong controls a total of 680 by serving as the executive partner of Hongqing Investment, a shareholding platform for external investors040,000 shares, accounting for 14 of the company's total share capital2686%。The first and second largest shareholders signed a concerted action agreement, and as a result, Zhao Zhiping directly and indirectly controlled the company570052% of the voting rights, is the controlling shareholder and actual controller of the company.
As of the signing date of the prospectus, the total shareholding ratio of the company's state-owned shareholders was nearly 747%。Including Torch Group, Torch Huaying and Desay SV. In December 2021, Torch Group increased its capital to the company by 43000,000 yuan Torch Huaying increased its capital to the company by 4300000000 yuan, in August 2022, Desay SV increased its capital to the company by 150 yuan with monetary contribution000,000 yuan, Zhao Zhiping, Zhou Dong, and Yi Xijun transferred 120 to Desay SV0,000,000 shares. Hongjing Optoelectronics' registered place and business place are located in the Torch Development Zone, and lease factories and buildings from the Torch Group.
Recently, camera module products account for more than half, and the gross profit margin is higher than that of Sunny Optics;
Hongjing Optoelectronics is a high-tech enterprise specializing in the research and development, design, production and sales of optical lenses and camera module products, from 2020 to January to June 2023, the company's operating income is 235.2 billion yuan, 251.7 billion yuan, 446.5 billion yuan and 34.7 billion yuan, net profit was 1490580,000 yuan, 1525810,000 yuan, 5645370,000 yuan and 4657710,000 yuan.
The company's main products include smart car optical lenses and camera modules and emerging consumer optical lenses and camera modules, of which smart car products are used in smart cockpit and intelligent driving, and emerging consumer products are used in smart home, panoramic action cameras and other products.
In 2020 and 2021, the company's optical lens product revenue accounted for a high proportion of the main business income, which was 6227% and 7630%；In 2022, due to the increase in demand for the company's products by Shadowstone Innovation, the company's camera module sales revenue will increase significantly, accounting for 44% of the main business revenue15%, a significant increase. From January to June 2023, the sales of Shadow Stone's innovative terminal products continued to improve, and the demand for the company's products further increased rapidly, resulting in a significant increase in the revenue of emerging consumer camera modules, accounting for 53 percent of the main business revenue70%。
During the reporting period, the revenue of optical lenses and camera modules of panoramic action cameras accounted for the proportion of main business revenue. 33% and 5357%, of which the company's sales revenue of panoramic action camera optical lens and camera module products innovated by Shadow Stone accounted for the sales revenue of panoramic action camera optical lens and camera module products in the same period. 09% and 9980%。During the reporting period, Shadowstone Innovation was the company's most important customer of panoramic action camera optical lens and camera module products, and the company's panoramic action camera optical lens and camera module products have covered a variety of terminal products such as consumer intelligent imaging equipment and professional intelligent imaging equipment under Shadowstone Innovation.
During the reporting period, the amount of overseas sales in the company's main business income was 7,010730,000 yuan, 9,094290,000 yuan, 130.7 billion yuan and 7,516510,000 yuan, accounting for respectively. 10% and 2191%, the company's customers and terminal brands cover Asia, North America and other major regional markets, overseas sales revenue accounted for a relatively high proportion.
In 2022, the company's market share in the global automotive optical lens market will be 370%, the shipment volume ranks sixth in the world, of which, in the field of automotive imaging optical lenses, the company's market share is 310%, ranking 7th in the world; In the field of vehicle imaging and imaging + perception optical lenses, the company's market share is 370%, ranking fifth in the world.
From 2020 to 2022, the sales volume of optical lenses for the company's home surveillance cameras and video doorbells was 370410,000, 328810,000 and 595000,000. Each home surveillance camera or video doorbell usually uses an optical lens, from which it is estimated that from 2020 to 2022, the company's market share in the field of optical lenses for home cameras (including video doorbells) in the world is respectively. 10% and 470%。
In the field of panoramic action cameras, Shadowstone Innovation has the largest market share in the world, with a market share of 50 in 20227%, and the market share of professional-grade panoramic cameras is 554%。Combined with the company's procurement proportion of similar products in Yingshi, the company's market share in the global panoramic camera lens module market has reached more than 25%, and it has strong market competitiveness.
During the reporting period, the gross profit margin of the company's main business was as follows. 03% and 2926%, which is higher than that of comparable peers Sunny Optical Technology. 90% and 1492%。
During the reporting period, the R&D expense ratios of Hongjing Optoelectronics were as follows. 29% and 558%, showing some volatility and lower than the average of comparable peers. 53% and 919%。The proportion of R&D is low, but the gross profit margin is higher than that of peers, and the business level of Hongjing Optoelectronics is different from that of peers.
In addition, the prospectus shows that during the reporting period, Hongjing Optoelectronics did not pay social insurance and housing provident fund for some employees. In 2020 and 2021, the company had 304 and 302 people who did not pay the housing provident fund, accounting for nearly half of the number of employees.
Recently, the top five customers account for more than 8 percent, and they rely heavily on Yingshi innovation;
Through years of operation and development, Hongjing Optoelectronics has established stable cooperative relations with many Tier1 and EMS manufacturers, and its products have entered Daimler-Benz, Nissan, Honda, BYD, Geely, Great Wall, Aion, NIO, Xiaopeng, Feifan, Lotus, Ring, Blink, Anker, Instamai, Xiaomi and other well-known brands at home and abroad.
During the reporting period, the company's total sales revenue to the top five customers was 137.8 billion yuan, 122.8 billion yuan, 265.5 billion yuan and 278.9 billion yuan, accounting for the proportion of operating income respectively. 46% and 8037%, the top five customers have a high concentration. However, both Hanwa Group and Qunguang Electronics have disappeared from the top five customers.
According to the prospectus, during the reporting period, the company's main business income from Shadow Stone Innovation was 3,060890,000 yuan, 1,146770,000 yuan, 143.4 billion yuan and 183.4 billion yuan, accounting for the proportion of the company's main business income. 02% and 5346%, from a single customer's main business income or gross profit contribution accounted for more than 50%, there is a significant dependence on Shadowstone innovation.
Yingshi Innovation is an IPO company submitted for registration on the Science and Technology Innovation Board, and its registration draft submitted on November 22, 2022 shows that 2020 Hongjing Optoelectronics is the fourth largest company, providing 2658320,000 yuan of sales, accounting for 653%。This is different from Hongjing Optoelectronics' letter disclosure, or it is different from value-added tax.
As at the date of this Prospectus, Desay SV held 2700000000 shares, accounting for 5 of the company's total share capital6651%。During the reporting period, the transaction amount between the company and Desay SV was 000000000000000000000000000900,000 yuan, 220820,000 yuan and 383230,000 yuan, an increase year by year.
During the reporting period, the company mainly purchased blister packaging boxes for optical lenses and lenses from Shenzhen Founder Technology, with a transaction amount of 58530,000 yuan, 87790,000 yuan, 143180,000 yuan and 95940,000 yuan.
Inventories are rising, inventory turnover is on a downward trend as a whole, and receivables are high
At the end of each period of the reporting period, the asset-liability ratio (consolidated) of Hongjing Optoelectronics was as follows. 29% and 4938%, the asset-liability ratio continued to decline, and only in 2020 cash dividends of 289920,000 yuan, the raised funds 12.5 billion yuan to replenish liquidity.
At the end of the reporting period, the carrying value of the company's accounts receivable was 5,075210,000 yuan, 6,257360,000 yuan, 139.5 billion yuan and 193.7 billion yuan, the book value of notes receivable and receivables financing was 3500000000000000000000000000000150,000 yuan, 149$550,000 and $1,388390,000 yuan, the total proportion of total assets at the end of the period was respectively. 79% and 2972%, accounting for the proportion of current operating income respectively. 59% and 5982%。The closing balance of accounts receivable is high, which occupies a lot of the company's working capital, which brings certain financial pressure to the company.
At the end of the reporting period, the book balances of the company's top five accounts receivable customers were 3,923970,000 yuan, 4,104970,000 yuan, 9,014670,000 yuan and 160.3 billion yuan, accounting for the balance of accounts receivable. 38% and 7862%。
At the end of the reporting period, the carrying value of the company's inventory was 2,896120,000 yuan, 6,793590,000 yuan, 9,218560,000 yuan and 108.3 billion yuan, accounting for the proportion of total assets. 55% and 1551%。In each period, the amount of reserve for inventory decline was 381440,000 yuan, 581160,000 yuan, 765230,000 yuan and 897110,000 yuan. During the reporting period, the company's inventory turnover ratio was 485 times, 348 years, 376 times the year and 4In the 54th year, there was an overall downward trend.
The production capacity letter is not clear.
The optical lens and module capacity expansion project is jointly implemented by the company and Hongjing Xiantao, with a total investment of 289.2 billion yuan, of which 1,613 was spent on renovation projects450,000 yuan, equipment purchase cost 252.5 billion yuan, reserve fee 805980,000 yuan, with a working capital of 1,251080,000 yuan, the construction period of the project is 2 years. According to the prospectus, through the implementation of the optical lens and module capacity expansion project, the company will increase its annual production capacity of more than 35 million precision optical lenses and camera modules.
As part of the capacity expansion project, the company will renovate the existing leased plant in Zhongshan, purchase automated production lines, and set up a professional production and operation team, with an estimated annual production capacity of 27.96 million optical lenses and camera modules. According to the evaluation and approval of the expansion project of Hongjing Optoelectronics Co., Ltd. with an annual output of 28 million lenses and modules announced on April 23, 2023, the total investment of the project after the expansion of Zhongshan Company's headquarters is 143.4 billion yuan. In the evaluation, it was also stated that the company is mainly engaged in the production of optical lenses and optical modules, with an annual output of 68 million optical lenses and 38 million optical modules. This is very different from the capacity stated in the capacity utilization table, which is calculated by the company according to the theoretical operation time of the production line divided by the standard working hours of the product, which is affected by the number of machines, product structure, production process, etc.
On the other hand, Hongjing Xiantao will expand the production capacity of the existing plant and purchase automated production equipment to optimize the product structure and quality, and is expected to add an annual production capacity of 7.2 million pieces of emerging consumer optical lenses and 12 million pieces of glass aspherical lenses. In 2022, Hongjing Xiantao purchased land and invested in new factories and other facilities, and paid 121.5 billion and 6,630570,000 yuan, so that the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets continued to increase.
Under the registration system, IPO companies should pay more attention to the quality of information disclosure, whether their business indicators can meet the listing requirements, and the subsequent sustainable business status.