Author |Deepwater Finance & Economics **
The performance "changed face", and Gree Bo became the first listed company to lose money in the year of listing in 2023.
On the evening of February 5, Glebo (301260), located in Changzhou, the "new energy capital", received a letter of concern from the Shenzhen Stock Exchange.
Although some peers are also facing performance challenges in 2023, it is not a systemic collapse of the entire industry, and the Shenzhen Stock Exchange asked Glebo to explain the impact of downstream retailers' destocking on revenue, the reasonableness of the decline in gross profit margin, etc.
If Glebo is really tired, will the famous "gatekeepers" China Securities Construction Investment and Ernst & Young Huaming be held responsible?
Glebo was listed on the GEM on February 8, 2023, and is known as the "first stock of new energy garden machinery" by the outside world, and its main products include lawn mowers, lawn mowers, cleaning machines, intelligent lawn mowing robots, etc., Chen Yin is not only the actual controller of the company, but also the chairman and general manager.
The company's performance before and after listing varies widely. Pre-listing: In 2019 and 2020, the year-on-year growth rate of net profit attributable to the parent company was 207% and 266% respectively; In 2021 and 2022, although the growth rate has declined, it is both at 2more than 600 million yuan; After listing: the first semi-annual report had a direct loss of 53.91 million yuan, and the third quarter reported a loss of 174.8 billion yuan; In 2023, it will be a pre-giant 3700 million yuan 4300 million yuan, a steep drop of more than 600 million yuan a year, which is staggering.
Shenshui Finance and Economics observed that the current 2023 performance forecast has been disclosed, and among the 1072 listed companies that have issued forecasts, only 10 will be listed in 2023, of which 3 have reduced losses and 5 have increased losses 830809, all of which are listed on the Science and Technology Innovation Board and the Beijing Stock Exchange.
In the year of listing, the Shenzhen Stock Exchange quickly issued a letter of concern to Glebo, poking its own "shield" with Glebo's "spear".
In the prospectus in January 2023, the company said that "the depreciation of the US dollar, the increase in sea freight **, and raw materials**" were listed as one of the main unfavorable factors that led to Glebo's net profit loss in the third quarter of 2021.
In the 2023 Glebo performance forecast, "the depreciation of the US dollar, the rise of sea freight**, and raw materials**" have become one of the main unfavorable factors for net profit loss.
For the huge loss of performance, Glebo gave a variety of reasons in the announcement, the most important of which is the impact of destocking, in 2023, due to the increase in downstream retailers' destocking and ** deductions, the company's gross profit margin will decline, and the gross profit will decrease by 1900 million yuan 2100 million yuan.
2018 In 2022, the lithium battery OPE industry in which Glebo is located will grow rapidly, and the global ** chain and logistics will be impacted, and the inventory level of downstream channels will continue to rise, and the company's inventory will reach a peak of 29 in 20227.2 billion yuan.
However, since 2023, due to the impact of high inflation in North America and the Federal Reserve's continuous interest rate hikes, terminal demand has fallen short of expectations. As of the end of the third quarter of 2023, inventories are still high at 225.6 billion yuan.
Glebo said in the announcement that based on the prediction that downstream retailers' destocking in the fourth quarter of 2023 will come to an end and turn to replenish inventory, the company's sales expenses have increased significantly. According to the data, the company's sales, R&D, and administrative expenses will increase by 2 percent year-on-year in 2023700 million yuan-2900 million yuan, while revenue fell 98%~11.7%。
This means that the high investment in "horse racing" has not been exchanged for high performance growth, but has led to a huge loss for Glebo in 2023.
Although some peer companies are also facing performance challenges in the current environment, such as Daye (300879), which is also in a loss-making situation, others, such as Greatstar Technology (002444), have achieved a year-on-year increase in net profit of 1623% to 3032%, which means that it is not a systemic collapse of the entire industry.
The Shenzhen Stock Exchange asked Glebo to explain the specific impact of downstream retailers' destocking on the company's revenue in combination with the company's top five customers, sales amount and proportion, and current payment collection; In addition, the deduction policy, the amount and proportion of deductions, and the changes in the cost of inventory sales in North America illustrate the reasonableness of the decline in gross profit margin.
For the development of the industry in 2023 is less than expected, why does the company still increase investment and not reduce spending?
Based on the high growth of the industry in the past, the company has laid out in advance, hoping to increase sales investment, improve performance and expand the influence of its own brand. On February 2, in an institutional survey, Glebo said that considering the reality of the slowdown in industry growth in 2023, the company has strengthened budget control in 2024.
In the secondary market, Glebo's share price is at its peak, and now the stock price is only about 1 3, which is equivalent to being "cut off on the knee".
Specifically, Glebo's issue price is 3085 yuan shares, the most **41 after listing82 yuan shares, about 1 month below the issue price, and then all the way to "sit on the slide", as of February 6**, Glebo share price closed at 1026 yuan shares, the total market value shrank to 502 billion yuan.
The best panorama of the day since the listing of Glebo.
In the face of the falling stock price, on the evening of February 6, Chen Yin, the actual controller of Glebo, couldn't sit still and planned to spend 25 million yuan and 50 million yuan to increase his holdings of the company's shares, and did not set the range of increasing his holdings.
Before the implementation of the shareholding increase plan, Chen Yin directly held about 18.23 million shares, accounting for 3% of the total share capital73%；And through Globe Holdings Colimited indirectly holds about 25.6 billion shares, accounting for 52% of the total share capital24%。
Shenshui Finance and Economics observed that although the actual controller threw out a plan to increase holdings of up to 50 million yuan, it was a "drop in the bucket" compared to the company's daily turnover of 50 million yuan and 60 million yuan.
More importantly, Glebo is sponsored by the industry's top China Securities Construction Investment Co., Ltd., and has teamed up with Ernst & Young, one of the four major international conferences, to complete the listing process, and such a luxurious lineup has exacerbated the outside world's doubts about its sudden huge losses.
In the name of "the first share of new energy garden machinery", the initial price-earnings ratio of Glebo is as high as 63 times, while the highest initial price-earnings ratio of the four listed companies on the same track is only 35 times.
As an intermediary of Glebo, it makes a lot of money. The sponsor, China Securities Construction Investment, received an initial offering underwriting and sponsorship fee of up to 1$600 million, with a continuous supervision period until 2026; Ernst & Young Huaming received an audit fee of more than 25 million yuan.
At that time, the specific listing criteria selected for the IPO of Glebo GEM were: the net profit in the last two years was positive, and the cumulative net profit was not less than 50 million yuan.
However, the Administrative Measures for Sponsor Business stipulate that if an issuer loses money in the year of listing during the period of continuous supervision and the selected listing criteria include the net profit standard, the CSRC may, depending on the severity of the circumstances, take regulatory measures against the sponsor institution and its relevant responsible persons, such as issuing a warning letter and suspending the sponsorship business.
At the beginning of 2024, China Securities Construction Investment received a regulatory letter because the recommended core world had not yet been listed. At present, the IPO of the GEM of the core world has been terminated.
On January 25, the China Securities Regulatory Commission emphasized that it is necessary to consolidate the responsibilities of "gatekeepers" such as sponsors and accounting firms, adhere to the principle of "reporting is responsible", and strictly verify and severely punish those who "break through with illness".
According to incomplete statistics, since January, the securities regulatory authorities and exchanges have issued more than 10 fines for various investment banking businesses to securities firms or related practitioners.
Shenshui Finance and Economics believes that if the China Securities Regulatory Commission finds out that Glebo's performance has changed its face, China Securities Construction Investment and Ernst & Young Huaming will not be able to escape their responsibility.
(Exclusively released by Shenshui Finance and Economics, a global market capitalization research institution, **Please indicate the source for citation).