In recent years, with the popularity of smart homes, new intelligent cleaning appliances represented by sweeping robots have gradually replaced traditional cleaning appliances. The vacuum cleaner is a representative of the traditional cleaning appliances, which drives the impeller through the rotation of the motor, discharges the air, and forms a relative vacuum, thereby generating suction, so the quality of the motor directly affects the quality of the vacuum cleaner.
In the case of repeated encirclement and suppression of vacuum cleaners, the IPO of Xingdesheng, which is mainly engaged in micro and special motors used in vacuum cleaners, has made new progress, and the company will open the subscription on March 11, 2024, and plans to raise nearly 9600 million yuan, most of which is used to expand production. Today we are going to learn about this company.
Micro motor faucet
First of all, let's take a brief look at the micro motor, which generally refers to the motor with less power, which is often used in the control system to realize the detection and conversion of electromechanical signals.
Since its establishment, Xingdesheng has been engaged in the research and development, production and sales of micro motors and related products, the products are mainly used in the field of clean electrical appliances such as vacuum cleaners, after years of development, in other terminal applications such as power tools, garden tools and other terminal applications Xingdesheng is also involved.
At present, Xingdesheng's annual output of motor capacityMore than 60 million units, the market is all over the place41 countries and regions around the world, which should be applied to includeBisheng, Panasonic, Hitachi, Philips, LG, Midea, Delmar, Ecovacs, Xiaomi, Roborockand other well-known terminal brand electrical products at home and abroad.
China asThe world's largest producer of vacuum cleaners, 25% of the production of household vacuum cleaners in 2021aboveThe vacuum cleaner products use the micro motor produced by the company. In 2021, the output value of Xingdesheng will exceed 1.5 billion yuanThe market share of vacuum cleaner motors ranks first in the world
Fake foreign capital
Here we first popularize a conceptRound-trip investment. Round-trip investing is what people often talk aboutFake foreign capitalIt usually invests in an onshore company through one or more offshore companies, and eventually makes the actual controller of the company a resident in the onshore area.
There are many benefits to investing with a return trip.
The most important thing is the tax incentives。If the shareholders of the company are domestic natural persons, then they must pay 20% personal income tax when distributing dividends to shareholders, but if the shareholders of the company are overseas companies, as long as certain conditions are met, they can enjoy the preferential withholding tax of 5%.
Xingdesheng is such a company, the controlling shareholder of the company is Yinke Industry, but the actual controller is always Zhu Yunfang, a domestic resident. In 2020, Xingdesheng will distribute 90 million yuan in dividends to Yinke Industry.
In addition, the company did not go through the foreign exchange registration procedures for overseas investment in accordance with the regulations when it was established, and only hurriedly made up the fine when it rushed to the IPO.
Equity transfer is a mystery
In the context of such "fake foreign capital", there are also problems with the equity transfer of Xingdesheng.
In May 2019, Xingdesheng held a % stake in its wholly-owned subsidiary, Yuezheng Electromechanical, at a price of 65420,000 yuan, 28040,000 yuan of **, transferred to Zhu Yunbo and Hou Chuanying. Among them, Zhu Yunbo is the brother of Zhu Yunfang, the actual controller of Xingdesheng, and Hou Chuanying is Zhu Yunfang's mother.
You must know that Yuezheng Electromechanical has total assets of 3094 in 2018970,000 yuan, with revenue of 2140140,000 yuan, net profit also 436880,000 yuan.
Only seven months later, Xingdesheng said that because the company still had a transaction with Yuezheng Electromechanical, it transferred the equity held by Zhu Yunbo and Hou Chuanying to the company for the sake of integrating the industrial chain and standardizing the transaction. After the transfer, Xingdesheng holds 100% of the equity of Yuezheng Electromechanical.
It is also intriguing what is the truth behind the equity buyback in a short period of time.
Increasing profits does not increase income
So, what about the performance of such a "fake foreign" company?
Overall, Xingdesheng's revenue is up from 16 in 2020$5.2 billion increased to $18 in 20220.8 billion yuan; During this period, the net profit attributable to the parent company also increased from 13.9 billion yuan increased to 18.7 billion yuan.
However, it is worth noting that in 2022, Xingdesheng's revenue is higher than that of 2021This is a year-on-year decrease of 2177%, but the net profit attributable to the parent isThis is an increase of 8 year-on-year24%, appearedIncreasing profits does not increase incomeCircumstance.
The decline in revenue was due to a combination of the following factors.
First of all, European and American countries are the largest consumer markets for vacuum cleaner cleaning products, and in 2022, affected by social factors and inflation, consumers' purchasing power will decline, and market demand will fall.
Secondly, since the second half of 2020, consumers have been staying at home for a long time, their awareness of hygiene and health has increased, and the market demand for clean appliances has risen sharply, resulting in a significant increase in income in 2021, and this factor is special, so it will return to stability in 2022.
So why is the net profit rising?
Let's take a look at the situation of non-recurring profit and loss, we can find that the proportion of recurring profit and loss is very small, and it has been below 5% in recent years, which shows that it is not non-recurring profit and loss that affects the gross profit margin of Xingdesheng.
Then it is the rise in net profit margin that has led to an increase in net profit, and the indicators that affect net profit margin are nothing more than gross profit margin and period expense ratio, let's take a closer look at the impact of which indicator.
From the perspective of the period expense rate, in 2022, the period expense rate of Xingdesheng will even increase, but it will only increase by 011 percentage points, seeing that the expense ratio during the period is not the main reason for the impact on the net profit margin.
Looking at the gross profit margin, in 2022 and the first half of 2023, the sales proportion of brushless DC motors, Xingdesheng's high-gross margin products, will increase, and the gross profit margin of AC series motors will also increase, resulting in an increase in gross profit margin, which has become the main reason for the increase in the company's net profit margin.
However, an increase in gross profit margin does not mean that the company's profitability is strong. The gross profit margin level of Xingdesheng is much lower than that of Jiangsu Leili, Keli and other companiesThe world's largest vacuum cleaner R & D and manufacturing enterprise, Lake ElectricIt's similar, but there are also huge hidden dangers.
Because the company still existsA large number of employees have not paid social insuranceIf this part of the unpaid social security costs is included in the company's main business costs, the gross profit margin of Xingdesheng will further decline.
The product utilization rate is insufficient, and funds are still raised to expand production
In this IPO, Xingdesheng will raise nearly 9600 million yuan, which is mainly used for the construction of an annual output of 30 million sets of brushless motors and control systems, 5 million sets of battery pack expansion projects, in order to expand the brushless motor product line, the two are expected to invest 55.6 billion yuan, accounting for 100 million yuan
However, it can be found from the prospectus that the output of Xingdesheng's brushless DC motors in 2022 will only be 669250,000 unitsThe capacity utilization rate is only 7056%。That is to say, in the current situation of insufficient capacity utilization, after the newly built project is put into operation, the production capacity is the current outputMore than four times
In addition, Xingdesheng's branch also has the situation of building without approval, putting into production before acceptance and over-capacity production, Xingdesheng explained that it is to quickly expand the scale of production and occupy the market. It is really incomprehensible to be in such a hurry to expand production capacity, but the actual capacity utilization rate is not high.
Conclusion
As the leader of the micro and special motors used in vacuum cleaners, Xingdesheng has close cooperation with a number of electrical appliance brands such as Ecovacs, Midea, Xiaomi, and Panasonic. However, this leading company is a "fake foreign-owned" enterprise, not only has the problem of repurchasing equity in the short term, but also has a situation of "increasing profits but not increasing income", the gross profit margin is lower than that of competitors, and the capacity utilization rate is not high. In this context, the company is still raising funds to expand production, and the prospects are uncertain.
The above analysis does not constitute specific investment advice. **There are risks and investment should be cautious.
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