Duchuang/Shenzhen Business Daily reporter Zhu Feng
The 57th review meeting of the Shenzhen Stock Exchange GEM Listing Committee in 2022 was held recently. Shenzhen Jingchuang Technology Electronics Co., Ltd. (hereinafter referred to as "Jingchuang Technology") was launched to meet the issuance conditions. , listing conditions and information disclosure requirements.
Jingchuang Technology is located in Jingchuang Industrial Zone, Yanluo Street, Bao'an District, Shenzhen. It is a manufacturer specializing in the design, development, production and sales of game peripherals and innovative consumer electronic products.
Screenshot Source: Jingchuang Technology official website
Since being asked on June 17, 2021, more than a year later, Jingchuang Technology's listing has finally taken a substantial step!
Liu Dongsheng and Lin Jie and his wife hold nearly 90% of the shares
Prospectus shows that the company was formerly Shenzhen Jingchuang Technology Electronics Co., Ltd., which was established in May 2004. Lin Jie and Cao Yongfeng jointly invested 1 million yuan to establish it, of which, Jie invested 900,000 yuan and Cao Yongfeng invested 100,000 yuan.
In fact, 10% of the equity in Cao Yongfeng's name is held by Liu Dongsheng. The prospectus stated that when the company was established, Liu Dongsheng and Lin Jie were worried that the outside world believed that the couple's business management would affect customers' evaluation of the company's business management efficiency and affect the company's business expansion. At the same time, Liu Dongsheng developed customers outside, which was inconvenient for industrial and commercial registration and changes.
As of the date of signing the prospectus, before this issuance, the company's actual controllers Liu Dongsheng and Lin Jie directly or indirectly controlled the company's shares by 89.25%, with a high voting rights ratio; the company's controlling shareholder is Shenzhen Jingchuang Tenghui Industrial Investment Co., Ltd., Jingchuang Tenghui directly holds 47.87% of the company's equity.
According to Tianyan Check information, Liu Dongsheng, male, born in 1970. From 1992 to 1995, he worked in Shenzhen Jichang Electronics Co., Ltd., where he worked as a worker and production supervisor; from 1996, he worked as a purchasing manager of ; from 1999 to 2003, he worked in Bao'an District, Shenzhen Xin'an Jingchuang Electronics Factory serves as general manager; since 2004, he has worked in Shenzhen Jingchuang Technology Electronics Co., Ltd., serving as general manager, chairman and other positions.
Lin Jie, female, born in 1969. From 1999 to 2003, he worked at Xin'an Jingchuang Electronics Factory in Bao'an District, Shenzhen, and served as the financial manager of ; from 2004 to the present, he worked at Shenzhen Jingchuang Technology Electronics Co., Ltd., and has served as general manager, executive director, director and other positions. .
That is to say, from 1999 to 2003, Liu Dongsheng and Lin Jie worked together at Xin'an Jingchuang Electronics Factory in Bao'an District, Shenzhen.
Xin'an Jingchuang Electronics Factory, Bao'an District, Shenzhen, was established in 1999 and is currently in cancellation status.
products are sold to more than a dozen countries and regions
Prospectus shows that since its establishment, Jingchuang Technology has focused on the field of consumer electronic game peripherals, mainly providing customers with the research and development, design and intelligence of game peripherals, innovative consumer electronics and other products. manufacture. After years of development, has formed a long-term and stable cooperative relationship with mainstream game console licensees such as Nintendo, Sony, Microsoft, Microsoft, and its products are sold to more than ten countries such as EU , Japan, South Korea, and the United States. with the region.
company official website shows that based on its technical advantages and strength in the field of consumer electronic game peripherals, Jingchuang Technology has been successively rated as a national high-tech enterprise, a provincial engineering technology research center certified enterprise, and a top 100 Shenzhen cultural enterprises.
Jingchuang Technology plans to be listed on the Shenzhen Stock Exchange GEM, with no more than 30 million new shares issued, accounting for no less than 25% of the company's total share capital after this issuance. plans to raise 500 million yuan to be used for expansion projects of game peripherals and innovative consumer electronic products, automation technical transformation projects of production and manufacturing bases, construction projects of technology R&D centers, and supplementary working capital projects.
Source: Jingchuang Technology Prospectus
Net profit attributable to shareholders has declined year by year
Prospectus shows that during the reporting period (2019 to 2021), Jingchuang Technology's operating income was RMB 366 million, RMB 528 million and RMB 600 million, respectively. The net profit attributable to shareholders was RMB 48.6176 million, RMB 90.601 million and RMB 75.0353 million, respectively, and the net profit attributable to shareholders was RMB 49.142 million, RMB 79.6907 million and RMB 66.6413 million, respectively. Overall, the performance showed a good growth trend.
Source: Jingchuang Technology Prospectus
Financial report shows that in the first half of 2022, Jingchuang Technology achieved operating income of 279 million yuan, a year-on-year increase of 16.49%; net profit attributable to shareholders was 29.9802 million yuan, a year-on-year decrease of 7.93%; net profit excluding non-network 21.5567 million yuan, a year-on-year decrease of 21.50%.
From the perspective of net profit attributable to shareholders, Jingchuang Technology declined in 2021 and the first half of 2022, with its net profit attributable to shareholders being -17.18% and -7.93% respectively. If we look at the net profit attributable to shareholders after deducting non-operating items, the decline in the first half of this year was even more serious, at -21.50%.
prospectus pointed out that the year-on-year decline in net profit was mainly due to factors such as the decline in the proportion of revenue of gaming peripherals with high gross profit margins, the price increase of some raw materials, the fluctuations in the exchange rate , and the large initial investment in developing new products. If there are situations such as continuous rise in core raw materials prices, continuous appreciation of RMB against the US dollar, decline in gaming peripheral revenue, delayed investment returns on new products, etc., it will put the issuer's operating performance at risk of further decline, and even a risk of falling by more than 50%. .
Comprehensive gross profit margin continues to decline
Financial report shows that from 2019 to the first half of 2022, Jingchuang Technology's comprehensive gross profit margin was 28.63%, 30.48%, 24.28% and 17.77% respectively. Among them, 's comprehensive gross profit margin in 2021 decreased by 6.20 percentage points year-on-year, and in the first half of 2022, the comprehensive gross profit margin decreased by 7.17 percentage points year-on-year.
In this regard, the company stated in the hit 5 book that the decline in the comprehensive gross profit margin is mainly due to changes in product structure (the proportion of revenue of high gross profit margin gaming peripheral products declined), exchange rate fluctuations (the appreciation of the RMB against the US dollar), and the rise in major raw materials Influences of factors such as price (mainly electronic raw materials such as IC and LCD). If the revenue share of gaming peripheral products with high gross profit margins further declines, the RMB continues to appreciate against the US dollar, and the price of major raw materials continues to rise, etc., it will lead to the risk of further decline in the company's comprehensive gross profit margin.
During the reporting period, the average comprehensive gross profit margin of comparable companies was 26.45%, 24.15% and 18.47% respectively. It can be seen from this that Jingchuang Technology's comprehensive gross profit margin is almost the same as that of comparable companies.
It is worth mentioning that during the reporting period, the proportion of innovative consumer electronics business revenue to the company's main business revenue was 1.66%, 20.10% and 28.83% respectively; the gross profit margin was 23.33%, 20.01% and 16.56% respectively. From January to June 2022, the proportion of the company's innovative consumer electronics business revenue in the company's main business revenue further increased to 31.25%.
Although the production and manufacturing process of related innovative consumer electronic products is highly consistent with the issuer's original gaming peripheral business, the current gross profit margin of this type of business is lower than the gross profit margin level of gaming peripheral business. With the rapid expansion of innovative consumer electronics business, its revenue share of gaming peripheral business has shown a downward trend. The company will continue to expand its innovative consumer electronics business in the future. If the growth rate of related businesses continues to be higher than that of the gaming peripheral business, the company may face the risk of a further decline in the revenue share of the gaming peripheral business.
In addition, in recent years, the consumer electronics industry has shown the characteristics of short renewal cycles and rapid change in consumer preferences. If Jingchuang Technology cannot quickly grasp market changes, develop new products that meet customer needs, or forecasts of market development trends appear Deviation may face customer churn, which will lead to a decline in the company's revenue scale and competitiveness.
Customer concentration is high
During the reporting period, the total sales of Jingchuang Technology to the top five customers accounted for 92.72%, 90.68% and 83.54% of the current main business income, respectively.The global gaming peripherals reinstallation market is large. company mainly adopts the ODM model to produce game headsets and game controllers by authorized companies such as Microsoft, Sony, Nintendo and other well-known game console companies such as PDP, Bigben, HORI. etc. At present, although the company has entered the field of innovative consumer electronics, the company's main source of income is OEM and relies on large customers.
For this reason, the company stated in its prospectus that although the company has entered the field of innovative consumer electronics, its main source of revenue is still the aforementioned company. If there are major adverse changes in the procurement plan or production and operation conditions of its main customers in the future, it may have a significant impact on the company's revenue and profits.
In addition, during the reporting period, the company's overseas sales areas were mainly Japan, Europe, North America and other countries and regions, and the proportion of export revenue to main business revenue was 86.86%, 86.78% and 79.19% respectively; the export gross profit margin was respectively 30.75%, 32.53% and 26.89%. In recent years, due to global economic fluctuations, the RMB exchange rate against the US dollar has changed sharply, and the company faces a greater risk of exchange rate changes.
Source: Jingchuang Technology Prospectus
In addition, during the reporting period, Jingchuang Technology's R&D expenses were RMB 16.8212 million, RMB 23.6854 million, and RMB 28.6207 million, respectively, accounting for 4.59%, 4.49% and 4.77% of operating income, respectively, respectively. , the R&D expense ratio of is lower than the average of comparable companies, and the average of in the same period was 5.36%, 5.62% and 6.11% respectively.
Source: Jingchuang Technology Prospectus
Reading: Tan Lugang
