Recently, Weishuo Hengji, which uses laptop axis as its main product, updated its prospectus to seek listing on the GEM.
New Third Board listed during the period when information disclosure violations were received
WeishuHengji's main business is the research and development, production and sales of consumer electronic precision shaft products. The shaft products produced by the company are mainly used in laptop computers, and the downstream of it is the laptop computer industry. The shaft products of the subsidiary Jiaweitai can also be used in LCD displays, all-in-one computers, two-in-one tablets, smart homes and other consumer electronic products .
Since May 2018, Weishuo Hengji has been listed on the New Third Board. It is worth mentioning that the company disclosed an announcement on correction of previous accounting errors on April 22, 2020 and retroactively corrected the 2018 financial report, which constituted an information disclosure violation. The National Equities Exchange and Quotation Company gave a verbal warning to Weishuo Hengji, Zhou Zhifu, the then chairman of the company, and Yang Yong, the then financial director, the next month.
As of the date of signing the prospectus , Huafu Electronics held 38.7083% of Weishuo Hengji and was the controlling shareholder of the company. At the same time, the actual controllers of the company are Zhou Zhifu and Lu Qin, Zhou Zhifu is the chairman of the company and Lu Qin is the director of the company. The two can control a total of 53.2048% of the company's shares.
Among them, Zhou Zhifu holds 70.37% of the equity of Huafu Electronics, and is the actual controller of Huafu Electronics. He can control the corresponding shares of Weishuo Hengji through Huafu Electronics, and Lu Qin directly holds 14.4965% of the company's shares. The two have signed the "Consensual Action Agreement". If the two parties cannot reach an agreement, they should vote according to Zhou Zhifu's intention.
. Before Weishuo Hengji switched to GEM from the New Third Board, the company issued additional issuances to the controlling shareholder at a lower price. In 2019, Weishuo Hengji issued 2 million shares to Huafu Electronics in cash, with an issue price of 3.95 yuan per share, far lower than the company's listing price on the New Third Board at that time.
has high customer concentration, and the company has weak bargaining power and
laptop OEM market is mainly concentrated in several main OEM manufacturers such as Guangda , Renbao , Lianbao, WISC , HShuo , HShuo , Yingyeda, etc. Therefore, Weishuo Hengji's customers are relatively concentrated. During the reporting period from 2019 to 2021, the company's export revenue was relatively high, at 63.6%, 67.89% and 78.04% respectively.
At the same time, during each period of the reporting period, the company's sales from the top five customers accounted for 67.49%, 65.47% and 62.42% of the current operating income, respectively, of which the revenue of the largest customer accounted for 16.31%, 15.09% and 18.4% respectively.
Weishuo Hengji mentioned that in recent years, the company's performance has been largely affected by the new crown pneumonia epidemic, and the demand for home office and distance learning has been significant, which has driven the growth of laptop sales and the growth of shipments of major downstream computer brands.
Overall, from 2019 to 2021, Weishuo Hengji achieved operating income of approximately RMB 310 million, RMB 559 million and RMB 698 million, respectively, and achieved net profit attributable to shareholders of approximately RMB 34.012 million, RMB 77.4195 million and RMB 96.6461 million respectively during the same period.
But the impact of the epidemic is also two-sided and unpredictable. Weishuo Hengji's company location Suzhou is an important cluster of the laptop industry, close to Shanghai. This round of epidemic in Shanghai has had a certain impact on the company's production and operation. At the same time, after experiencing a rapid growth in shipments in 2021, the overall shipment volume is expected to slow down in 2022.
Finally, Weishuo Hengji predicts that the company's operating income will decrease by 10% to 17.26% year-on-year in 2022, and the net profit attributable to the parent company's owners is also expected to decrease by 19.87% to 26.04% year-on-year. The high concentration of
customers has made Weishuo Hengji less bargaining space. Judging from the prospectus, the company's main revenue comes from the sales of single-axis and double-axis shafts. During the reporting period, the average price of single-axis shafts fell from 5.02 yuan to 4.76 yuan, and the average price of double-axis shafts also fell from 27.84 yuan in 2019 to 25.1 yuan in 2020, and slightly rebounded to 25.67 yuan in 2021.
In addition, at the end of each period of the reporting period, the company's accounts receivable book value was approximately RMB 128 million, RMB 256 million and RMB 205 million, respectively, accounting for 64.75%, 64.78% and 48.84% of current assets, respectively. At the same time, the balance of accounts receivable accounts accounted for 43.91%, 48.24% and 30.93% of the current operating income, respectively.
Due to factors such as fast product updates, fluctuations in the end market price of product applications, changes in procurement costs and fluctuations in exchange rate , the gross profit margins of the company's main business were 27.95%, 34.45% and 28.44% respectively during the reporting period, and there were also large fluctuations.
4 core technical personnel are all junior college students, and the positioning of the GEM of
is questioned.
This IPO Weishuo Hengji plans to raise about 608 million yuan of funds, of which 185 million yuan is planned to be invested in the "annual production of 30 million precision shaft production base construction project". In addition, the R&D center projects and supplementary working capital will also occupy 184 million yuan and 180 million yuan of funds raised respectively.
However, the company's current production capacity is not completely saturated. During each period of the reporting period, the capacity utilization rates of the double-axle shaft that contributed the main revenue were 96.49%, 96.3% and 81.92%, respectively, and the capacity utilization rates of the single-axle shaft were 83.98%, 85.97% and 86.88%.
It is worth mentioning that in both rounds of inquiries, the Shenzhen Stock Exchange raised questions about whether the company meets the positioning of the GEM. On the one hand, the company's shaft product production process is mainly manual assembly, with low automation and low production efficiency. The Shenzhen Stock Exchange requires the company to explain the reasons why product assembly is mainly human and whether the business is assembled by purchased parts.
On the other hand, during the reporting period, the R&D expense rate of Weishuo Hengji was about 4%, and the four core technical personnel had academic qualifications. As of the end of the reporting period, there were only 24 employees at the company's bachelor degree or above, accounting for 2.39%.
This article is from Mao Finance
