China Economic Network Editor's Note : Changchun Yingli Automobile Industry Co., Ltd. (hereinafter referred to as "Yingli Automobile") was approved at its first launch on November 5, 2020. Yingli Auto will be listed on the Shanghai Stock Exchange main board this time, and the sponsor is CITIC Securities Co., Ltd. . The company plans to issue no more than 149 million shares, accounting for no less than 10% of the total share capital after issuance.
Yingli Automobile plans to raise 754 million yuan this time, of which the four sub-projects of the equipment upgrade and transformation project plan to invest 127 million yuan, 74.8057 million yuan, 169 million yuan and 136 million yuan respectively; 43.800 million yuan is used for the automobile parts mold manufacturing and construction project of Changchun Yingli Automobile Industry Co., Ltd.; 124 million yuan is used for the R&D and Testing Center construction project of Changchun Yingli Automobile Industry Co., Ltd.; 80 million yuan is used for the supplementary working capital.
It is worth noting that Yingli Auto’s capacity utilization rate was not saturated during the reporting period, so its fundraising and production expansion behavior was also questioned. During the period from 2016, 2017, 2018 and January-June 2019, Yingli Automobile's metal parts production capacity utilization rate was 79%, 82%, 86% and 83%, respectively, and the non-metal parts production capacity utilization rate was 83%, 85%, 85% and 82%, respectively.
The Issuance and Audit Committee raised four inquiries on Yingli Automobile. Among them, the Issuance and Audit Committee asked Yingli Automobile to explain the reasons and rationality of the continuous decline in the gross profit margin of 's main business, and whether it has a significant adverse impact on the company's continued profitability; the issuer or actual controller's shareholding company Chengdu Youli, Chongqing Zhongli, Jilin Jinli, and Qingdao Youli are the company's main suppliers, and the transaction volume with the issuer in 2019 accounts for its own revenue. The Issuance and Audit Committee asked Yingli Automobile to explain whether the related transaction price is fair and whether there are any interest transfer or other arrangements.
As of the date of signing the prospectus, Yingli Automobile's controlling shareholder is Cayman Yingli, holding 96.57% of the company's equity. Cayman Inley was established on January 16, 2015. It has no actual business operations and is a shareholding company. In January 2016, Cayman Yingli was listed on the Taiwan Stock Exchange Co., Ltd. under the stock code 2239. Since the date of listing of Cayman Yingli's stock on the Taiwan Stock Exchange, Cayman Yingli was required to pay liquidated damages for violating the information disclosure regulations of the Taiwan Stock Exchange, and twice was required to rectify for violating the information disclosure regulations of the Taiwan Stock Exchange.
The actual controllers of Yingli Auto are Lin Qibin, Chen Rongying, Lin Shangwei, Lin Shangqi, and Lin Zhenyin. It is worth mentioning that the feedback from the Shanghai Stock Exchange pointed out the issue of the actual controller controlling Yingli Auto through a three-tier overseas structure, and asked Yingli Auto to explain: (1) the reasons, legality and rationality of setting up a multi-tier overseas structure, the authenticity of the holdings, whether there are entrusted shares, trust holdings, whether there are various agreements affecting the controlling rights, and the source of capital contribution of shareholders; (2) Whether the ownership of the shares held by the issuer and the shareholders controlled by the controlling shareholder and the actual controller is clear, and how the issuer ensures the effectiveness of its corporate governance and internal control; (3) Whether the establishment and operation of domestic and overseas legal person shareholders comply with relevant domestic and overseas laws and regulations, whether there are disputes or potential disputes; whether the relevant foreign exchange transfer and use are legal and compliant.
From 2016 to January-June 2019, Yingli Auto's operating income was RMB 3.232 billion, RMB 4.108 billion, RMB 4.669 billion and RMB 2.225 billion, RMB 3.646 billion, RMB 4.453 billion, RMB 5.094 billion and RMB 2.381 billion, respectively.
From 2016 to January-June 2019, Yingli Automobile's net profit attributable to its parent company shareholders was RMB 385 million, RMB 280 million, RMB 269 million, and RMB 83.7573 million, respectively; the net cash flow generated by operating activities was RMB 271 million, RMB 404 million, RMB 311 million and RMB 234 million, respectively.
During the reporting period, Yingli Auto increased its revenue but did not increase its profits. In 2017 and 2018, Yingli Auto's operating income increased by 27.09% and 13.65% year-on-year, respectively, but the net profit in the same period fell by 18.50% and 3.16% year-on-year, and the net profit attributable to shareholders fell by 27.23% and 4.03% year-on-year, respectively.
At the end of each period of the reporting period, Yingli Automobile's total assets were 4.467 billion yuan, 5.092 billion yuan, 6.436 billion yuan and 6.222 billion yuan respectively.Among them, current assets were 2.244 billion yuan, 2.509 billion yuan, 3.529 billion yuan and 2.967 billion yuan respectively; non-current assets were 2.223 billion yuan, 2.583 billion yuan, 2.907 billion yuan and 3.255 billion yuan respectively.
At the end of each period of the reporting period, Yingli Automobile's total liabilities were RMB 2.234 billion, RMB 2.492 billion, RMB 3.158 billion and RMB 2.825 billion respectively. Among them, current liabilities were RMB 1.916 billion, RMB 1.803 billion, RMB 2.438 billion and RMB 2.314 billion, respectively; non-current liabilities were RMB 318 million, RMB 689 million, RMB 720 million and RMB 511 million, respectively.
At the end of each period of the reporting period, Yingli Automobile's debt-to-asset ratio was 50.01%, 48.93%, 49.06%, and 45.40%, respectively, and the average value of listed companies in the same industry was 52.45%, 37.29%, 39.20%, and 37.69%, respectively. At the end of 2017, the end of 2018 and the end of June 2019, Yingli Automobile's debt-to-asset ratio was higher than the average of comparable listed companies.
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, Yingli Auto's cash balance was RMB 352 million, RMB 328 million, RMB 829 million and RMB 443 million, respectively.
At the end of each period of the reporting period, Yingli Automobile's short-term loans were RMB 390 million, RMB 275 million, RMB 394 million and RMB 281 million, respectively, accounting for 17.44%, 11.03%, 12.48%, and 19.93% of its liabilities, respectively.
At the ends of each period of the reporting period, Yingli Automobile's notes receivable were RMB 285 million, RMB 234 million, RMB 244 million and RMB 1.2713 million respectively.
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, the company's net book accounts receivable were RMB 627 million, RMB 797 million, RMB 860 million and RMB 698 million, respectively, accounting for 19.41%, 19.41%, 18.42% and 31.37% of the current operating income, respectively. At the end of 2017 and the end of 2018, Yingli Auto’s accounts receivable increased by 27.06% and 7.88% respectively compared with the end of the previous period.
From 2016 to January-June 2019, Yingli Auto's accounts receivable turnover rate was 6.49, 5.77, 5.63, and 2.86, respectively; the average values of comparable listed companies in the same industry were 7.16, 6.95, 6.21, and 2.77, respectively. From 2016 to 2018, Yingli Auto's accounts receivable turnover rate was lower than the average values of comparable listed companies in the same industry.
At the end of each period of the reporting period, the balances of overdue accounts receivable of Yingli Automobile were RMB 33.2171, RMB 64.7519 million, RMB 70.2977 million and RMB 97.7186 million, respectively, and the proportion of overdue amounts to the balance of accounts receivable was 5.20%, 7.99%, 8.04%, and 13.73%, respectively. At the end of each period of the reporting period, Yingli Auto's overdue accounts receivable balance increased year by year.
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, Yingli Automobile's inventory was RMB 739 million, RMB 873 million, RMB 1.271 billion and RMB 1.171 billion, respectively, accounting for 16.55%, 17.14%, 19.75% and 18.83% of the total assets, respectively.
From 2016 to 2018 and January to June 2019, Yingli Auto's inventory turnover rate was 4.20, 4.06, 3.53, and 1.50, respectively. During the same period, the average value of comparable companies in the same industry was 4.67, 4.42, 4.15, and 1.94, respectively. The company's inventory turnover rate was lower than the industry average for three consecutive years.
In 2016, 2017, 2018 and January to June 2019, Yingli Automobile's comprehensive gross profit margin was 22.75%, 20.38%, 18.85% and 17.51%, respectively, and it has been downward trend year by year. During the reporting period, the average gross profit margins of comparable listed companies in the same industry were 24.75%, 20.76%, 18.17% and 15.45% respectively.
In 2016, 2017, 2018 and January to June 2019, Yingli Auto's sales expenses were RMB 51.5475 million, RMB 55.8447 million, RMB 64.356 million and RMB 31.8291 million, respectively. From 2016 to 2018, the company's sales expenses increased year by year. During the reporting period, Yingli Auto's sales expense ratio was 1.59%, 1.36%, 1.38% and 1.43%, respectively. During the same period, the average value of comparable listed companies in the same industry was 3.25%, 3.32%, 3.30% and 3.44%, respectively.
In 2016, 2017, 2018 and January to June 2019, Yingli Auto's R&D expenses were RMB 106 million, RMB 134 million, RMB 159 million and RMB 73.8108 million, respectively. During the reporting period, Yingli Auto's R&D expense ratio was 3.28%, 3.27%, 3.41%, and 3.32%, respectively. During the same period, the average value of comparable listed companies in the same industry was 3.39%, 3.44%, 3.35% and 3.31%, respectively.
In 2016, 2017, 2018 and January-June 2019, Yingli Auto’s sales to the top five customers accounted for 94.40%, 91.49%, 89.11% and 89.79% of its main business revenue in the current period, respectively, with a high customer concentration.Among them, during the reporting period, Yingli Automobile's revenue to , China First Automobile Group Co., Ltd., was RMB 2.126 billion, RMB 2.151 billion, RMB 2.286 billion and RMB 1.145 billion, respectively, accounting for 65.81%, 52.47%, 49.13% and 51.44% of its main business revenue, respectively. From 2016 to 2018, the company's revenue from the largest customers continued to rise.
In 2016, 2017, 2018 and January-June 2019, Yingli Automobile's purchases from the top five suppliers accounted for 22.85%, 20.78%, 22.40% and 30.11% respectively.
During the reporting period, Yingli Auto's related procurement amount was RMB 254 million, RMB 280 million, RMB 356 million and RMB 159 million, respectively, accounting for 10.65%, 8.29%, 8.65% and 9.12% of the total procurement amount in the current period. From 2016 to 2018, the company's related procurement amount increased year by year.
During the reporting period, Yingli Auto purchased parts and sold raw materials from Chengdu Youli, Suzhou Youqiang and Chongqing Zhongli. The company purchases both raw materials and labor from Chengdu Ruiguang, Jilin Jinli, Jilin Yuguang, Lin Deweiman and Tianjin Jinli.
During the reporting period, Yingli Automobile borrowed funds from related parties many times. In 2016, Yingli Auto borrowed a total of US$35.1821 million from its controlling shareholder. In 2016, Yingli Automobile's subsidiary Ningbo Maoxiang borrowed a total of RMB 50 million from the company's actual controller Lin Qibin.
The prospectus disclosed that Yingli Automobile and its subsidiaries were punished 21 times during the reporting period, with a total penalty of 1.8375 million yuan. During the reporting period, Suzhou Yingli, Suzhou Yingli (Zhengzhou Branch), Yizheng Yingli, Tianjin Linde Yingli, Foshan Yingli were subject to administrative penalties for violating environmental protection laws and regulations.
During the reporting period, Yingli Automobile's subsidiary companies controlled by Yingli Auto had a death accident. (South) Safety Supervision and Supervision No. 266 shows that an employee of Yingli in Foshan was pinched and killed by an injection molding machine. On November 22, 2017, the Nanhai District Production Safety Supervision and Administration Bureau of Foshan City imposed a fine of 200,000 yuan on Foshan Yingli. (Taiwan) Safety Supervision and Penalty (2018) No. 234 shows that a mechanical injury accident occurred at the 3000T hydraulic press station in the hot press workshop of the Suzhou Yingli Factory No. 2, causing one person to die, violating the " Safety Production Law ". On November 29, 2018, the Taicang Municipal Production Safety Supervision and Administration Bureau imposed a fine of 220,000 yuan on Suzhou Yingli.
In addition, Yingli Auto was once listed as a dishonest debtor. (2015) Changgao Kaizhi No. 00453 shows that on July 31, 2015, the People's Court of Changchun High-tech Industrial Development Zone listed Yingli Auto as a dishonest debtor. The specific circumstances of the acts of the person who is dishonest is that other people who have the ability to perform but refuse to fulfill the obligations determined by effective legal documents.
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, Yingli Automobile's employees were 3,921, 4,131, 5,002 and 4,529 respectively, and the number of employees changed significantly. During the reporting period, Yingli Auto did not pay social insurance and housing provident fund for some employees.
Mainly engaged in automotive parts
Yingli Automobile focuses on achieving lightweight automotive parts, and its main business is the design, research, development, manufacturing and sales of body structure parts and anti-collision system parts. The company's main products include metal and non-metal parts, including instrument panel skeletons, anti-collision beams, door sills, EV battery lower case and other body stamping parts; non-metal parts include front-end frames, bottom guard plates, spare tire bins, EV battery upper case, battery tray, wheel cover, etc. In addition to automotive parts, the company also produces molds related to automotive parts.
The company was formerly Changchun Yingli Automobile Industry Co., Ltd., established on December 21, 2006. On June 26, 2018, the board of directors of the company reviewed and approved the overall change to a joint-stock company by deducting audited net assets and the company name was changed to "Changchun Yingli Automobile Industry Co., Ltd.".
Yingli Automobile plans to be listed on the Shanghai Stock Exchange main board this time, and the sponsor is CITIC Securities Co., Ltd. . The company plans to issue no more than 149 million shares, accounting for no less than 10% of the total share capital after issuance.
Yingli Automobile plans to raise 754 million yuan this time, of which the four sub-projects of the equipment upgrade and transformation project plan to invest 127 million yuan, 74.8057 million yuan, 169 million yuan and 136 million yuan respectively; 43.800 million yuan is used for the automobile parts mold manufacturing and construction project of Changchun Yingli Automobile Industry Co., Ltd.; 124 million yuan is used for the R&D and Testing Center construction project of Changchun Yingli Automobile Industry Co., Ltd.; 80 million yuan is used for the supplementary working capital.
gross profit margin continues to decline, related procurement, etc.
The 159th meeting of the 18th Issuance and Listing Committee of the China Securities Regulatory Commission in 2020 was held on November 5, 2020. The review results show that Yingli Auto was approved for the first launch. The Issuance and Audit Committee raised four inquiries about Yingli Automobile, among which the Issuance and Audit Committee asked Yingli Automobile to explain the reasons and rationality of the continuous decline in gross profit margin of its main business year by year; whether the prices of related transactions are fair, whether there are profit transfer or other arrangements, etc.
The following are the main questions raised by the Issuance and Review Committee meeting:
1. During the reporting period, the issuer's net profit attributable to shareholders after deducting non-operating items continued to decline, with a significant decline in 2019 compared with 2018. Please indicate the issuer's representative: (1) Explain the reasons and rationality of the issuer's main business gross profit margin year by year, and whether it has a significant adverse impact on the issuer's continued profitability; (2) Explain the reasons for the decline in net profit in the reporting period and the first half of 2020, and whether there is a significant difference with comparable companies in the same industry; the reasons and rationality of the difference; (3) Explain the reasons and rationality of the issuer's profit in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel since 2020, since 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2020, and whether it is consistent with comparable companies; Explain the steel industry since 2020, and the reason for the issuer's profitability in the third quarter of 2 Material price metal parts, product price reduction, and the abolition of some redundant employees, whether it is compliant, whether there are disputes and potential disputes; (4) Combined with the industry development trend, competitive landscape, orders in hand, sales of major customers, changes in the price of major raw materials, and trends, explain whether the influencing factors of the issuer's performance decline are eliminated, and the countermeasures and effectiveness taken in response to the performance decline, and whether the downward trend in performance has a significant adverse impact on the issuer's future continued profits. Please explain the basis and process of verification and express clear verification opinions.
2. The issuer or actual controller shares in the company Chengdu Youli, Chongqing Zhongli, Jilin Jinli and Qingdao Youli are the main suppliers of the company, and the transaction volume with the issuer in 2019 accounts for a relatively high proportion of its own revenue. Representative of the issuer: (1) Based on the sales of suppliers such as Chengdu Youli, Chongqing Zhongli, Jilin Jinli, Qingdao Youli and other suppliers to other customers, and whether the issuer has purchased similar products from other suppliers, we will explain whether the price of related transactions is fair and whether there are any interest transfer or other arrangements; (2) Instruct whether the quantity of the above products purchased by the issuer during the reporting period matches the output, and in combination with the financial and operating conditions of suppliers such as Chengdu Youli, Chongqing Zhongli, Jilin Jinli, Qingdao Youli and other suppliers during the reporting period, we will explain whether there is a situation of sharing costs and expenses for the issuer. Please explain the basis and process of verification and express clear verification opinions.
3. The issuer's scrap sales revenue during the reporting period has increased significantly year by year. Please explain: (1) The reasons and rationality of the significant increase in the sales of scrap materials, whether it matches the output, whether there is a difference in consumption with comparable companies in the industry, the reasons and rationality of the differences; (2) The sales price of scrap steel increased significantly during the reporting period, whether it is consistent with the market price change trend, if there is a difference, explain the reasons and rationality of the differences; (3) The main customer situation of scrap materials sales, whether there is an association with the issuer, whether the sales price is fair, whether there is any situation that can be transferred to the issuer, etc. Please explain the basis and process of verification and express clear verification opinions.
4. During the reporting period, the issuer's customer concentration was relatively high.Please explain: (1) The reasons and rationality of high customer concentration, whether there is an adverse impact on the company's future operations, and whether it complies with the practice of the same industry; (2) Whether there is an affiliated relationship between the top five customers and the actual controllers of the company, company executives, core technical personnel and other related parties; whether there is other special arrangements, and whether there is a transfer of interests; (3) The pricing methods and pricing principles between the issuer and the top five customers, the fairness of pricing, and whether the cooperative relationship is sustainable. Please explain the basis and process of verification and express clear verification opinions.
controlling shareholder is listed in Taiwan, with 3 violations of
As of the date of signing the prospectus, Yingli Automobile's controlling shareholder is Cayman Yingli, holding 96.57% of the company's equity. Cayman Inley was established on January 16, 2015. It has no actual business operations and is a shareholding company.
In January 2016, Cayman Yingli was listed on the Taiwan Stock Exchange Co., Ltd. with the stock code 2239.
From the date when Cayman Yingli's stock was listed on the Taiwan Stock Exchange, Cayman Yingli was required to pay liquidated damages for violating the information disclosure regulations of the Taiwan Stock Exchange, and twice was required to rectify for violating the information disclosure regulations of the Taiwan Stock Exchange. The details are as follows:
1. According to the letter No. 1081701066 on the Taiwan Certificate, on April 17, 2019, the Taiwan Stock Exchange sent a letter to Cayman Yingli to determine that Cayman Yingli held the 2019 first shareholder meeting on April 12, 2019, and decided to pass the proposal for listing of an important subsidiary Yingli Automobile on the Shanghai Stock Exchange. After investigation, it complies with Article 4, Item 1, Article 50 of the "Check-off and Public Processing Procedure for Major Information of Listed Securities Companies", but Cayman Yingli announced and declared it at 16:35 on April 15, 2019, which violated the provisions of the above-mentioned handling procedures and should pay a liquidated damages of NT$30,000.
2. According to letter No. 10051700657 on the Taiwan Certificate and letter No. 1071704525 on the Taiwan Certificate, Cayman Yingli was asked to pay attention to improvement due to violation of relevant rules of the Taiwan Stock Exchange:
(1) On February 23, 2016, the Taiwan Stock Exchange issued a letter to determine that the endorsement guarantee amount in the case of endorsement guarantee in the January 2016 endorsement guarantee in case of Cayman Yingli did not match the amount of business transactions, and did not comply with Article 12 of the "Regulations on the Handling of Fund Loans and Endorsement Guarantees for Public Issuance Company". Cayman Yingli was asked to pay attention to improvement, and it should be handled in accordance with the regulations later.
(2) On December 28, 2018, the Taiwan Stock Exchange issued a letter to determine that Cayman Yingli had not applied to the company's resolution on July 12, 2018 to re-elect directors and supervisors, which violated Article 4, item 1, paragraph 6 of the "Check-in-Law Major Information on Securities Listed Companies". Cayman Yingli was asked to pay attention to improvements afterwards and indeed handle them in accordance with regulations, and should reply to the Taiwan Stock Exchange specific improvement measures or plans within one month.
The actual controller of controls Yingli Auto through a three-layer overseas architecture
The actual controllers of Yingli Auto are Lin Qibin, Chen Rongying, Lin Shangwei, Lin Shangqi, and Lin Zhenyin.
As of August 29, 2019, among the top ten shareholders of Cayman Yingli, except for Fubon Life Insurance Co., Ltd., the other shareholders are companies controlled or significantly affected by Lin Qibin. The specific equity structure of these shareholders is as follows:
(1) Honghan Industrial Co., Ltd. is a company jointly invested by Lin Qibin and his spouse Chen Rongying, of which Lin Qibin holds 25% of the shares; Chen Rongying holds 75% of the shares.
(2) BroadLight Consultants Ltd. and Top-Gain Enterprises Ltd. are both companies with 100.00% of the shares held by Wise Faith; Wise Faith is a company with 100.00% of the shares held by Lin Qibin.
(3) Bright Success Inc., Able Well International Limited, and Able Gain Investment Limited are companies with 100.00% of Ever Honest; Ever Honest is companies with 100.00% of Lin Qibin.
(4) Double Luck Investment Limited is a company jointly invested by Ever Honest and Lucky Wealth Co., Ltd., of which Ever Honest holds 50.00% of the shares and Lucky Wealth Co., Ltd. holds 50.00% of the shares. Lucky Wealth Co., Ltd. is a company with 100.00% of the shares held by Lin Shangqi, the daughter of Lin Qibin.
(5) Superb Goal Ventures Limited is a company jointly invested by Ever Honest and Silver Badge Group Co., Ltd., of which Ever Honest holds 50.00% of the shares and Silver Badge Group Co., Ltd. holds 50.00% of the shares. Silver Badge Group Co., Ltd. is a company owned by Lin Shangwei, son of Lin Qibin.
(6) Jade Profit Company Limited is a company jointly invested by Ever Honest and Jade Power Holdings Limited. Among them, Ever Honest holds 50.00% of the shares and Jade Power Holdings Limited holds 50.00% of the shares. Jade Power Holdings Limited is a company with 100.00% of the shares held by Lin Zhenyin, daughter of Lin Qibin.
According to the prospectus, the actual controller controls the issuer through a three-layer overseas structure. In this regard, the Shanghai Stock Exchange asked Yingli Automobile to explain in its feedback: (1) The reasons, legality and rationality of setting up a multi-layer overseas structure, the authenticity of the holdings, whether there are entrusted shares, trust holdings, whether there are various agreements that affect the controlling rights, and the source of capital contribution of shareholders; (2) Whether the ownership of the shares held by the issuer's controlling shareholder and the shareholder controlled by the controlling shareholder and the actual controller is clear, and how the issuer ensures the effectiveness of its corporate governance and internal control; (3) Whether the establishment and operation of domestic and overseas legal person shareholders comply with relevant domestic and overseas laws and regulations, whether there are disputes or potential disputes; whether the relevant foreign exchange transfer and use are legal and compliant.
Lin Qibin, a native of Taiwan. Since the establishment of the company, he has served as the company's executive director and chairman. He has served as the executive director and general manager of Hongyun Technology since 2011, as well as the chairman and general manager of Cayman Yingli from 2015 to the present, and as the chairman of Yingli Automobile from July 2018 to the present.
Chen Rongying, a native of Taiwan. He has served as a director of Suzhou Yingli from January 2008 to the present; he has served as a director of Power Reach Inc. from March 2013 to the present; he has served as a director of Cayman Yingli from May 2018 to the present.
Lin Shangwei, a native of Taiwan. He has worked in the company since 2008 and has served as the director and general manager of Yingli Automobile since July 2018.
Lin Shangqi, a native of Taiwan. He has worked in the company since 2006 and has served as director and deputy general manager of Yingli Automobile since July 2018.
Lin Zhenyin, a native of Taiwan. He has worked in the company since 2010; from July 2018 to March 2019, he served as director, deputy general manager and secretary of the board of directors of Yingli Automobile; from March 2019 to the present, he served as deputy general manager and secretary of the board of directors of Yingli Automobile.
has increased revenue for two consecutive years but has not increased profits
From 2016 to January-June 2019, Yingli Auto's operating income was 3.232 billion yuan, 4.108 billion yuan, 4.669 billion yuan and 2.225 billion yuan, respectively, and the cash received from selling goods and providing services was 3.646 billion yuan, 4.453 billion yuan, 5.094 billion yuan and 2.381 billion yuan, respectively.
From 2016 to January-June 2019, Yingli Automobile's net profit attributable to its parent company shareholders was RMB 385 million, RMB 280 million, RMB 269 million, and RMB 83.7573 million, respectively; the net cash flow generated by operating activities was RMB 271 million, RMB 404 million, RMB 311 million, and RMB 234 million, respectively.
During the reporting period, Yingli Auto increased its revenue but did not increase its profits. In 2017 and 2018, Yingli Auto's operating income increased by 27.09% and 13.65% year-on-year, respectively, but the net profit in the same period fell by 18.50% and 3.16% year-on-year, and the net profit attributable to shareholders fell by 27.23% and 4.03% year-on-year, respectively.
debt-to-asset ratio is higher than the average value of comparable listed companies
At the end of each period of the reporting period, Yingli Automobile's total assets were 4.467 billion yuan, 5.092 billion yuan, 6.436 billion yuan and 6.222 billion yuan, respectively. Among them, current assets were 2.244 billion yuan, 2.509 billion yuan, 3.529 billion yuan and 2.967 billion yuan respectively; non-current assets were 2.223 billion yuan, 2.583 billion yuan, 2.907 billion yuan and 3.255 billion yuan respectively.
At the end of each period of the reporting period, Yingli Automobile's total liabilities were RMB 2.234 billion, RMB 2.492 billion, RMB 3.158 billion and RMB 2.825 billion respectively. Among them, current liabilities were RMB 1.916 billion, RMB 1.803 billion, RMB 2.438 billion and RMB 2.314 billion, respectively; non-current liabilities were RMB 318 million, RMB 689 million, RMB 720 million and RMB 511 million, respectively.
At the end of each period of the reporting period, Yingli Automobile's current ratio was 1.17, 1.39, 1.45, and 1.28, respectively, and the average values of listed companies in the same industry were 1.08, 1.83, 1.69, and 1.71, respectively; Yingli Automobile's quick ratio was 0.79, 0.91, 0.93, and 0.78, respectively, and the average values of listed companies in the same industry were 0.67, 1.31, 1.13, and 1.12, respectively.
At the end of 2017, the end of 2018 and the end of June 2019, Yingli Auto's current ratio and quick ratio were lower than the average value of listed companies in the same industry.
At the end of June 2019, Yingli Auto's current ratio and quick ratio both declined, mainly due to the company's repayment of some short-term and long-term loans since 2019.
At the end of each period of the reporting period, Yingli Automobile's debt-to-asset ratio was 50.01%, 48.93%, 49.06%, and 45.40%, respectively, and the average value of listed companies in the same industry was 52.45%, 37.29%, 39.20%, and 37.69%, respectively.
At the end of 2017, the end of 2018 and the end of June 2019, Yingli Automobile's debt-to-asset ratio was higher than the average of comparable listed companies. Yingli Auto said that it is mainly because in order to support operational development, the company uses bank loans to supplement working capital, and at the same time uses after-sales leasing and other financial leasing methods to purchase equipment. The corresponding short-term loans, long-term loans and long-term payables are relatively large, which is a high proportion compared to companies in the same industry.
At the end of the first half of 2019, the monetary funds were 443 million yuan
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, Yingli Auto's monetary funds balance was 352 million yuan, 328 million yuan, 829 million yuan and 443 million yuan, respectively.
Yingli Automobile's monetary funds are mainly bank deposits, with significant growth compared with previous periods at the end of 2018, mainly due to the company's capital increase in August and December 2018 respectively. With the use of cash funds in daily operations, at the end of June 2019, cash funds decreased compared with the end of 2018. The company's other monetary funds are margin deposits for issuing bank acceptance bills.
019 short-term loans were 281 million yuan
At the end of each period of the reporting period, Yingli Automobile's short-term loans were 390 million yuan, 275 million yuan, 394 million yuan and 281 million yuan, respectively, accounting for 17.44%, 11.03%, 12.48%, and 19.93% of the liabilities, respectively.
As of June 30, 2019, Yingli Automobile still had short-term loans of 281 million yuan, of which 170 million yuan was credit loans; guaranteed loans of 111 million yuan, and guaranteed loans of 17 million yuan were guaranteed by Lin Qibin, and 93.8768 million yuan was guaranteed by Cayman Yingli and Lin Qibin.
018 notes receivable 244 million yuan
At the end of each period of the reporting period, Yingli Automobile's notes receivable were RMB 285 million, RMB 234 million, RMB 244 million and RMB 1.2713 million, respectively.
From the end of 2016 to the end of 2018, Yingli Automobile's bills of receipts remained stable, mainly bank acceptance bills, all of which were paid by customers.
At the end of the first half of 2019, Yingli Automobile's notes receivable decreased significantly because: the company discounted and endorsed the bank acceptance bills according to its daily fund management needs, so it classified the bank acceptance bills at the end of June 2019 as financial assets measured at fair value and their changes were included in other comprehensive income.
Accounts receivable increased year by year
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, the company's net book accounts receivable were RMB 627 million, RMB 797 million, RMB 860 million and RMB 698 million, respectively, accounting for 19.41%, 19.41%, 18.42% and 31.37% of the current operating income, respectively.
At the end of 2017 and the end of 2018, Yingli Auto’s accounts receivable increased by 27.06% and 7.88% respectively compared with the end of the previous period.
At the end of June 2019, Yingli Auto's accounts receivable scale slightly decreased compared with the end of 2018, mainly due to the recovery factors. At the same time, since January to June 2019 was half-year revenue, the balance of accounts receivable at the end of the period accounted for a relatively high proportion of the current operating income.
From 2016 to January-June 2019, Yingli Auto's accounts receivable turnover rate was 6.49, 5.77, 5.63, and 2.86, respectively; the average values of comparable listed companies in the same industry were 7.16, 6.95, 6.21, and 2.77, respectively. From 2016 to 2018, Yingli Auto's accounts receivable turnover rate was lower than the average values of comparable listed companies in the same industry.
At the end of each period of the reporting period, Yingli Auto set aside bad debt reserves of RMB 10.9135 million, RMB 12.7712 million, RMB 13.9612 million and RMB 13.6491 million respectively.
At the end of each period of the reporting period, Yingli Auto's overdue accounts receivable balance was RMB 33.2171, RMB 64.7519 million, RMB 70.2977 million, and RMB 97.7186 million, respectively, and the overdue amount accounted for 5.20%, 7.99%, 8.04%, and 13.73% of the accounts receivable balance, respectively.
At the end of each period of the reporting period, Yingli Auto’s overdue accounts receivable balance increased year by year. As of June 30, 2019, the balance and share of overdue accounts receivable increased on December 31, 2018. Yingli Auto said that it was mainly a sales invoice made by the company to FAW-Volkswagen Co., Ltd., which failed to record the account in time, resulting in overdue payment as of June 30, 2019. FAW-Volkswagen Co., Ltd. has recorded and paid after the period.
inventory turnover rate for three consecutive years is lower than the industry average
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, Yingli Automobile's inventory was RMB 739 million, RMB 873 million, RMB 1.271 billion and RMB 1.171 billion, respectively, accounting for 16.55%, 17.14%, 19.75% and 18.83% of the total assets, respectively.
At the end of each period of the reporting period, the proportion of inventory age within one year was 89.95%, 89.51%, 89.77% and 88.03%, respectively, and the proportion of inventory age with inventory age of more than two years was only 5.54%, 5.04%, 5.02% and 4.47%.
From 2016 to 2018 and January to June 2019, Yingli Auto's inventory turnover rate was 4.20, 4.06, 3.53, and 1.50, respectively. During the same period, the average value of comparable companies in the same industry was 4.67, 4.42, 4.15, and 1.94, respectively. The company's inventory turnover rate was lower than the industry average for three consecutive years.
Yingli Auto said that although the company has established a complete inventory management system, if there are changes in market conditions, order volume is not as expected, it may cause the company's inventory to fail to be sold in a timely manner, resulting in corresponding price drop risks. At the same time, large-scale inventory will occupy the company's operating funds, adversely affecting the company's capital use efficiency and operating performance.
capacity utilization rate is unsaturated and still raise funds to expand production
In 2016, 2017, 2018 and January-June 2019, Yingli Automobile's metal parts capacity utilization rate was 79%, 82%, 86% and 83%, respectively, and non-metal parts capacity utilization rate was 83%, 85%, 85% and 82%, respectively.
When the capacity utilization rate is not saturated, Yingli Auto's fundraising and production expansion behavior has also been questioned.
The prospectus shows that Yingli Automobile plans to raise 754 million yuan this time, of which the four sub-projects of the equipment upgrade and transformation project plan to invest 127 million yuan, 74.8057 million yuan, 169 million yuan and 136 million yuan respectively; 43.800 million yuan is used for the automobile parts mold manufacturing and construction project of Changchun Yingli Automobile Industry Co., Ltd.; 124 million yuan is used for the R&D and Testing Center construction project of Changchun Yingli Automobile Industry Co., Ltd.; 80 million yuan is used for the supplementary working capital.
comprehensive gross profit margin has been declining year by year
In 2016, 2017, 2018 and January to June 2019, Yingli Automobile's comprehensive gross profit margin was 22.75%, 20.38%, 18.85% and 17.51%, respectively, and it had a downward trend year by year.
The changes in Yingli Auto's comprehensive gross profit margin are mainly caused by changes in the gross profit margin of its main business. During the reporting period, Yingli Auto's main business gross profit margin declined year by year, reaching 22.76%, 20.36%, 18.79%, and 17.50%, respectively. Yingli Auto said that the changes in the gross profit margin of the company's main business are mainly due to the rise in steel prices during the reporting period, resulting in the company's raw materials rising, and the corresponding material costs continue to increase.
On the one hand, the cost of the company's metal parts products is significantly affected by the fluctuations in the raw material price. During the reporting period, the prices of major metal raw materials showed an upward trend, resulting in the compression of gross profit space. On the other hand, affected by the overall prosperity of the automobile industry, the prices of related products may be at risk of decline. Under the combined influence of the above factors, the company's main business gross profit margin may be at risk of declining in the future.
During the reporting period, the average gross profit margins of comparable listed companies in the same industry were 24.75%, 20.76%, 18.17% and 15.45% respectively.Compared with listed companies in the same industry, the company's gross profit margin is at the midstream level, and the volatility trend is basically the same as that in the same industry.
Sales expenses increased year by year from 2016 to 2018
In 2016, 2017, 2018 and January to June 2019, Yingli Auto's sales expenses were RMB 51.5475 million, RMB 55.8447 million, RMB 64.356 million and RMB 31.8291 million, respectively. From 2016 to 2018, the company's sales expenses increased year by year.
During the reporting period, Yingli Auto's sales expense ratio was 1.59%, 1.36%, 1.38%, and 1.43%, respectively. During the same period, the average value of comparable listed companies in the same industry was 3.25%, 3.32%, 3.30% and 3.44%, respectively.
R&D expenses in the first half of 2019 were 73.8108 million yuan
In 2016, 2017, 2018 and January to June 2019, Yingli Auto's R&D expenses were 106 million yuan, 134 million yuan, 159 million yuan and 73.8108 million yuan respectively.
During the reporting period, Yingli Automobile's R&D expense ratio was 3.28%, 3.27%, 3.41%, and 3.32%, respectively. During the same period, the average values of comparable listed companies in the same industry were 3.39%, 3.44%, 3.35% and 3.31%, respectively.
The top five customers contributed about 90% of the sales
Yingli Automobile's main customers are well-known domestic vehicle manufacturers. During the reporting period, the company's sales to the top five customers accounted for about 90% of the current main business revenue. In 2016, 2017, 2018 and January-June 2019, the proportion of the company's sales to the top five customers accounted for 94.40%, 91.49%, 89.11% and 89.79% of the current main business revenue, respectively, with a high customer concentration.
Among the reporting period, Yingli Automobile's revenue to its largest customer China First Automobile Group Co., Ltd. was RMB 2.126 billion, RMB 2.151 billion, RMB 2.286 billion and RMB 1.145 billion, respectively, accounting for 65.81%, 52.47%, 49.13% and 51.44% of its main business revenue, respectively. From 2016 to 2018, the company's revenue from the largest customers continued to rise.
The purchase volume of the top five suppliers in the first half of 2019 accounted for 30.11%
In 2016, 2017, 2018 and January-June 2019, Yingli Automobile's purchase volume from the top five suppliers was 22.85%, 20.78%, 22.40%, and 30.11%, respectively. The main procurement contents were steel and parts, etc., and the purchase volume of a single company was below 10%. There were a small change in the top five suppliers during the reporting period.
016-2018 related procurement amount increased year by year
During the reporting period, Yingli Automobile's related procurement amount was RMB 254 million, RMB 280 million, RMB 356 million and RMB 159 million, respectively, accounting for 10.65%, 8.29%, 8.65% and 9.12% of the total procurement amount in the current period. From 2016 to 2018, the company's related procurement amount increased year by year.
has both related procurement and sales
During the reporting period, Yingli Automobile purchased parts and raw materials from Chengdu Youli, Suzhou Youqiang and Chongqing Zhongli, mainly due to different business needs, and the procurement and sales were different products.
During the reporting period, Yingli Auto purchased both raw materials and services from Chengdu Ruiguang, Jilin Jinli, Jilin Yuguang, Lin Deweiman and Tianjin Jinli. The raw materials are mainly parts such as reinforced plates. The services mainly provide technical services such as Lin Deweiman's procurement to assist in quality control and technology upgrades, and purchase coating services from Jilin Yuguang and Chengdu Ruiguang. Other related parties are mainly purchasing parts processing services.
Multiple funds borrowed from related parties
During the reporting period, Yingli Automobile borrowed funds borrowed from related parties many times.
In 2016, Yingli Auto borrowed a total of US$35.1821 million from its controlling shareholder, mainly for expanding operations and enriching its working capital. The company's board of directors' resolution on August 8, 2016 was reviewed and approved, and Cayman Yingli's debt of RMB 40 million was used to increase the company's registered capital by RMB 40 million. Among the above loans, except for RMB 40 million being converted into registered capital, the remaining part has been paid off in 2016 and 2017.
In 2016, Ningbo Maoxiang, a subsidiary of Yingli Automobile, borrowed a total of RMB 50 million from the actual controller of the company, Lin Qibin. This is mainly because the Ningbo Maoxiang board of directors made a resolution before being acquired by the company in 2016 to pay RMB 50 million in profit dividends to the original shareholder Aimhi Technology Group L.L.C., but because Ningbo Maoxiang lacked liquidity, it borrowed from Lin Qibin to pay dividends. The above funds have been fully paid off in 2016.
was fined 21 times in the reporting period, with a total fine of 1.8375 million yuan
The prospectus disclosed that Yingli Automobile and its subsidiaries were fined 21 times during the reporting period, with a total fine of 1.8375 million yuan.
Administrative Penalty, Suzhou Yingli (Zhengzhou Branch), Yizheng Yingli, Tianjin Linde Yingli, and Foshan Yingli were subject to administrative penalties for violating environmental protection laws and regulations. The specific details are as follows:
1. On October 8, 2018, the Taicang Municipal Environmental Protection Bureau issued the "Administrative Penalty Decision" (Taihuan Xingfeizi [2018] No. 235), which determined that the environmental protection facilities built by Suzhou Yingli expanded aluminum alloy products and other product projects were put into production without acceptance, which violated the provisions of the "Regulations on Environmental Protection Management of Construction Projects", and ordered Suzhou Yingli to correct the above-mentioned illegal acts within six months and imposed a fine of 200,000 yuan.
2. On August 31, 2018, the Zhongmu County Environmental Protection Bureau issued the "Administrative Penalty Decision" ((Mu) Environmental Penalty Decision No. [2018] No. 98), which determined that the automobile parts processing project built by the Zhengzhou Branch of Suzhou Yingli did not organize the preparation and approval of the environmental impact assessment documents of the construction project in accordance with regulations, that is, it was put into construction construction, and violated the provisions of the " Environmental Impact Assessment Law ". Suzhou Yingli Zhengzhou Branch was ordered to stop construction and impose a fine of 30,000 yuan.
3. On March 12, 2018, the Yizheng Municipal Environmental Protection Bureau issued the "Administrative Penalty Decision" (Yihuan Punishment [2018] No. 24), which determined that the Yizheng Yingli production workshop was not sealed or installed or used pollution prevention and control facilities violated the provisions of the "Air Pollution Prevention and Control Law". Yizheng Yingli was ordered to correct it immediately and impose a fine of 100,000 yuan.
4. On October 18, 2016, the Tianjin Municipal Environmental Protection Bureau issued the "Administrative Penalty Decision" (Tianshi Huanfazi [2016] No. 46), which determined that Tianjin Lindeyingli's newly built car bottom, roof, closure parts and bumper production project had not obtained the approval of the completion of the construction project's environmental protection completion and failed to complete the rectification within the deadline, which violated the provisions of the "Regulations on Environmental Protection Management of Construction Projects". Tianjin Lindeyingli was ordered to stop trial production and impose a fine of 40,000 yuan.
5. On April 8, 2019, the Nanhai District Environmental Protection Bureau of Foshan City issued the "Administrative Penalty Decision" (Nanhuan Punishment [2019] No. 118), which determined that Foshan Yingli failed to inspect and repair according to the procedures when a UV photolysis purifier failed to operate normally, but the injection molding process was still produced normally, violated the provisions of the "Air Pollution Prevention and Control Law", and imposed a fine of 125,000 yuan on Foshan Yingli; it was determined that Foshan Yingli failed to set up hazardous waste identification marks on the storage sites of hazardous waste packaging barrels as required, in violation of the provisions of the "Solid Waste Pollution Prevention and Control Law", and imposed a fine of 30,000 yuan on Foshan Yingli.
Two deaths occurred in a subsidiary of
During the reporting period, Yingli Automobile's subsidiary companies controlled by Foshan Yingli and Suzhou Yingli had deaths.
(South) Safety Supervision Penalty (2017) No. 266 shows that an employee of Yingli in Foshan was pinched and killed by an injection molding machine. On November 22, 2017, the Nanhai District Production Safety Supervision and Administration Bureau of Foshan City imposed a fine of 200,000 yuan on Foshan Yingli.
(Taiwan) Safety Supervision Penalty (2018) No. 234 shows that a mechanical injury accident occurred at the 3000T hydraulic press station in the hot press workshop of the Suzhou Yingli Factory No. 2, causing one person to die, violating the "Production Safety Law". On November 29, 2018, the Taicang Municipal Production Safety Supervision and Administration Bureau imposed a fine of 220,000 yuan on Suzhou Yingli.
was once listed as a dishonest person for execution
Yingli Automobile was once listed as a dishonest person for execution.(2015) Changgao Kaizhi No. 00453 shows that on July 31, 2015, the People's Court of Changchun High-tech Industrial Development Zone listed Yingli Auto as a dishonest debtor.
The specific circumstances of the acts of the person who is dishonest is that other people have the ability to perform but refuse to fulfill the obligations determined by the effective legal documents. The obligation determined by the effective legal document is that the defendant immediately compensates the plaintiff a total of RMB 264,100 after the judgment takes effect, but all the person subject to execution fails to perform.
The number of employees has changed a lot
At the end of 2016, the end of 2017, the end of 2018 and the end of June 2019, Yingli Automobile's employees were 3921, 4131, 5002 and 4529 respectively, and the number of employees has changed a lot.
During the reporting period, Yingli Auto did not pay social insurance and housing provident fund for some employees.
At the end of each period of the reporting period, Yingli Auto's share of social insurance was 95.89%, 95.98%, 97.42%, and 95.72% respectively.
At the end of each period of the reporting period, the proportion of Yingli Automobile Housing Provident Fund was 86.25%, 87.02%, 95.94%, and 94.86% respectively.
