Reporter of the Economic Business: Xu Shuai Reporter of the Economic Business Business: Liang Xiao
Another paint material manufacturer plans to sprint for an IPO.
Recently, Zhejiang Guanghua Technology Co., Ltd. (hereinafter referred to as Guanghua Technology ) submitted a prospectus (hereinafter referred to as the declaration draft), intending to log in to Science and Technology Innovation Board .
The company's "post-80s" gathers, and the chairman, founder and many core technical personnel are "post-80s". There is also a core technical staff member who is a post-90s generation. This time, Guanghua Technology wants to solve the capacity bottleneck.
It should be noted that in 2017 and 2018, Guanghua Technology issued a sudden dividend of about 26 million yuan to shareholders last year, and the company's dividend amount was close to 1/3 of the profit ratio of that year. Is the company suspected of sudden dividends? Today (May 28), a reporter from "Daily Economic News" called Guanghua Technology , but no reply was received as of press time.
core technicians now have the main business of "post-90s"
Guanghua Technology is the research and development, production and sales of polyester resin series products for powder coatings. This kind of powder coating is more common, and this material is used in automotive coatings, home appliances, security doors, etc. However, the polyester resin of Guanghua Technology is mainly used outdoors. In 2019, outdoor polyester resin achieved revenue of 560 million yuan, accounting for 75.5%.
Guanghua Technology Main business revenue according to product type
Picture source: Prospectus screenshot
Polyester resin This material is relatively special, and the main raw materials are from BASF , LG Chemistry and other leading domestic and foreign chemical companies. In 2019, the purchase amount of Guanghua Technology from BASF reached 120 million yuan, accounting for 20.8%.
2019 Procurement status of the top five suppliers of Guanghua Technology
Image source: Prospectus screenshot
From the perspective of the top five customers, the proportion of Guanghua Technology is not high. In 2019, the company's top five customers achieved revenue of 160 million yuan, accounting for 21.71%. Among them, 65.4699 million yuan was sold to AkzoNobel , accounting for 8.87%. However, the company's large accounts receivable account are concentrated in its main customers. For example, as of the end of 2019, the company's accounts receivable to AkzoNobel was RMB 22.0356 million, accounting for 8.9% of the accounts receivable.
Although the company's gross profit margin is showing an upward trend, it is generally not high and relies on the price reduction of raw materials. From 2017 to 2019, the gross profit margins of the company's main business were 17.85%, 16.24% and 25.49% respectively.
According to statistics from the Coating Coating Professional Committee of the Chinese Chemical Society, Guanghua Technology polyester resin for powder coatings has been the second in the industry for many years, and is a leading supplier of polyester resin for powder coatings in China. If the A-share sprint is successful, Guanghua Technology is not the first polyester resin supplier to enter the capital market in China.
Guanghua Technology 's main competitors in China include Shenjian Co., Ltd. (002361, SZ) and Guangzhou Qingtian. Among them, Shenjian Co., Ltd. has the ability to produce 200,000 tons of polyester resin annually, and has the highest market share in China. Shenjian Co., Ltd. was listed as early as 2010 and currently has a market value of only 3.895 billion yuan. The reporter noticed that the performance of Shenjian Co., Ltd. was at a low point in 2017 and 2018, and its net profit declined year-on-year for two consecutive years. Until 2019, the company's net profit increased by 61.9% year-on-year, but the non-net profit still declined.
Guanghua Technology This time, it is sprinting to the Science and Technology Innovation Board, hoping to solve the production capacity bottleneck problem by raising funds. In 2019, the company's designed production capacity was 99,000 tons, and the actual capacity utilization rate has reached 137.90%. One of the fundraising projects of Guanghua Technology is to produce 120,000 tons of polyester resin for powder coatings annually.
Guanghua Technology Use of funds raised. Image source: Prospectus screenshot
"Daily Economic News" reporter noticed that Guanghua Technology was established in October 2014 and was established with funds from Sun Jiefeng, Yao Chunhai and Gaochang Co., Ltd. Sun Jiefeng is also the chairman and actual controller of the company.
It is worth mentioning that Sun Jiefeng and Yao Chunhai are both born in the 1980s. The former was born in 1987 and the latter was born in 1984. This means that when Sun Jiefeng and Yao Chunhai invested in the establishment of Guanghua Technology , they were not over 30 years old.
In fact, the trend of younger students in Guanghua Technology core technical personnel is also very obvious. Liu Dongliang, Chu Haitao, and Xu Guohui are all "post-80s" and Wang Xi is "post-90s". Wang Xi is only 27 years old, but he is already a core technical staff member of the company.
2019 sudden dividend of 26 million
Interestingly, in June 2017, Guanghua Technology also sold a "luxury car" worth one million to the actual controller Sun Jiefeng.
Guanghua Technology disposed of a motor vehicle for 1.1111 million yuan (including tax price of 1.3 million yuan). Sun Jiefeng paid 1.3 million yuan for consideration. The transfer procedures for the motor vehicle were completed in June 2017.
Image source: Prospectus screenshot
As of the date of signing the prospectus, Sun Jiefeng, Sun Peisong and his joint actor Sun Mengjing directly and indirectly controlled 80.21% of the company's total share capital before issuance.
As of the date of signing the prospectus Guanghua Technology 's equity structure
Picture source: Prospectus screenshot
However, it is worth noting that before the IPO, Guanghua Technology completed a sudden dividend.
On September 25, 2019, after the deliberation of the first extraordinary general meeting of shareholders in 2019, the company distributed cash dividends of 26.1 million yuan to all shareholders.
"Daily Economic News" reporter noticed that in 2019, the net profit of Guanghua Technology was only 91.9194 million yuan, and the dividend amount was close to 1/3 of the net profit amount. You should know that in 2017 and 2018, the company did not make any dividends.
Common sense, whoever holds a higher shareholding ratio will make more profits from the company's dividends. So before the IPO, was the sudden dividend behavior of Guanghua Technology reasonable?
htmlOn May 28, the reporter called Guanghua Technology public phone number. The other party said that the secretary of the board of directors was away and would contact the reporter later. At the same time, the reporter also sent an interview outline to the company's email, but no reply was received as of press time.In fact, the dividend distribution behavior of companies planning to IPO on the Science and Technology Innovation Board is also the focus of inquiries. Huaxi Biology (688363, SH), Anyi Technology, Amethyst Storage (688086, SH) and many other companies were asked about dividend distribution.
During the reporting period, in order to meet the loan bank's entrusted payment requirements, the company used suppliers or other third-party units as loan funds to obtain loans. This is commonly known as " transfer to loan ".
In 2017, Guanghua Technology transferred 122 million yuan through non-affiliated party Haining Baihui Packaging Materials Co., Ltd.; in 2019, Guanghua Technology transferred 30 million yuan through non-affiliated party Guangzhou Lili New Materials Co., Ltd. In fact, many companies including Ultravi (688516, SH) were asked about the loan transfer situation when applying for IPO.
Guanghua Technology stated that the above-mentioned loan transfer has a small impact on the company's continued operation, debt repayment ability, and liquidity, and does not have a significant adverse impact on the company's internal control effectiveness. The company has rectified and regulated the loan transfer, and no re-loan transfer has occurred since October 2019.
Daily Economic News
