prospectus mistakenly wrote the decimal point as a comma, and the net profit in 2015 became 5.024 billion, which was actually 50.24 million; IPO sponsor is China Merchants Securities
"The TV signal is not good, Mr. Shu looked out of the house and looked at the sky, quickly turned the 'big pot' and walked away." In the movie "Hello! Mr. Shu" starring Wang Baoqiang, a clip of watching TV in the countryside is described.
big pot is a common name for live broadcast star receiving device. In recent years, the Gaussbell brand "Big Cauldron" has been regarded as a star product. The company behind it, Gaussbell Digital Technology Co., Ltd. (hereinafter referred to as " Gaussbell "), is eager to try it in the capital market. On October 14, the China Securities Regulatory Commission disclosed the prospectus of Gaussbell. Before that, it had been seeking listing for many years.
prospectus shows that Gaussbell's product line is distributed with satellite receiving antennas, digital TV set-top boxes, TV transmitters and other products. " Village " has brought a lot of dividends to the company. In recent years, Gaussbell has focused on overseas markets, and its overseas sales have now exceeded domestic markets.
The beneficiary of the "Village Connection" project
was founded in 2001. After more than ten years of development, it began to make its mark in the capital market.
According to the Gaussbell prospectus disclosed by the China Securities Regulatory Commission on October 14, the company plans to log in to the A-share market and issue no more than 41.8 million shares. The funds raised will be used for the technical transformation of the company's production base, the construction of a global marketing network, R&D projects, etc.
prospectus shows that Gaussbell's main business is the research, development, production and sales of digital TV software and hardware products, and its main products include digital TV front-end equipment, digital TV system software, and digital TV terminal products. Among them, in the past three years, the sales amount of digital TV terminal equipment products accounted for more than 80% of the company's revenue.
The so-called digital TV terminal equipment product includes wired digital set-top box , ground digital set-top box, satellite receiver and antenna installed with it, etc., which are used to receive digital TV signals transmitted by various channels, and output them to the TV after a series of processing.
In the digital TV terminal equipment product, the "Village Connection" project has brought a dividend to the company's development. In 1998, in order to solve the problem of difficulty in listening and watching in rural areas in remote areas, the State Council launched the "Village-to-Village" project. This is the most invested and longest-lasting system project in the radio and television industry after the founding of New China.
After two rounds of "Village-to-village" projects, the State Administration of Radio and Television organized and implemented the " Household-to-village " project during the "12th Five-Year Plan" period, as a further extension of "Village-to-village". In the "House Access" project, users within the designated service area can voluntarily purchase receiving facilities at the specialty site, and finance at all levels will provide appropriate subsidies. The project
is closely related to Gaussbell's live broadcast star reception equipment. According to the prospectus, in 2015, the company's live broadcast star receiving equipment sales amount reached 92.9239 million yuan, accounting for 11.08%.
On the one hand, on the official website of Gaussbell, there are constant news about winning bids for the "Village Connection" project; on the other hand, the company's business is greatly affected by the winning bid. For example, in 2014, the company's live broadcast star reception equipment sales were only 18.851 million yuan. "The household connection project in relevant provinces has not been promoted according to the actual plan, and there are few biddings." Gaussbell explained.
Just one year ago, the company's sales in 2013 were nearly 100 million yuan due to the household connection project in Yunnan, Hainan, Guangxi and other regions.
Compared with live star receiving equipment, wired digital set-top box brings more stable performance to the company, and sales overall are rising year by year. According to the prospectus, in 2013, the company's wired digital set-top box sales were 290 million yuan, reaching 356 million yuan in 2015, accounting for 42.49%.
However, since 2013, due to the long receivable period of domestic downstream radio and television customers and occupying more funds, the company has gradually adjusted its sales strategy of wired digital set-top boxes and selectively cooperated with customers with strong strength and good repayment, which led to a decline in sales revenue of this product in 2013 and 2014.
Liu Buchen, a senior observer of the home appliance industry, told the Beijing News reporter that in the long run, the set-top box market belongs to the stock market in China, and for related companies, its profit growth space is limited.
has been planning to go public for nearly 6 years.
. The headquarters of Gaussbell, Chenzhou, Hubei Province, has been located in Chenzhou, Hubei. A news in 2012 on its government official website said that "Gossbell's listing plan for more than two years has now entered a critical stage of the sprint." In other words, in 2010, Gaussbell had started the listing preparations.
In 2010, Gaussbell carried out a shareholding reform and introduced five well-known PE institutions including ZTE Hechuang, Shanghai Jinglin, Dachen Caixin, and Guolian Junyuan as strategic shareholders at the end of the same year. The official website of the Chenzhou government said that in 2011, Gaussbeer obtained a confirmation letter from the Hunan Securities Regulatory Bureau of the China Securities Regulatory Commission and officially entered the counseling period.
Gossbell is listed, Chenzhou City government is very concerned. The Chenzhou Municipal Government website shows that in 2012, the Secretary of the Chenzhou Municipal Party Committee, Mayor and other leaders led the heads of relevant departments in Chenzhou to work on-site in the enterprise, "The city and district levels are required to attach great importance to it, unify their thinking, provide active services, and provide door-to-door services, and do their best to support enterprises to accelerate their development and accelerate their listing."
Beijing News reporter found that in recent years, in addition to enjoying the preferential policy of collecting corporate income tax at a tax rate of 15%, in mid-2015, the Chenzhou Municipal Finance Bureau gave Gaussbell a subsidy of 300,000 yuan to special support for enterprises to promote their listing.
Gossbell founder Liu TanaiIn a media interview in 2015, "At present, my country's capital market, service support for the real economy cannot meet the objective needs of economic and social development."Liu Tanai believes that the reform of the issuance market should be increased to allow more excellent enterprises to enter the capital market quickly.
Net profit data in the prospectus "fight"
On the eve of the IPO, Gaussbell's performance was relatively unstable. In 2014, Gaussbell achieved revenue of 840 million yuan, a decrease of 15.66% from 996 million yuan in 2013. In 2015, the company achieved revenue of 843 million yuan, an increase of only 2.62% from 2014. In terms of net profit attributable to net profit, from 2013 to 2014, Gaussbell achieved RMB 57.729 million and RMB 31.3432 million respectively, showing a downward trend.
However, in mid-2015, according to the prospectus "Issuer's Main Financial Data and Financial Indicators", its attributable net profit was 5.024 billion yuan, a huge increase in the quota, and far higher than the revenue of 843 million yuan in the same year.
Beijing News reporter continued to read "financial accounting information" and found that its attributable net profit data was 50.2442 million yuan. The former wrote the decimal point as a comma, causing the amount to rise sharply. The sponsor of Gaussbell's IPO this time is China Merchants Securities Co., Ltd., and the sponsor representatives are Ling Jianghong and Wang Zhao.
In addition, among the five companies controlled by Gaussbell, except for Chengdu Chitong Digital Systems Co., Ltd., which operates electronic TV and radio and television equipment, has achieved profitability in the past two years, the other four companies have suffered losses.
While competition intensifies, Gaussbell inventory has further climbed. Its inventory book value in 2013 was 106 million yuan, but fell to 103 million yuan in 2014, and reached 168 million yuan in 2015. In the first half of this year, its inventory book value climbed to 178 million yuan.
Gausbell explained that the company has many types of products and specifications and models, and the demand for stocking is large, so the inventory amount remains at a high level. Regarding the sudden rise in inventory in 2015, Gaussbell said that on the one hand, the sales in the Indian market increased significantly in the fourth quarter of 2015. In order to ensure production, the purchased raw materials, products and semi-finished products in the production process increased accordingly; on the other hand, it was a bid for multiple domestic projects. Although sales contracts were signed, the project acceptance time was long.
Overseas market accounts for 61% of total revenue
In recent years, Gaussbell's accounts receivable have not fallen. From 2013 to the first half of this year, the company's receivables remained above 400 million yuan. During the same period, the company's current assets remained in the range of 700 million yuan to 900 million yuan. In other words, the company's receivables account for a large proportion of current assets.
As of June 30, 2016, the company's net accounts receivable were 476 million yuan, accounting for 54.89% and 44.41% of its current assets and total assets, respectively.
Gaussbell's high receivables, whose account age is more than one year during the reporting period, account for about 30%. On the one hand, it is related to the longer credit period agreed in the contract of some customers. On the other hand, overdue accounts receivable also leads to an increase in the balance and proportion of accounts receivable for more than one year.
In the past two years, among Gaussbell customers, Anhui Radio and Television Information Network Co., Ltd. has long been the top of the "big players" of Gaussbell's receivables. Among the remaining receivable customers of the company in recent years, there are also radio and television systems, such as Hunan Cable Television Network (Group) Co., Ltd., Yunnan Radio and Television Network Group Co., Ltd., Chao'an County Radio and Television Station, Guangdong Province, etc.
Gossbell said in his prospectus that with the continuous emergence of smart TVs, network TVs, etc. in recent years, the company faces greater market competition pressure.
"If the company cannot develop new products in a timely manner, effectively adjust product structure, innovate service models and effectively reduce operating costs, the company's performance will decline, and even show the risk of a sharp decline of more than 50% of its performance."
In 2013 and 2014, the company's satellite receiver sales revenue remained at a high level. For example, in 2014, its satellite receivers had overseas sales of 329 million yuan, accounting for 39.51% of the company's sales revenue.
Compared with the domestic market, Gaussbell's overseas market products have more attractive gross profits. From 2013 to 2015, Gaussbell's gross profit share in domestic products dropped from 57.01% to 40.5% year by year, while the gross profit share of overseas market products increased from 42.99% to 59.5%.
During the reporting period, Gaussbell's overseas market contributed most of the revenue to the company. In the first half of this year, the company achieved domestic revenue of 199 million yuan, accounting for 39%, and overseas markets achieved revenue of 312 million yuan, accounting for 61%.
At the same time, in the first half of this year, four of the company's top six customers came from overseas customers. Anhui Radio and Television Information Network Co., Ltd. is the company's largest customer in China. In the first half of this year, sales to it accounted for 5.37% of the company's main business revenue, and the second largest customer in China accounted for 4.41%.
During the same period, ALTIUS DIGITAL PRIVATE LIMITED from India contributed 13.91% of revenue to Gaussbell, while the other three overseas customers contributed more than 4.41% of revenue to the company. At present, Gaussbell's overseas market has expanded to Asia, America, Europe, Africa and Oceania.
Regarding issues such as large inventory and erroneous financial data, a reporter from the Beijing News called the person in charge named Liu on October 21. The other party asked the reporter to send the problem to the company's email. As of press time, no reply was received.
Beijing News reporter Xu Wei Email: [email protected]
