On the evening of October 19, Hanbo Hi-Tech disclosed its refinancing plan. The company plans to raise no more than 750 million yuan by issuing convertible bonds for capacity expansion and construction.

Yangtze Business Daily reporter Wei Du

Beijing Stock Exchange The third company that successfully transferred to the A-share main board market Hanbo Hi-Tech (301321.SZ) actively planned refinancing.

Hanbo Hi-Tech was listed on on New Third Board in 2015 and entered the Selected Layer in July 2020. In 2021, the Beijing Stock Exchange was established and Hanbo Hi-Tech was converted into a Beijing Stock Exchange listed company. In August this year, the company successfully transferred to the Shenzhen Stock Exchange GEM . After the transfer of

to the board, Hanbo Hi-Tech performed poorly in the secondary market, and its stock price fell by nearly 40% in two months. In desperation, the company's original plan to raise funds for private placement was changed to bond issuance. As a result, the amount of additional financing shrank by 464 million yuan. And this may be difficult to resolve the company's financial pressure.

Hanbo Hi-Tech is mainly engaged in the research, development, production and sales of photoelectric display film devices. The company claims to have become an important partner of semiconductor display panel companies and terminal brands through many years of independent research and development.

However, a reporter from the Yangtze Business Daily found that the potential risks of Hanbo Hi-Tech cannot be ignored. The company's revenue from sales to A-share company BOE's accounts for more than 80%, and it is highly dependent, and BOE's subsidiary can replace Hanbo Hi-Tech at any time.

is also highly questioned. Since last year, Hanbo Hi-Tech's profitability has continued to decline, and it has no right to speak. The net profit margin in the first half of the year was only 3.89%.

fixed-increase and re-issuance of bonds has shrunk by nearly 40% in just two months, and Hanbo Hi-Tech's refinancing plan has surfaced.

According to the latest disclosure, Hanbo Hi-Tech plans to refinance through to issue convertible bonds corporate bonds, with the fundraising scale not exceeding 750 million yuan. All funds raised this time are used for expansion, that is, for the construction of projects (Phase I) such as Mini LED light boards per year. The project is expected to have a total investment of 1.134 billion yuan, and the company will raise the insufficient part.

Mini LED, also known as "sub-mm light emitting diode", refers to LEDs with grain sizes ranging from 100-300 microns, which is a further optimization of small-pitch LEDs.

Hanbo Hi-Tech believes that Mini LED backlight module has broad application prospects in many fields such as TVs, laptops, in-vehicle and indoor large screens, including Apple , TCL, Hisense , ASUS , Quanchuang Optoelectronics , AUO Optoelectronics, BOE and other giants have launched terminal products such as Mini LED backlight or similar technologies such as TVs, monitors, VR and in-vehicle displays. Mini LED backlighting, as an empowering technology for traditional LCD panels, has attracted up, middle and downstream manufacturers in the industrial chain and many manufacturers to plan the Mini LED industry.

Hanbo Hi-Tech said that the company has become a one-stop comprehensive solution provider for backlit display modules and has accumulated a number of core technologies in Mini LED display technology. The company actively deploys Mini LED display module products in order to adapt to industry development trends, expand production scale, and enhance corporate competitiveness.

With the innovation of the panel display industry technology and the continuous expansion of Mini LED market share, the company's existing production capacity can no longer meet the needs of the industry's development. This expansion is to achieve sustainable development of the company.

reporter from the Yangtze Business Daily found that on August 18 this year, Hanbo Hi-Tech transferred to the GEM, and on August 29, the company put forward a refinancing plan. The original plan was that the company planned to raise no more than 1.214 billion yuan through private placement. In addition to the 950 million yuan of this funding used for the construction of projects such as 9 million sets of miniLED light panels per year (Phase I), 264 million yuan is used to repay bank loans. On September 15, this fundraising plan was approved at the extraordinary general meeting of shareholders.

However, just one month later, Hanbo Hi-Tech terminated the plan for a private placement and instead refinancing by issuing convertible corporate bonds. The company said that after careful analysis of the actual needs of its own development and changes in the external market environment, the company decided to terminate the issuance of stocks to specific objects after careful analysis and sufficient communication with intermediary institutions.

Market insiders analyzed that one of the important factors that Hanbo Hi-Tech adjusted its refinancing plan is that the stock price fell significantly.

On August 18 this year, the closing price of Hanbo Hi-Tech was at 34 yuan per share. By October 19, the closing price was 21.56 yuan per share, with a cumulative decline of 36.59%, close to 40%.

If the upper limit of the number of shares issued is 37.287 million shares and raises 1.214 billion yuan according to the previous plan for private placement, then the issue price is 32.56 yuan per share. Now, the company's stock price has been significantly lower than this price, which shows that there is a great risk of continuing to promote the implementation of the private placement. After changing to bond issuance, its fundraising scale shrank by 464 million yuan, a shrinkage of 38.22%.

It is worth mentioning that in 2020, the company raised 485 million yuan to build related projects . According to the company's latest disclosed fundraising use, there are still about 140 million yuan unused.

Revenue growth and net profit declined continuously

Actively expanding production capacity meets market expectations, which is an unknown factor for Hanbo Hi-Tech. The risk of the company's high reliance on BOE has not been eliminated.

It is disclosed that Hanbo Hi-Tech is a one-stop comprehensive solution provider for backlight display modules, which integrates optical design, light guide plate design, precision mold design, overall structural design and product intelligent manufacturing. The company's main products include backlight display modules, light guide plates, precision structural parts, optical materials and other related parts, and are widely used in terminal products such as laptops, tablets, desktop monitors, vehicle screens, medical displays, industrial control displays, VR and other terminal products.

Hanbo Hi-Tech said that in recent years, the company has continued to increase investment in technology research and development. Through independent research and development, it has a strong competitive advantage in the field of backlight module . At present, the company has accumulated key technologies including Mini LED lamp panel production process, Mini LED lamp panel driving design, Mini LED backlight design, mask version precision regeneration, mask version production, drug liquid development, melting technology, etc. Based on this, the company has well-known panel corporate customers including BOE, Huaxing Optoelectronics , Qunchuang Optoelectronics, Shenzhen Tianma, Huike and other companies.

However, Hanbo Hi-Tech not only has the problem of high customer concentration, but also has a high dependence on large customers.

In May this year, the main questions raised by the GEM Listing Committee when reviewing the Hanbo Hi-Tech transfer to the GEM were the dependence on large customers and the changes in profit and the growth.

According to the Hanbo Hi-Tech transfer listing announcement, from 2019 to 2021, the proportion of the company's sales revenue to the top five customers accounted for 95.42%, 95.58% and 93.27% of the operating income, respectively. The company said that due to the high concentration of downstream products in the market, in order to ensure the reliability of their own product quality, the stability of corporate operations, and the controllability of operating costs, downstream customers are strict in their choice of suppliers. Once a relatively stable supply relationship is established with customers, customers will not easily replace them. These factors determine the company's customer concentration phenomenon.

has attracted much attention. From 2019 to 2021, Hanbo Hi-Tech's sales revenue from the largest customer BOE was approximately RMB 2.07 billion, RMB 2.157 billion and RMB 2.412 billion, respectively, accounting for 86.97%, 87.48% and 83.05% of the current operating income, respectively. More than 80% of

's operating income comes from BOE, and Hanbo Hi-Tech's high dependence on BOE is very obvious. Hanbo Hi-Tech admitted that its main products have a large sales amount and account for a high proportion, and they have a significant dependence on BOE. In the past three years, the company's backlight display modules for laptops account for 37.50%, 46.35% and 48.03% of its main business revenue, respectively, and its proportion has increased year by year. It is the company's most important product, and its downstream customers are mainly BOE.

It is worth mentioning that BOE's subsidiary BOE Optical Technology has the same or similar situations as the products of Hanbo Hi-Tech. If BOE exerts its influence in the supply chain and increases the procurement ratio of its subsidiary BOE Optical Technology products, it will inevitably reduce the procurement ratio of Hanbo Hi-Tech products accordingly. Hanbo Hi-Tech cannot expand more alternative customers in a timely manner, and the impact it suffers can be imagined.

Since last year, Hanbo Hi-Tech's operating performance has been under pressure.In 2021, the company achieved operating income of 2.905 billion yuan, and increased by year-on-year, with net profit attributable to shareholders of listed companies of 128 million yuan, and net profit after deducting non-recurring gains and losses of was 90 million yuan, a year-on-year decrease of 16.49% and 33.93% respectively. In the first half of this year, the company's operating income was 1.385 billion yuan, continuing its growth momentum, with the growth slowing down to 4.22%. Net profit and non-net profit were 38 million yuan and 31 million yuan respectively, with year-on-year decreases of 44.13% and 31.67%.

At the same time, the company's financial pressure is highlighted. As of the end of June this year, the company had 786 million yuan in cash on books, corresponding to long-term and short-term debts of 867 million yuan.

reporter from the Yangtze Business Daily found that Hanbo Hi-Tech, which has no say in the industrial chain and is highly dependent on BOE, has a gross profit margin of less than 20% for a long time and a net profit margin of less than 10%. In the first half of this year, the company's net profit margin was only 3.89%.

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