Editor's note of China Economic Network: Nanjing Shangluo Electronics Co., Ltd. will make its debut on October 30. Shangluo Electronics plans to be listed on the GEM of the Shenzhen Stock Exchange. The sponsor is Huatai United Securities Co., Ltd.

Source: China Economic Network

China Economic Network Editor's note : Nanjing Shangluo Electronics Co., Ltd. (hereinafter referred to as "Shangluo Electronics") will be launched on October 30. Shangluo Electronics plans to hold a conference in Shenzhen The company is listed on the GEM, and the sponsor is Huatai United Securities Co., Ltd. The company plans to issue no more than 65.2235 million shares, which shall not be less than 10% of the total share capital after issuance. Shangluo Electronics plans to raise 335 million yuan this time, of which 28.1601 million yuan will be used for the Shangluo Digital Operation Platform (DOP) project; 155 million yuan will be used for the intelligent warehousing and logistics center construction project; 152 million yuan will be used to expand the sales product line project.

From 2017 to January to June 2020, Shangluo Electronics achieved operating income of 1.676 billion yuan, 2.993 billion yuan, 2.068 billion yuan and 1.332 billion yuan respectively; the cash received from selling goods and providing services was 1.520 billion yuan and 2.914 billion yuan respectively. yuan, 2.133 billion yuan, 1.092 billion yuan.

From 2017 to January to June 2020, Shangluo Electronics’ net profits attributable to the owners of the parent company were 70.4331 million yuan, 334 million yuan, 99.0288 million yuan, and 85.0927 million yuan respectively; the net cash flows generated from operating activities were respectively -225 million yuan, 150 million yuan, 28.6493 million yuan, -258 million yuan.

From 2017 to January to June 2020, the total assets of Shangluo Electronics were 904 million yuan, 1.310 billion yuan, 1.229 billion yuan, and 1.511 billion yuan respectively; the total liabilities were 399 million yuan, 439 million yuan, 274 million yuan, and 471 million yuan respectively. billion. At the end of each reporting period, the asset-liability ratios of Shangluo Electronics were 44.17%, 33.51%, 22.29% and 31.17% respectively.

At the end of each reporting period, Shangluo's electronic currency funds were 75.7294 million yuan, 204 million yuan, 124 million yuan, and 81.5539 million yuan respectively. Among them, bank deposits were 75.6927 million yuan, 187 million yuan, 120 million yuan, and 67.0491 million yuan respectively, accounting for 99.95%, 91.61%, 97.31%, and 82.21% respectively.

At the end of each reporting period, the short-term loan balances of Shangluo Electronics were 131 million yuan, 70.3062 million yuan, 6.000 million yuan and 170 million yuan respectively, accounting for 32.88%, 16.02%, 2.19% and 36.13% of the total liabilities respectively.

At the end of each reporting period, the book values ​​of Shangluo Electronic's notes receivable were 57.9664 million yuan, 37.7087 million yuan, 22.9597 million yuan and 31.0963 million yuan respectively.

At the end of each reporting period, the balances of Shangluo Electronics' accounts receivable were 504 million yuan, 753 million yuan, 664 million yuan and 862 million yuan respectively, accounting for 30.08%, 25.18%, 32.08% and 64.73% of the operating income in the same period respectively. %, the amount and proportion of accounts receivable generally remained at a relatively high level.

At the end of each reporting period, the carrying amounts of Shangluo Electronics' accounts receivable were 479 million yuan, 716 million yuan, 630 million yuan and 810 million yuan respectively. The carrying amount of accounts receivable accounted for 55.40% of the current assets at the end of each period. , 57.32%, 53.32% and 55.49%.

At the end of each reporting period, the accounts receivable turnover rate of Shangluo Electronics were 3.92 times, 4.76 times, 2.92 times and 1.75 times respectively. During the same period, the average accounts receivable turnover rates of comparable companies in the same industry were 4.48 times, 4.41 times, 4.84 times, and 2.08 times respectively. In 2017, 2019 and January to June 2020, the accounts receivable turnover rate of Shangluo Electronics was lower than the average of comparable companies in the same industry.

As of June 30, 2020, the total overdue amount of Shangluo Electronic's accounts receivable was 20.2575 million yuan. As of the signing date of the prospectus, the overdue payment collection amount at the end of June 2020 was 11.2758 million yuan.

It is worth mentioning that among the customers with overdue amounts of more than 1 million yuan, Xudong Electric Co., Ltd., an affiliate of Xudong Group, has filed for bankruptcy in Japan, and Shangluo Electronics has filed a lawsuit against Xudong Group; Jiangsu Li Xin Electric Technology Co., Ltd. has constituted a breach of contract, and Shangluo Electronics has filed a lawsuit.

At the end of each reporting period, the book values ​​of the company's inventory were 213 million yuan, 209 million yuan, 253 million yuan and 356 million yuan respectively, accounting for 24.63%, 16.70%, 21.38% and 24.42% of current assets respectively.

At the end of each reporting period, the balances of Shangluo Electronics' inventory price decline provisions were 16.6461 million yuan, 86.1317 million yuan, 25.0735 million yuan and 29.3646 million yuan respectively. With a substantial increase in performance in 2018, Shangluo Electronics' inventory depreciation and provision for in 2018 were significantly higher than in other years.

At the end of each reporting period, Shangluo Electronics' comprehensive gross profit margins were 17.74%, 26.79%, 15.42% and 17.38% respectively; its main business gross profit margins were 17.73%, 26.79%, 15.42% and 17.37% respectively, with certain fluctuations.

Passive electronic components are the main source of income for Shangluo Electronics.During the reporting period, the revenue of passive electronic components was 1.417 billion yuan, 2.615 billion yuan, 1.534 billion yuan and 928 million yuan respectively, with a year-on-year increase of 84.50% in 2018 and a year-on-year decrease of 41.33% in 2019. Shangluo Electronics' sales of passive electronic components were 67.4946 million pieces, 6774.40 million pieces, 5933.51 million pieces, and 36.6934 million pieces respectively, with average prices of 21.00 yuan/thousand pieces, 38.60 yuan/thousand pieces, and 25.86 yuan/thousands respectively. pieces, 25.29 yuan/1,000 pieces. In 2019, the company's sales of passive electronic components fell by 12.4% year-on-year, and the average sales price dropped by 33% year-on-year.

From 2017 to January to June 2020, BOE has always been the largest customer of Shangluo Electronics. The sales revenue it brought were 213 million yuan, 711 million yuan, 328 million yuan, and 241 million yuan respectively, accounting for 10% of the current period. 12.72%, 23.75%, 15.84%, and 18.08% of operating income. The company's sales revenue to BOE is extremely unstable. It surged in 2018 and dropped sharply in 2019, down 54% year-on-year.

In 2017 and 2018, Xiaomi Group was the second largest customer of Shangluo Electronics, with sales revenue of 148 million yuan and 227 million yuan respectively, accounting for 8.86% and 7.57% of the current operating income respectively. But in 2019, Xiaomi Group disappeared directly from the company’s top five customer lists.

During the reporting period, Shangluo Electronics had a high concentration of suppliers. From 2017 to January to June 2020, the company’s purchase amounts from the top five suppliers were 1.091 billion yuan, 1.670 billion yuan, 1.130 billion yuan and 807 million yuan respectively. yuan, accounting for 72.98%, 73.76%, 62.65% and 66.77% of the total purchases in the current period respectively.

During the reporting period, Shangluo Electronics had overlapping purchases and sales with customers, suppliers, and competitors. From the perspective of the original manufacturer, the total sales amount of Shangluo Electronics to original suppliers such as , Sunlord Electronics, , and Yageo were 47.5009 million yuan, 62.0932 million yuan, 22.3974 million yuan, and 25.8338 million yuan respectively. From the perspective of traders, Suzhou Meiruili Electronic Technology Co., Ltd. is one of the top five trading suppliers of Shangluo Electronics. In 2019, the purchase and sales amounts of Shangluo Electronics from it were 17.3303 million yuan and 16.7416 million yuan respectively. From the customer's perspective, Shangluo Electronics' purchase amounts from customers were 24.6679 million yuan, 2.9782 million yuan, 25.7066 million yuan, and 5.7484 million yuan respectively. The controlling shareholder and actual controller of

Shangluo Electronics is Sha Hongzhi. As of the signing date of the prospectus, Sha Hongzhi directly held 168 million shares of the company, accounting for 45.42% of the company's total share capital. At the same time, Sha Hongzhi held 42.57% and 42.37% of the partnership shares of Nanjing Changluo and Nanjing Shengluo respectively. Nanjing Changluo and Nanjing Shengluo hold 2.43% and 1.60% of the company's shares respectively. Sha Hongzhi, Chinese nationality, has no permanent residence abroad.

During the reporting period, there were large financial transactions between Shangluo Electronics and the actual controllers Sha Hongzhi and Sha Jian (Sha Hongzhi’s sister). Data show that during the reporting period, Shangluo Electronics borrowed a total of 16.1366 million yuan from Sha Hongzhi and Sha Jian and returned 64.6072 million yuan.

On July 18, 2017, Sha Hongzhi signed an "Equity Transfer Agreement" with Shangluo Electronics. Sha Hongzhi transferred his 65% stake in Suzhou Yiyitong (investment amount of 3.9 million yuan) to Shangluo Electronics for a price of 107,100 yuan. company.

During the reporting period, Shangluo Electronics had frequent related guarantees. From 2016 to 2020, the company accepted a total of 82 guarantees from related parties.

Shangluo Electronics was listed on the New Third Board (stock code 835125) on December 31, 2015, and has been terminated from the National Equities Exchange and Quotations System since March 31, 2017. According to Caibei.com, Shangluo Electronics had two financings during its listing on the New Third Board, successfully raising a total of 70.64 million yuan.

According to Investor Network, Shangluo Electronics made two capital increases in May 2017 and January 2018, issuing a total of 20.02% additional equity and raising 229 million yuan. The shareholding of Sha Hongzhi, the actual controller of Shangluo Electronics, also dropped from 63.60% before May 2017 to 46.95% after January 2018. Except for the 17 shareholders introduced through two capital increases in 2017 and 2018, among the shareholders of Shangluo Electronics, only two natural person shareholders, Sha Hongzhi and Xie Li, held more than 5% of the shares after the issuance. Their combined holdings of Shangluo Electronics 48.42% stake after the electronic issuance. The actual controller's shareholding ratio is low, and there are a large number of financial investors among the company's shareholders. Shangluo Electronics will undoubtedly face huge pressure to reduce its holdings after the initial share ban is lifted.

Between May 2015 and May 2017, Zhang Lei and Xie Li transferred company equity (shares) to each other multiple times.In May 2015, Zhang Lei transferred his 18.05% equity stake in Shangluo Co., Ltd. to Xie Li for free; in July 2016, Xie Li transferred his 400,000 shares of Shangluo Electronics for 1.6 million yuan through the National Equity Transfer System. The price was transferred to Zhang Lei; in May 2017, Zhang Lei transferred his 400,000 shares of Shangluo Electronics to Xie Li at a price of 1.6 million yuan. Xu Jing, the spouse of Sha Hongzhi, the actual controller of

Shangluo Electronics; Zhou Jiahui, the company’s director and deputy general manager; Chen Jie, the supervisor, and others had large financial transactions with Qian Siqing, a former employee of the company and the top five trader customers during the reporting period. On June 28, 2016, Qian Siqing borrowed 2.84 million yuan from Xu Jing, the spouse of the actual controller of Shangluo Electronics, for house purchase and family expenses, and returned 2.24 million yuan on February 11, 2018. 600,000 yuan was returned on the 26th. Thereafter, there was no further capital exchange between the two parties. In other words, no interest was charged on this loan.

During the reporting period, the total period expenses of Shangluo Electronics were 170 million yuan, 240 million yuan, 190 million yuan and 88.4523 million yuan respectively, accounting for 10.14%, 8.02%, 9.18% and 6.64% of operating income respectively. Among them, sales expenses were 128 million yuan, 154 million yuan, 151 million yuan and 62.2509 million yuan respectively. Among the sales expenses, business entertainment expenses and accounted for a relatively high proportion, which were 22.7277 million yuan, 16.6031 million yuan, 21.8269 million yuan, and 4.9081 million yuan respectively, accounting for 17.81%, 10.81%, 14.47%, and 7.88% of the current operating income respectively. .

During the reporting period, Shenzhen Shangluo, a wholly-owned subsidiary of Shangluo Electronics, and Tianjin Longhao were subject to administrative penalties. Shenzhen Shangluo was fined 5,000 yuan by the Fire Supervision and Management Brigade of Baoan Branch of Shenzhen Public Security Bureau for damage to emergency lighting; Tianjin Longhao failed to declare personal income tax (wage and salary income) from October 1, 2018 to October 31, 2018 on time. , the State Administration of Taxation imposed a second tax fine of 200 yuan from the Tianjin Port Free Trade Zone Taxation Bureau.

In addition, during the reporting period, Shangluo Electronics had multiple sales contract disputes.

China Economic Network reporter interviewed Shangluo Electronics on related issues. As of press time, no reply has been received to the interview email.

Passive component distributor intends to sprint to the GEM

Shangluo Electronics is a leading passive component distributor in China. It mainly provides electronic products manufacturers for network communications, consumer electronics, automotive electronics, industrial control and other application fields, providing them with electronic products. Component products. The products represented by the company include passive electronic components such as capacitors, inductors, resistors and radio frequency devices, as well as other electronic components such as ICs, discrete devices, power devices, storage devices and connectors, among which passive electronic components are the mainstay. Currently, the company has authorization from more than 60 well-known original manufacturers and sells more than 20,000 types of electronic component products to approximately 2,000 customers. The controlling shareholder and actual controller of

Shangluo Electronics is Sha Hongzhi. As of the signing date of the prospectus, Sha Hongzhi directly held 168 million shares of the company, accounting for 45.42% of the company's total share capital. At the same time, Sha Hongzhi held 42.57% and 42.37% of the partnership shares of Nanjing Changluo and Nanjing Shengluo respectively. Nanjing Changluo and Nanjing Shengluo hold 2.43% and 1.60% of the company's shares respectively, and Sha Hongzhi is the company's controlling shareholder and actual controller. Sha Hongzhi, Chinese nationality, has no permanent residence abroad.

Shangluo Electronics plans to be listed on the GEM of the Shenzhen Stock Exchange. The sponsor is Huatai United Securities Co., Ltd. The company plans to issue no more than 65.2235 million shares, which shall not be less than 10% of the total share capital after issuance. Shangluo Electronics plans to raise 335 million yuan this time, of which 28.1601 million yuan will be used for the Shangluo Digital Operation Platform (DOP) project; 155 million yuan will be used for the intelligent warehousing and logistics center construction project; 152 million yuan will be used to expand the sales product line project.

It is reported that Shangluo Electronics was listed on the New Third Board (stock code 835125) on December 31, 2015. Subsequently, in order to meet the needs of the company’s business development and long-term strategic development planning, the company’s shares have been listed on the National Stock Exchange since March 31, 2017. Switch to the system to terminate the listing.

According to Caibei.com, Shangluo Electronics had two financings during its listing on the New Third Board, successfully raising a total of 70.64 million yuan. Shangluo Electronics issued 10 million shares and 2.7855 million shares at prices of 4 yuan/share and 11 yuan/share in March 2016 and September 2016 respectively. It is mainly used to expand the company's business and supplement working capital, repay loans, and improve the company's financial structure.

Revenue fell by 30% in 2019 and net profit fell by 70%

During the reporting period, Shangluo Electronics' operating performance experienced large fluctuations. From 2017 to January to June 2020, the company achieved net profits of 69.743 million yuan, 333 million yuan, 99.0222 million yuan and 85.069 million yuan.

In 2019, Shangluo Electronics’ operating income fell by 30.89% year-on-year, and its net profit fell by 70.33% year-on-year. Both revenue and net profit plummeted.

In the first half of 2020, total assets were 1.511 billion yuan and total liabilities were 471 million yuan.

From 2017 to January to June 2020, the total assets of Shangluo Electronics were 904 million yuan, 1.310 billion yuan, 1.229 billion yuan, and 1.511 billion yuan respectively. Among them, current assets were 864 million yuan, 1.249 billion yuan, 1.182 billion yuan, and 1.459 billion yuan respectively, and non-current assets were 39.9879 million yuan, 61.1951 million yuan, 46.2428 million yuan, and 51.9987 million yuan respectively.

From 2017 to January to June 2020, the total liabilities of Shangluo Electronics were 399 million yuan, 439 million yuan, 274 million yuan, and 471 million yuan respectively. Among them, current liabilities are 394 million yuan, 424 million yuan, 258 million yuan, and 454 million yuan respectively, and non-current liabilities are 5.7313 million yuan, 15.3665 million yuan, 15.7672 million yuan, and 16.4905 million yuan respectively.

At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the asset-liability ratio of Shangluo Electronics was 44.17%, 33.51%, 22.29% and 31.17% respectively. During the same period, the average asset-liability ratios of listed companies in the same industry were 47.66%, 45.77%, 38.86%, and 34.99% respectively.

At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the current ratios of Shangluo Electronics were 2.20, 2.95, 4.58 and 3.21 respectively, and the quick ratios were 1.60, 2.37, 3.45 and 2.23 respectively. During the same period, the average current ratios of listed companies in the same industry were 1.95, 1.90, 2.23, and 2.69, and the average quick ratios were 1.32, 1.21, 1.62, and 1.92 respectively.

Monetary funds at the end of the first half of 2020 were 81.55 million yuan

At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, Shangluo electronic currency funds were 75.7294 million yuan, 204 million yuan, 124 million yuan, and 81.5539 million yuan respectively.

Among them, bank deposits were 75.6927 million yuan, 187 million yuan, 120 million yuan, and 67.0491 million yuan, accounting for 99.95%, 91.61%, 97.31%, and 82.21% respectively.

Short-term borrowings increased significantly to 170 million yuan in the first half of 2020

At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the balance of short-term borrowings of Shangluo Electronics was 131 million yuan, 70.3062 million yuan, 6.00 million yuan and 170 million yuan respectively. The proportions of total liabilities were 32.88%, 16.02%, 2.19% and 36.13% respectively.

Shangluo Electronics is a distributor of passive electronic components. The short-term borrowings from banks are mainly for temporary capital turnover needs to pay for purchases.

At the end of 2019, the balance of short-term borrowings of Shangluo Electronics dropped significantly, mainly due to the good operating conditions in 2018, relatively sufficient working capital, and repayment of bank loans.

At the end of June 2020, the amount of short-term borrowings of Shangluo Electronics increased, mainly due to the rebound in the capacitor and resistor industry, and the company's agent product line increased, the amount of stocking purchase expenditures increased, the demand for working capital increased, and short-term borrowings increased accordingly.

htmlThe turnover rate of accounts receivable for the first period of 22 years is lower than the industry average

At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the balance of accounts receivable of Shangluo Electronics was 504 million yuan, 753 million yuan, 664 million yuan and 862 million yuan, accounting for 30.08%, 25.18%, 32.08% and 64.73% of operating income in the same period respectively. The amount and proportion of accounts receivable have generally remained at a high level.

In 2017, 2018, 2019 and January to June 2020, the accounts receivable turnover rate of Shangluo Electronics was 3.92 times, 4.76 times, 2.92 times and 1.75 times respectively. During the same period, the average accounts receivable turnover rates of comparable companies in the same industry were 4.48 times, 4.41 times, 4.84 times, and 2.08 times respectively. In 2017, 2019 and January to June 2020, the accounts receivable turnover rate of Shangluo Electronics was lower than the average of comparable companies in the same industry.

The overdue accounts receivable at the end of the first half of 2020 was 20.2575 million yuan

The aging of Shangluo Electronic’s accounts receivable was mainly concentrated within one year. At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the company’s receivables were within one year. The account balances accounted for 99.93%, 99.95%, 99.90% and 99.99% of the balance of accounts receivable at the end of each period respectively.

As of June 30, 2020, the total overdue amount of Shangluo Electronic's accounts receivable was 20.2575 million yuan. As of the signing date of the prospectus, the overdue payment collection amount at the end of June 2020 was 11.2758 million yuan. Among them, the situation of customers with overdue amounts of more than 1 million yuan and the post-period payment collection status as of the signing date of the prospectus are as follows:

It is worth mentioning that Xudong Electric Co., Ltd., an affiliated company of Xudong Group, has currently filed for bankruptcy in Japan. , Shangluo Electronics has currently filed a lawsuit against Xudong Group; Jiangsu Lixin Electric Technology Co., Ltd. has constituted a breach of contract, and Shangluo Electronics has filed a lawsuit.

Notes receivable at the end of the first half of 2020 were 31.1 million yuan

At the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the book values ​​of Shangluo Electronic notes receivable were 57.9664 million yuan, 37.7087 million yuan, 22.9597 million yuan and 31.0963 million yuan respectively. , the company mainly improves the efficiency of capital use through bill discounting, endorsement transfer and other methods. The amount of bills receivable at the end of each reporting period is generally low. The company accrues bad debt provisions for commercial acceptance bills based on the aging of the accounts.

During the reporting period, Shangluo Electronics had no bills that were converted into accounts receivable or pledged bills receivable due to the drawer's failure to perform.

The book value of inventory at the end of the first half of 2020 was 356 million yuan

Shangluo Electronics’ inventory mainly consisted of various electronic components. At the end of each reporting period, the book values ​​of the company's inventories were 213 million yuan, 209 million yuan, 253 million yuan and 356 million yuan respectively, accounting for 24.63%, 16.70%, 21.38% and 24.42% of current assets respectively.

At the end of 2018, the inventory amount of Shangluo Electronics was higher than that in 2017 and 2019. This was mainly due to the tight supply and demand of electronic components such as capacitors in 2018, and the company increased stocking.

Shangluo Electronics’ inventory inventory remains generally stable. At the end of June 2020, the company's inventory increased compared with 2019, mainly because the prosperity of passive electronic components such as capacitors and resistors has rebounded compared with 2019, and the product line types continued to be enriched. The inventory of passive electronic components and other components has increased. The amount of inventory increases accordingly.

At the end of each reporting period, Shangluo Electronics' inventory turnover rates were 7.96 times, 8.36 times, 6.11 times and 3.32 times respectively.

The provision for inventory depreciation in 2018 was significantly higher than that in other years.

At the end of each reporting period, the proportions of Shangluo Electronics’ inventory aged for more than one year were 0.79%, 1.06%, 7.13% and 5.17% respectively. There was no large amount. The early sales were returned, and the inventory products with a long shelf life were mainly due to slow sales, and full price reduction provisions have been made.

As of the end of 2019, the amount of Shangluo Electronics' inventory of more than one year's inventory has increased compared with the end of 2018. Mainly affected by changes in market supply and demand in 2018, the prices of electronic components such as MLCCs have fluctuated significantly, resulting in some inventory in 2018. Sluggish sales, resulting in inventory products with a storage age of more than one year at the end of 2019 and June 2020.

At the end of each reporting period, the balances of Shangluo Electronics' inventory price decline provisions were 16.6461 million yuan, 86.1317 million yuan, 25.0735 million yuan and 29.3646 million yuan respectively.

Shangluo Electronics' performance increased significantly in 2018, and the provision for inventory depreciation in 2018 was significantly higher than in other years. At the end of 2018, the company made a cumulative provision for inventory depreciation of RMB 86.1317 million for various types of inventory. The amount of provision for inventory depreciation at the end of 2018 accounted for 29.23% of the inventory balance, including RMB 61.0304 million for capacitor products and RMB 12.5939 million for resistor products. , the accrual ratios are 36.15% and 52.00% respectively.

Shangluo Electronics stated that the main reason was the change in the supply and demand relationship of passive electronic components represented by MLCC in the fourth quarter of 2018. The prices of various types of capacitors and resistors fell sharply, and the downward trend was irreversible in the short term. Sales prices after the end of 2018 Still continuing to fall, the inventory cost and sales price of the company's MLCC and other commodities are inverted. At the same time, according to the company's accounting policy, the inventory of 3.1163 million yuan with a storage age of more than 1 year is determined to be fully impaired.

The gross profit margin of the main business fluctuates.

In 2017, 2018, 2019 and January to June 2020, the comprehensive gross profit margin of Shangluo Electronics was 17.74%, 26.79%, 15.42% and 17.38% respectively, which showed certain fluctuations.

Shangluo Electronics' comprehensive gross profit margin increased by 9.06% in 2018 compared with 2017, mainly due to the substantial increase in operating income and its growth rate was greater than the growth rate of operating costs.

Shangluo Electronics' comprehensive gross profit margin dropped by 11.37% in 2019 compared with 2018, mainly due to the fact that the decline in operating income was greater than the decline in operating costs.

Shangluo Electronics' comprehensive gross profit margin increased by 1.95% from January to June 2020 compared with 2019, remaining stable.

In 2017, 2018, 2019 and January to June 2020, the gross profit margin of Shangluo Electronics' main business was 17.73%, 26.79%, 15.42% and 17.37% respectively, with certain fluctuations.

From the perspective of product categories, the gross profit margins of passive electronic components are 18.14%, 27.91%, 14.66% and 18.33% respectively. The gross profit margins of other electronic components are 15.50%, 19.00%, 17.59% and 15.17%. The gross profit margin of components fluctuates greatly.

Since the sales revenue of Shangluo Electronics' passive electronic components accounts for more than 70% of the company's main business revenue, the fluctuations in the gross profit margin of the company's main business are mainly caused by the fluctuations in the gross profit margin of passive electronic components. From the perspective of the composition of passive electronic components, the gross profit margins of capacitor products during the reporting period were 19.03%, 31.32%, 11.69% and 19.48% respectively, with large fluctuations, while the gross profit margins of other passive electronic component products such as inductors and radio frequency components were Interest rates are relatively stable, and the gross profit margin of resistor products has maintained a growing trend. Since the company's capacitor products account for more than 60% of the sales revenue of passive components, fluctuations in the gross profit margin of passive components are mainly caused by fluctuations in the gross profit margin of capacitor products.

Compared with listed companies in the same industry, during the reporting period, the gross profit margin change trend of Shangluo Electronics was generally consistent with that of the related businesses of Weir and Runxin Technology, but was quite different from Liyuan Information and Shenzhen Huaqiang . The main reason is that: Liyuan Information and Shenzhen Huaqiang are mainly engaged in the distribution of active electronic components such as semiconductors. Passive electronic components account for a low proportion, and the distribution product structure is quite different from the company; Runxin Technology is mainly engaged in the distribution business of IC products and supporting supporting products. Engaged in the distribution of capacitor products. The capacitor products it represents are mainly tantalum capacitors. In 2018, the revenue of capacitor products accounted for 12.75%. In 2018, the price increase of tantalum capacitors was lower compared with MLCC, the main capacitor product distributed by the company. Therefore, Runxin The gross profit margin of Science and Technology's capacitor business in 2018 was lower than that of the company; Weier Co., Ltd. is mainly engaged in the R&D and design of semiconductor products and the distribution of electronic components. The distributed products include integrated circuits, discrete devices, passive electronic components, etc., and its capacitors, resistors, and inductors are distributed The proportion of revenue in its distribution business revenue is higher than that of other comparable listed companies, and the company's gross profit margin change trend with that of Weil Electronics' electronic components distribution business is highly comparable.

Compared with Liyuan Information, Shenzhen Huaqiang, Weir Technology, and Runxin Technology, the main reason for the company's overall higher gross profit margin is that the distribution product structure is different. The company's passive component products account for a higher proportion of sales revenue, while passive components The gross profit margin is relatively high.

Sales revenue to BOE, the largest customer, fluctuated greatly

From 2017 to 2019, the unit price of capacitor products sold by Shangluo Electronics to BOE fluctuated sharply, which were 14.50 yuan/thousand pieces, 54.66 yuan/thousand pieces, and 13.13 yuan/thousand pieces respectively. , showing a trend of rising first and then falling, with the average unit price in 2019 returning to the average level in 2017. The unit price of capacitors sold to BOE increased from January to June 2020, mainly due to the upward adjustment of supply prices from some original manufacturers, and the unit price of capacitors sold to BOE increased accordingly.

Xiaomi Group withdrew from the company’s top five customers in 2019

Regarding the reasons why Xiaomi Group withdrew from the company’s top five customers, Shangluo Electronics said that from 2017 to 2018, the company mainly provided inductors, radio frequency devices and other products to Xiaomi Group. From 2017 to 2018, Xiaomi Group was the largest customer of Shangluo Electronics in terms of inductor and radio frequency device revenue, and other major customers were non-mobile phone field customers. The product models sold to Xiaomi Group were different from those of other customers, and the relevant models were basically the same. Both are mainly sold to Xiaomi Group.At the same time, since the products sold to Xiaomi Group are mainly brand products such as RF360, TDK (Dongdian Chemical), Leshan Radio and Sunlord Electronics, the delivery time from the original factory usually takes 6-8 weeks, so the company needs to place orders in advance to purchase and stock up from the original factory. In order to meet customer requirements, original orders cannot be canceled, and the demand of Xiaomi Group is much higher than that of other customers. Therefore, if there are negative factors in the previous cooperation with Xiaomi Group, related inventory products will have greater inventory turnover risks.

Since 2019, due to the large fluctuations in the mobile phone industry, and the company has only Xiaomi Group as a core customer service customer in the mobile phone field, there is a large inventory turnover risk, and it is unable to give full play to the company's core advantages in the supply chain field. After prudent decision-making, the company has significantly reduced its business cooperation with Xiaomi Group since 2019. After friendly negotiation between the two parties, both parties agreed that under the previously signed cooperation agreement, the issuer will gradually gradually Reducing cooperation is not a sudden or mandatory reduction of cooperation.

High supplier concentration

During the reporting period, Shangluo Electronics had a high supplier concentration. In 2017, 2018, 2019 and January to June 2020, the company's purchase amount from the top five suppliers was 1.091 billion respectively. yuan, 1.670 billion yuan, 1.130 billion yuan and 807 million yuan, accounting for 72.98%, 73.76%, 62.65% and 66.77% of the total purchases in the current period respectively. The company has a certain degree of dependence on its major suppliers.

Sunlord Electronics and RF360 withdrew from the top five suppliers of Sunlord Electronics in 2019. In this regard, Sunlord Electronics said that Sunlord Electronics is the leading inductor manufacturer in China; RF360 is a joint venture between TDK (Tongdian Chemical) and Qualcomm , and was later controlled by Qualcomm. It is a component manufacturer mainly producing radio frequency devices. . In 2019, Sunlord Electronics reduced its cooperation with mobile phone manufacturers, and the sales amount of inductors and RF products decreased to a certain extent. The company accordingly reduced the purchase of inductors and RF products. Therefore, the company purchased products from Sunlord Electronics and RF360. Purchase amounts fell, and two companies dropped out of the top five suppliers.

Shangluo Electronics’ fifth largest supplier in 2018, RF360, was established in 2017. The company started cooperation with RF360 after its establishment. From 2017 to 2019 and from January to June 2020, the company’s purchase amount from RF360 was 4780.44 respectively. Ten thousand yuan, 74.6857 million yuan, 20.897 million yuan, 14.5688 million yuan.

Shangluo Electronics said that RF360 is a joint venture between Qualcomm and TDK (Tongdian Chemical). In 2019, Qualcomm fully acquired the equity and is a front-end radio frequency manufacturer. When RF360 was established, it was a joint venture of TDK (Tongdian Chemical). The company is a first-level distributor of TDK (Tongdian Chemical) and has developed the agency rights of RF360. Since 2017, it has cooperated with RF360 and its agents.

Customers and suppliers, customers and competitors overlap.

Shangluo Electronics is a distributor. It is a hub for upstream and downstream docking of electronic components, and a channel for the circulation of component materials. Therefore, there are interactions with customers, suppliers, and competitors. Overlap of purchasing and sales.

From the perspective of the original manufacturer, Shangluo Electronics and TDK, Sunlord Electronics, Yageo, etc. all have mutual purchasing behaviors. During the reporting period, the total sales amount of Shangluo Electronics to Sunlord Electronics, Yageo and other original suppliers were 47.5009 million yuan, 62.0932 million yuan, 22.3974 million yuan and 25.8338 million yuan respectively, all of which were related products of other brands.

From the perspective of traders, Shangluo electronic traders have relatively large amounts of money from each other. Suzhou Meirili Electronic Technology Co., Ltd. is one of the top five traders and suppliers of Shangluo Electronics. In 2019, Shangluo Electronics' purchasing and sales amounts from it were 17.3303 million yuan and 16.7416 million yuan respectively.

From a customer perspective, Shangluo Electronics’ purchases from customers in 2017 and 2019 were relatively large. During the reporting period, Shangluo Electronics' purchases from customers were RMB 24,667,900, RMB 2,978,200, RMB 25,706,600, and RMB 5,748,400 respectively.

borrowed 16.1366 million yuan from the actual controller and related parties.

Shangluo Electronics stated that the above-mentioned related party funds were borrowed from related parties due to the company’s temporary operating capital turnover needs. As of the end of May 2019, All have been returned. In addition, there are no other fund lending situations.

There were up to 82 related guarantees from 2016 to 2020

On July 18, 2017, Sha Hongzhi signed an "Equity Transfer Agreement" with Shangluo Electronics, and Sha Hongzhi held 65% of the equity of Suzhou Yiyitong (the capital contribution was 3.9 million Yuan) was transferred to the company at a price of 107,100 yuan. This equity transfer was priced based on the net asset value of Suzhou Yiyitong as of May 31, 2017.

As of May 31, 2017, the book net assets of Suzhou Yiyitong were 164,500 yuan (unaudited), and the net assets corresponding to the 65% stake in Suzhou Yitong held by Sha Hongzhi were 106,900 yuan.

Equity is dispersed and the pressure to lift the ban is high

According to Investor Network, Shangluo Electronics made two capital increases in May 2017 and January 2018, issuing a total of 20.02% additional equity and raising 229 million yuan in funds. The shareholding of Sha Hongzhi, the actual controller of Shangluo Electronics, also dropped from 63.60% before May 2017 to 46.95% after January 2018.

Investor Network pointed out that after two capital increases, Shangluo Electronics only raised 229 million yuan in funds, but it introduced nearly 20 shareholders. Among them, Ronglian Venture Capital, which subscribed the most, only subscribed for 30 million yuan of equity. After the issuance, its equity holdings will be diluted to 2.41%. This means that among the investors introduced in the two rounds of capital increase by Shangluo Electronics, no one holds more than 5% of the shares after the issuance. According to regulatory regulations, shareholders with a shareholding ratio of more than 5% need to make an announcement in advance when reducing their holdings.

Investor Network said that in addition to the 17 shareholders introduced through two capital increases in 2017 and 2018, among the shareholders of Shangluo Electronics, only two natural person shareholders, Sha Hongzhi and Xie Li, held more than 5% of the shares after the issuance. They hold a total of 48.42% of the shares of Shangluo Electronics after the issuance. The actual controller's shareholding ratio is low, and there are a large number of financial investors among the company's shareholders. Shangluo Electronics will undoubtedly face huge pressure to reduce its holdings after the initial share ban is lifted.

Zhang Lei and Xie Li transferred company shares to each other many times

In May 2015, Zhang Lei transferred 18.05% of the equity he held in Shangluo Co., Ltd. to Xie Li for free. Since it was a property transfer between the couple, there was no transaction consideration for this equity transfer. .

Xie Li is the founder of the company and subscribed for 400,000 shares from the company at a price of 4 yuan/share in March 2016. Based on tax planning considerations, after Xie Li transfers the issuer's shares to Zhang Lei through the National Equity Transfer System, Zhang Lei can be exempted from personal income tax when making further transfers. Therefore, in July 2016, Xie Li transferred her 400,000 shares in the company to Zhang Lei through the National Stock Transfer System. This share transfer was priced at RMB 4 per share at the price Xie Li subscribed for the issuer's shares in March 2016. No transfer income was generated and no tax payment was involved.

At the beginning of 2017, the company launched its listing plan. Considering that Zhang Lei was busy with his daily work, he was unable to cooperate with the issuer's listing work in a timely and efficient manner, while Xie Li was mainly responsible for connecting with the companies invested by her husband and wife. In order to efficiently cooperate with the issuer's listing During the listing, Zhang Lei transferred his 400,000 shares in the issuer back to Xie Li, and Zhang Lei no longer held shares in the issuer. This share transfer was priced based on Zhang Lei’s original investment cost of 4 yuan per share. No transfer income was generated and no tax payment was involved.

A former employee was involved in large financial transactions between the top five traders and the company's related parties

Qian Siqing was a former employee of Shangluo Electronics. He resigned in July 2015. He owned a shop stall in Shenzhen Huaqiangbei Market and was engaged in the distribution of electronic components. business. At that time, the company cooperated with it to expand its business in Shenzhen Huaqiangbei and selected it to become the company's trader. The types of electronic components sold to it were mainly capacitors, resistors, inductors and discrete devices.

In 2017, Qian Siqing was the second largest trader of Shangluo Electronics, with a sales amount of 21.9231 million yuan, accounting for 6.27% of the trader's revenue, 1.31% of the operating revenue, and a gross profit margin of 5.95%.

Since 2018, the company has adjusted its business development strategy, expanded online transactions, reduced sales in the Shenzhen Huaqiangbei market, and will no longer cooperate with individual traders since January 2018.

It is worth noting that Xu Jing, the spouse of Sha Hongzhi, the actual controller of Shangluo Electronics; Zhou Jiahui, director and deputy general manager of the company; Chen Jie, the supervisor, and others have large financial transactions with Qian Siqing.

On June 28, 2016, Qian Siqing borrowed 2.84 million yuan from Xu Jing, the spouse of the actual controller of Shangluo Electronics, for house purchase and family expenditure needs, and repaid 2.24 million yuan on February 11, 2018. 600,000 yuan was returned on the 26th. Thereafter, there was no further capital exchange between the two parties. In other words, no interest was charged on this loan.

Both sales volume and average price of passive electronic components declined in 2019

Passive electronic components are the main source of income for Shangluo Electronics. During the reporting period, the company's main business income consisted of income from passive electronic components and other electronic components, of which income from passive electronic components accounted for the highest proportion, accounting for 84.58%, 87.39%, 74.18% and 69.68% respectively. During the reporting period of

, the revenue of passive electronic components was 1.417 billion yuan, 2.615 billion yuan, 1.534 billion yuan and 928 million yuan respectively, with a year-on-year increase of 84.50% in 2018 and a year-on-year decrease of 41.33% in 2019. The fluctuations were mainly affected by the revenue from capacitor products. Fluctuation effects.

From 2017 to January to June 2020, Shangluo Electronics’ sales of passive electronic components were 6749.46 million pieces, 677440 million pieces, 593351 million pieces, and 366934 million pieces respectively, with average prices of 21.00 yuan/thousand pieces, respectively. 38.60 yuan/thousand pieces, 25.86 yuan/thousand pieces, 25.29 yuan/thousand pieces. In 2019, the company's sales of passive electronic components dropped by 12.4% year-on-year, and the average sales price dropped by 33% year-on-year.

Business entertainment expenses account for a relatively high proportion

During the reporting period, the total period expenses of Shangluo Electronics were 170 million yuan, 240 million yuan, 190 million yuan and 88.4523 million yuan respectively, accounting for 10.14%, 8.02% and 9.18% of operating income respectively. and 6.64%.

In 2017, 2018, 2019 and January to June 2020, Shangluo Electronics’ sales expenses were 128 million yuan, 154 million yuan, 151 million yuan and 62.2509 million yuan respectively, accounting for 7.61% and 7.61% of the current operating income respectively. 5.13%, 7.29% and 6.64%. During the reporting period, the company's sales expenses mainly consisted of sales staff salaries, warehousing and transportation expenses, business entertainment expenses and travel expenses.

From 2017 to the first half of 2020, Shangluo Electronics’ business entertainment expenses were 22.7277 million yuan, 16.6031 million yuan, 21.8269 million yuan, and 4.9081 million yuan respectively, accounting for 17.81%, 10.81%, 14.47%, and 7.88% of the current operating income respectively. %.

Subsidiaries Shenzhen Shangluo and Tianjin Longhao have been subject to administrative penalties

During the reporting period, Shangluo Electronics' wholly-owned subsidiaries Shenzhen Shangluo and Tianjin Longhao have been subject to administrative penalties.

In May 2018, due to damage to the emergency lighting of Shenzhen Shangluo Electronics, a wholly-owned subsidiary of Shangluo Electronics, the Fire Supervision and Management Brigade of Baoan Branch of the Shenzhen Municipal Public Security Bureau issued an "Administrative Penalty Decision" (Shenzhen Gongbao (Consumption) Penalty Judgment Letter) [2018] No. 89030), Shenzhen Shangluo was fined 5,000 yuan.

In November 2019, because Tianjin Longhao, a wholly-owned subsidiary of Shangluo Electronics, failed to declare personal income tax (wage and salary income) from October 1, 2018 to October 31, 2018, the State Administration of Taxation, Tianjin Port Free Trade Zone Taxation Bureau, second The tax office issued the "Tax Administrative Penalty Decision (Simplified)" (Jin Bonded Er Jian Penalty [2019] No. 1), imposing a fine of 200 yuan on Tianjin Longhao.

In addition, during the reporting period, Shangluo Electronics had multiple sales contract disputes. According to Weighing Finance reports, Shangluo Electronics has been involved in constant disputes over sales contracts. The customers include: Shenzhen Shuangying Weiye Technology Co., Ltd., Shenzhen Shixian Optoelectronics Technology Co., Ltd., Hangzhou Beiying Communication Technology Co., Ltd., and Maanshan Beiying Communications. Technology Co., Ltd., Jiangxi Guanying Electronic Technology Co., Ltd., Shenzhen Daxun Weiye Technology Co., Ltd., and Nantong Tongzhou Electronics Co., Ltd. Sha Hongzhi, the actual controller of Shangluo Electronics, also had an arrears lawsuit against Zhang Chujie, a natural person, arising from the sales contract.