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Performance is down! There is another IPO termination.
Source: China Fund Daily
Nan Shen, a reporter from China Fund News.
IPO reported high performance growth, as the audit process to advance the performance began to be unbearable, and the longer the battle line, the more depressed the performance, the latest case of this kind of situation-- excellent new talent from Jiangmen, Guangdong.
On April 19, the Shenzhen Stock Exchange announced that because Guangdong Youju Advanced New Materials Co., Ltd. (referred to as "Youjuxincai") and sponsor Haitong Securities withdrew its application for listing, in accordance with Article 62 of the rules for the examination and approval of Stock issuance and listing on the Shenzhen Stock Exchange, the Shenzhen Stock Exchange decided to terminate the examination of its issuance and listing.
Youju Xincai's application for listing was accepted in June 2022, when the company's prospectus disclosed the results from 2019 to 2021, showing that revenue increased from 1.Crashbandicootevolution.15 billion yuan soared to 3.CrashbandicootevolutionThe net profit soared from 12.06 million yuan to 57.21 million yuan. Since then, the company has updated six editions of the prospectus.
In 2022, the company began to slow down with revenue and net profit of 411 million yuan and 91.92 million yuan respectively. In 2023, the financial data of Youju Xincai is worse than that of the first period. the company's operating income and net profit fell by 7% and 2% respectively in the first half of 2023, and by 13% and 16% respectively for the whole of 2023.
In the third round of inquiries, the Shenzhen Stock Exchange focused on the post-period performance of the company from a high increase to a rapid decline, requiring an analysis of whether future income will continue to decline, whether it has growth, and whether it continues to meet the requirements of gem positioning.
Performance has gone from high to double-digit decline
The main business of Youju new materials is the R & D, production and sales of special engineering plastics poly (aryl ether sulfone) and upstream key raw materials. In the prospectus, the company said that poly (aryl ether sulfone) is a kind of transparent special engineering plastics that meet the requirements of food hygiene and safety, commonly known as "golden plastic", including poly (phenylene sulfone) (PPSU), polyethersulfone (PSU) and polyethersulfone (PES). It is a new material at the top of the polymer materials industry.
Matching the description of the company's business in the prospectus, the company's performance is also very beautiful. At the time of its first declaration, the company presented financial data for the three years from 2019 to 2021, in which operating income was 115 million yuan, 245 million yuan and 333 million yuan respectively, nearly tripling in two years, and net profit was 12.06 million yuan, 20.46 million yuan and 57.21 million yuan respectively, a nearly four-fold increase in two years.
However, the company's revenue and net profit growth began to decline as soon as 2022 entered, although the absolute value is still not low. Of this total, the company's operating income was 411 million yuan, an increase of about 23% over the same period last year, and net profit was 91.92 million yuan, an increase of about 60% over the same period last year.
As the audit process lengthened, the company began to update its 2023 results. Revenue and net profit declined in the first half of 2023, when they fell in single digits. In 2024, the company updated its full-year data for 2023 and began to show more than double-digit declines.
Among them, the company's operating income fell by 13%, net profit and deducted non-net profit fell by 16% and 25% respectively, and operating net cash flow fell by 67%.
In the third round of inquiries conducted by the supervision of the company, the focus is on the post-declaration performance and the source of performance.
Will income continue to decline in the future?
When the third round of inquiries on the Shenzhen Stock Exchange was issued, the company's financial data had just been updated to the first half of 2023.
At that time, the application materials and the previous round of audit inquiries showed that from January to June 2023, the company's main business revenue decreased by 9.6081 million yuan, or 5.45%, compared with the same period in 2022. The company's reviewed operating income fell 14.79% from January to September 2023 compared with the same period last year, and its net profit decreased by 27%. The company explained that the decline in operating revenue since 2023 is mainly due to the decline in bisphenol S sales and unit price caused by weak demand in the downstream thermal paper industry and intensified market competition.
From January to June in 2023, the revenue of bisphenol S, one of the company's main products, decreased by 64.98% compared with the same period in 2022, gross profit margin decreased to 31.13% from 48.51% in 2022, and capacity utilization decreased to 60.67% from 93% in 2022. Since 2022, the unit price of bisphenol S has continued to decline. Aolunda, a domestic bisphenol S manufacturer, nearly stopped production after April 2021, and gradually resumed production in the second quarter of 2022.
From January to June in 2023, the net cash flow generated by the company's operating activities was 9.3829 million yuan, which was lower than the net profit and lower than the level of the same period in 2022. At the end of June 2023, the current ratio and quick ratio of the company decreased significantly compared with the end of 2022. The net cash flow generated by the company's operating activities from January to September in 2023 decreased by 82.9% compared with the same period last year.
In this case, the Shenzhen Stock Exchange requires the company to list quarterly the market unit price of bisphenol S products since 2022, the company's sales unit price, the sales to major customers, the proportion of market share, the change of gross profit margin, etc. The analysis shows the reasons for the sharp decline after a substantial increase in bisphenol S during the reporting period, and analyzes in detail whether the relevant influencing factors have been eliminated in the light of the latest situation such as market demand and competitors' resumption of production. Whether there is a risk of further decline in the company's performance.
In addition, the company is required to combine the changes in the signing cycle of orders with customers, changes in customer demand and confirmation of interviews since 2023, orders on hand at the end of the period, future industry development trends and performance forecasts, analysis shows whether future revenue will continue to decline, whether it has growth, and whether it continues to meet the positioning requirements of the gem.
Finally, the regulatory requirements, combined with the changes in the company's operating receivables, operational payables and asset-liability structure, analyze and explain the reasons for the decline in the net cash flow generated by operating activities since 2023, and whether the sales rebate slows down. Whether the pressure of cash flow and operating risk has further increased.
Sales to major customers "go against the trend"
Application materials and audit inquiries show that in each period of the reporting period, the company's sales to traders accounted for 23.49%, 30.34%, 34.65% and 41.02%, respectively, and the final inventory of traders in each period accounted for 1.65%, 3.86%, 9% and 17.97% of their sales, respectively, which increased year by year. From January to June 2023, the proportion of domestic sales income of polyaryl ether sulfone products traders increased from 59.11% to 78.78%.
The company's main customer Jiangmen Strontium Source sales are mainly used in the United States HVAC building materials, water treatment field. From January to June in 2023, the company's product sales in the field of HVAC building materials declined, but the company's revenue from Jiangmen Strontium Source increased year on year.
In addition, two new customers were added to the company's top five customers from January to June 2023. The purchase volume of Dongguan Hongwen Plasticizing Co., Ltd., a trader, increased sharply from 8.317 million yuan in 2022 to 13.5346 million yuan in January-June 2023, but the sales revenue of the company's poly (aryl ether sulfone) products used in machinery and electronics fell 13.37%. The other is Hunan ao Wei membrane Technology Co., Ltd., a water treatment membrane manufacturer. In 2022, the company began mass production and sales of membrane-grade PSU materials. The company established a partnership with the company that year, and its procurement volume increased rapidly.
For this reason, the Shenzhen Stock Exchange first requires the company to list the total number of customers and the distribution of sales amount in each period of the reporting period, distinguish between direct customers, trader customers and different sales areas, list the number of customers and the distribution of sales amount, and analyze the reasons for the change. Combined with the above situation, this paper analyzes and explains the reasons why the proportion of customer income of traders is increasing year by year, the proportion of inventory at the end of the period is increasing year by year, whether the company's sales income to traders is true, and whether there is a situation of pressing the goods to traders.
Secondly, the Shenzhen Stock Exchange requires to explain whether changes in the market environment in the field of HVAC building materials have led to the deterioration of the business conditions of the company's main customers, whether the cooperation between the company and the main customers of HVAC building materials is stable, and whether there is a risk of further decline in revenue and gross profit margin; in the case of a substantial decline in sales revenue in the field of HVAC building materials, the reason and rationality for the company to achieve growth in revenue from Jiangmen Strontium Source.
Finally, the supervision requires the company to explain the reasons for the substantial increase in sales to Dongguan Hongwen plasticizing Co., Ltd. since 2023, the basic situation of Dongguan Hongwen plasticizing Co., Ltd., and the proportion of purchasing from the company to its similar purchases. whether there is a financial relationship between the company's related party and the company During the reporting period, whether the procurement cycle of Dongguan Hongwen Plasticizing Co., Ltd. has changed, whether the inventory at the end of each period, and whether to achieve sales to end customers.
Hanyu Group "low price" shares?
According to the prospectus, the second largest shareholder of Youjuxincai is the listed company Hanyu Group, and the relevant situation has also been questioned by the regulatory focus.
According to the application materials and audit inquiries, Hanyu Group invested 5.25 yuan per registered capital in March 2016. Jiangjin Investment invested 26.6 yuan per registered capital in January 2017. the company's net profits in 2015 and 2016 were 897400 yuan (unaudited) and 686600 yuan (unaudited) respectively.
For this reason, the Shenzhen Stock Exchange requires the company to explain why the profit level in 2015 is higher than that in 2016, and the reason and rationality why the 2016 purchase price of Hanyu Group is significantly lower than that of Jiangjin Investment in 2017, and further demonstrates the fairness of the purchase price of Hanyu Group. Whether Hanyu Group provides the company with customers, suppliers, technology, personnel, factories or other types of resources, and whether there are other interest arrangements Whether it constitutes share-based payment, simulate and calculate the impact of share-based payment on the undistributed profits of the company at the beginning of the reporting period.
In fact, during the reporting period, the company sold general engineering plastics to Hanyu Group with an amount of 3.9424 million yuan, 7.3081 million yuan, 9.2923 million yuan and 2.8085 million yuan respectively. The capacity utilization rate of general engineering plastics in 2020 and 2021 was 15.75% and 15.25% respectively. Part of the modified PA was outsourced, and some of the modified PA and modified PP were sold in trade.
The company also leases two properties of Hanyu Group as production plant and dormitory, and the lessor Hanyu Group has not yet obtained the fixed property right certificate of the relevant real estate.
The Shenzhen Stock Exchange requested to explain the background of selling general engineering plastics to Hanyu Group, whether to carry out general engineering plastics business for Hanyu Group alone, the proportion of the sales revenue to Hanyu Group in the company's general engineering plastics revenue, the proportion to the procurement of similar products of Hanyu Group, and the reason and rationality for the fluctuation of Hanyu Group's sales revenue.
From the reply to the inquiry, the company also has capital exchanges with Hanyu Group and related personnel. In order to repay the loan to Hanyu Group, in 2019, the company borrowed 7.5 million yuan from Shi Huashan, the actual controller of Hanyu Group, and calculated interest at an annual interest rate of 8%.
In addition, Ma Juntao, the secretary of the company's board of directors, was actually the secretary of Hanyu Group.
According to the reply to the inquiry, Ma Juntao worked in Hanyu Group from June 2008 to July 2019 and served as manager of R & D, manager of purchasing department, deputy general manager and secretary of the board of directors. Ma Juntao left as deputy general manager and secretary of the board of directors of Hanyu Group in July 2019 and joined the company. He has served as secretary to the board of directors, secretary to the board of directors and deputy general manager since July 2019.
After Ma Juntao joined the company, he indirectly held 0.0457% of the company's shares through Zhuhai Naxian, the company's employee shareholding platform, and directly held 0.887% of the company's shares through individual capital increases in November 2020.