Jinlang Technology: Maori Retina Cash Flow Under Super Pressure Before Listing Is Super High

Jinlang Technology: Maori Retina Cash Flow Under Super Pressure Before Listing Is Super High
Sina Finance News On March 8, Ningbo Jinlang New Energy Technology Co., Ltd. (hereinafter referred to as “Jinlang Technology”, code: 300763) first issued a subscription on the Shenzhen Stock Exchange.The company issued a total of 20 million new shares at an issue price of 26.64 yuan / share, issue price-earnings ratio of 19.68 times, single account subscription limit of 20,000 shares.The results of this issuance will be announced in the evening of March 11th, and March 12th will be the payment day.  The revenue suddenly tends to stabilize. The gross profit margin is decreasing year by year. Jinlang Technology was established in 2005 and changed to a joint stock company in 2015. The company’s main research and development, production, sales and service of string inverters for core equipment of distributed photovoltaic power generation systems.The company’s main product is a string inverter. Its main purpose is to convert the electrical energy generated by solar cell modules into stable, AC power that meets the power quality requirements of the power grid.  Judging from the financial data disclosed in the prospectus, the main business of the issuer grew rapidly in 2014-2017 and stabilized in 2018.From 2014 to 2016, the main business growth rates were 115.56%, 150.04% and 61.16%.2017 revenue 8.2.3 billion, soaring 188 every year.17%, meeting expectations.In 2018, this growth rate suddenly slowed down, with local revenue8.$ 3.1 billion, only going up slightly every year.96%.Data source: Wind Sina Finance read the prospectus and found that the main growth of the company’s main business is due to the growth of single-phase string inverters (4G series) and series string inverters.  Beginning in 2017, single-phase string inverters (2G series) have gradually been replaced by new 4G series.Outside of a small supply overseas, there is almost no domestic demand.  In 2016 and 2017, the company’s 2G series revenue was still 1.3.1 billion, 1.2.6 billion, but only 0 remain in 2018.08.6 billion.The corresponding 4G series experienced explosive growth. In 2016, 4G series revenue was only 0.27.2 billion, but 2 in 2017 and 2018 respectively.02 billion and 3.7.1 billion, an increase of more than 20 times.  It is obvious that the unit price of Jinlang technology products continued to increase during the same period.The company’s main products are coaxial string inverters and single-phase string inverters for distributed systems. From 2015 to 2017, the average unit price of the two types of products was from 0.773 yuan / W is about 0.402 yuan / W, a decrease of 48%.  The decline in prices has caused the company’s gross profit margin to continue to decline.From 2015 to 2017, the company’s comprehensive gross profit margins were 39.18%, 35.35% and 32.82%.The overall gross profit margin period decreased by 6.36 averages.  The increase in the amount of receivable and payable cash flow was slightly tight. With the rapid growth of operating income, the company’s receivables experienced a 上海夜网论坛 sharp expansion.The ending balances of the company’s accounts receivable were 2016, 2017 and 2018, respectively.8.7 billion, 2.1.5 billion and 2.5.9 billion yuan, accounting for 30% of current revenue respectively.41%, 26.16% and 31.16%.  The company stated in the prospectus that although the company has formulated and strictly implemented relevant sales policies and credit policies, if there is a significant adverse impact on the downstream industry in the future, which will cause the financial situation of downstream customers to deteriorate, the company will face a certain risk of loss of bad debts,The company’s financial position has a significant adverse effect.  Overall, the company’s cash flow pressure is considerable.Beneficially, the company’s accounts payable increased simultaneously. In 2016, 2017 and 2018, the 合肥夜网 company’s accounts payable were 0.78 billion, 2.22 billion and 2.7.1 billion, while the company’s pre-received funds showed a significant increase, and the revenue in 2017 was 0.1.8 billion, but only 0 in 2018.66.8 billion.The above funds account for more than 90% of the company’s current debt and are the main source of liquid resistance.  At the same time, the cash flow generated by the company’s operations declined slightly in 2018, and the absolute value was small, and there was a confrontational gap between it and the payable.In 2016, 2017 and 2018, the company’s net cash inflow from operating activities was 0.3.3 billion yuan, 1.4.9 billion and 1.07 trillion, the merged company gradually carried out about 0 at the same time.500 million US dollars in fixed assets investment, so in the above three fiscal years, the actual amount of cash flowing into the company’s account is not much.Behind the company’s profit growth, the capital chain has always been tense, and the ability to self-hematopoiesis is slightly lacking.  In fact, the company’s cash flow pressure can be seen from the use of the company’s raised funds.The net proceeds from this initial offering are 47,269.720,000 yuan, of which 142.04 million yuan is used to supplement working capital, accounting for up to 30%.47%.  The highly competitive product in the industry has a single hidden risk. The main business of Jinlang Technology is the research and development, production and sales of decentralized string inverters. Such products account for more than 96% of the company’s revenue. Once the industry changes, it mayChanges in the company’s operations bring potential impact.The company’s prospectus provided a reminder-“In the company’s single product category, in the future, due to intensified competition in the photovoltaic inverter industry, lower product prices or lower demand in the downstream industry, the company’s inverter sales will be significantly reduced, thus affecting the company’sOperating results have an adverse effect.”In fact, the sharp increase in the company’s revenue and accounts receivable and the reason for the tilt in gross profit are positively related.Because the company’s products are single and the inverter production industry is a fully competitive industry, the company must make appropriate sacrifice in price when opening up domestic and foreign markets. This is the core reason for the company’s “increase in volume and price”.  According to the prospectus, as market competition continues to intensify, if the company wants to ensure rapid sales growth and increase market share, it needs to continuously develop high value-added products, improve product quality and cost-effectiveness, and enhance market development and ability to serve customers.  In this case, the company’s R & D expenses account for a high proportion of management expenses, and they are growing rapidly.In 2016, 2017 and 2018, the R & D expenses were 1045.820,000 yuan, 3103.170,000 yuan and 3037.380,000 yuan.The average proportion of management expenses is 43.33%.The growth rates in 2017, 2018 and 2016 were as high as 196.72%, 190.43%, significantly faster than revenue growth.  The rapid development of short-term accumulated photovoltaic business, the inverter products as the core equipment of photovoltaic power generation systems have grown rapidly, and emerging photovoltaic inverter manufacturers have emerged, mainly including Huawei, Sunshine Power, TBEA Xi’an Electric, Shenzhen BranchShida, Easy and other companies.The market is fiercely competitive, and the technical requirements of manufacturers are becoming higher and higher.  With the exception of Huawei, the other companies have been listed on A shares, and their first-mover advantage is obvious. In the future, the company may face tremendous competitive pressure.  The industry was greatly affected by the policy. Before the listing, it was found that the super high transfer rate was one of the emerging industries supported by its establishment. The photovoltaic industry was significantly affected by the policy. Under the control of the policy, the internal fission rate of the industry was worrying.One brother “Wuxi Suntech Solar Power Co., Ltd.” went bankrupt and reorganized in 2013, which cast a huge shadow on the photovoltaic industry.  Since then, the photovoltaic industry has blocked a period of low tide.Entering 2017, the photovoltaic industry gradually recovered, and also in this year, Jinlang Technology’s revenue quickly reached a new level.In 2019, the state adjusted the subsidy policy. On January 9th, it issued the “Notice on Actively Promoting Wind Power and Photovoltaic Power Generation without Subsidization and Parity Access to the Internet”, and proposed relevant requirements and related support policies for advancing wind power and photovoltaic power generation without subsidy and parity.Measures to promote the development of renewable energy sources and improve the market competitiveness of wind power and photovoltaic power generation.  Similar to the new energy automobile industry, the photovoltaic industry and policies are often “successful but also defeated.”Therefore, the policy risk is an investment nightmare that cannot be bypassed. The company also stated in the prospectus that if there is a major adjustment in the government’s policy to encourage the development of the photovoltaic industry, such as increase, decrease or cancellation, the decline in grid-connected electricity prices will exceed the cost of photovoltaic power generation.The rate of decline will adversely affect the development of the entire industry, which will adversely affect the company’s performance.  Like most new shares, Jinlang Technology also made a large amount of surprise dividends before listing and carried out a super high transfer.Although for A-share listed companies, surprise dividend distribution before IPO is “conventional operation”, but Jinlang Technology’s dividend timing is obviously contrary to financial common sense, which is quite suspicious.  In 2014 and 2015, the company did not make profit distribution, nor did it transfer capital reserve to share capital.  On March 30, 2017, based on the original total share capital of 10,774,615 shares, the company transferred 45 shares for every 10 shares to all shareholders.6864 shares, sent 7.42 yuan in cash, total dividends 799.480,000 yuan.On September 30, 2017, the company once again distributed 15 million dividends to all shareholders, equivalent to 2 for every 10 shares.50 RMB.  In terms of common sense, 2017 was the year of the company’s business explosion. It was a good time for the company to catch up and expand its operations. In the same period, the company’s cash flow was quite under pressure, and it was time to reinvest profits.The company chose a large dividend, instead it will raise nearly one.500 million euros to supplement the working capital.Between this move, I don’t know what the new shareholders think!  According to the prospectus, the actual controllers of Jinlang Technology are Wang Yiming, Wang Junshi and Lin Yibei, of which Wang Junshi and Lin Yibei are the parents of Wang Yiming.The three persons directly hold the company38.42%, 11.69% and 16.71% of the shares.  In addition, Wang Yiming and Wang Junshi each held Jucai Caiju (Employee Shareholding Plan Company) 56.1% and 40% equity, Jucai Caiju holds the company 12.53% equity.The three held a total of 79 listed companies.For 35% of the shares, two dividends totaled 1,824.640,000 yuan is undoubtedly the biggest beneficiary.