What happened to the IPO of Changzhou Changqing Technology Co., Ltd. (hereinafter referred to as "Evergreen Technology")? Since January 6, the official website of the China Securities Regulatory Commission disclosed the company's initial public offering prospectus (filing draft), and its IPO materials were formally accepted, and as of April 17, it has not yet attended the meeting. After investigation and research, it was found that there were still many doubts in the IPO prospectus of Evergreen Technology, and sent a letter of verification to the company, but it has not received any reply from the company so far.
Why does Evergreen Technology ignore the market's doubts? Can it be successfully listed?
It is difficult to bear the rise in raw material prices
According to public information, Evergreen Technology is a high-tech enterprise based on sandwich composite materials and realizes product applications in the two major fields of rail transit and building decoration. The company's business is mainly rail transit business and building decoration business, in the rail transit business, the company provides rail transit vehicle interior decoration products, maintenance business and spare parts and on-board passenger information system; In the architectural decoration business, the company provides interior and exterior decoration products for buildings.
Evergreen Technology purchases hundreds of raw materials, the company's rail vehicle interior products, building decoration products production of the main raw materials include aluminum (aluminum plate, aluminum honeycomb, aluminum profiles, etc.), steel (stainless steel, galvanized sheet, carbon steel, etc.) and other metal materials and rubber, stone and other non-metallic materials. The main raw materials required for the production of the company's on-board passenger information system include display screens. In each period of the reporting period, the proportion of the company's main raw material procurement to the company's total raw material procurement in the current period was 67.19%, 58.93%, 58.70% and 64.58%, respectively.
It is worth noting that although the main raw materials purchased by the company are more competitive in the market, the purchase price has risen rapidly with the market price recently. If the price of raw materials fluctuates greatly upwards, the company will face a significant increase in procurement costs
Cost pressures, which in turn squeeze the company's profit margins.
In addition, part of the company's product demand comes from Europe, North America and other countries and regions. In each period of the reporting period, the proportion of the company's overseas income to the main business income of the year was 23.41%, 24.20%, 17.90% and 21.28%, respectively. In the context of the current Sino-US trade friction, if international trade protectionism continues to rise, countries follow up to take policy measures such as raising tariffs, international trade frictions may continue to escalate, and the company's products have the risk of being levied additional taxes, which will affect the sales of the company's products in the international market.
Customers are concentrated and accounts receivable recovery is difficult
The rail transit vehicle interior products and on-board passenger information system produced by Evergreen Technology are supporting products for rail transit vehicles, and are upstream enterprises in the rail transit vehicle manufacturing industry. According to the disclosure, CRRC's subordinate vehicle manufacturing enterprises occupy an important position in the company's top five customers. According to the statistics of the same control caliber, the company's sales revenue of CRRC in each period of the reporting period accounted for 37.07%, 46.96%, 55.11% and 45.48% of the operating income, respectively.
CRRC has a dominant position in the field of domestic rail transit vehicle manufacturing, but its subsidiaries Changchun Bus, Qingdao Sifang, Nanjing Puzhen and other subsidiaries have independently selected suppliers, and independently signed procurement contracts with suppliers and settled payments. If there is a material adverse change in CRRC's future operations, the number of orders for suppliers will decrease, which may adversely affect the company's operating results.
According to the prospectus, at the end of each reporting period, the book value of Evergreen Technology's accounts receivable was 154.3412 million yuan, 173.3684 million yuan, 213.8814 million yuan and 200.8972 million yuan, accounting for 37.83%, 36.31%, 43.40% and 42.27% of the current assets, respectively. Affected by the characteristics of the industry and the customer settlement model, the book value of the company's accounts receivable at the end of the period is large.
Evergreen Technology has made a corresponding bad debt provision for the receivables of downstream customers, but does not rule out that due to the fierce competition in the downstream industry of the company's products in the future, the downstream customers will have difficulties in collecting payments and other unfavorable events, which will lead to the company facing the risk of bad debts due to the inability to recover accounts receivable in time, and adversely affect the efficiency of capital use and operating performance
Family-controlled executives are at risk
As of the date of signing of this prospectus, Zhou Yinmei, Hu Jinli and Zhou Jianxin collectively hold 98.95% of the equity of Evergreen Investment, which holds 40.80% of the shares of Evergreen Technology; Zhou Jianxin holds 100.00% of the equity of Aiwei Holdings, which holds 13.64% of the shares of Evergreen Technology. Zhou Yinmei, Hu Jinli and Zhou Jianxin collectively control 54.44% of the voting rights of the company and are the actual controllers of the company. Zhou Yinmei and Hu Jinli are mother-daughter relationships; Zhou Jianxin and Zhou Yinmei are brothers and sisters. In addition, Zhou Yinmei, Hu Jinli and Zhou Jianxin have signed the Concerted Action Agreement as concerted action personnel.
Market participants believe that for a long time, equity concentration and "one share dominance" have been regarded as stumbling blocks to improve the governance structure of listed companies. Especially in private enterprises, if the actual controller of the company is a natural person or family, the weakness of the corporate governance structure will be more prominent. Family-owned enterprises have drawbacks in optimizing the allocation of human resources and establishing a reasonable talent structure. Family members can easily influence major decisions of the company by controlling the board of directors, potentially to the detriment of other minority shareholders.
According to Tianyan, Zhou Yinmei, chairman of Evergreen Technology, currently has 18 positions, serving as 2 shareholders, 16 as executives, and 9 actual control. In particular, Zhou Yinmei has 9 own risks, as many as 282 peripheral risks, 1 historical risk, and 28 early warning reminders.
In terms of its own risks, it was sued in Changzhou Changqing Industrial Investment Group Co., Ltd. for a dispute over the right of recourse; Information on the case filed by the indicted. In terms of high-risk information, Changzhou Changqing Industrial Investment Group Co., Ltd., of which it is the legal representative, was once enforced by the court for failing to perform its legal obligations on time; Suzhou Changwuqing New Material Technology Co., Ltd., as the legal representative, carried out a simple cancellation; Changchun Changqing Transportation Technology Co., Ltd., which serves as the legal representative, has cancellation filing information, and Changzhou Changqing Yilu Electronic And Electrical Appliance Co., Ltd., which serves as the legal representative, has cancellation filing information; Changzhou Yiqi Jewelry Co., Ltd., which is the legal representative, has liquidation information, Changzhou Lucky High Performance Materials Co., Ltd., which is an executive, has liquidation information, Changzhou Changqing New Energy Engineering Co., Ltd., which is an executive, has liquidation information, Anhui Changqing Super Light Rail Co., Ltd., which is the legal representative, has liquidation information, and Shanghai Qingwu Science and Technology Development Co., Ltd., which is the legal representative, has liquidation information.
In terms of litigation, Jiangsu Changqing Aderly Decorative Materials Co., Ltd., of which it is the legal representative, has been sued for a dispute over the sale and purchase contract; Changzhou Changqing Technology Co., Ltd., as the legal representative, was sued for a dispute over a sale and purchase contract; Changzhou Changqing Technology Co., Ltd., as the legal representative, was sued for a dispute over a construction contract for a construction project; Changzhou Changqing Technology Co., Ltd., as the legal representative, has been sued for infringement of computer software copyright disputes, has been sued for contract disputes, and has been sued for contract disputes; Changzhou Minsheng Guarantee Co., Ltd., as a shareholder, has been sued for a dispute over the confirmation of the validity of the contract, a dispute over the right of recourse, and a dispute over a financial loan contract.
Evergreen Technology is trapped inside and outside the operation, and the family holding executives are risk-ridden, and involve many lawsuits, will the interests of small and medium-sized investors be damaged? Will there be any transfer of benefits?
![Which school is best for basic medicine? How about Huazhong University of Science and Technology?[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)