Shenzhen Business Daily · Reading Client Reporter Liang Jiatong
The performance of Bixing IOT, a company on the Science and Technology Innovation Board, plummeted in the first year of listing, deducting non-net profit for four consecutive quarters, a number of executives were interviewed by regulators, and two sponsors of Huaying Securities were also warned.
On the evening of October 11, Bixing IOT (688671) announced that due to insufficient disclosure of relevant information and failure to disclose major contract matters in a timely manner, the company received a decision on administrative supervision measures issued by the Shenzhen Securities Regulatory Bureau, and decided to issue a warning letter to the company, and took regulatory measures against Chairman He Yuanping, then General Manager Zhu Ying, Chief Financial Officer Wang Jin, and Secretary of the Board of Directors Pan Haijiao.
On the same day, another fine pointed out that Li Jixiu and Li Likun, as the sponsor representatives of the initial listing application project designated by Huaying Securities, had failed to perform their sponsor duties and were given regulatory warnings by the Shanghai Stock Exchange.
According to the company's official website, Bixing IOT Technology (Shenzhen) Co., Ltd. is an innovative high-tech listed enterprise listed on the Shanghai Science and Technology Innovation Board. The company focuses on the independent technology development in the field of Internet of Things perception layer (scientific instruments and perception equipment) and big data, and its business involves: software and hardware development, production and technical services in many fields such as digital ecology, digital water conservancy, digital agriculture, urban digital management, public safety big data, etc.
The performance of the first year of listing "changed face"
Deduction of non-net profit for four consecutive quarters
According to the warning letter, the company has preliminarily formed semi-annual consolidated financial statements on July 11, 2023, but when disclosing the "Letter of Intent for Initial Public Offering of Shares and Listing on the Science and Technology Innovation Board" on July 21, 2023 and the "Prospectus for Initial Public Offering of Shares and Listing on the Science and Technology Innovation Board" on August 4, 2023, it did not update the semi-annual performance forecast data or make sufficient risk warnings for the difference between the actual performance and the original forecast.
The reporter noticed that Bixing IOT was listed on August 9, 2023, and its performance "changed face" just 20 days after landing on the Science and Technology Innovation Board, not only the performance in the first half of the year was significantly lower than its expected performance in the prospectus, but also a loss in the second half of the year, and the loss trend continued in the first half of 2024, with a net loss of more than 6 million yuan attributable to the parent company, and a profit of 23.907 million yuan in the same period last year.
As early as during the review of the IPO of Bixing IoT, the regulator required the company to explain whether the revenue growth was sustainable. The company replied at the time that as of the end of November 2022, the company's total business orders in hand amounted to 957 million yuan, and the company's revenue growth trend was sustainable.
Bixing IOT also disclosed in the prospectus released on August 4, 2023 that it is expected to achieve operating income of 230 million yuan to 240 million yuan from January to June 2023, an increase of 1.91% to 6.34% year-on-year; The attributable net profit is expected to be 31.4404 million yuan to 34.4733 million yuan, an increase of 40.09% to 53.60% year-on-year.
However, more than 20 days later, the company handed over a "shocking" half-year report card, with revenue changing from a pre-increase to a decline, and the net profit attributable to the parent company was about 10 million yuan less than expected. From January to June 2023, the company only achieved operating income of 168 million yuan, a year-on-year decrease of 25.71%; The attributable net profit was 23.907 million yuan, an increase of 6.52% year-on-year.
As of the first half of 2024, Bixing IOT's non-net profit has been losing money for four consecutive quarters. In the third quarter and fourth quarter of 2023, the company's non-net profit was -9.272 million yuan and -692,500 yuan, respectively, and in the first quarter and second quarter of 2024, the company's non-net profit was -4.0128 million yuan and -6.966 million yuan, respectively.
In response to the reasons for the sharp decline in performance in the first half of 2024, the company said that due to the overall decline in market demand in the first half of the smart environment monitoring industry, the industry's technical products are also in the transition period of upgrading, and the large construction projects for smart environmental monitoring products are relatively reduced.
The conclusion of material contracts was not disclosed in a timely manner
The first order of computing power business "out of the situation"
In addition, Bixing IOT also has problems such as failing to disclose the conclusion of major contracts in a timely manner. The warning letter pointed out that in October and November 2023, the company signed GPU hardware equipment procurement contracts to meet the information disclosure standards, but the company failed to fulfill its information disclosure obligations in a timely manner, violating the relevant provisions of Article 22, Paragraph 2, Item 1 of the Administrative Measures for Information Disclosure of Listed Companies.
It is worth mentioning that in the case of poor performance of the main business, Bixing IOT decided to cross-border computing power, but there was a problem in the first order, or it was a major contract mentioned in the warning letter. According to the recently disclosed litigation announcement, in October 2023, Bixing IOT signed a "Memorandum of Cooperation" with China Mobile Shenzhen Branch and Hengwei Intelligence, a subsidiary of Hengwei Technology (603496), agreeing that Bixing IOT will purchase GPU hardware equipment from Hengwei Intelligence and provide cloud computing GPU computing power services for designated users of China Mobile Shenzhen Branch.
In January 2024, due to the impact of relevant policies, Hengwei Intelligent reported that the actual delivery cycle and model of the goods should be adjusted, and the company signed 4 "Contract Change Agreements" with Hengwei Intelligence, changing the original server model and server delivery date. Based on the aforesaid "Sales Contract" and "Contract Modification Agreement", the company paid a total deposit of 213 million yuan to Hengwei Intelligence.
Later, because Hengwei Intelligence was still unable to deliver the goods on time, Bixing IOT began to negotiate with Hengwei Intelligence to terminate the contract and refund the advance payment. As of September 3, 2024, there is still a deposit of 53.325 million yuan that has not been refunded after repeated reminders by the company. The company filed a civil lawsuit with the court, and the case has been accepted and has not yet been heard.
fell to 50% of the issue price
Shareholders dumped a large shareholding reduction plan
In the secondary market, Bixing IOT rose more than 270% on the first day of listing, with the highest price reported at 179.00 yuan / share, and more than a year later, Bixing IOT's share price fell to 50% of the issue price. As of the close of trading on October 11, Bixing IOT closed down 5.47% at 18.16 yuan per share, with the latest market value of 1.426 billion yuan.
On October 8, Bixing IOT disclosed that the company's third largest shareholder, Fengtu Huihui, plans to reduce its holdings of the company's shares by a total of no more than 2,355,600 shares, no more than 3% of the company's total share capital. As of the disclosure date of this announcement, Fengtu Huihui held 5,888,900 shares of the company, accounting for 7.50% of the company's total shares.
Among them, it is planned to reduce its holdings of no more than 785189 shares through centralized bidding and no more than 1570378 shares through block trading, and the reduction period is within 3 months from the date of 15 trading days from the date of the announcement of the shareholding reduction plan, that is, from October 30, 2024 to January 29, 2025.