As an intelligent operation and maintenance supplier of industrial equipment, Rong Zhi Rixin has long been more than 60% dependent on the performance of customers in the wind power industry, and its revenue in the second half of the year has been more than 85% due to the seasonal characteristics of orders. At the end of each year, the balance of accounts receivable remained high, even exceeding the current income level for many times.
Subsequently, the company's annual operating cash flow showed a "roller coaster" trend, and the amount was lower than the net profit for a long time. Its early warning risk said: with the continuous expansion of business scale, there may be a short-term liquidity shortage.
Regarding the question raised by the Shanghai Stock Exchange, "Does the cancellation of subsidies in the wind power industry affect the performance of issuers?" Rong Zhi Rixin only explained the impact of the New Deal on the industry in the first round of inquiries.
Under the second round of inquiries from the Shanghai Stock Exchange, the latter mentioned that the income of non-wind power business continued to increase. However, Rong Zhixin admits that the price of the company's wind power products has indeed declined due to policy changes: "If the expected wind power industry orders cannot be obtained in the future or the market competitiveness cannot be maintained, there will be a risk of a decline in the operating performance of the wind power industry."
The selling price of main products plummeted, and the issuer's explanation was vague.
Rong Zhi Rixin was established in Hefei, Anhui Province in 2007. Its main products are industrial equipment condition monitoring and fault diagnosis systems, which are used in wind power, petrochemical, metallurgical and other industries:
According to the form of terminal products, Rong Zhi Rixin's products mainly include wired systems, wireless systems and handheld systems:
Rong Zhi Rixin said that in 20 19, the top ten wind turbine manufacturers with new hoisting capacity in China market were all their customers; Seven of the top petrochemical enterprises 10 are their customers; Nine of the top 10 steel enterprises are their customers.
From the perspective of product categories, the revenue of cable system in the first half of 20 17-2020 is always around 70%.
However, from June to June in 2020, the average price of its handheld system products was almost halved, and the average price of its wired system dropped by more than 20%, even more than 32% compared with the average price of 20 17.
For the specific reasons for the price reduction, I know that the explanation given by Nisshin is rather vague:
From the customer's point of view, as a supplier of equipment from A to B, we know that among the top five customers of Nissin, Xinjiang Goldwind Technology has been the largest customer for three consecutive years. China Petrochemical has been on the list for three consecutive years, with 20 18-20 19 as the second largest customer. The proportion of revenue contributed by the top five customers is more and more concentrated.
Rong Zhixin's procurement mainly focuses on electronic components, computer network equipment, structural parts and auxiliary materials.
According to the company, the above raw materials are well supplied in the market and the market competition is sufficient. Rong Zhi Rixin also chooses suppliers with stable quality, timely delivery and good cooperation to purchase.
In each reporting period, Rong Zhi Rixin's purchases from the top five raw material suppliers accounted for about 30%.
From 20 17 to the first half of 2020, the operating income of Rong Zhi in the new period will be10 million yuan, 65,438+130,000 yuan, 65,438+80 million yuan and 92 million yuan; The net profit attributable to the owners of the parent company is 15 140300 yuan, 1597900 yuan, 3984400 yuan, 1627 1600 yuan respectively; The net profit after non-deduction is 1 1773700 yuan, 102 14600 yuan, 3385200 yuan and 13556800 yuan respectively.
During the period, the company's R&D expenses were RMB 6,543.8+0,835.67 million, RMB 245.68 million, RMB 3,654.38+0,000.32 million and RMB 654.38+0,729.92 million, respectively, accounting for 654.38+0.28% and 2,654.38+0.72% of the revenue.
In the end, Rong Zhi Rixin chose the minimum listing standard of science and technology innovation board:
In this IPO, it is known that Nisshin intends to issue no more than 6,543,803,720 shares, and the number of shares issued accounts for no less than 25% of the total share capital after issuance. The total financing amount is 532.4988 million yuan, which will be invested in the industrialization project of equipment intelligent monitoring system, data center construction project and R&D center construction project.
Operating cash is lower than net profit for a long time. Issuer: I am afraid of short-term lack of money.
After roughly combing the main business, investors' attention will naturally focus on the collection efficiency of Nisshin's major customers.
According to reports, the engineering construction and equipment installation of the company's main customers are mainly concentrated in the second half of the year, especially in the fourth quarter. Therefore, there is a risk of seasonal fluctuation in its operating performance.
In the second half of 20 17-20 19, the income realized by Rong Zhi Rixin accounted for 85.36%, 90.49% and 88.10% respectively; The proportion in the fourth quarter was 66.45%, 78.86% and 75. 17% respectively.
Rong Zhixin suggested that its customers belong to wind power, petrochemical, metallurgical and other industries, and most of them are large enterprises, and the payment approval period is relatively long; At the same time, the sales revenue in the fourth quarter accounted for a relatively high proportion, resulting in a large amount of accounts receivable balance at the end of each period.
From the end of 20 17 to the end of June 2020, the book value of Rong Zhi Rixin's accounts receivable was 92,207,500 yuan,1239,888,500 yuan,149124,400 yuan and13,878,400 yuan respectively.
The balance of accounts receivable increased with the increase of operating income, accounting for 65,438+000.55%, 65,438+023.42%, 94.48% and 65,438+066.95% of the current operating income respectively.
Among comparable companies in the same industry, Rong Zhi Rixin's accounts receivable turnover rate is also obviously backward.
Based on this, the Shanghai Stock Exchange requires the disclosure of "overdue accounts receivable, payment of overdue accounts receivable" and "whether there are serious defects in the relevant provisions of accounts receivable collection's management internal control".
In the reply to the first inquiry letter, the company disclosed that from the end of 20 18 to the end of 2020, the overdue accounts receivable of Rongxin were 66,953,400 yuan, 68,298,200 yuan and 99,527,000 yuan respectively, accounting for 47.96% of accounts receivable and 40 13% of contract assets.
After that, the overdue amounts of accounts receivable in each period of the reporting period were 57,650,300 yuan, 49,439,400 yuan and 65,438.80+003,555.700 yuan respectively, accounting for 86,543.80+065,438+0%, 72.39% and 65.39% respectively.
Based on this, Rong Zhixin pointed out: "The overdue situation of accounts receivable after the period is good."
In addition, since 201965438+1kloc-0/,Rong Zhi rixin has adopted a simplified model to make provision for bad debts of accounts receivable according to the relevant provisions of the Accounting Standards for Enterprises No.22-Recognition and Measurement of Financial Instruments, and measured the provision for losses of accounts receivable according to the estimated amount of credit losses throughout the duration.
Compared with comparable companies in the same industry, there is no significant difference in the proportion of bad debt provision in Rong Zhi Rixin. The company said: "accounts receivable collection's management internal control system is sound and there are no serious deficiencies."
However, the high accounts receivable still have a roller coaster effect on Rong Zhixin's annual operating cash flow.
From 20 17 to the first half of 2020, its net cash flow from operating activities was 16 15000 yuan, -6097500 yuan, 3072300 yuan and-14855800 yuan respectively, which was lower than the net profit for a long time.
In the whole year of 2020, the net cash flow generated by Rong Zhi Rixin's operating activities finally closed at18,973,700 yuan, which was still 5,544,438+0,800 yuan lower than the annual net profit of 74415,600 yuan.
Rong Zhi Rixin said: "With the continuous expansion of business scale, the company's working capital demand is increasing, and the fluctuation of net cash flow generated by the company's operating activities may lead to the risk of short-term shortage of working capital."
After the second round of inquiry, I admit that the performance of the largest business may decline.
On May 2 1 2009, the National Development and Reform Commission (NDRC) issued the Notice on Improving the On-grid Electricity Price Policy of Wind Power (hereinafter referred to as the Notice), which stipulated the latest grid-connected time for onshore wind power and offshore wind power projects to receive subsidies:
Rong Zhixin pointed out that the implementation of the Notice will improve the speed of grid connection of wind power stock projects and have a positive impact on the wind power industry chain; However, with the gradual decline or cancellation of the on-grid tariff subsidies for wind power, the prosperity of the wind power industry will probably decline.
"The company will pay more attention to the time requirement for the implementation of wind power projects of related customers in the wind power industry, and strive to realize grid connection before the time specified in the notice in order to enjoy relevant policy subsidies".
In the second round of inquiries, the Shanghai Stock Exchange pointed out that when the first round of inquiries asked the issuer to disclose "the specific impact of the notice on the business development of the issuer's wind power industry", Rong Zhixin only replied to the impact of the notice on enterprises in the wind power industry, but did not explicitly reply to the impact of the notice on the business development of the issuer's wind power industry.
Therefore, the Shanghai Stock Exchange asked Rong Zhi Rixin to answer the above questions again.
According to the foregoing, heavyweight "players" in the wind power industry such as Xinjiang Goldwind Technology, Sany Heavy Industry, Dongfang Electric, Yangming Intelligent and CRRC have appeared in the top five customers in the new calendar year for many times.
Rong Zhixin pointed out in the second round of inquiry reply that with the gradual decline or cancellation of the on-grid tariff subsidy for wind power, the investment willingness of wind farm investors may decline, which will further affect the prosperity of wind power manufacturers in the middle reaches of the industry and pass it on to the upstream suppliers of wind power components and equipment, which may lead to intensified competition in their wind power products.
In addition, the parity of wind power grid promotes the wind power industry to gradually shift from policy subsidies to technological innovation and cost reduction and efficiency improvement. In this process, in order to ensure its own profitability, the sales price of wind power products in the company's cable system has declined.
According to the disclosure, from 20 17 to 2020, the income of Rongzhixin wind power industry was 66.8573 million yuan, 70.265438+0.06 million yuan, 90.865438+0.00 million yuan,/kloc-0 1.266.5438+0.22.6 respectively.
The company said that the market demand for its wind power business may slow down in the future.
Rong Zhixin believes that the parity of wind power will push the wind power industry from being mainly driven by policy subsidies to being driven by technological innovation and cost reduction and efficiency improvement.
Therefore, in this process, in order to ensure their own profitability, customers in the wind power industry will lead to a decline in the sales price of products in the cable system.
According to the disclosure, from 20 18 to 2020, the sales unit prices of cable systems used by Rong Zhi Rixin in the wind power industry were 25,554.63 yuan/set, 26,665,438 yuan +02.70 yuan/set and 22,269.78 yuan/set, respectively, showing an obvious trend of price reduction.
Finally, Rong Zhixin reminded: "If we can't get the expected orders of the wind power industry or maintain market competitiveness in the future, we will face the risk of a decline in the operating performance of the wind power industry."
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