Xi'an Juguang Technology Co., Ltd. (hereinafter referred to as "Juguang Technology") recently announced an updated prospectus and plans to publicly issue 22.49 million new shares and raise approximately 1 billion yuan.
Red Star Capital Bureau discovered from the prospectus that Hubble Investment, a subsidiary of Huawei, participated in the company's additional issuance in September 2020. Just five months later, Juguang Technology submitted a listing application, or made a "surprise investment" Suspicion.
Juguang Technology, official website
Raised 1 billion, nearly half of which was used to "replenish blood"
Juguang Technology is a company specializing in high-power semiconductors A national high-tech enterprise that develops, produces and sells lasers, laser optical components, photonic application modules and systems. The company takes the lead in undertaking major national science and technology projects such as the National Major Scientific Instruments and Equipment Development Project, and takes the lead in formulating two national standards, "General Specification for Semiconductor Lasers" and "Semiconductor Laser Test Methods". The company has now entered the supply chain of top lithography company ASML (ASML.US) of the Netherlands and chip giant TSMC (TSM.US).
As early as January 2016, Juguang Technology was listed on the New Third Board for trading, but the listing was terminated within two years and has now moved to the Science and Technology Innovation Board. Red Star Capital Bureau noted that of the funds it intends to raise, 244 million yuan will be used for the Dongguan micro-optics and application project (Phase I), 167 million yuan will be used for the laser radar transmission module industrialization project, and 150 million yuan will be used for research and development. Center construction project. The remaining 450 million yuan will be used to supplement working capital, that is, nearly half of the funds raised will be used to "replenish blood," which has also caused concern.
Nearly half of the funds raised by Focuslight Technology were used to supplement working capital
Generally, regulatory authorities support that the funds raised should be used as much as possible for the construction of the company’s main business projects, etc., but do not support the use of large amounts of funds. Replenish working capital. Although a certain proportion of "replenishment" can improve the company's ability to resist risks, an excessively high proportion indicates that the company's capital chain is tight, and may even be suspected of "trapping money." Juguang Technology also explained this: First, future business growth is estimated to require an increase of 387 million yuan in working capital by the end of 2023; second, the planned R&D investment from 2021 to 2023 is 275 million yuan. Therefore, it is reasonable and necessary to raise 450 million yuan this time to supplement working capital.
During the reporting period (2018-1st half of 2021), Juguang Technology’s operating income was 355 million yuan, 335 million yuan, 360 million yuan and 218 million yuan respectively, and the net profit attributable to the parent company during the same period was 18.6661 million yuan yuan, -80.4305 million yuan, 34.87 million yuan and 33.3249 million yuan. From the changes in revenue in recent years, it is found that the company's growth is not outstanding and remains at around 350 million yuan; however, the profit situation continues to improve, and the net profit shows an upward trend year by year.
During the reporting period, the company's R&D expenses were 54.5809 million yuan, 74.8705 million yuan, 69.8971 million yuan and 35.2362 million yuan respectively, accounting for 15.38, 22.35, 19.42 and 16.19 of the operating income respectively. The company's R&D investment maintains a high level, and its R&D expense rate is higher than the average of comparable companies in the same industry. This is mainly because the company focuses on the research and application development of photonic technology, focusing on "generating photons, regulating photons and providing photon technology application solutions". Position product layout.
As of December 31, 2020, Focuslight Technology has 403 authorized patents, including 108 overseas patents in the United States, Europe, Japan, South Korea, etc., 117 domestic invention patents, and 150 utility model patents and 28 design patents, and more than 5 invention patents.
Relying on government subsidies, subsidiaries have "goodwill mines"
Juguang Technology relies heavily on government subsidies and various tax incentives.
The prospectus shows that during the reporting period, the company received government subsidies of 17.1857 million yuan, 15.298 million yuan, 16.9959 million yuan and 11.9452 million yuan respectively, and received more than 60 million yuan in government subsidies in three and a half years. At the same time, the tax benefits during the reporting period were RMB 2.6495 million, RMB 9.9868 million, RMB 5.117 million and RMB 7.9063 million respectively.
During the reporting period, it received more than 60 million yuan in government subsidies
The company stated that there is uncertainty about whether government subsidies can be continuously obtained and maintained at a high level; the tax preferential policies are in line with The provisions of relevant laws and regulations are sustainable.
Focuslight Technology has always adhered to the development concept of international operation. In March 2017, the company acquired German LIMO for 225.5 million yuan, thus acquiring a number of core optical technologies. LIMO, located in Dortmund, Germany, is the world's leading micro-optics supplier. A large number of products are sold to Germany, Japan, South Korea, the United States and other regions. Overseas customers are an important source of revenue and profit for the company. During the reporting period, the company's main business income from overseas income was 214 million yuan, 181 million yuan, 189 million yuan and 91.6051 million yuan respectively, accounting for 61.38, 54.88, 53.19 and 42.51 of the main business income respectively.
The company stated that cross-border operations are greatly affected by the international political environment and trade policies between countries. If there are major changes in the international political environment, economic environment and trade policies in the future, the company's production operations and profitability will be affected. Influence.
Red Star Capital Bureau has noticed that the acquisition of German LIMO by Juguang Technology has formed a high level of goodwill. If the goodwill is impaired, it will have an adverse impact on the performance of Juguang Technology. In fact, the risk of goodwill impairment has already emerged. In 2019, LIMO's optical system business revenue dropped significantly due to the impact of the German economic downturn and the decline in sales revenue to the downstream fiber laser industry. After careful evaluation, Juguang Technology made provision for goodwill impairment of RMB 57.0826 million in 2019.
Today, this "goodwill thunder" has not yet exploded. As of June 2021, the book value of Juguang Technology's goodwill is still 76.5551 million yuan, which is mainly due to German LIMO.
At the end of each reporting period, the book value of the company's inventory was 150 million yuan, 130 million yuan, 141 million yuan and 146 million yuan respectively, accounting for 40.95, 41.90, 28.65 and 29.8 of the current assets at the end of each period respectively. , the absolute amount of inventory is larger and accounts for a higher proportion of current assets. The company's inventory mainly consists of raw materials, work-in-progress, self-made semi-finished products and inventory goods, etc., and there is a certain risk of inventory depreciation.
In addition to the higher book value of inventory, Juguang Technology’s accounts receivable are also increasing. At the end of each reporting period, the company's book balances of accounts receivable were 68.2143 million yuan, 77.1836 million yuan, 80.6887 million yuan and 110 million yuan respectively, showing a year-on-year growth trend. Mainly due to the growth of the company's business scale during the reporting period, the scale of accounts receivable increased accordingly. However, the proportion of accounts receivable with an age of less than 1 year is above 90, indicating that the quality of accounts receivable is good.
Huawei Hubble was accused of "surprise stock purchase"
Before this issuance, Liu Xingsheng directly held 17.72% of the company's shares, and through cooperation with Wang Donghui, Xi'an Ningju, Xi'an Xinju, etc. Signed a concerted action agreement, indirectly controlling the voting rights of 14.27 shares of Juguang Technology, and controlling the voting rights of 31.99 shares of Juguang Technology in total, forming control over Juguang Technology, and becoming the controlling shareholder and actual controller of Juguang Technology.
Liu Xingsheng was born in 1973 and has a Ph.D. from overseas. He once served as a senior research scientist at Corning Corporation in the United States and the process engineering technology director at Ennai Corporation in the United States. From 2007 to 2015, he served as a researcher and Ph.D. at the Xi'an Institute of Optics and Precision Mechanics, Chinese Academy of Sciences. Student tutor, and serves as Chairman and General Manager of Juguang Technology from 2008 to present.
Liu Xingsheng has been engaged in the research of high-power lasers. In 2009, he was selected as a national candidate for the New Century Talents Project.
During its IPO coaching period, Juguang Technology conducted a round of additional share issuance. In September 2020, Hubble Investment, Juhong Investment, Xi'an Ningju and Xi'an Xinju respectively subscribed for the corresponding additional shares of Juguang Technology at a price of 25 yuan/share. Hubble Investment is an investment company under Huawei, mainly engaged in venture capital business. This time, it subscribed for 2 million additional shares issued by Juguang Technology for 50 million yuan.
Huawei Hubble was accused of "unexpected stock purchase"
Xi'an Ningju and Xi'an Xinju are companies actually controlled by Liu Xingsheng and are also their employee shareholding platforms. The shareholders of Juhong Investment are Wang Huangliang and Yan Xiaoming. Yan Xiaoming first joined Juguang Technology as a natural person in August 2019, transferred his shares to Shenzhen Mingrui in March 2020, and then transferred his shares to Shenzhen Mingrui in August 2020. The form of PE institutions returned and indirectly held Juguang Technology. Shenzhen Mingrui also has Wang Huangliang as a shareholder, and the two companies are related.
In contrast, Huawei Hubble’s participation in the additional issuance of shares is more eye-catching. Why does Huawei favor Juguang Technology? Are you interested in the application of its lidar technology in the field of driverless driving? It is worth mentioning that in April this year, Huawei cooperated with Jihu, a brand of BAIC New Energy, to launch the first model "Jihu Alpha S" equipped with Huawei's HI autonomous driving system.
The last round of additional issuance before the listing of Juguang Technology ended, and a listing application was submitted to the Science and Technology Innovation Board just five months later in February 2021. This also allowed Huawei Hubble and Juhong Investment Waiting for shareholders to be suspected of "surprise purchase of shares". For regulators, they will pay special attention to the behavior of IPO companies that buy shares before listing or obtain shares at low prices and obtain huge benefits after listing.
Editor Yu Dongmei
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