Hengye Microcrystal IPO: May whitewash statements and arrogant attitude

Multiple data anomalies or difficult to market

Shanghai Hengye Microcrystalline Materials Technology Co., Ltd. (hereinafter referred to as the "issuer" or "Hengye Microcrystalline") was established on August 23, 2000, mainly engaged in the research and development, production and sales of molecular sieve-related products. It has made certain achievements in molecular sieve related fields. On December 20, 2022, it submitted a listing application to the Shenzhen Stock Exchange GEM, and raised 0.8 billion yuan from the GEM in advance for its new molecular sieve expansion project.

according to the description of judgment no 8364 of Shanghai 0101 and the beginning of the Republic of China (2016), Dahua accounting firm (special general partnership) (hereinafter referred to as "Dahua") took the predecessor of the issuer, Shanghai hengye molecular sieve co., ltd. (hereinafter referred to as "the issuer") to court in 2016.

however, in Dahua's performance of relevant obligations according to the contract, it was found that the issuer had made up its income. in 2013, the issuer made up its income to kunshan jincheng gas equipment co., ltd. of 7.0427 million yuan (including tax amount of 8.24 million yuan). the issuer also admitted that the fictitious income to Sichuan tianyi technology co., ltd. of 320000 yuan (including tax amount of 374400 yuan). Dahua asked the issuer to adjust the statements for the relevant inflated periods, but the issuer held different opinions and insisted on the post-period return accounting treatment for fictitious income, involving the issuance of red-ink invoices for output tax in 2015, and refused to adjust the financial statements. Dahua had no choice but to terminate the relevant business.

However, the issuer did not realize that it was wrong to inflate revenue and instead refused to pay Dahua's audit fees. The reason for the issuer's defense is also very funny. It thinks that if Dahua finds that the defendant's accounting treatment of the accounts receivable of Kunshan Jincheng Gas Equipment Co., Ltd. and Sichuan Tianyi Technology Co., Ltd. does not conform to the IPO revenue recognition regulations, it may terminate the listing application, and will not entrust Dahua to carry out the subsequent three-year audit and IPO special audit, it was Dahua's fault that caused the entrustment contract to be unable to be performed and caused significant losses to the issuer itself.

(Valuation House)

Jindi shares are only younger brothers. 0.2 billion the first day of Junshi Biology's listing, the senior management has already registered his company and got Junshi Biology 30 million Venture Capital in 10 days.

In front of Junshi Biology (688180), shorting his stock Jindi shares on the first day of listing can only be a bronze.

On July 15, 2020, on the first day of listing on Junshi Bio's board, Junshi Bio's margin balance was as high as 0.2 billion, selling 1.404 million shares. In the following month, Junshi Bio's margin balance was not lower than 0.2 billion, and on July 22, the margin balance was as high as 0.287 billion. How much do the major shareholders of Junshi Bio dislike their own company? More interestingly, Feng Hui, an executive and technology core of Junshi Bio, already had his own company in June-July before leaving on August 31, and then quickly got 30 million venture capital from Junshi Bio 10 days after leaving. Everything is full of routines and ugly to eat.

From the financial data, Junshi Bio's major shareholders shorting themselves is indeed a good move.

2020 Junshi Bio-listed Science and Technology Board 3 years of income and profit Wang Xiaoer New Year's year is not the same year: 2020 loss of 1.672 billion yuan, 2021 loss of 0.7305 billion yuan, 2022 is a record loss of 2.584 billion yuan. 3-year loss 4.9 billion. Such performance is simply not allowed to short their own stocks.

What if a listed company deliberately misplaced and then shorted its own stock?

(United States)

the director of research and development in the reporting period

related party letter or omission

Shandong Baiduoan Medical Device Co., Ltd. (hereinafter referred to as "Baiduoan") is committed to applying medical material modification technology to implant interventional medical devices. It is the first enterprise in China to obtain the registration certificate of Class III medical device products of domestic peripheral vein implanted central venous catheter (Peripherally Inserted Central Catheter, referred to as "PICC").

the latest development of the IPO shows that within less than two months after replying to the first round of inquiries on June 13, Baidoan made a supplementary reply to the first round of inquiries on August 3. this supplementary reply involves issues such as the sustainability of performance, the compliance of promotion services, and the share repurchase of former employees.

The number of R & D personnel in each of the reporting periods was 72, 69 and 62, respectively, accounting for 12.68 per cent, 12.43 per cent and 12.23 per cent of the total, respectively. Baiduoan pointed out that the number of R & D personnel decreased slightly from period to period, mainly due to the company's focus on key R & D projects, optimizing the structure of R & D team, and streamlining the company's R & D team while continuously introducing outstanding talents on the basis of maintaining the stability of core R & D personnel.

however, the departure of WENBO HOU and Lu shoutao, the research and development personnel of baiduoan, during the reporting period should be worthy of attention.

WENBO HOU joined Padoan in June 2016 and held the position of R & D Director from January 2020 to February 2021, leaving in March 2021. However, Baiduoan did not identify it as a core technical personnel, and believed that WENBO HOU contributed little to the company's current important scientific research achievements, especially the company's core product research and development, production and operation, which did not meet the company's identification standards for core technical personnel.

(a financial letter)

Liju Thermal Energy Related Transactions Inquired

Investment amount of fund-raising projects may change

Zhejiang Liju Thermal Energy Equipment Co., Ltd. (hereinafter referred to as: Liju Thermal Energy) is a high-tech enterprise whose main business is the research and development, production and sales of hot water boilers and steam boilers. At the same time, it is also an invisible champion enterprise in Zhejiang Province, The national specialized and special new "little giant" enterprise. The products developed by the independent core technology-water-cooled premixed combustion technology have broken the foreign monopoly and filled the domestic gap.

on August 15, the IPO of the main board of liju thermal energy Shanghai stock exchange was successfully held. After studying its prospectus, inquiry reply and public information, it was found that the related procurement of Liju Thermal Energy was inquired by the Shanghai Stock Exchange, and there were also irregularities in internal control. Not only that, the investment amount of this Liju Thermal Energy fund-raising project may also have variables.

according to the prospectus, the amount of goods purchased and services received from related parties from 2020 to 2022 (hereinafter referred to as the reporting period) is 2.0695 million yuan, 13.453 million yuan and 18.6608 million yuan respectively, with the amount increasing year by year, accounting for 0.65 per cent, 3.30 per cent and 3.19 per cent of the operating costs of each period respectively.

During the reporting period, the purchase of goods and services from related parties by Liju Thermal Energy was the purchase of units and accessories from Xi'an Thermal Power Boiler Co., Ltd. (hereinafter referred to as Xi'an Liju).

It is worth mentioning that although the amount of purchases from Xi 'an Liju during the reporting period has increased year by year, Xi 'an Liju's net profit has fallen all the way. According to the inquiry response, since 2019, Xi'an Liju's net profit has fallen year by year, only 1.221 million yuan in 2022.

not only that, browsing the prospectus also found that there were also irregularities in internal control such as fee payment and collection during the reporting period of Liju Thermal Energy.

(a financial letter)

gross profit margin of Dexin food continues to decline:

Large customers change sharply, accounts receivable turnover rate is lower than peers

Recently, Zhejiang Dexin Food Technology Co., Ltd. (hereinafter referred to as: Dexin Food) completed a round of inquiries from the Shenzhen Stock Exchange, explaining the gross profit margin, top five customers, accounts receivable turnover rate and other related issues during the reporting period.

As a supplier of raw materials such as Starbucks, Honey Snow Ice City and Ruixing Coffee, during the reporting period, Dexin Foods experienced problems such as increasing revenue but not profit, large dividends before IPO, declining gross profit margin, and large changes in the top five customers.

from 2020 to 2022 (hereinafter referred to as the reporting period), Dexin food realized revenue of 0.357 billion yuan, 0.529 billion yuan and 0.535 billion yuan respectively, and realized net profit of 68.7191 million yuan, 9547.26 yuan and 73.7603 million yuan respectively. The net profit after deduction is 61.1187 million, 91.9902 million and 67.5282 million respectively.

From January to June 2023, the company expects to achieve operating income of 0.4 billion yuan to 0.43 billion yuan; it is expected to achieve net profit of 65 million yuan to 71 million yuan; it is expected to achieve non-net profit of 63 million yuan to 69 million yuan.

On the other hand, in the case of fluctuations in net profit, 2020-2021, Dexin Food cash dividends were 70.7855 million, 50 million, two years of total dividends 0.12 billion, and 2020-2022 three years of total net profit attributable to the parent is 0.238 billion, that is to say, the company's reporting period has nearly half of the profits used to pay dividends.

(Harbour Business Watch)

Pano technology research and development investment is different from peers

The prospectus contradicts the annual report data

Zhuhai PINO Technology Co., Ltd. (hereinafter referred to as "PINO Technology") is a provider of energy Internet of Things products and energy digital solutions on the power user side, with self-developed intelligent power products, software platforms, and intelligent algorithms. The core provides customers with full-life-cycle energy digital solutions in large buildings, data centers, transportation hubs and other fields.

On August 22, the Beijing Stock Exchange issued a fourth round of inquiries to it. On the 30th of the same month, Pino Technology responded.

during the reporting period (January-June 2019-2022), the R & D expenses of Pano technology were 38.2213 million yuan, 36.1262 million yuan, 37.8126 million yuan and 19.6464 million yuan, while the operating income in the same period was 301.5927 million yuan, 338.2252 million yuan, 492.324 million yuan and 210.5512 million yuan respectively. The proportion of R & D investment in operating income was 12.67, 10.68, 7.68 and 9.33 respectively, showing a downward trend year by year.

The average R & D expense ratios of comparable companies in the same period were 8.79, 9.45, 9.81 and 9.66, respectively, showing an upward trend. This is completely contrary to the research and development expenses invested by Pino Technology, and the research and development expense rate of Pino Technology in 2021 and the first half of 2022 is significantly lower than the average of comparable companies.

In addition to R & D investment different from peers, Pano Technology also has the problem of relying on credit sales and tax incentives as a high proportion of total profits.

(a financial letter)

Xiangjiang electric subsidiary executives of the same name set up enterprises involved in the same industry

Official website or false propaganda

On March 1, Hubei Xiangjiang Electric Appliance Co., Ltd. (hereinafter referred to as Xiangjiang Electric Appliance), an enterprise that has been focusing on quality household goods, was accepted for listing on the main board of Shenzhen Stock Exchange. On August 3, the official website of the Shenzhen Stock Exchange disclosed a round of inquiry and response documents. This IPO Xiangjiang Electric hired Guojin Securities and Lixin as sponsors and auditors.

in terms of production capacity, the prospectus shows that the production capacity of Xiangjiang electric appliance's main products in 2022 will be 6.9282 million, 6.7738 million, 5.1937 million and 6.907 million respectively for electric heating, electric, electronic and garden water pipes, with capacity utilization rates of 72.76, 73.31, 52.13 and 54.55 respectively. except garden water pipes, the production capacity of other products will be reduced compared with the previous year, capacity utilization has also declined.

The study of public information found that an enterprise controlled by a natural person with the same name as an executive of a subsidiary company overlapped with the business scope of Xiangjiang Electric.

Shenzhen Hongnuowei Electronics Co., Ltd. is a wholly-owned subsidiary of Xiangjiang Electric Co., Ltd. established in 2020. According to the company's letter network, the chairman of the company is Chen Xueyan. According to the information of Chen Xueyan's affiliated enterprises disclosed by the company, Chen Xueyan also serves as the financial director of Huizhou Xiangjiang Intelligent Electric Co., Ltd., another subsidiary of Xiangjiang Electric Co., Ltd., and also serves as the executive director and general manager of Shenzhen Huazhimei Technology Co., Ltd. (hereinafter referred to as Huazhimei) in a non-affiliated company, with 100 shares.

(a financial letter)

(The market is risky, investment needs to be cautious! This article is not an investment reference guide, readers need to be responsible for their own investment!)