article: weighing financial iqhcj researcher li

ed: Hui Hui

Suzhou Jiaqi Shi Technology Co., Ltd. (hereinafter referred to as: Jiaqi Shi) to be listed on the main board of the Shanghai Stock Exchange, the sponsor is Haitong Securities. The issue of new shares shall not exceed 18.2 million shares, accounting for not less than 25% of the total share capital after the issue. The company plans to use the raised funds of 0.65 billion yuan this time for intelligent manufacturing equipment expansion project, research and development center construction project and supplementary working capital (0.1 billion yuan).

As of December 31, 2022, the company's total assets were 0.806 billion yuan, and the owner's equity attributable to the parent company was 0.278 billion yuan. During the reporting period, the Company's current ratio and quick ratio were lower than the average of comparable companies in the same industry, and at the end of the reporting period, the Company's balance sheet ratio was 88.77, 73.38 and 65.52, respectively, higher than the average of comparable peers by 48.02, 46.63 and 48.87.

Jia Qishi dug a corner from his former owner, with his husband and wife holding nearly 70% of the total, cashing out more than 80 million yuan and refinancing more than 100 million yuan. The downstream application industry is relatively concentrated, with export accounting for nearly half of the total. Customers are concentrated in Apple's industrial chain, with no trust in their relationship with Anjie Technology, and the research and development cost rate is low. Accounts receivable account for more than 60% of revenue and inventory.

dug into the corner of the former owner, the husband and wife held nearly 70% of the shares, cashed in over 80 million yuan, and loaned over 100 million yuan

the predecessor of the company, jiaqishi limited, was jointly funded and established by natural persons ren feng and yang yang on December 1, 2011, with a registered capital of 500000 yuan, of which ren feng subscribed to contribute 300000 yuan and yang yang yang subscribed to contribute 200000 yuan. Ren Feng was a R & D engineer of Technology (Suzhou) Co., Ltd. from April 2005 to July 2011; from June 2013 to May 2014, he served as deputy general manager of Aibisi (Suzhou) Automation Technology Co., Ltd.; from July 2014 to February 2016, he served as executive director of Jiaqishi Co., Ltd. Aibisi is the company's actual controller, Yang Yang, a former supervisor and 39.00 percent of the company, and will be written off in June 2022. In addition to Ren Feng, there are also Lu Xiang, director of Jiaqishi and director of the technology development center, and Wang Xusheng, chairman of the board of supervisors of Jiaqishi and deputy director of the technology development center, from Ebis.

according to (2019) su 05 min zong no 5650 document, epis also sued ren feng for this. in the final judgment on February 18, 2022, the court confirmed ren feng's behavior of instructing his subordinate fang zhijun to send e-mails about business division to epis customers during his tenure as deputy general manager of epis company, the company used its position to facilitate its legal representative to seek business opportunities belonging to the company, which violated its duty of loyalty to the company as a senior manager of the company, and should bear the corresponding civil liability. However, the prospectus is hidden, saying that the company has no other important matters to disclose, as well as major guarantees, litigation and other matters.

On December 28, 2021, Ren Feng transferred his 3 per cent stake, 2.4 per cent stake, 1 per cent stake, 1 per cent stake and 0.6 per cent stake in Jiaqishi Limited to Chen Xiaomin, Luo Xiaozhen, Li Donghai, Shunrong III and Wang Rong, respectively, for a total of $40 million. In April 2022, Ren Feng transferred 1%, 1.3, 0.68, 1.2 and 2% of the shares of Jiaqi Shi Limited to Gao Jun, Ye Jun, Lu Jianfang, He Zunguang and Zhu Yongfu, respectively, for a total of 41.26 million yuan. In a few months, Ren Feng cashed in as much as 80 million yuan directly through equity transfer. In October 2022, the overall change to a joint stock company.

As of the date of signing of the prospectus, Suzhou Tanzhen directly holds 31.5315 million shares of the company, with a shareholding ratio of 57.75, and is the controlling shareholder of the company. Ren Feng and Yang Yang are the actual controllers of the company, and the two are husband and wife. Ren Feng directly holds 3.35 percent of the company and Yang Yang directly holds 4.29 percent of the company. Ren Feng and Yang Yang jointly hold 100 percent of the company's controlling shareholder, Suzhou Tan Zhen, and Suzhou Tan Zhen holds 57.75 percent of the company. Ren Feng is the general partner of Xueqi Partnership, which controls 4.13 percent of the company through Xueqi Partnership; ren Feng and Yang Yang jointly control 69.51 percent of the company, while Ren Feng serves as chairman and general manager of the company and Yang Yang serves as a director of the company.

As of the date of the prospectus, Jiaqishi has six holding subsidiaries and one participating company. The company's holding subsidiaries, Zhongjia Qishi Software, Chengdu Jiaqi Shi and Suzhou Aiyi, have been operating for a relatively long time and have a large scale of business, which is an important subsidiary; Jiaqi Shi Optoelectronics, Chongqing Aiyi and Shenzhen Aiyi were established late and have a small scale of business. The company completed the acquisition of 55% of Suzhou Ai Yi in January 2023 at a price of 79.75 million yuan. Suzhou Ai Yi became a controlling subsidiary of the Company in January 2023.

during the reporting period, jiaqishi had the situation of withdrawing funds from related parties. the company withdrew a total of 24.8921 million yuan from ren feng in 2020 and recovered all the funds in 2020. In 2021, a total of 42.7838 million yuan was withdrawn from Ren Feng, of which 4.439 million yuan was recovered in 2021, the remaining 38.3448 million yuan was recovered in 5 million yuan in March 2022 and the remaining 33.3448 million yuan in July 2022.

during the reporting period, the company had bank on-lending through its supplier Suzhou meifeng machining co., ltd. and its subsidiary jiaqishi software, with a total on-lending amount of 0.1017 billion yuan.

In addition, from 2020 to 2022, the amount of the Company's cash dividends will be $20 million, $20 million and $22.2 million, respectively, and the total amount of cash dividends will be $622.2 million; and this time the Company's separate replenishment will be $0.1 billion.

The downstream application industry is relatively concentrated, with nearly half of its export sales

Jia Qi Shi is mainly engaged in intelligent manufacturing equipment research and development, production, sales and related technical services. In 2020-2022, the Company's operating income was $0.2433 billion, $0.3276 billion and $0.5056 billion, and net income attributable to the Company was $28.4168 million, $38.0253 million and $0.1056 billion, respectively. From January to May 2023, the company's operating income was 0.2871 billion yuan, and the net profit attributable to shareholders of the parent company was 49.8003 million yuan (the above data was unaudited).

The company's main products intelligent testing equipment and intelligent production assembly equipment (line) are mainly used in the testing and assembly of consumer electronic products. During the reporting period, the sales revenue of the company's products used in the consumer electronics industry accounted for more than 90% of the operating income in the same period, which was the main source of the company's income. The company is exposed to the risk of concentration in the downstream application industry. During the reporting period, while consolidating its market position in the field of consumer electronics, the company actively expanded high-quality customers in new energy vehicles, energy storage, photovoltaic and other industries. The company has entered the new application field for a short time. Compared with the same industry companies that have been precipitated in related fields for many years, the business scale is small and the customer coverage is relatively insufficient, which needs to be further expanded.

During the reporting period, Jiaqishi's main business income mainly came from the sales of intelligent testing equipment and intelligent production and assembly equipment (lines), and the sales revenue of the two types of products accounted for 89.24, 87.00 and 86.18 of the main business income respectively.

in each reporting period, the overseas sales amount of jiaqishi's main business income was 0.1115 billion yuan, 87.8967 million yuan and 0.1258 billion yuan respectively, accounting for 45.84, 26.84 and 24.89 respectively. in each reporting period, the company's exchange gains and losses were -5.2183 million yuan, -1.5856 million yuan and 8.291 million yuan respectively, accounting for -17.00, -4.15 and 7.25 respectively.

The company selected listed companies Saiteng shares (603283.SH), Bozhong Seiko (688097.SH), Tianzhun Technology (688003.SH), Rongqi Technology (301360.SZ) and the proposed listed company Zhixin Precision as comparable companies in the same industry. For each of the reporting periods, the gross profit margin of the Company's main business was 41.90, 38.68 and 46.44, respectively.

customers are concentrated in the apple industry chain, and the relationship with anjie technology is not clear, and the research and development cost rate is low

During the reporting period, Jiaqishi's main customers were concentrated in the fields of consumer electronics and new energy vehicles, all of which were well-known companies in related fields. Among them, the direct customers in the consumer electronics sector mainly include Apple, Foxconn, BYD, Lixun Precision, Goer shares, Xinwei Communications, etc.

During the reporting period, the sales revenue of Jiaqishi's top five customers (including enterprises under the same control) was 0.2041 billion yuan, 0.2612 billion yuan and 0.4328 billion yuan respectively, accounting for 83.89 per cent, 79.76 per cent and 85.60 per cent of the current operating income respectively.

Gao Jun, director, deputy general manager, chief financial officer and secretary of the board of directors of Jiaqishi since October 2022, served as chief financial officer of Suzhou Anjie Technology Co., Ltd. from September 2009 to May 2012; from May 2012 to September 2012, he served as director, chief financial officer and secretary of the board of directors of Suzhou Anjie Technology Co., Ltd.

in addition, the 2022 annual report announced by anjie technology on April 28, 2023 shows that in its equity instrument investment schedule, the invested unit is Suzhou jiaqishi information technology co., ltd. the book balance and opening balance are both 16 million yuan, accounting for 3.6 of the shares held by the invested unit, and the current cash dividend is 750,310.56 yuan. The prospectus of Jiaqi Shi does not show the shareholding relationship with Anjie Technology, which is very puzzling. Access to public industrial and commercial information, Anjie Technology hidden in the external institutions shareholders are youth 3 behind. Suzhou Anjie Capital Investment Co., Ltd., which is 100 percent controlled by Anjie Technology, holds 93.79 percent of Zhengqing No. 3 and the remaining 6.21 percent is held by Zhang Xia.

The company enters into orders both directly with Apple and with its EMS vendors. During the reporting period, the company's sales revenue to Apple (from Apple's direct orders) accounted for 44.71, 23.48 and 18.41 of the current operating revenue, respectively. The final sales revenue for Apple products in each period (including direct orders from Apple and orders from Apple's EMS manufacturers) accounted for more than 80% of the current operating revenue. There is a risk that the company is dependent on the Apple industry chain.

Apple has begun to shift some of its supply chain capacity in China to countries and regions such as India and Vietnam. In the short term, based on China's advantages in market and manufacturing and its importance in the Apple industry chain, it is difficult to transfer the Apple industry chain, and other countries and regions do not yet have full capacity to undertake. However, in the long run, if Apple continues to transfer domestic production capacity overseas in the future, the company's downstream customer orders will decrease, which will have a certain adverse impact on the company's operating performance.

During the reporting period, Jiaqi Shi's R & D investment was 25.4017 million yuan, 34.7307 million yuan and 45.9959 million yuan respectively, accounting for 10.44 percent, 10.60 percent and 9.10 percent of total operating income respectively, which was 11.5 lower than the average value of comparable peers.3 per cent, 12.26 per cent and 12.03 per cent.

receivables account for more than 60% of revenue, and inventory is high

the concentration of customers is too high, which naturally affects the level of accounts receivable. at the end of the reporting period, the book value of the company's accounts receivable was 0.1045 billion yuan, 0.1357 billion yuan and 0.3129 billion yuan respectively, accounting for 46.47, 50.15 and 54.87 of the current assets at the end of each period respectively. The book balance of accounts receivable at the end of each period accounted for 45.24, 43.67 and 65.16 of the current operating income respectively. During the reporting period, the accounts receivable turnover ratios were 3.14, 2.73 and 2.25, respectively. At the end of each reporting period, the balance of bad debt provision for accounts receivable was $5.59 million, $7.3282 million and $16.5819 million, respectively, accounting for 5.08 per cent, 5.12 per cent and 5.03 per cent of the balance of accounts receivable, respectively.

the book balance of accounts receivable at the end of 2022 accounts for a relatively high proportion of the current operating income. the main reason is that the revenue in the fourth quarter of 2022 is 0.2926 billion yuan, accounting for 57.87, of which the sales revenue of major customers goer shares and lixun precision are 0.1075 billion yuan and 88.6448 million yuan respectively. as of the end of 2022, the balance of accounts receivable of goer shares and lixun precision are 0.125 billion yuan and 0.1199 billion yuan respectively, which are still unpaid during the credit period. As of May 31, 2023, the proportion of accounts receivable at the end of each reporting period was 100.00, 99.59 and 87.47, respectively.

For each of the reporting periods, the carrying value of Jiaqishi's inventory was $0.1028 billion, $49.4745 million and $0.177 billion, respectively. The Company's inventory depreciation allowance is $3.6013 million, $2.1374 million and $1.9831 million, respectively.

Book and capacity data of construction in progress need further explanation

Jiaqishi's intelligent manufacturing equipment is mainly developed and produced according to customer needs, with strong customization and order-based production characteristics, and there are great differences in the production resources invested between different orders and products. Therefore, the company's production line is not a traditional standardized production line, the number of equipment as the statistical standard of production capacity can not truly reflect the company's production capacity, and the direct production personnel's standard working hours and actual working hours as the statistical caliber can more objectively and accurately reflect the company's capacity utilization. During the reporting period, the Company's capacity utilization rates were 120.41 per cent, 114.89 per cent and 114.53 per cent, respectively, exceeding production capacity. The standard working hours are the number of working days per month multiplied by 10 hours and then multiplied by the number of production assembly personnel and installation and commissioning engineers per month.

during the reporting period, the production and sales rate of jiaqishi's main products changed greatly, and the production and sales rate of main products was higher in 2021, mainly due to the large number of shipments in the fourth quarter of 2020, and most of them were accepted and recognized in 2021. In addition, the overall scale of the company's sales orders in 2021 decreased compared with 2020, and the output of major products decreased compared with 2020.

during the reporting period, jiaqishi is a new project with an annual output of 600 sets of automatic testing equipment and 400 sets of automatic production equipment. At the end of each reporting period, the carrying value of the Company's construction in progress was $654200, $22.2016 million and $91.0564 million, respectively, accounting for 2.29 per cent, 25.67 per cent and 38.66 per cent of non-current assets. However, the above-mentioned construction in progress should not be the project approved on August 23, 2021, the same for the new project with an annual output of 1000 sets of non-standard automation and testing equipment in 3 months, the total investment is only 15 million yuan, or it is necessary to make a more detailed explanation of the construction in progress.

according to the prospectus, the output of jiaqishi intelligent testing equipment and intelligent production and assembly equipment (line) will be 645 and 545 units respectively in 2022, with sales of 643 and 342 units. The company's existing Kunshan Road factory is a leased plant, its site area and space planning has been more difficult to meet the current production needs. Although the company is currently actively preparing for the construction of the Xunyang River Road factory and plans to take over the business of the Kunshan Road factory after the completion of the Xunyang River Road factory, considering the rapid growth of the company's business scale, the company needs to complete the new plant and purchase supporting equipment through the intelligent manufacturing equipment expansion project, expand production capacity and improve the order taking capacity. Jiaqishi Intelligent Manufacturing Equipment Expansion Project has a total investment of 0.4211 billion yuan, including newly purchased land, newly built factory buildings, purchased production equipment, recruited personnel, etc. Upon completion, it is expected to produce 1,300 sets of intelligent manufacturing equipment annually. Under several comparisons, Jiaqi Shi's production capacity data makes people feel more chaotic.

under the registration system, IPO enterprises should pay more attention to the quality of credit disclosure, whether their operating indicators can meet the listing requirements, the subsequent sustainable operating conditions are limited, and the financial iqhcj cannot specify them one by one. this article is only for weighing the financial iqhcj to remind stakeholders that investors should pay more attention to the risks of enterprises and is not a comprehensive reference.