Hongrida IPO: Liabilities, inventory and accounts receivables three highs and many have been cancele

Hongrida's liabilities, inventory and accounts receivables are relatively high, and capital liquidity or pressure. In addition, during the reporting period of Hongrida, many related companies canceled or transferred and exchanged with the deposit funds that have been canceled.

On April 14, Hongrida Technology Co., Ltd. (hereinafter referred to as: Hongrida) will pass the GEM and submit it to the registration on May 23, which will be submitted by Soochow Securities as a sponsor.

Public information shows that Hongrida's public offering of not more than 51.67 million shares this time, accounting for 25%of the company's total share capital after the issuance. It is expected to raise funds of 483 million yuan, of which 423 million yuan is used for Kunshan Hanjiang precision connectors production projects and 60 million yuan to supplement mobile funds.

However, through querying the prospectus, it was found that Hongrida's liabilities, inventory and accounts receivables were high, and capital liquidity or pressure. In addition, many related companies in Hongrida canceled or transferred during the reporting period and exchanged funds for cancellation of related parties. In response to the above situation, I found that the network sent an interview letter to Hongrida to send an interview letter to the request to be interpreted, but as of the press release, Hongrida did not give a reasonable explanation.

Three highs of liabilities, inventory and accounts receivables, mobile funds or pressure

Public information shows that Hongrida is mainly engaged in the research and development, production and sales of precision connectors. It is widely used in 3C fields such as mobile phones and its peripheral products, smart wearable devices, and computers. From 2019 to 2021, Hongrida's operating income was 482 million yuan, 605 million yuan, and 618 million yuan, respectively, with a year-on-year growth rate of -1.07%, 25.67%, and 2.11%. Yuan, 060 million yuan and 63 million yuan, a year -on -year growth rate of 51.52%, 59.42%, and 4.06%, respectively.

Source: Wind (Hongrida)

With the development of the company, the funds required by Hongrida are also increasing, in financing, in financing In the case of a single channel, Hongrida's debt scale is large. The prospectus shows that from 2019 to 2021, Hongrida's liabilities were 542 million yuan, 648 million yuan, and 577 million yuan, respectively, and the asset-liability ratio was 71.85%, 72.19%, and 66.18%, respectively.

Source: Prospectus (Hongrida)

而 讯 [[, Changying Precision, Shenglan shares equal company asset comparison company assets The average liability ratio was 38.90%, 40.88%, and 40.68%, respectively. In contrast, although Hongrida's asset -liability ratio is declining, the scale of liabilities is still higher.

Source: prospectus (Hongrida)

Inquiry about the prospectus found that Hongrida's liabilities were relatively high, which was mainly caused by the company's large accounts payable. From 2019 to 2021, Hongrida's account payable balance was 332 million yuan, 338 million yuan, and 216 million yuan, respectively, accounting for 61.25%, 52.16%, and 37.44%of total liabilities, respectively. It is worth mentioning that Hongrida's account payable fell sharply in 2021, but its short -term borrowing rose in 2021, from 130 million yuan in 2019 to 237 million yuan in 2021, an increase of 82.31%.

Source: prospectus (Hongrida)

It is important to note that in the case of high debt scale, Hongri Da's inventory scale and accounts receivable are also high. According to the prospectus, from 2019 to 2021, the book value of its inventory was 110 million yuan, 134 million yuan and 172 million yuan, respectively, and the account value of accounts receivable was 164 million yuan, 206 million yuan and 184 million yuan, respectively. The total proportion of mobile assets is 71.27%, 67.91%, and 74.62%.

Source: Prospectus (Hongrida)

At the same time, the net cash flow of Hongrida's business activities is not the net Stablize. According to the prospectus, the net cash flow of its operating activities during the reporting period was RMB 58 million, -029 million yuan, and 67 million yuan. Analysts said that when Hongrida's liabilities are as high as 500 million yuan, and the inventory and accounts receivables are high, their mobile funds or pressures are used to supplement the 60 million yuan of raising funds for mobile funds. The pressure on the shortage of funds is yet to be questioned.

Source: Prospectus (Hongrida)

Interesting the deposit funds with the cancellation related parties

According to the prospectus, most of the related parties of Hongrida are controlled by the company's controlling shareholder Wang Yutian, Shi Zhangqin or their family members, such as Enshi Limited, Hongrida Group, and Dongguan Aohong Electronic Technology Co., Ltd. However, such as Suzhou Tongxinli Enterprise Management Co., Ltd., Ensang Co., Ltd., Hongrida Group, Kunshan Development Zone Xinjie Museum Business Bank, Dongguan Aohong Electronic Technology Co., Ltd. (hereinafter referred to as: Dongguan Aoyan), Dongguan Engang, Dongguan Engang, Dongguan, More than 10 related companies including Kunshan Jingshitong Electronics Co., Ltd. (hereinafter referred to as: Kunshan Jingshitong), during the reporting period and after the reporting period, eliminated, revoked, canceled or transferred to third parties.

It is worth noting that Hongrida still exists in funding between Hongrida and Dongguan Ao Hong and Kunshan Jingshi Tong. The prospectus shows that Dongguan Aoyan's production and operation has gradually stopped since 2017, and Kunshan Jingshitong Business has gradually stopped since 2018. Dongguan Aoho and Kunshan Jingshitong were canceled in September 2020 and March 2021, respectively.123]

However, from 2018 to 2019, Hongrida and Dongguan Aohong combined with a total of 18.7815 million yuan of capital exchanges, of which 11.7235 million yuan was mainly the company's initial loan of the initial loan of Dongguan Aohong. Dongguan Aohao returned to Hongrida's actual controller borrowing. In addition, Hongrida paid loans and equipment to Kunshan Jingshitong in 2018 a total of 5.3384 million yuan.

Letter (Hongrida)

Not only that, Hongri reached the 100%equity of the subsidiary Dongguan Enshang in June 2020 to Li Zhishun at 100%equity at 1 million yuan. In fact, the net profit of Dongguan Engang in 2019 was 2.5861 million yuan, and the net assets at the end of June 2020 were 1.39 million yuan. In other words, Hongrida's sale of Dongguan Ensang is lower than the net assets of Dongguan Engang.

It was also questioned by the regulatory level. The regulatory layer requested that the transfer price is lower than the net assets of the target company, and whether the price is reasonable. It is also questioned by the regulatory level. The above is the authenticity of the exchanges between Hongrida and the funding of related parties that have been canceled. Hongrida explained in the inquiry letter that the sale of Dongguan Embang price is lower than the Dongguan Engang net assets because the natural person Li Zhishun may bear the fact that the plant rental losses may be considered, so it is reasonable, and the equity pricing method is reasonable. Fairness. Hongrida also shows the authenticity in detail about the capital exchanges with the cancellation of related parties.

(Reporter Luo Xuefeng Financial Researcher Teng said)

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