Ruichen Environmental Protection IPO: The proportion of foreign associations exceeds 50% of the relationship with the sponsorship institution

The relationship between Ruichen Environmental Protection and the East underwriting is unusual. In addition to the relationship between the underwriter, the oriental underwriting is also the related party of Ruichen Environmental Protection. In addition, Ruichen's environmental protection and foreign associations accounted for more than 50%of the processing, and independent production levels need to be improved.

On March 30, Shanghai Ruichen Environmental Protection Technology Co., Ltd. (hereinafter referred to as: Ruichen Environmental Protection) will be approved on the GEM of the Shenzhen Stock Exchange. The current audit status is "adopted by the Municipal Party Committee".

Public information shows that Ruichen Environmental Protection's public offering of shares this time does not exceed 17.904 million shares, accounting for 25%of the company's total share capital after the issuance. It is expected to raise 449 million yuan, of which 299 million yuan are used for high -efficiency energy -saving fan industrialization construction projects and 150 million yuan to supplement mobile funds.

It is worth mentioning that Ruichen Environmental Protection Breakfast GEM is a sponsoring agency by Oriental Securities underwriting sponsor Co., Ltd. (hereinafter referred to as Oriental underwriting). However, the relationship between Ruichen Environmental Protection and Oriental underwriting is unusual. In addition to the relationship between the underwriters, the oriental underwriting is also a related party of Ruichen Environmental Protection. As for the related parties as a sponsor, what is Rui Chen's environmental protection? In addition, Ruichen's environmental protection and foreign associations accounted for more than 50%of the processing, and independent production levels need to be improved. In response to the above issues, I found that the network sent an interview letter to the Ruichen environmental protection public mailbox to request a question, but as of press time, Ruichen's environmental protection did not give a reasonable explanation.

The relationship with the sponsor is very informed

The main business of Ruichen Environmental Protection is the research and development, design, production and sales of high -efficiency energy -saving equipment. The main products include high -efficiency energy -saving centrifugal fans, high -efficiency energy -saving centrifugal pumps and other energy -saving products. From 2019 to 2021, Ruichen's operating income was 197 million yuan, 298 million yuan, and 408 million yuan, respectively, with a year-on-year growth rate of 36.35%, 51.65%, and 36.62%. , 668 million yuan and 083 million yuan, a year -on -year growth rate of 14.28%, 92.47%, and 20.87%, respectively.

Picture source: Wind (Rui Chen Environmental Protection)

According to the prospectus, Ruichen Environmental Protection was established in 2010. At that time, the actual shareholders of the time were Chen Wandong, Jiang Xuping and Chen Zhaofeng. The three were 80%, 15%and 5%of the shares. In 2018, the company added shareholders such as Shanghai Xinyu and Ju Chen Fan Rong. In December 2018, Ruichen's registered registered capital increased by 37.313.44 million yuan. Thousands of shares holding 2.38%, 2.28%, and 2.28%respectively. In March 2019, Ningbo Shenyi, Dongzhi Hande, Dongzhi Xiade and Shanghai Xinyu and Chen Wandong signed a capital increase agreement.

Picture source: prospectus (Rui Chen Environmental Protection)

The above -mentioned shareholders' structure did not attract attention, but everything became different after Ruichen's environmental protection began to sprint the IPO. In 2021, Ruichen Environmental Protection submitted a prospectus to the GEM of the Shenzhen Stock Exchange and chose the oriental underwriting as a sponsor.

In fact, Oriental underwriting and totaling Dongzhi Hande and Dongzhangxingxing Affairs partner of Dongzhi Hande and Dongzhi Xingxing's affairs partner of the Eastern Insurance and Tongzhi Shande Securities Capital Investment Co., Ltd. At the same time, Shenneng (Group) Co., Ltd., the largest shareholder of Oriental Securities Co., Ltd. of Oriental Insurance, indirectly holds 48.89%of Ruichen Environmental Protection shareholders Ningbo Shenyi. To put it simply, Oriental underwriting is a related party of Ruichen's environmental protection, and the transactions of both parties are related transactions.

Industry insiders said that the sponsor not only needs to be responsible for the listing recommendations and counseling of the listed enterprise, but also to verify the authenticity, accuracy and integrity of the information contained in the company's distribution documents, and to assist the issuer to establish a strict letter system. So, is the situation of Ruichen Environmental Protection in accordance with the regulations? Among the underwriting and sponsors, can oriental underwriting guarantees objective and fairness?

It is worth noting that the relationship between Ruichen Environmental Protection and the East underwriting of the sponsor agency has also been questioned by the regulatory level. In addition to requiring Ruichen Environmental Protection to make major prompts in the prospectus, the Eastern Inspection also requires Oriental underwriting Explain whether the relevant shareholding situation has reached the standard of "unable to eliminate the impact through disclosure, should unite a unrelated sponsors to fulfill the sponsorship duties", whether the relevant internal control has been established to ensure the independent decision -making of the sponsorship business, the conflict of interest, and whether Effective execution.

In this regard, the oriental underwriting stated that whether it was Ningbo Shenyi, Dongzhi Hande, and Dongzhi Xiade's own shareholding or total shares, the shareholding ratio was less than 7%and did not meet the standard. The unrelated sponsors fulfilled their duties. At the same time, related internal control has been established and effectively executed.

Foreign association processing ratio exceeds 50%

The prospectus shows that the main procurement content of Ruichen Environmental Protection is the entire machine, component foreign associations and other pumps, electrical and transmission parts and productive raw materials. From 2019 to 2021, Ruichen's environmental protection purchases were 109 million yuan, 186 million yuan, and 214 million yuan, respectively.

It should be noted that among the total procurement amount, Ruichen's most proportion of environmental protection is the processing of foreign associations. From 2019 to 2021, Ruichen's environmental protection foreign associations were processed to 60 million yuan, 106 million yuan, and 115 million yuan, respectively, accounting for 55.6%, 57.14%, and 53.83%of the total procurement. Picture source: prospectus (Rui Chen Environmental Protection)

Regarding the high proportion of foreign associations, Ruichen Environmental Protection stated in the prospectus that the company's production capacity is small, and the company's order growth rate is greater than the new production capacity.

In addition, Ruichen's environmental protection still has the concentration of suppliers. From 2019 to 2021, the company's procurement of the five major suppliers from the five major suppliers was 666 million yuan, 108 million yuan, and 109 million yuan, respectively, accounting for 60.97%, 58.24%, and 50.76%of the total procurement volume. It is worth mentioning that during the reporting period, the top two suppliers were Jiangsu Shanghai Union General Machinery Co., Ltd. and Jiangsu Union as a blossoms Co., Ltd. The percentage of 48.94%, 40.66%, and 30.28%.

Picture source: prospectus (Rui Chen Environmental Protection)

In this regard, insiders in the industry said that the processing of China and abroad in Ruichen's environmental protection operations is relatively high. If the main suppliers have unfavorable situations such as bottlenecks, raw materials interruptions, or financial difficulties, they cannot produce products that meet the requirements of the company's quality standards and quantities. Or not to be delivered in time, it will adversely affect the company's product supply, which will affect the company's operating performance and financial status.

(Reporter Luo Xuefeng Financial Researcher Tenghui said)

- END -