Han Guang Technology Two Sprint IPO Rely On China Shipbuilding Heavy Industry Growth Worries Remain

The official website of the securities and Futures Commission shows that the IPO process of China Shipbuilding Heavy Industries, Polytron Technologies Inc (hereinafter referred to as "Han Guang Technology") has entered the pre disclosure and update link recently. This also means that it will strike IPO twice.

Prior to this, as a central enterprise, heavy duty shipbuilding company mainly produces toner and OPC drums (printers, copiers, multi-functional machines core consumption materials), Han Guang technology has attracted much attention due to its becoming the first enterprise in 2016 of gem IPO. At that time, the issuance examination committee questioned the four aspects of the customer situation, related transactions, capital transactions and tax payment of Han Guang Technology.

In 2018, Han Guang Technology restarted IPO, submitted the draft in April 2019, and entered the pre disclosure update in September.

Compared with the first declaration, the Prospectus has been adjusted in terms of independence and so on.

Actual control for heavy industry in Central Enterprises

China Shipbuilding Heavy Industries Polytron Technologies Inc is jointly sponsored by Hebei Han Guang Heavy Industry Co., Ltd., China Shipbuilding Heavy Industry Technology Investment Development Co., Ltd., and six shareholders' units of the Chinese Academy of Sciences Chemical Research Institute.

In fact, the controller is quite noticeable.

Prospectus shows that the central enterprises in the shipbuilding industry group through the Han Guang heavy industries, heavy industry technology and other wholly-owned subsidiaries and actual control enterprises have 65.31% stake in Han Guang technology, its actual controller.

In twenty-first Century, the economic report reporter found that compared with the first time in 2016, the SiC owned IPO shares. During the first sprint of IPO, China Shipbuilding Heavy Industries jointly controlled 57.79% stake in Han Guang Technology.

When the first impact of IPO was denied in 2016, the Commission questioned the four aspects of customer interface, related transactions, capital transactions and tax payment.

"All these aspects are very important. Generally speaking, it reflects the independence of Han Guang Technology." A large brokerage firm in the South pointed out.

Comparing the two prospectus, we can see that during the new reporting period, Han Guang technology has adjusted some of the issues before it.

For example, the trial Commission pointed out that the amount of money exchanged between the issuer's reporting period and China Shipbuilding Heavy Industry Finance Co., Ltd. (hereinafter referred to as "China shipping financial company") is relatively large. Taking the year 2015 as an example, the sum of the 6 "bank deposits" and the "current withdrawal" of the 6 bank deposit accounts opened by the financial company were 339 million 473 thousand and 600 yuan and 293 million 92 thousand yuan respectively. 2015 the cash flow statement "cash received from loans" is 140 million yuan. Noting that the issuer did not sign a financial services agreement with the China shipping finance company for the deposit business, and failed to fulfill the relevant procedures in the deposit and settlement business of the China shipping financial company.

In the latest disclosure prospectus, the loan between Han Guang Technology and China shipping finance company has significantly reduced, as at the end of 2016, it was 105 million yuan, and it was 85 million yuan at the end of 2017.

For the "financial services agreement" mentioned by the previous trial committee, it pointed out that during the reporting period, the company signed a financial services agreement with the China shipping finance company, and agreed on the provision of loan services, settlement services, deposit services and other financial services to the company. Among them, the interest rate stipulated in the loan service agreement is not higher than the benchmark interest rate stipulated by the PBC on this type of loan; the interest rate stipulated in the deposit service service is determined according to the interest rate of the same kind of deposit issued by the people's Bank of China at the same time, and is not lower than the interest rate level of the same class deposits of the China shipping finance company.

"Generally speaking, if the problem is corrected before, the passing rate of two degree IPO is still relatively high." The investment bankers pointed out.

At the same time, various details still show that Han Guang Technology as the central enterprises in the ship heavy industry under the control of the company's status, for example, its associated sales list brush up more than 20 China Shipbuilding Industry Corp's Research Institute. However, according to its disclosure, related sales accounted for less than 1% in the reporting period.

"Based on the confidential requirements of the central military enterprises, it is expected that the information security copiers and consumables will continue to sell to the relevant units of China shipbuilding industry group, but their operating income is smaller. During the reporting period, the two parties negotiate price according to the principle of marketization, and the transaction price is fair. " Han Guang Technology said.

Growing worries

The prospectus shows that Han Guang technology is mainly engaged in R & D, production and sales of printing and copying electrostatic imaging consumables and imaging equipment. Its main products are toner, OPC drum (organic light drum), information security photocopier and special precision machining products. Toner and OPC drum are the core consumption materials of printers, copiers and multi-function machines.

In 2016 -2018, the operating income of the company was 532 million yuan, 639 million yuan and 694 million yuan respectively, and the profits attributable to the owners of the parent company were 40 million 909 thousand yuan, 49 million 446 thousand and 300 yuan and 68 million 46 thousand and 800 yuan.

"The company is an enterprise that can produce toner in large scale and produce OPC drum in large scale. It is one of the main manufacturers of printing and copying electrostatic imaging consumables in China. The company first realized the localization and industrialization of OPC drums, and passed the acceptance of the key technology and Development Research of the organic "photoconductive drum industrialization", which is a major project of the national "863" plan. It is also one of the early enterprises to achieve the localization of toner. Han Guang Technology describes its industry status in the prospectus.

However, as the two main products of the company, toner and OPC drums have been decreasing year by year in recent years.

Prospectus shows that in 2016 -2018, the average selling price of Han Guang Toner (excluding tax) was 29.32 yuan /kg, 29.10 yuan /kg, 28.52 yuan /kg, the average selling price of OPC drum (excluding tax) was 3.95 yuan / branch, 3.39 yuan / branch, 3.20 yuan / branch respectively.

Further combing found that since 2011, the selling price of Han Guang Technology OPC drum has been declining year by year, and lower than the same price in Suzhou.

"According to market competition, company cost level and company's production strategy, the company has formulated the strategy of selling toner and OPC drums. During the reporting period, the unit price of toner has dropped slightly, and the sales price of OPC drum has been decreasing year by year." Its expression.

Han Guang Technology said that the matching threshold of downstream toner drum manufacturing industry is relatively low. As the industry chain is opened up and the cost is reduced, the downstream market competition will become more and more intense. In addition, some enterprises in the market are trying to reduce costs, produce fake and inferior products, and impact the market with low prices, which will affect the development of consumables market.

"The company can produce toner on a large scale and produce OPC drums in large scale. However, compared with large international manufacturers, especially the original manufacturers, the company's high-end product scale and capital investment are insufficient. Therefore, the company intends to issue shares to raise funds, increase capital investment in main industries, and promote product upgrading so as to change the competitive disadvantage in the foreseeable future. Han Guang Technology pointed out.

In the listing, Han Guang Technology intends to issue public offerings no more than 49 million 340 thousand shares. The fund-raising will be invested in color, black toner projects, laser organic optical drum project, engineering technology research center project, and supplementary liquidity.