24casinobetnodepositbonus| Yongzhen Shares 'net operating cash flow outflow exceeded 2.8 billion yuan during the reporting period, solvency or risk exposure

Reporter Wu Yong reports from Beijing24casinobetnodepositbonusEconomic information daily

Yongzhen Technology Co., Ltd. (referred to as "Yongzhen shares"), which applies for listing on the main board of the Shanghai Stock Exchange, mainly sells photovoltaic frame products. With the cost reduction of downstream photovoltaic modules and the increasingly fierce market competition, its gross profit margin appears.24casinobetnodepositbonusVolatility and even downside risks. A reporter from the Economic Information Daily noted that during the IPO reporting period (referring to the first half of 2020, 2021, 2022 and 2023, the same below), the net cash flow of Yongzhen's operating activities was-28682, respectively.24casinobetnodepositbonus.870 million yuan,-9174024casinobetnodepositbonus.57 million,-1.2201354 billion and-447.9806 million, resulting in a net outflow of $2.872 billion.

Gross profit margin continued to decline from 2020 to 2022

According to the prospectus, during the reporting period, the gross profit margin of Yongzhen's main business was 14.16%, 11.88%, 11.28% and 11.78%, respectively. Yongzhen shares said that its changes are mainly affected by factors such as rising aluminum prices in the open market, cost reduction and transmission of downstream photovoltaic modules, and increasingly fierce market competition. In the same period, the company's comprehensive gross profit margin was 13.60%, 10.81%, 9.05% and 11.57% respectively, declining year by year from 2020 to 2022.

To this end, the Yongzhen share prospectus focuses on the "risk of fluctuation or decline in gross profit margin": if the aluminum price of raw materials fluctuates greatly in the future (if the aluminum price increases by 5% in the future, it will cause the gross profit margin of the company's photovoltaic frame products to decline by 0.57%. If the aluminum price increases by 10% in the future, the gross profit margin of the company's photovoltaic frame products will drop by 1.10%). Or the major adverse changes in macroeconomic policy in the future, the lower-than-expected prosperity of the photovoltaic industry, the intensification of market competition and other factors will weaken the bargaining power between the company and customers, and hinder the production and supply capacity, as well as the company's failure to effectively and continuously strengthen cost control, the company's technological research and development strength stagnant and other unfavorable circumstances, may lead to the risk of fluctuations or even further decline in the gross profit margin of the company's main business.

In addition, when prompting "the risk of inventory price decline," the Yongzhen share prospectus said that if the prices of major raw materials and products fall sharply in the short term in the future, or customers change or cancel order plans due to national policies, market reasons, technical route changes, etc., resulting in the normal sale of the company's products, the net realizable value of the inventory may be lower than the book value, and provision for impairment is required. And then have a negative impact on the company's business performance. At the end of each period of the reporting period, the book value of the company's inventory was 103.4002 million yuan, 290.2201 million yuan, 362.5271 million yuan and 33846 million yuan respectively, accounting for 12.28%, 12.85%, 12.53% and 9.96% of current assets respectively.

The prospectus reveals "the risk of bad debts in accounts receivable"

It is worth noting that there is a problem of high accounts receivable during the reporting period of Yongzhen shares, so the prospectus also specifically reveals the "risk of bad debts in accounts receivable".

According to the prospectus, at the end of each period, the net book value of Yongzhen share receivables was 270.3209 million yuan, 549.1492 million yuan, 862.8664 million yuan and 1077.0924 million yuan respectively, accounting for 32.11%, 24.32%, 29.81% and 31.69% of current assets, and 18.86%, 18.60%, 16.65% and 21.55% of operating income, respectively.

Although Yongzhen shares currently have a good recovery of accounts receivable, and the main customers are well-known domestic photovoltaic module manufacturers, good reputation. However, Yongzhen shares said frankly that if the financial situation of the company's main customers deteriorates or there are major adverse changes in business conditions and commercial credit, it may lead to bad debts due to non-scheduled or uncollectible accounts receivable, which will adversely affect the company's operating performance.

Yongzhen explained that during the reporting period, benefiting from the high prosperity of the photovoltaic industry and the company's capacity expansion, the company's photovoltaic frame product revenue grew rapidly and the scale of accounts receivable increased rapidly. The downstream customers of the company are mainly large photovoltaic module manufacturers with strong bargaining power, and the company usually gives each other a credit period of 1-3 months, so a certain scale of accounts receivable balance is formed at the end of each reporting period.

In addition, at the end of each period of the reporting period, the balance of Yongzhen share receivables was 273.1935 million yuan, 554.7133 million yuan, 872.0307 million yuan and 108,84715 million yuan respectively. Among them, the top five accounts receivable accounts for 99.47%, 95.74%, 85.04% and 80.01%, respectively, highly concentrated. According to the prospectus, most of the above customers are head photovoltaic module manufacturers, and basically all of them are listed companies with good solvency. There are no shareholder funds holding more than 5% (including 5%) voting shares of the company in the accounts receivable.

However, a reporter from the Economic Information Daily noted that customers and shareholders appeared in the top five accounts receivable balances of Yongzhen shares. Among them, Jingao Technology, Trina Solar Energy and Ates, which are customers and shareholders of Yongzhen shares, have higher accounts receivable balance at the end of the period. At the end of each period of the reporting period, the total balance of accounts receivable from these three special customers was 226.0304 million yuan, 367.2008 million yuan, 507.7332 million yuan and 63.81363 yuan respectively, accounting for 82.74%, 66.20%, 58.22% and 58.63% of the balance of accounts receivable, respectively.

In addition, the contract liabilities of Yongzhen shares at the end of each period of the reporting period were 134.2878 million yuan, 142.1147 million yuan, 406400 yuan and 2.5984 million yuan respectively. Among them, the debts in 2020 and 2022 are mainly the prepayments made by Trina Solar Energy to Yongzhen shares. According to the prospectus, in order to ease the company's working capital turnover, Yongzhen shares signed sales agreements with Trina Solar in August 2020 and August 2021, respectively, agreeing to pay 100 million yuan in advance and deduct the monthly payment. At the same time, based on the long-term good cooperative relationship with Trina Solar, Yongzhen shares give appropriate concessions in the sales price.

There is a big difference between operating cash flow and net profit.

It is worth noting that Yongzhen shares also have "the risk of cash flow fluctuations in operating activities".

According to Yongzhen's share prospectus, during the reporting period, the net cash flow of the company's operating activities was-286.8287 million yuan,-917.4057 million yuan,-1.2201354 billion yuan and-447.98 million yuan respectively, which is quite different from the net profit of each period. it is mainly related to the bank / commercial acceptance draft received by the customer, the bank acceptance draft issued to the supplier and the credit account period of the customer's sales refund.

Yongzhen further explained that during the reporting period, the main customers of the company's photovoltaic frame products were Trina Solar Energy, Jing O Technology, Longji Green Energy, Jingke Energy, Ates and other head photovoltaic module manufacturers, and the sales refund mainly included bank remittance and bill settlement, among which bill settlement was the main method. Due to the large scale of investment in the photovoltaic industry and in the period of rapid development, bank / commercial acceptance settlement is universal in the middle reaches of the photovoltaic industry chain. At the end of each period of the reporting period, the net amount of acceptance bills receivable by the company (including accounts receivable financing) was 368.4865 million yuan, 508.8122 million yuan, 814.8461 million yuan and 73.1344 million yuan respectively, accounting for 43.78%, 22.53%, 28.15% and 21.48% of current assets, respectively.

Yongzhen shares frankly said that when customers use bills to settle sales payments, if the bills received by the company need to be discounted and converted into cash, they will have to pay certain financial discount fees; when the company uses notes payable to settle purchase payments, if the notes payable fail to return the funds to the bank in time, it will have an adverse impact on the cash flow. With the expansion of the company's operating scale, the company's demand for working capital continues to rise. if the company occupies working capital because of bill settlement and is unable to raise funds for development in time, it will face the risk of fluctuation or even insufficient operating cash flow, which will adversely affect the operation of the company.

The prospectus shows that with the expansion of the scale of operation, the scale of funds required for Yongzhen's share business activities has gradually increased. At the end of each period, Yongzhen's total share liabilities were 1.3365596 billion yuan, 1.4437505 billion yuan, 2.2351077 billion yuan and 3346.0801 million yuan, of which the proportion of liquid liabilities was 83.84%, 85.88%, 92.01% and 80.46%, respectively. Yongzhen shares said that the company mainly through the increase of short-term financing to meet daily operating needs, resulting in a relatively high proportion of current liabilities.

To this end, Yongzhen shares said when prompting "the risk of solvency" that in order to effectively deal with the debt risk, the company implements a strict internal control management system in the aspects of financing, sales rebate and procurement and production payment to ensure the timeliness of debt repayment and the flexibility of liquidity. However, if the above management system of the company is not effectively implemented in the future, or if the business activities are affected by macroeconomic, policy and industry changes, the financing channels can not be effectively broadened, and the risk of solvency of the company cannot be ruled out.

The reporter called and wrote to Yongzhen shares on the above questions, but there was no reply as of press time. For Yongzhen shares IPO related problems, "Economic Information Daily" reporter will continue to pay attention to.