On October 26, Hefei Hi-Tech Technology Co., Ltd. (hereinafter referred to as "Hefei Hi-Tech") will be held on the North Stock Exchange, with Guoyuan Securities as the sponsor.

Hefei Hi-Tech is a modular service provider engaged in R & D, production and sales of household appliance accessories and moulds. According to the prospectus, before this issue, Hu Xiang and Chen Yin, the actual controllers of the company, directly held 59.22% and 23.39% of the shares of the company, respectively. Hu Xiang indirectly controlled 1.86% of the shares and 1.63% of the shares of the company through Zhiran investment and group venture investment. the two together control 86.1% of the shares of the company, in an absolute control position.

Ownership structure diagram, prospectus

In this application for listing, Hefei Hi-Tech plans to raise 220 million yuan for home appliance structure and precision manufacturing base construction projects, home appliance decoration panel construction projects, R & D center construction projects, and supplementary liquidity.

The use of fund-raising, prospectus

1

Gross profit margin is declining year by year.

At present, China has become the most important home appliance production base in the world, with most of the global household appliance production capacity. According to statistics, the operating income of the national household appliance industry in 2021 is as high as 1.73 trillion yuan, an increase of 15.5% over the same period last year.

Hefei Hi-Tech specializes in the manufacturing of customized special accessories for household appliances, and its products are mainly used in the manufacturing field of household appliances, covering functional structural components and exterior decoration parts such as refrigerators, televisions, air conditioners, washing machines and so on.

Specifically,Metal structure is the main source of revenue for the company.Revenue accounted for more than 70% during the reporting period. Household appliance decoration panels, metal moulds and other business revenue accounted for a relatively small proportion.

Composition of income from main business, prospectus

According to the prospectus, during the reporting period, the company's operating income was about 511 million yuan, 635 million yuan, 859 million yuan and 431 million yuan respectively, and the net profit returned to its mother was 20.378 million yuan, 20.7392 million yuan, 44.012 million yuan and 21.162 million yuan, respectively.

Key financial data and financial indicators, prospectus

Hefei Hi-Tech has the risk of a decline in gross profit margin. During the reporting period, the company'sThe comprehensive gross profit margin was 14.66%, 12.82%, 12.5% and 11.38% respectively, showing a downward trend year by year.It is close to the average gross profit margin of comparable companies in the same industry.

In fact, during the reporting period, Hefei Science and TechnologyDirect materials account for more than 60% of the main business costs in each period.The price fluctuations of major raw materials such as steel and original glass have a great impact on production costs. In the future, under the influence of rising commodity prices, the price of the company's main raw materials will rise, which may affect the company's profitability.

In addition, the change of the company's gross profit margin is also affected by factors such as product structure, customer structure and market price of end products. If market competition intensifies in the future, or customers strengthen cost control, product prices decline, which may affect the company's business performance.

2

Rely on the top five customers

Hefei Hi-Tech relies more on the top five customers for its revenue. During the reporting period, the company's sales revenue to the top five customers accounted for 90.37%, 90.02%, 89.93% and 90.30% of the current operating income, respectively. Among them, the sales revenue of Haier Group, the largest customer, accounts for more than 70% of the current operating income.High customer concentrationThere is a certain business dependence on major customers.

The sales situation and prospectus of the company's top five customers

Haier Group, Beijing Oriental Science and Technology Group, Midea and other well-known household appliance brand manufacturers or supporting manufacturers have a high market share in the home appliance market. It is also normal for Hefei Hi-Tech to choose to cooperate with customers with high demand for these products and good credit conditions, but if the market demand and competitive environment change in the future, or the cooperation between the company and major customers will change unfavourably. May affect the company's sustainable profitability in the future.

At the end of each period, the book value of Hefei Hi-Tech's accounts receivable was about 118 million yuan, 133 million yuan, 195 million yuan and 102 million yuan respectively, and the book value of bills receivable was about 160 million yuan, 219 million yuan, 245 million yuan and 246 million yuan, respectively.The scale of accounts receivable and bills receivable of the company shows an upward trend, and accounts for a relatively large proportion.. If the company's accounts receivable are not managed properly, the risk of bad debts may occur.

It is worth noting that mainly because the main downstream customers pay for the goods by bills, which reduces the cash inflow of the company's current operating activities, Hefei Hi-Tech also has the risk that the net operating cash flow is negative.

During the reporting period, the net cash flows generated by Hefei high-tech business activities were-69.7992 million yuan,-45.4292 million yuan,-13.8851 million yuan and-1.3029 million yuan, respectively.Operating net cash flow continues to be negativeThere is a big gap between the net profit of the company and the company in the same period. In the future, if the proportion of corporate bill collection continues to increase, the operating net cash flow continues to be negative, which may make the company's financial situation tight.

At the end of each period of the reporting period, Hefei high-techThe consolidated asset-liability ratio is 55.98%, 61.03%, 63.65% and 56.59% respectively, showing a fluctuating upward trend, which is higher than that of comparable companies in the same industry.The current ratio and quick ratio of the company are relatively close to those of comparable companies in the same industry, and the solvency needs to be improved.

Solvency and liquidity risk analysis of the company, prospectus

3

The end.

In recent years, with the development of China's household appliances industry, the revenue scale of Hefei Hi-Tech, which focuses on the manufacturing of special accessories for household appliances, is also expanding. But at the same time, the company is also faced with risks such as income dependence on the top five customers, gross profit margin declining year by year, asset-liability ratio higher than peers, operating net cash flow continuing to be negative, and future performance is uncertain.