After two IPO defeats, Ningbo, a large-scale private copper processing enterprise in China,Jintian Copper Industry(group) Co., Ltd. (hereinafter referred to as Jintian Copper) has once again reached the gate of IPO. On the evening of April 12, Jintian Copper announced the success of the lottery, and it is expected that the company will land in A shares soon?
? Copper processing industry is a typical strong cycle industry. Jintian Copper has made a lot of money in the past few years, thanks to the rising price of copper. The company's net profit after deduction increased from more than 16 million in 2014 to 400 million yuan in 2017. In just three years, it has increased 25-fold.
In strong cyclical industries, money comes and goes quickly. This time, Jintian Copper has encountered the "headwind" of the industry: the domestic copper price has declined and the industry as a whole is saturated. In 2018 and the first half of 2019, Jintian Copper's deduction non-net profit fell by 28.25% and 13.10% respectively, a significant decline; in the second half of 2019, Jintian Copper once again "boomed", with an annual profit growth of about 45%.
It is worth mentioning that Jintian Copper's comprehensive gross profit margin in 2018 is only "single digits", less than 4.2%, which is significantly lower than that of its peers. As the company's gross profit margin is extremely low, although the company's revenue exceeds 40 billion, it earns very little money. "such a low gross profit margin shows that Jintian Copper's competitiveness is very limited, and the company does not dare to raise prices and make hard money, while domestic copper prices fluctuate greatly, and once the inventory is not properly managed, the company will lose this money." Analysts point out that.
In addition to the extremely low gross profit margin, Jintian Copper is also very suspicious financially. The sales data disclosed by the company are incompatible with the procurement data disclosed by its customers, and there are large-scale differences. "for metal processing enterprises such as Jintian Copper, it is very easy to fake. Wherever you go, you can cut down the cost and reduce the impairment of assets." Some industry insiders said that with 40 billion revenue, isn't it easy to make a good performance?
Gross profit margin is only about 4%. Revenue grew slightly less than 1% last year.
From the performance point of view, Jintian Copper is definitely the "seed" player who landed on A shares. In 2019, the company achieved revenue of 40.9 billion yuan, an increase of about 0.83% over the same period last year, and deducted non-net profit of about 410 million yuan. It is understood that the company was previously the "revenue king" on the new third board, and it was also included in the list of hundreds of billions of enterprises cultivated by the local government of Ningbo.
Compared with the company's "beautiful" performance, Jintian Copper can be said to make hard money. In recent years, Jintian Copper's comprehensive gross profit margin has been only in single digits. According to the prospectus, from 2016 to 2019, Jintian Copper's comprehensive gross profit margin was 3.3%, 4.12%, 3.56% and 4.12%, respectively.
Jintian Copper's low gross profit margin is related to its business model and its core competitiveness, and the company is basically in a state of "squeezing" at both ends. On the one hand, in the face of upstream scrap copper suppliers, the company is often at a disadvantage. "A lot of raw material purchases need cash." An industry insider said.
In recent years, Jintian Copper has paid in advance for raw materials and projects at a high level. From 2016 to the end of 2019, the company's prepaid balance was 420 million yuan, 1.012 billion yuan, 368 million yuan and 328 million yuan respectively, accounting for 16.20% of current assets.
In addition, in the face of downstream strong customers, Jintian Copper is also basically in a weak position. In recent years, Jintian Copper's accounts receivable has been high. From 2016 to 2019, the company's accounts receivable reached 424 million yuan, 1.27 billion yuan, 1.6 billion yuan and 1.977 billion yuan respectively, basically soaring year after year. On the one hand, a large amount of money has to be paid in advance, on the other hand, the customer owes a lot of money. In 2017, for example, Jintian Copper paid 1.012 billion yuan in advance and 1.27 billion receivables.
"under the circumstances of being suppressed at both ends, Jintian Copper is lucky not to lose money. now its gross profit margin is only about 4% for many years, indicating that there is something wrong with the company's core competitiveness. Who told the company to produce all the major goods? " Some industry insiders analyzed that.
In fact, Jintian Copper mainly depends on heaven for a living. Copper prices performed well in the past few years, and the company's net profit after deduction has easily doubled or twofold. However, since 2018, copper prices have entered a downward cycle, and Jintian Copper's performance has also collapsed. In 2018 and the first half of 2019, Jintian Copper's deduction non-net profit fell 28.25% and 13.10% respectively, a significant decline. In the last downward cycle of copper prices, Jintian copper's performance fell for many years in a row, and the company's net profit fell 63% after deducting it in 2014.
"at present, it has long been saturated in the copper industry. This time IPO Jintian Copper wants to raise funds to expand production on a large scale in the downward cycle of the industry. I don't know where its rationality is, forming a new overcapacity? " In 2018, most of Jintian Copper's products were not saturated with capacity utilization. For example, the capacity utilization of the company's cathode copper and NdFeB permanent magnet products is only 67% and 54%.
Frequent fights with purchase and sales data have stepped on thunder shield and thunderstorm.
For companies with total assets such as Jintian Copper, it is easy to make a profit. As long as the cost is reduced slightly in some production links, tens of millions of profits will come out. This also provides great convenience for this kind of companies to fake. In recent years, Jintian Copper's financial data are very "abnormal".
According to the prospectus, in 2016, Jintian Copper reported toShield environment(002011.SZ) Zhejiang Dun'an Hetian Metal Co., Ltd. (hereinafter referred to as Dun'an Metal) sold 423 million yuan, making it the second largest customer, while Dun'an Metal purchased 480 million yuan from Jintian Copper in 2016, according to the Dun'an Environment 2016 Annual report. The difference between the two figures is very significant, reaching 13.62%. Who is lying behind this?
It is worth mentioning that at present, Dun'an Group, the parent company of Dun'an Environment, has defaulted on a huge amount of debt, and the company has been pursued by all parties and is on the verge of bankruptcy. In 2018, Dun'an suffered a huge loss of 2.1 billion yuan, 282 times lower than the same period last year. I wonder if Jintian Copper is affected by the environmental thunderstorm of Dun'an, the second largest customer.
2017年， Bull GroupIt is the fourth largest customer of Jintian Copper. According to Jintian Copper, the Bulls Group contributed 390 million yuan in sales revenue in 2017, but the Bulls Group disclosed that it purchased 394 million yuan from Jintian Copper in 2017, a difference between the two.
In addition, Chenguang Cable was the fifth largest customer of Jintian Copper in 2016, contributing 245 million yuan in sales revenue to Jintian Copper in the current period, while the Chenguang Cable 2016 Annual report revealed that it purchased only 258 million yuan from Jintian Copper in 2016. There is a gap of tens of millions between the two.
"if it's just a small difference, that's it. But such a large, large-scale difference. The reason behind this is worth exploring, knowing that Jintian Copper has a large volume, although the difference in small proportion has an earth-shaking impact on the company's net profit. " Some industry insiders analyzed that. Jintian Copper, on the other hand, said that the company had checked the relevant information and there was no financial fraud.
In addition to the above problems, Jintian Copper also has a lot of financial problems. For example, some of the acceptance bills obtained, there is no real trade background, as well as customs penalties.
It is reported that Jintian Copper received 231 million yuan and 160 million yuan in transfer of acceptance bills from related parties within the scope of the merger in 2016 and 2017 respectively. Among them, the transfer amount of bills without real trade background is 21.5205 million yuan and 22.552 million yuan respectively. In addition, during the reporting period, Jintian Copper and its subsidiaries were punished by the Customs for several times because of serious discrepancies in the amount of import declaration.
For this penalty, Jintian Copper said that the company has truthfully disclosed in the "prospectus". So, disclosure is not a fraud? thatLUCKN COFFEE DRCIf you expose yourself to be false, it doesn't count?