An LED lighting company with an OEM processing ratio of up to 90%, in the case of a net profit decline of 34.71%, is still in the small and medium-sized board to play the myth. As of February 21, the closing price was 26.75 yuan, and the cumulative increase in 11 trading days has reached 49.98%.
According to the prospectus of the prospectus, as a backup lighting manufacturer, Jin Laite's operating income and net profit in 2011-2012 both showed a perfect upward trend, and it declined sharply in 2013. Among them, the operating income increased slightly by 4.2 million compared with the 5,591,112 yuan in 2012, the growth rate was less than 1%, and the net profit dropped by 30%, a decrease of 2,151,500 yuan compared with the same period of last year.
For a reduction of 21 million, King Wright explained that the financial costs caused by bank borrowings and exchange rate losses surged, and the company received subsidies after the increase in labor costs. However, the 21st Century Business Herald Green Boot Capital reporter found that as an LED OEM with no core technology support, the company's industry has already experienced fierce competition, and the profitability is declining, and subsequent growth is worrying.
Contrarian expansion is difficult to cover the market deterioration
At the time of the IPO shutdown in 2013, the proposed small and medium-sized board company, Jin Laite, which had passed the IPO review, could not start the fundraising project. As of June 30, 2013, the accumulated funds for the fundraising project totaled 145,994,100 yuan. Among them: the rechargeable standby LED lamp expansion project has invested a total of 71.548 million yuan, the chargeable AC and DC fan expansion project has invested 17.43.95 million yuan, and the R&D center project investment amount is 2,605,700 yuan.
However, compared with the advancement of fundraising projects, the market situation has deteriorated. During the reporting period, the company's capacity utilization rate decreased by 20 points year-on-year. The production and sales rate also declined to varying degrees. Among them, the rechargeable indoor and outdoor standby lighting fixtures occupying half of Jinlaite's sales revenue (the sales revenue from 2010 to the first half of 2013) The ratio of production to sales of 66%, 56.29%, 63.87% and 45.94% respectively was only 96%, far lower than the 100.08% and 99.44% in 2011 and 2012. In addition, the production and sales rates of the two types of products are also 95.74% and 100.91%, respectively, which are 3.7 points and 60 points lower than the previous year.
For the LED lighting industry where the company is located, Shenzhen brokers pointed out to reporters that the downstream of the LED industry mainly includes display, backlight, automotive lighting and general lighting. As the LED industry chain gradually decreases from the upstream to the downstream, the number of small and medium-sized enterprises in the LED downstream is large, the pattern is chaotic, and the market competition is fierce.
The fierce competition of LED lamps is reflected in the company's financial report. In 2013, the company's five major categories of products - rechargeable indoor and outdoor standby lighting, rechargeable flashlights, fire emergency lights, rechargeable AC and DC dual-use fan, can The unit price of the charging AC-DC dual-purpose floor-standing fan decreased by 2.58%, 7.32%, 28.82%, 5.72% and 0.77%, respectively, compared with 2012.
Correspondingly, the company's gross profit margin continued to decline in 2011, at 20.57%, 20.19% and 19.06% respectively.
"Industry concentration is not high, so the homogenization between enterprises is serious, because there is a general lack of core technology, and more rely on price wars for low-level competition." The aforementioned brokers further pointed out to reporters.
Growth troubles behind management benefits
As can be seen from the financial data, the company's 2013 decline was mainly due to the substantial increase in expenses during the first half of the year, which increased from 19.9493 million yuan in the same period last year to 29.4222 million yuan, a year-on-year increase of 50.16%.
In addition, in addition to the increase in financial expenses due to the launch of the fundraising project, the improvement of the company's overall salary level and the increase in the management and management of the management staff led to a rapid increase in management expenses. The management fee for 2013 was as high as 38,601,200 yuan, compared with the same period last year. The increase of 20.28 million yuan has almost become the main cause of the decline in net profit.
In this regard, some financial sources pointed out directly to reporters that “there is a sharp increase in management fees. One is that as the number of managers increases and the salary increases, the wages and welfare expenses increase, and the increase in training is actually the public expenditure for going out to meet. It is not difficult to understand the management benefits of the pre-IPO."
But the increase in management dividends is a sharp decline in the company's growth. Most notably, there was a sharp surge in sales receivables under the reporting period, indicating that the industry's overall payments are rapidly deteriorating.
The surge in accounts receivable also led to an increase in the risk of bad debts and an increase in asset impairment provisions. In the first half of 2013, asset impairment losses increased significantly year-on-year, with an increase of 27.98%, mainly because the balance of accounts receivable at the end of the period increased by RMB 34.095 million compared with the end of 2012, and the provision for bad debts also increased accordingly.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
According to the prospectus of the prospectus, as a backup lighting manufacturer, Jin Laite's operating income and net profit in 2011-2012 both showed a perfect upward trend, and it declined sharply in 2013. Among them, the operating income increased slightly by 4.2 million compared with the 5,591,112 yuan in 2012, the growth rate was less than 1%, and the net profit dropped by 30%, a decrease of 2,151,500 yuan compared with the same period of last year.
For a reduction of 21 million, King Wright explained that the financial costs caused by bank borrowings and exchange rate losses surged, and the company received subsidies after the increase in labor costs. However, the 21st Century Business Herald Green Boot Capital reporter found that as an LED OEM with no core technology support, the company's industry has already experienced fierce competition, and the profitability is declining, and subsequent growth is worrying.
Contrarian expansion is difficult to cover the market deterioration
At the time of the IPO shutdown in 2013, the proposed small and medium-sized board company, Jin Laite, which had passed the IPO review, could not start the fundraising project. As of June 30, 2013, the accumulated funds for the fundraising project totaled 145,994,100 yuan. Among them: the rechargeable standby LED lamp expansion project has invested a total of 71.548 million yuan, the chargeable AC and DC fan expansion project has invested 17.43.95 million yuan, and the R&D center project investment amount is 2,605,700 yuan.
However, compared with the advancement of fundraising projects, the market situation has deteriorated. During the reporting period, the company's capacity utilization rate decreased by 20 points year-on-year. The production and sales rate also declined to varying degrees. Among them, the rechargeable indoor and outdoor standby lighting fixtures occupying half of Jinlaite's sales revenue (the sales revenue from 2010 to the first half of 2013) The ratio of production to sales of 66%, 56.29%, 63.87% and 45.94% respectively was only 96%, far lower than the 100.08% and 99.44% in 2011 and 2012. In addition, the production and sales rates of the two types of products are also 95.74% and 100.91%, respectively, which are 3.7 points and 60 points lower than the previous year.
For the LED lighting industry where the company is located, Shenzhen brokers pointed out to reporters that the downstream of the LED industry mainly includes display, backlight, automotive lighting and general lighting. As the LED industry chain gradually decreases from the upstream to the downstream, the number of small and medium-sized enterprises in the LED downstream is large, the pattern is chaotic, and the market competition is fierce.
The fierce competition of LED lamps is reflected in the company's financial report. In 2013, the company's five major categories of products - rechargeable indoor and outdoor standby lighting, rechargeable flashlights, fire emergency lights, rechargeable AC and DC dual-use fan, can The unit price of the charging AC-DC dual-purpose floor-standing fan decreased by 2.58%, 7.32%, 28.82%, 5.72% and 0.77%, respectively, compared with 2012.
Correspondingly, the company's gross profit margin continued to decline in 2011, at 20.57%, 20.19% and 19.06% respectively.
"Industry concentration is not high, so the homogenization between enterprises is serious, because there is a general lack of core technology, and more rely on price wars for low-level competition." The aforementioned brokers further pointed out to reporters.
Growth troubles behind management benefits
As can be seen from the financial data, the company's 2013 decline was mainly due to the substantial increase in expenses during the first half of the year, which increased from 19.9493 million yuan in the same period last year to 29.4222 million yuan, a year-on-year increase of 50.16%.
In addition, in addition to the increase in financial expenses due to the launch of the fundraising project, the improvement of the company's overall salary level and the increase in the management and management of the management staff led to a rapid increase in management expenses. The management fee for 2013 was as high as 38,601,200 yuan, compared with the same period last year. The increase of 20.28 million yuan has almost become the main cause of the decline in net profit.
In this regard, some financial sources pointed out directly to reporters that “there is a sharp increase in management fees. One is that as the number of managers increases and the salary increases, the wages and welfare expenses increase, and the increase in training is actually the public expenditure for going out to meet. It is not difficult to understand the management benefits of the pre-IPO."
But the increase in management dividends is a sharp decline in the company's growth. Most notably, there was a sharp surge in sales receivables under the reporting period, indicating that the industry's overall payments are rapidly deteriorating.
The surge in accounts receivable also led to an increase in the risk of bad debts and an increase in asset impairment provisions. In the first half of 2013, asset impairment losses increased significantly year-on-year, with an increase of 27.98%, mainly because the balance of accounts receivable at the end of the period increased by RMB 34.095 million compared with the end of 2012, and the provision for bad debts also increased accordingly.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
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