Blue Arrow’s electronic products price cut, number of employees drop, revenue stagnates, private brand declines

Foshan Lanjian Electronics Co., Ltd. (hereinafter referred to as “Lanjian Electronics”) will launch its first public meeting on December 31. The company plans to be listed on the science and Technology Innovation Board of Shanghai stock exchange this time, with no more than 50 million shares to be issued and no less than 25% of the total share capital of the company after this issuance. The sponsor is Jinyuan Securities Co., Ltd. Blue Arrow Electronics plans to raise 500 million yuan, of which 442 million yuan will be used for semiconductor packaging test expansion project and 57.6562 million yuan will be used for R & D center construction project. < / P > < p > according to the prospectus, Lanjian electronic carried out three cash dividends from 2017 to 2019, with a total amount of 43.5 million yuan. < / P > < p > from January 2017 to June 2020, the business income of Lanjian Electronics was 519 million yuan, 485 million yuan, 490 million yuan and 243 million yuan respectively, the main business income was 517 million yuan, 480 million yuan, 486 million yuan and 241 million yuan respectively, and the cash received from selling goods and providing services was 419 million yuan, 531 million yuan, 475 million yuan and 258 million yuan respectively. < / P > < p > Blue Arrow’s revenue stagnated. The operating revenue of the company in 2018 decreased compared with that in 2017, and the growth rate of operating revenue in 2019 was only 1.06% compared with that in 2018. < / P > < p > Lanjian’s private brand revenue has decreased year by year. From 2017 to January to June 2020, Lanjian’s private brand revenue was 363 million yuan, 314 million yuan, 290 million yuan and 110 million yuan respectively, accounting for 70.17%, 65.39%, 59.53% and 45.57% of the operating revenue respectively. During the same period, the company’s revenue from sealing and testing services was 154 million yuan, 166 million yuan, 197 million yuan and 131 million yuan respectively, accounting for 29.83%, 34.61%, 40.47% and 54.43% of the operating revenue respectively. < / P > < p > from 2017 to January to June 2020, the total assets of Lanjian electronics were RMB 758 million, RMB 701 million, RMB 748 million and RMB 757 million respectively, and the total liabilities were RMB 311 million, RMB 262 million, RMB 296 million and RMB 283 million respectively. < / P > < p > from 2017 to January to June 2020, the turnover rate of accounts receivable of Lanjian Electronics was 3.57 times, 3.47 times, 4.06 times and 3.95 times respectively, and the average of Listed Companies in the same industry was 5.78 times, 5.50 times, 5.08 times and 4.57 times respectively. < / P > < p > from 2017 to January to June 2020, the inventory turnover rate of Lanjian Electronics was 3.38 times, 3.45 times, 3.99 times and 2.23 times respectively, and the average of Listed Companies in the same industry was 5.49 times, 4.96 times, 4.95 times and 2.29 times respectively. < / P > < p > from 2017 to January to June 2020, the gross profit rates of Lanjian’s private brand products are 10.90%, 7.79%, 15.51% and 12.55% respectively. The main products of Lanjian’s own brand are triode, diode and field effect transistor. < / P > < p > from 2017 to January to June 2020, the gross profit rates of bluearrow electronic packaging and testing service products were 31.62%, 31.41%, 26.25% and 27.22% respectively. The main products of blue arrow electronic packaging and testing service are power management products in integrated circuit products. < / P > < p > the price of blue arrow electronic products dropped continuously. Among them, from 2017 to January to June 2020, the average unit prices of Lanjian’s own brand discrete device products were 60443 yuan / 10000, 53814 yuan / 10000, 493 yuan / 10000 and 47176 yuan / 10000 respectively, with a decrease of 10.97%, 8.39% and 4.31% respectively in 2018, 2019 and the first half of 2020. < p > < p > according to the prospectus, Lanjian electronics began to set foot in the R & D, production and sales of LED products in 2008, mainly engaged in LED lamp beads and supporting products. Since 2017, the company’s LED products have batch quality problems, resulting in more return, exchange and sales discounts, which has a great adverse impact on the company’s performance. In 2018, the company shut down the production of LED products. < / P > < p > from 2017 to 2019, the total amount of credit impairment loss and asset impairment loss related to LED products of the company is – 8.3934 million yuan, – 13.6420 million yuan and 4870 million yuan respectively, of which the amount of bad debt provision for accounts receivable is 9457 million yuan, – 2.0599 million yuan and – 4870 million yuan respectively, and the amount of inventory depreciation provision is 7.4477 million yuan, 6.3302 million yuan and 0 million yuan respectively The amount of provision for assets impairment is RMB 0, 9.3716 million and RMB 0 respectively, and the income from asset disposal is RMB 0, 63000 and 143500 respectively. < p > < p > according to the prospectus, Lanjian electronics plans to raise 500 million yuan, of which 442 million yuan will be used for the semiconductor packaging test expansion project. After the completion of the project, the annual production capacity of 5.028 billion new packaging test products will be formed. < / P > < p > according to the prospectus, Lanjian electronics has two administrative punishments, one for losing the special VAT invoice and being fined 80 yuan, the other for the company’s information published on the website containing misleading false content, which belongs to the illegal act of using the Internet to make misleading false propaganda to the operators of goods. The market supervision and Administration Bureau of Chancheng District of Foshan City ordered the company to stop immediately Illegal behavior, eliminate the impact. According to the national enterprise credit information publicity system, the above-mentioned false publicity violations of Lanjian electronics are illegal acts of unfair competition. < / P > < p > the prospectus shows that there are three pending lawsuits in Lanjian electronics, one of which is a dispute over exclusive right of design, and two are disputes over sales contract. The above-mentioned design exclusive right dispute is that Shenzhen Tianyuan SMIC Semiconductor Co., Ltd. (hereinafter referred to as “Shenzhen Tianyuan”) sued Shanghai Guoxin integrated circuit design Co., Ltd. (hereinafter referred to as “Shanghai Guoxin”) for copying and selling a product infringing the plaintiff’s exclusive right of integrated circuit layout design, and Lanjian Electronics sold the above-mentioned sued product. < / P > < p > Lanjian is one of the top five customers and one of the top five suppliers of the company from January to June 2020. In the first half of 2020, the fourth largest customer of Lanjian Electronics was China Resources micro, and in the same period, China Resources micro was the fifth largest supplier of the company. In the first half of 2020, the sales amount of Lanjian electronics to China Resources micro is 8.4332 million yuan, the main sales contents are field effect transistor (sealed test service) and integrated circuit (sealed test service); in the same period, the purchase amount of Lanjian electronics from China Resources micro is 5.034 million yuan, the main purchase contents are chips. < / P > < p > the number of employees of Blue Arrow Electronics dropped in 2018 and 2019. From 2017 to January to June 2020, the total number of blue arrow e-workers was 1354, 1129, 1106 and 1170 respectively, of which 487, 479, 999 and 1088 were employees, and 867, 650, 107 and 82 were labor dispatch. < p > < p > Blue Arrow Electronics is a national high-tech enterprise mainly engaged in semiconductor packaging and testing. The company has a relatively complete R & D, procurement, production and sales system, and has mastered a series of core technologies such as metal substrate packaging, fully integrated lithium protection IC, power device packaging, ultra-thin chip packaging, semiconductor / IC testing, high reliability welding, high-density frame packaging, etc. The company’s main business products include private brand products and packaging and testing service products. It is a relatively large-scale semiconductor packaging and testing enterprise in South China. < / P > < p > the co controlling shareholders and actual controllers of Lanjian electronics are Wang Chengming, Chen zhanlun and Zhang Shun, who together directly hold 44.32% of the shares of the company. Among them, Wang Chengming holds 31.6694 million shares of the company, accounting for 21.11%, Chen zhanlun holds 19.762 million shares of the company, accounting for 13.14%, Zhang Shun holds 15.1076 million shares of the company, accounting for 10.07%, and Wang Chengming and Chen chenglun hold 19.762 million shares of the company, accounting for 13.14% Zhan Lun and Zhang Shun are acting in concert, all of them are Chinese nationality and have no right of permanent residence abroad. < / P > < p > Lanjian electronics is going to be listed on the science and Technology Innovation Board of Shanghai stock exchange this time, with no more than 50 million shares to be issued, and no less than 25% of the total share capital of the company after this issuance. The sponsor is Jinyuan Securities Co., Ltd. Bluearrow electronics plans to raise 500 million yuan this time. After deducting the issuance expenses, if there is no significant and unpredictable market change, the actual raised funds will be used for the following projects: < / P > < p > 1. Semiconductor packaging test expansion project, with a total investment of 442 million yuan, and the proposed raised funds of 442 million yuan; 2. R & D center construction project, with a total investment of 57 million yuan 656200 yuan, and 57.656200 yuan of funds are planned to be raised. < / P > < p > according to the prospectus, Lanjian electronic carried out three cash dividends from 2017 to 2019, with a total amount of 43.5 million yuan. < / P > < p > from January 2017 to June 2020, the business income of Lanjian Electronics was 519 million yuan, 485 million yuan, 490 million yuan and 243 million yuan respectively, the main business income was 517 million yuan, 480 million yuan, 486 million yuan and 241 million yuan respectively, and the cash received from selling goods and providing services was 419 million yuan, 531 million yuan, 475 million yuan and 258 million yuan respectively. < / P > < p > from 2017 to January to June 2020, the average R & D expense rates of comparable listed companies in the same industry of Lanjian electronics were 5.57%, 6.14%, 6.21% and 6.06% respectively. < / P > < p > from 2017 to January to June 2020, the average sales expense rates of comparable listed companies in the same industry of bluearrow electronics were 2.15%, 2.21%, 2.22% and 2.12% respectively. < / P > < p > from 2017 to January to June 2020, the total assets of Lanjian electronics were RMB 758 million, RMB 701 million, RMB 748 million and RMB 757 million respectively, of which the current assets were RMB 520 million, RMB 457 million, RMB 497 million and RMB 451 million respectively, and the non current assets were RMB 237 million, RMB 245 million, RMB 251 million and RMB 306 million respectively. < / P > < p > from 2017 to January to June 2020, the deposits of Lanjian e-bank were 46.1804 million yuan, 48.714 million yuan, 49.9132 million yuan and 93.4887 million yuan respectively, and other monetary funds were 41.2049 million yuan, 41.7898 million yuan, 40.1814 million yuan and 36.8284 million yuan respectively. Other monetary funds of blue arrow e-commerce are mainly bank acceptance deposit. < / P > < p > from 2017 to January to June 2020, the turnover rate of accounts receivable of Lanjian Electronics was 3.57 times, 3.47 times, 4.06 times and 3.95 times respectively, and the average of Listed Companies in the same industry was 5.78 times, 5.50 times, 5.08 times and 4.57 times respectively. < p > < p > Lanjian electronics said that at the end of 2018, the company’s inventory balance decreased by 15.8659 million yuan, or 10.47%, compared with that at the end of 2017. The main reason is that the company’s LED products gradually reduced production and stopped production in the second half of 2018, and LED products in production decreased. At the end of 2019, the company’s inventory balance decreased by 31.8304 million yuan, or 23.46%, compared with that at the end of 2018. The main reasons are as follows: on the one hand, due to the release of chip suppliers’ capacity after 2018, the company readjusted the chip preparation cycle and reduced chip preparation; on the other hand, the company accelerated the inventory turnover and disposed of LED product inventory. At the end of June 2020, the company’s inventory balance decreased by 1.4651 million yuan, or 1.41%, compared with the end of 2019. The main reason is that the turnover of issued goods is accelerated and the amount is reduced. < / P > < p > from 2017 to January to June 2020, the inventory turnover rate of Lanjian Electronics was 3.38 times, 3.45 times, 3.99 times and 2.23 times respectively, and the average of Listed Companies in the same industry was 5.49 times, 4.96 times, 4.95 times and 2.29 times respectively. < / P > < p > from 2017 to January to June 2020, the gross profit rates of Lanjian’s private brand products are 10.90%, 7.79%, 15.51% and 12.55% respectively. The main products of Lanjian’s own brand are triode, diode and field effect transistor. < / P > < p > from 2017 to January to June 2020, the gross profit rates of bluearrow electronic packaging and testing service products were 31.62%, 31.41%, 26.25% and 27.22% respectively. The main products of blue arrow electronic packaging and testing service are power management products in integrated circuit products. < / P > < p > Lanjian electronics said that the sales revenue of the company’s private brand products showed an overall downward trend, and the decline of the company’s private brand product revenue from 2017 to 2019 was mainly due to the company’s gradual production reduction and shutdown of LED products in the second half of 2018, resulting in more revenue reduction of LED products. From January to June 2020, the revenue of private brand products decreased by 24.238 million yuan compared with the same period of last year, mainly due to the decrease of customer orders of private brand products affected by the market and the corresponding decrease of revenue. < / P > < p > according to the prospectus, bluearrow began to set foot in LED product research in 2008