Hongli Zhihui is “determined” after being inquired

Hongli Zhihui Group Co., Ltd. (hereinafter referred to as “Hongli Zhihui”, 300219. SZ) is still not out of the mud of declining revenue this year, and even its inventory turnover rate and accounts receivable turnover rate continue to decline along the historical track. However, in its announcement, it is a scene of short supply – < / P > < p > on June 17, December 9 and 17, the company successively announced the expansion of production, and Hongli Zhihui estimated that the total new output value will reach 5.8 billion yuan, while since its listing in 2011, the highest revenue year is only 4 billion yuan. < / P > < p > the Shenzhen stock exchange then issued an inquiry letter, pointing out that the company’s income continued to decline, with a net profit loss of 876 million yuan in 2019. It questioned the necessity of the project and the source of funds, and asked whether the statement was exaggerated. On December 17, the company disclosed that the subsidiary Hongli display plans to invest in the construction of LED new backlight display phase II project, with an investment scale of about 2 billion yuan. It is estimated that the construction period will be 18 months, and the annual output value will be about 4 billion yuan after the project is completed. < / P > < p > a week ago, the company just announced that its subsidiary plans to set up a new project company to invest in the construction of led projects and related supporting facilities, with an investment of about 1.2 billion yuan and the first phase output value of about 800 million yuan. On June 17, Hongli Zhihui signed an agreement with Huadu District of Guangzhou city to invest in the construction of Hongli photoelectric LED new backlight display project. The first phase investment is 150 million yuan, and the annual output value is about 600 million yuan. < / P > < p > from 2011 to 2019, the compound growth rate of Hongli Zhihui’s revenue was 26.4%, and the highest revenue year was just 4 billion yuan; the net profit attributable to the parent company increased from 0.73 billion yuan to 209 million yuan in 2018, with a loss of 876 million yuan in 2019. < / P > < p > in the first three quarters of this year, the company’s operating revenue was 2.1 billion yuan, a year-on-year decrease of 21.6%, ranking 30th among 89 listed companies of semiconductor products; the net profit attributable to the parent company was 63.2461 million yuan, a year-on-year increase of 108.7%, ranking 49th. < / P > < p > but will it be so optimistic? Back to seven months ago, Shenzhen stock exchange is still worried about the decline of Hongli Zhihui’s performance and the difficulty in digesting inventory. < / P > < p > “from 2017 to 2019, the turnover rate of accounts receivable of the company was 5.38, 4.14 and 3.55 respectively, and the turnover rate of inventory was 8.18, 7.26 and 7.01 respectively, which continued to decline. The company’s inventory in 2019 is 456 million yuan, of which 158 million yuan is issued, accounting for a relatively large proportion. Explain the reason and rationality of the above situation. ” < p > < p > at that time, the net profit of Hongli Zhihui was 876 million yuan, of which the Internet marketing subsidiary Suyi network “contributed” 718 million yuan. At the end of 2016, Hongli Zhihui spent 900 million yuan to acquire the company, cut into the automotive after service market, and finally ended up with “under the influence of stricter financial supervision, the scale of online credit shrank”. < / P > < p > the similar situation also ran into the Internet financial business. Due to the poor performance of participating in P2P company’s caymann net profit, the company confirmed an investment loss of 69 million yuan in 2019. < / P > < p > as early as February 9, 2018, Hongli Zhihui signed a strategic cooperation agreement with the industry fund to increase the weight of automobile LED lighting and lay out the LED lamp industry. At present, there is no further discussion on this cooperation. In the latest inquiry letter, Shenzhen Stock Exchange asked about the progress. The company said that it signed the termination agreement of share transfer agreement with relevant capital on July 19, 2018. On the evening of December 21, Shenzhen Stock Exchange issued a letter of concern, questioning the necessity of the above-mentioned project and the source of funds, and asking whether it exaggerates the statement; combined with Hongli’s asset scale, financing capacity and source of investment funds, it explains the feasibility of its future investment of 2 billion yuan. < / P > < p > as of the first three quarters of 2020, the monetary capital on Hongli Zhihui account is only 252 million yuan, which can not cover 273 million yuan of short-term loans; the current ratio and quick ratio are 1.26 times and 0.92 times respectively, which are lower than the normal index of 2 and 1. < p > < p > but Hongli Zhihui does not pay attention to this problem: “as of the end of November 2020, the group company’s monetary capital stock balance is 272 million yuan, the company’s Bank credit line is 1.8 billion yuan, the company’s interest bearing liabilities is 302 million yuan, the interest bearing liability ratio is 16%, and the company’s overall asset liability ratio is 47.5%. At the same time, the company’s future profits will also increase the source of funds. ” < / P > < p > long before the expansion of production, the company made preparations for building and increasing equipment. By the end of the first half of this year, the company had 22 projects under construction, most of which were factory buildings or R & D buildings. Contrary to the short supply created by the announcement, Hongli Zhihui’s revenue has declined for six consecutive quarters, ranging from 7% to 38% from the second quarter of 2019 to the third quarter of 2020. < / P > < p > not only that, in the first three quarters of this year, the company’s inventory turnover rate and accounts receivable turnover rate further decreased compared with the same period last year, which were 3.66 times and 2.35 times respectively. < / P > < p > the reduction of senior executives also seems to reflect the real situation from the side. According to wind statistics, this year, the company’s top executives Liu Xinhua, Ma Defu, Li Jundong and Ma Chengzhang reduced their holdings by 1.35 million shares, with a market value of 13.24 million yuan. < / P > < p > according to the requirements of the latest inquiry letter, the feasibility and necessity of the phase II project are supplemented in combination with the utilization of existing capacity, other capacity under construction or planning, orders in hand or intention, and the growth of customer demand; whether there are risks of overcapacity and insufficient investment funds, and whether the company will face greater liquidity risk and financial risk. < / P > < p > in addition, the specific content of the cooperation, the purpose of the cooperation, the current specific progress, the achieved economic benefits or cooperation results, and whether there is a big difference between the project progress and income and the original plan. < p > < p > Hongli Zhihui replied: “in November 2020, the capacity utilization rate of its subsidiary smed and Guangzhou Branch is close to full capacity, the existing capacity can no longer meet the demand of customers’ orders, and the orders also set a record high, with the average delivery time delayed to more than half a month to January. Mini phase I has been successfully put into operation. If we don’t expand production as soon as possible, we may lose customers. It is imperative to expand production, and there is no problem of overcapacity. ” < p > < p > according to the data of tianyancha, Hongli Zhihui has 48 external guarantee information this year, and the related guarantee has reached 191 million yuan, accounting for about 10% of the net assets. < p > < p > in addition, Xinquan optoelectronics, which was invested by the company, was declared dishonest by the Supreme People’s court this year and was restricted from high consumption. Last year, the school bus of Pearl Airlines was also listed as a dishonest company. Do companies guarantee these companies? Recently, investor.com has called and e-mailed Hongli Zhihui about relevant issues, but it has not received a reply after waiting for a week. < / P > < p > the Shenzhen Stock Exchange asked whether there was insider trading; whether shareholders holding more than 5% of shares, directors, supervisors and senior executives had plans to reduce their holdings in the next month; whether the company deliberately disclosed favorable information to cooperate with relevant personnel to reduce their holdings. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. 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