Rongtai industry’s short-term loan small amount of super money fund media questioned the virtual increase of revenue

Jiangsu Rongtai Industry Co., Ltd. (hereinafter referred to as “Rongtai industry”) will be listed on the main board of Shanghai Stock Exchange on October 15. The company intends to be listed on the main board of Shanghai Stock Exchange. It plans to issue no more than 40 million shares, no less than 25% of the total share capital after the issuance. The sponsor is Dongfang securities underwriting Co., Ltd. Rongtai industry plans to raise 898 million yuan this time, of which 227 million yuan is used for the expansion project of 390000 new automobile power assembly shells, 380000 new energy motor shells, 253 million yuan for the production and construction of key parts of automobile steering system, 223 million yuan for the expansion project of light-weight aluminum alloy parts in Mexico, and 35.9 million yuan in research and development 160 million yuan will be used to supplement working capital projects. < p > < p > from 2016 to 2019, the operating revenue of Rongtai industry was 559 million yuan, 682 million yuan, 880 million yuan and 991 million yuan respectively, and the cash received from selling goods and providing labor services was 429 million yuan, 502 million yuan, 554 million yuan and 748 million yuan respectively. < p > < p > from 2016 to 2019, the net profit of Rongtai industry to its parent company was 108 million yuan, 93.8303 million yuan, 116 million yuan and 158 million yuan respectively, and the net cash flow from operating activities was 151 million yuan, 142 million yuan, 94.9464 million yuan and 206 million yuan respectively. From 2016 to 2019, the total assets of Rongtai industry were RMB 998 million, RMB 1.166 billion, RMB 1.303 billion and RMB 1.535 billion, and the total liabilities were RMB 368 million, RMB 472 million, RMB 719 million and RMB 783 million respectively. < p > < p > Rongtai industry’s short-term loans exceed monetary funds. As of the end of 2019, Rongtai’s short-term loan was RMB 4.651 million, and its short-term capital was RMB 1053.48 million. < p > < p > from 2016 to 2019, the turnover rate of accounts receivable of Rongtai industry was 3.80 times, 4.01 times, 4.35 times and 3.67 times respectively, and the average accounts receivable turnover rates of comparable listed companies in the same industry were 4.48 times, 4.39 times, 4.39 times and 4.15 times respectively. < p > < p > from 2017 to 2019, the inventory balance of Rongtai industry was 125 million yuan, 173 million yuan and 158 million yuan respectively, among which, the balance within one year was 116 million yuan, 161 million yuan and 133 million yuan respectively. From 2016 to 2019, the inventory turnover rates of Rongtai industry were 5.16 times, 4.66 times, 3.97 times and 3.98 times respectively; the average inventory turnover rates of comparable listed companies in the same industry were 5.10 times, 5.17 times, 4.73 times and 4.06 times respectively. From 2016 to 2019, the sales amount of Rongtai industry from the top five customers were RMB 474 million, RMB 584 million, RMB 751 million and RMB 842 million, accounting for 84.77%, 85.61%, 85.32% and 85.04% of the total sales volume of the current period. According to the prospectuses submitted by Rongtai industry on June 5, 2019 and August 18, 2020, Rongtai industry has 49 related party guarantees, including RMB bills and loan guarantees totaling 482 million yuan. Affiliated guarantors include Zhuhai Runcheng, the controlling shareholder of the company, and the actual controllers, Xia Chengliang and Zhu Huaxia. < / P > < p > in addition, Rongtai die casting, a subsidiary of Rongtai industry, also has a number of related guarantees, with a total amount of 267 million yuan; Shunhong accessories, a subsidiary, received a total amount of 6.98 million yuan; and Rongtai mold, a subsidiary, received a related guarantee of 3 million yuan. < / P > < p > according to the prospectus, the company acquired 100% equity of Rongtai Zhuhai in March 2018, 100% equity of Shunhong accessories, 100% equity of Rongtai surface and 26.71% equity of Rongtai die casting in April 2018. In June 2018, Rongtai die casting acquired Xia Chengliang, holding 1% equity of Lyon Rongtai. However, in the company’s “scope and changes of consolidated statements”, Zhuhai Rongtai, Shunhong accessories, Rongtai surface and Rongtai die casting have been included in the scope of consolidated statements in 2016 and 2017. < p > < p > from 2017 to 2019, the total number of employees in Rongtai industry was 1456, 1746 and 1611 respectively; among them, the total number of employees was 1442, 1683 and 1547, and the number of labor dispatch was 14, 63 and 64 respectively. < / P > < p > the prospectus shows that there are administrative penalties for Shunhong accessories, a subsidiary of Rongtai industry, and Rongtai, Zhuhai, due to safety production. Among them, Shunhong accessories had a mechanical injury accident on October 19, 2017, and one person died. The direct cause of the accident was that the employee’s safety awareness was weak and he violated the operation rules. The nature of the accident is “production safety liability accident”, and the accident level is “general accident”. On October 27, 2017, Rongtai, Zhuhai, was fined 10000 yuan by Jinwan District Safety Supervision Bureau of Zhuhai City for some dust removal equipment failing to meet the standard. Zhuhai Rongtai has taken rectification measures such as replacing equipment. < p > < p > according to the red weekly of the securities market, there is a huge difference in the operating income of Rongtai industry, or it may increase its revenue falsely. According to the report, Rongtai industry received 747.8542 million yuan in cash from sales of goods and provision of labor services in 2019. After offsetting the cash flow corresponding to the increase of 367000 yuan in advance receipts, it was checked with 1088.7946 million yuan of taxable revenue, and there was no cash inflow of 341.374 million yuan of tax included income. In 2019, the combined original value of receivables is about 372.2818 million yuan. Compared with the original value of 270.0299 million yuan at the end of the previous year, it is only 102.2519 million yuan more than the original value of the accounts receivable at the end of the previous year. This result is 239.0555 million yuan different from the theoretical 341.374 million yuan of new claims. < / P > < p > maybe the company still has some factors such as endorsement of bills and discount of accounts receivable. However, there is no detailed information disclosure in the prospectus. In this case, it is difficult to rule out the data gap of 239055500 yuan, which is likely to be the result of virtual increase in revenue. Rongtai industry is mainly engaged in the R & D, production and sales of automotive aluminum alloy precision die castings. Its main products are aluminum alloy auto parts produced by die casting and precision machining technology, which are mainly used in automobile steering system, transmission system, brake system and other fields. < p > < p > the controlling shareholder of Rongtai industry is Zhuhai Runcheng, which directly holds 60.94% of the company’s shares; the actual controllers of the company are Xia Chengliang, Zhu Yinghui and their son Zhu Huaxia, who directly or indirectly hold 90.37% of the company’s shares. Among them, Xia Chengliang directly holds 10.01% of the company’s shares, indirectly holds 10.73% and 3.57% of the company’s shares through Macao Runcheng and Yangzhou Jiajie; Zhu Yinghui indirectly holds 54.85% and 10.73% of the company’s shares through Zhuhai Runcheng and Macao Runcheng; Zhu Huaxia indirectly holds 0.50% of the company’s shares through Yangzhou Jiajie Copies. Xia Chengliang, Zhu Yinghui and Zhu Huaxia are Chinese nationals and permanent residents of Macao. < p > < p > Rongtai industry intends to be listed on the main board of Shanghai stock exchange this time. It plans to issue no more than 40 million shares, no less than 25% of the total share capital after the issuance. The sponsor is Orient Securities Underwriting Co., Ltd. Rongtai industry plans to raise 898 million yuan this time, which is planned to be invested in the following projects: < / P > < p > 1. The expansion project of 390000 automobile power assembly shells and 380000 new energy motor shells, with a total investment of 227 million yuan and the use amount of raised funds of 227 million yuan; 2. The production and construction project of key parts of automobile steering system The total amount of investment is 253 million yuan, and the amount of raised funds is 253 million yuan; 3. The expansion project of automobile lightweight aluminum alloy parts in Mexico has a total investment of 223 million yuan and the use amount of raised funds is 223 million yuan; 4. The construction project of R & D Center has a total investment of 35.9 million yuan and the use amount of raised funds is 35.9 million yuan; 5. The supplementary working capital project has a total investment of 160 million yuan and the use amount of raised funds is 160 million yuan Billion yuan. < / P > < p > in February 2018, the board of directors of Rongtai Co., Ltd. passed the resolution of the first extraordinary general meeting of shareholders in 2018 in October 2018, and distributed dividends to Macao Runcheng and Zhuhai Runcheng, respectively, with an amount of 20.5363 million yuan and 58.3283 million yuan, respectively, with a total dividend of 78.8646 million yuan. < p > < p > from 2016 to 2019, the operating revenue of Rongtai industry was 559 million yuan, 682 million yuan, 880 million yuan and 991 million yuan respectively, and the cash received from selling goods and providing labor services was 429 million yuan, 502 million yuan, 554 million yuan and 748 million yuan respectively. < p > < p > from 2016 to 2019, the net profit of Rongtai industry to its parent company was 108 million yuan, 93.8303 million yuan, 116 million yuan and 158 million yuan respectively, and the net cash flow from operating activities was 151 million yuan, 142 million yuan, 94.9464 million yuan and 206 million yuan respectively. From 2016 to 2019, the total industrial assets of Rongtai were RMB 998 million, RMB 1.166 billion, RMB 1.303 billion and RMB 1.535 billion respectively; among them, the current assets were RMB 508 million, RMB 492 million, RMB 513 million and RMB 630 million, and the non current assets were RMB 490 million, RMB 674 million, RMB 790 million and RMB 905 million respectively. < p > < p > from 2016 to 2019, the total liabilities of Rongtai industry were 368 million yuan, 472 million yuan, 719 million yuan and 783 million yuan respectively; among them, the current liabilities were 329 million yuan, 393 million yuan, 659 million yuan and 742 million yuan respectively. According to Rongtai industry, the company’s monetary capital is mainly composed of bank deposits and other monetary funds, among which other monetary funds are letter of credit, letter of guarantee and bill pool margin. At the end of 2018, the amount of monetary capital of the company decreased significantly, mainly due to the high capital expenditure of the company due to the acquisition of equity and other matters. At the end of 2019, the company’s monetary fund balance will increase with the accumulation of net cash inflow from operating activities. < p > < p > from 2016 to 2019, the balance of accounts receivable of Rongtai industry was 175 million yuan, 184 million yuan, 242 million yuan and 327 million yuan respectively. < p > < p > from 2016 to 2019, the turnover rate of accounts receivable of Rongtai industry was 3.80 times, 4.01 times, 4.35 times and 3.67 times respectively, and the average accounts receivable turnover rates of comparable listed companies in the same industry were 4.48 times, 4.39 times, 4.39 times and 4.15 times respectively. < p > < p > from 2017 to 2019, the inventory balance of Rongtai industry was 125 million yuan, 173 million yuan and 158 million yuan respectively, among which, the balance within one year was 116 million yuan, 161 million yuan and 133 million yuan respectively. From 2016 to 2019, the inventory turnover rates of Rongtai industry were 5.16 times, 4.66 times, 3.97 times and 3.98 times respectively; the average inventory turnover rates of comparable listed companies in the same industry were 5.10 times, 5.17 times, 4.73 times and 4.06 times respectively. Rongtai industry said that the company’s comprehensive gross profit rate decreased slightly, mainly due to the decline in the gross profit rate of its main business. Among them, auto parts are the main component of the company’s main business income, and its gross profit rate level and fluctuation lead to the change of the company’s comprehensive gross profit rate and main business gross profit rate. From 2016 to 2019, the sales amount of Rongtai industry from the top five customers were RMB 474 million, RMB 584 million, RMB 751 million and RMB 842 million, accounting for 84.77%, 85.61%, 85.32% and 85.04% of the total sales volume of the current period. According to Rongtai industry, the company’s products are used in the field of automobile manufacturing, and its customers are mainly first-class auto parts suppliers. The high customer concentration of the company is related to the higher concentration of downstream industries. According to the prospectuses submitted by Rongtai industry on June 5, 2019 and August 18, 2020, Rongtai industry has 49 related party guarantees, including RMB bills and loan guarantees totaling 482 million yuan. Affiliated guarantors include Zhuhai Runcheng, the controlling shareholder of the company, and the actual controllers, Xia Chengliang and Zhu Huaxia. < p > < p > in addition, Rongtai die casting, a subsidiary of Rongtai industry, also has a number of related guarantees, with a total amount of RMB 267 million; Shunhong accessories, a subsidiary, has received a total amount of RMB 6.98 million