Yum Smart: rely heavily on key customers to increase income

On November 24, Jiangxi Baisheng Intelligent Technology Co., Ltd. (hereinafter referred to as “Baisheng intelligent”) which applied for IPO on GEM completed the reply to the inquiry letter of Shenzhen Stock Exchange. < p > < p > Yum smart is a high-tech enterprise mainly engaged in the R & D, production and sales of access control and management equipment. The company’s products include five series: gate, door opener, lifting column, license plate recognition management equipment and access door. < p > < p > in 2019, yum smart achieved an operating revenue of 472 million yuan, an increase of 46.11 million yuan over the previous year. Among them, the company’s accumulated new sales revenue to the top four customers was 41.25 million yuan, close to 90% of the company’s new revenue. Compared with the listed companies in the same industry, the gross profit rate of Yum smart is relatively low. < / P > < p > in the application draft of the prospectus, the number of R & D personnel disclosed by Yum smart is inconsistent, and the company’s real R & D status and high-tech enterprise qualification need to be supplemented. < / P > < p > according to the application draft of the prospectus, from 2017 to 2019, yum smart achieved an operating revenue of 400 million yuan, 425 million yuan and 472 million yuan respectively, with an annualized compound growth rate of about 8.4%; its net profit was 40.87 million yuan, 45.79 million yuan and 42.18 million yuan respectively, with an annualized compound growth rate of 3.21%. In 2019, the business revenue of Yum smart increased by 10.84% year on year, but the net profit decreased by 7.9% year on year. < p > < p > compared with the listed companies in the same industry, yum smart shows the operating characteristics of relatively low gross profit rate. From 2017 to 2019, the gross profit rate of Yum smart is 27.31%, 22.74% and 23.44% respectively. < / P > < p > in the prospectus application draft, yum smart listed companies such as Jieshun Technology (002609. SZ), cube Holdings (833030. OC) and Doyle intelligent Holdings (832966. OC) as comparable objects. In 2019, the gross profit rates of the three companies were 46.55%, 54.64% and 53.34% respectively, and the gross profit rate of Yum smart was less than half of that of Companies in the same industry. < / P > < p > in the application draft of the prospectus, yum smart disclosed that the company realizes the sales of products by direct selling and distribution mode, so the gross profit rate is lower than that of the same industry enterprises directly facing the end project customers. < / P > < p > according to the application draft of the prospectus, from 2017 to 2019, the sales revenue of Yum smart through distributors is 105 million yuan, 181 million yuan and 195 million yuan, accounting for 26.37%, 42.66% and 41.56% of the current operating revenue respectively, and the gross profit rate is 25.5%, 20.49% and 23.47% respectively. < / P > < p > it should be pointed out that in 2017-2019, the gross profit rate of Yum smart to direct sales customers does not show any significant difference with the distribution mode. In the same period, the sales revenue of direct sales mode is 295 million yuan, 243 million yuan and 275 million yuan respectively, accounting for 73.63%, 57.34% and 8.44% of the current operating revenue, and the gross profit rate is 27.84%, 24.04% and 23% respectively. < / P > < p > in fact, in recent years, the performance growth of Yum smart relies more on the support of key customers, which may be the company’s relatively low gross profit margin of 10000 yuan. Among them, the company’s sales revenue to Hangzhou Haikang Weishi Technology Co., Ltd. (hereinafter referred to as “Hangzhou Haikang”) was 37.81 million yuan, an increase of 10.72 million yuan over the previous year, accounting for 42.79% of the company’s new operating revenue; the sales revenue to Zhejiang Dahua Technology Co., Ltd. (hereinafter referred to as “Dahua”) was 16.39 million yuan, an increase of 5.02 million yuan over the previous year Yuan, accounting for about 20.03% of the new revenue. < / P > < p > in addition, in 2018, the sales revenue of Baisheng intelligent to Foshan baiside door control intelligent equipment Co., Ltd. (hereinafter referred to as “baiside”) was 31.26 million yuan, an increase of 6.97 million yuan over the previous year, accounting for 27.82% of the company’s new operating revenue. < / P > < p > based on the above data, in 2018, the cumulative new sales amount of Yum smart to the above three companies has reached 22.71 million yuan, accounting for 90.66% of the new operating revenue of that year. < / P > < p > in 2019, the business revenue of Yum smart increased by 46.11 million yuan compared with the previous year. Among them, the company’s sales revenue to Hangzhou Haikang was 62.98 million yuan, an increase of 25.16 million yuan, accounting for 54.57% of the new operating revenue; the company’s sales revenue to Dahua was 23.83 million yuan, an increase of 7.44 million yuan, accounting for 16.15% of the new operating revenue compared with the previous year; the company’s sales revenue to bester and Shanghai sobin door control equipment Co., Ltd. were 35.62 million yuan and 26.42 million yuan, an increase of 4.36 million yuan and 4.29 million yuan compared with the previous year Yuan, accounting for 9.45% and 9.3% of the new revenue. < / P > < p > according to statistics, in 2019, the accumulated new sales amount of Yum smart to the top four customers reached 41.25 million yuan, accounting for 89.46% of the company’s current new operating revenue. < / P > < p > according to the application draft of the prospectus, yum smart attaches great importance to technological innovation and R & D investment. However, compared with competitors in the same industry, the proportion of R & D investment of Yum smart is obviously low. < / P > < p > in 2019, the R & D cost of Jieshun technology is about 78.05 million yuan, accounting for 6.7% of the current operating revenue; the R & D cost of cube holdings is 42.49 million yuan, accounting for 10.75% of the current operating revenue; the R & D cost of Doyle intelligent control is 15.36 million yuan, accounting for 12.09% of the current operating revenue. In other words, the proportion of R & D expenses of Yum smart in operating revenue is also less than 50% of that of Companies in the same industry. < / P > < p > in 2016, yum smart won the “high tech enterprise certificate” issued by Jiangxi Provincial Department of science and technology. According to the relevant provisions of the tax law, in 2016-2018, yum smart can collect corporate income tax at the rate of 15%; in 2019, yum smart will pass the qualification review of high-tech enterprises, and in 2019-2022, the company can continue to collect corporate income tax at the rate of 15%. < / P > < p > according to the public information, in 2016, the Ministry of science and technology, the Ministry of Finance and the State Administration of Taxation jointly issued the revised administrative measures for the identification of high tech enterprises (hereinafter referred to as the “administrative measures for the identification”). The administrative measures for recognition require that the proportion of scientific and technological personnel engaged in R & D and related technological innovation activities of the high-tech enterprises participating in the examination shall not be less than 10% of the total number of employees of the enterprise in the current year; for the enterprises with sales revenue of more than 200 million yuan in the latest year, the proportion of total R & D expenses in the recent three accounting years shall not be less than 3% of the total sales revenue of the same period. < / P > < p > according to the annual report data disclosed when the new third board was listed, in 2016, the total number of employees of Yum smart was 660, including 83 technical R & D personnel, accounting for 12.58% of the total number of employees in the current period. < / P > < p > according to the “number of people at the end of each reporting period” in the prospectus declaration draft, in 2017, the total number of employees of Yum smart increased to 676, but the number of R & D personnel was only 57, which decreased by 26 compared with 2016, and the proportion of R & D personnel of the company also decreased from 12.58% to 8.43%; in 2018, the total number of employees of Yum smart decreased to 671, and the number of R & D personnel of the company in the current period was 62, which accounted for about 9% of the total number of employees 24%, still less than 10%. < / P > < p > until 2019, yum smart added 9 R & D personnel, with a year-on-year growth of 14.52%, accounting for 10.39%, just meeting the evaluation standard of high-tech enterprises, and successfully passed the review. < / P > < p > however, it should be pointed out that in the column of “per capita salary level of each functional category in each period” in the application draft of the prospectus, yum smart disclosed that in 2018, 2019 and from January to June 2020, the company’s R & D personnel were 64, 69 and 72 respectively. < / P > < p > through the comparison of the above data, it can be found that the number of R & D personnel disclosed in the column of “per capita salary” of Yum smart in 2018 increased by 2 compared with the data disclosed in the column of “number at the end of the period”, but decreased by 2 and 3 respectively in 2019 and the end of June 2020.

in the same document, there are two sets of different R & D personnel data. The reasons for the difference between the data before and after adjustment of Yum intelligent R & D personnel and the real situation of the R & D personnel of the company need to be supplemented by the company. < / P > < p > according to the declaration draft of the prospectus, the total number of new shares to be issued by Yum smart this time is no more than 44.47 million shares, accounting for no less than 25% of the total share capital of the company after the issuance. The company plans to raise funds of 608 million yuan for the construction project of intelligent entrance and exit security equipment production base, the upgrading construction project of R & D technology center and the supplement of working capital. < / P > < p > based on the raised funds and the number of new shares to be issued, the issue price of Yum smart is about 13.67 yuan per share, and the overall valuation of the corresponding company is about 2.432 billion yuan. < / P > < p > according to the application draft of the prospectus, in December 2019, Baisheng intelligent increased its capital for the fourth time. Nanchang Guojin Industrial Investment Co., Ltd. (hereinafter referred to as “Guojin industry”) and Xinyu dafin investment partnership (hereinafter referred to as “dafin investment”) subscribed 6.3 million shares and 1.5 million shares of Baisheng intelligent at the price of 4 yuan / share, while Guojin industry and dafin investment held 100 shares respectively The 4.72% and 1.12% equity of Sheng smart, corresponding to the overall valuation of Baisheng smart is about 534 million yuan. < p > < p > in addition, according to the IPO plan, yum smart plans to raise 300 million yuan to supplement the company’s liquidity, which is the largest project in this IPO. < / P > < p > according to the financial data, by the end of June 2020, the total amount of assets of Yum smart is 422 million yuan, and the total amount of owner’s equity is about 273 million yuan. Since 2013, the accumulated net profit of the company is 231 million yuan. < / P > < p > the above data means that in this IPO, the capital that Yum smart intends to use to supplement liquidity not only exceeds the company’s net assets, but also exceeds the total profits accumulated in the past seven years. < p > < p > in the application draft of the prospectus, yum smart said that the purpose of replenishing the working capital is to meet the company’s daily production and operation needs, further ensure the company’s financial safety and enhance the company’s market competitiveness. < p > < p > however, according to the draft of the prospectus, as of the end of June 2020, the book value of monetary capital of Yum smart is 120 million yuan, and the company has no interest bearing liabilities such as short-term loans, long-term loans and bonds payable, so the necessity of the company’s large amount of fund-raising to supplement working capital is questionable. < p > < p > the purpose of this article is to convey more information, and it does not represent the views and positions of our website. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk.