Antarctic Business: A New Paradigm Of Financial Fog?

Originally a main textile and garment manufacturing company, in recent years, through the innovative OEM mode, the business of light assets has been launched.

The old wine bottle is replaced by the Internet OEM mode, which makes the company become a phoenix of the black chicken, and all the financial indicators hang on to all walks of life. This kind of play has not been emulated by competitors, but has attracted the extreme popularity of the two tier stock market.

In 2016, the Antarctic electricity supplier borrowed shell Xinmin technology to land A shares, and thereafter received dozens of mainstream brokerage's continuous attention. Today, in just a few years, the company has seen more than 300 research reports.

However, a year ago, sina finance had been guilty of "suspected capital extracorporeal circulation". "In question, it questioned the Antarctic electricity supplier's possible existence of a profit increase through capital extracorporeal circulation.

Recently, the media openly questioned the Antarctic electricity supplier suspected of financial fraud. In response, the Antarctic electricity supplier responded to the investor interactive trading platform, saying that the publication was not true.

After comparing the financial statements of Antarctica and past counterfeiting companies, Sina Financial found that they are quite different. So what information does these differences hide?

Perfect business model

The OEM business of the Antarctic electricity supplier is called brand operation according to the company's theory. Unlike the traditional authorized production terminals, Antarctica's e-commerce is playing a more high-end role. The way of production and marketing is double authorization. The company only needs to provide the tag and tag related accessories to the production side, that is to say, the company does not use its own production, nor does it need to sell its own business mode.

The company said that this mode can transfer a series of risks such as inventory and depreciation in production and sales process. In this mode, in 2019, the company's brand operation business only brought 31.76% of its operating income, but it contributed 77.02% of its operating profit, and its gross profit margin also reached an astonishing 93.36%.

"Light asset management mode is also the play of many big brands nowadays." A business employee told sina finance, but even if ADI, Nike giants do brand operation, it is hard to say that it is completely shielded from risks, and goods can not be sold. As operators, to some extent, they must share the risk of inventory with suppliers, otherwise it may lead to instability in the supply chain.

Hai Lan's house, which is known as a man's wardrobe, was once a representative of light assets operation. Production relies on outsourcing and sales to join. This mode has made Hai Lan's home get a rapid expansion, but after a certain scale, with the decline of revenue, the company is also facing increasing pressure on inventory. In 2013 -2019, the company's stock increased from 549 million yuan to 9 billion 44 million yuan.

The Antarctic electricity supplier has repeatedly mentioned at the investor exchange conference that it is closely and deeply bound with suppliers, but the company's inventory has been on the low side for many years since its listing, and no obvious change has been seen. Even in the first quarter, affected by the epidemic, the textile and garment industry suffered a great impact, and the company's inventory remained unchanged.

"The supply chain management of this company is almost perfect." The above electricity providers told sina finance.

But in fact, the Antarctic electricity supplier's expenditure on management expenses accounted for only about 2.04% of revenue in 2019, while the share of A share pure cross-border electricity supplier's cross border management expenses accounted for 2.88% of revenue.

It is worth noting that even the cross-border e-commerce providers, such as cross-border platforms, have accumulated a large amount of accounts receivable and inventory since 2015. The related assets in 2019 have been reduced, resulting in a huge loss of billions of dollars.

In February this year, the investor exchange meeting held by the Antarctic electricity supplier, some investors asked about the impact of the epidemic. Some of the sales promotion activities of the electronic business platform were not held. When the company had other measures to promote sales, the Antarctic electricity supplier was quite confident that sales activities were not their own main raceway, and the company's traffic and consumption basically came from customers' active search.

In addition, for the supply chain risk control of manufacturing enterprises, the company said that the market will play a role and supply chain risk problems will be solved spontaneously.

The confident Antarctic electricity supplier has even planned to enter similar fields in the past year, such as small household appliances, washing machines and so on. In May this year, at the investor exchange conference, for example, how to cut into these cross-border fields, the Antarctic electricity supplier takes washing machines as an example. Compared with competing products, they have advantages in price and quality, and the supply chain efficiency of competing products is lower than that of them.

In view of this, Antarctica has become the coreless king of brand operation and supply chain management.

Why not make a debt increase?

"There will be fraud behind the perfection," a senior credit rating officer told sina finance.

"In general, we analyze the company's fraud, in addition to starting from the financial statements, business models and industry competition pattern, we will also start reasoning from the motive of fraud," the person said.

In fact, nearly 1.390 years of financial fraud, such as popular *ST Xinwei (0, 0%), ST Kangxin and ST Kang Mei (2.490, -0.01, -0.40%) (Wei Quan), generally exist large loans to banks, continuous large amount of private placement, large debt to creditors or large stockholder's equity pledge.

However, these characteristics did not appear in the Antarctic electricity supplier.

After looking at the company's financial data, Sina Financial found that the total profit of Antarctic electricity supplier in 2017 -2019 was 625 million yuan, 963 million yuan and 1 billion 278 million yuan respectively, but the corresponding corporate income tax expenses were 90 million yuan, 76 million yuan and 72 million yuan. While the profits increased significantly, the tax fee was paid more and less.

However, the corresponding asset side, in 2019, the company has only a significant exception in the monetary fund side: the trading volume of a trading financial asset of 1 billion 490 million yuan (500 million of which is due to changes in accounting standards and transferred from other liquid assets). According to the annotations of the financial report, all the funds have been purchased from bank financial products.

In addition, neither the current assets nor the illiquid assets of the company show any significant abnormality. At the same time, Antarctic electricity supplier has never issued corporate bonds, and has not increased its behavior for 16 years, and the debt side has only 100 million short term loans.

A two level market research researcher told sina finance that any listed company, if fraudulent, the first step must be the demand for the company's market value, other rules may be introduced.

According to statistics, in the first quarter of 2017-2020, the owner's rights and interests of Nanjing's electric business increased from 3 billion 50 million to 4 billion 994 million, and the total market value of the company rose from 19 billion 950 million to 46 billion 600 million at the end of May.

Huitianfu and social security "escort"

After the backdoor of Antarctic electricity supplier, its stock price was flat at first, rising 6.18% in 2017, -7.14% in 2018, and 45.08% in 2019, but in the year when stocks rose, the Antarctic electricity supplier was not particularly popular.

This year, the Antarctic electricity supplier suddenly broke into dust. By the end of 2020 5, its share price had risen 72.78%.

Statistics show that as early as the four quarter of 2015, huitianfu's growth focus and social security 113 combinations had become the fifth largest and eighth largest circulation shareholders of the companies that had not yet completed the backlog. Since then, the focus of huitianfu's growth has continued to appear in the top ten tradable shareholders of the company. Social security 113 has quietly withdrawn, and social security has gone through 109, 601, 423, 418, 416 and 502.

As of the first quarter of 2020, huitianfu's growth focus had reached about 60000000 shares, accounting for 9.75% of the fund's net worth, only one step away from the 10% red line stipulated by the public offering fund. The social security department's portfolio held more than 170 million shares, accounting for 7% of the total share capital.

The fund manager of huitianfu's growth focus has started managing the fund since March 2014. Prior to that, the fund was managed by Qi Dongchao, a star fund manager. After that, Qi Dongchao ran to private Giant Sequoia Capital, while ray was a fund manager assistant for Qi Dongchao.