What Happened On The Eve Of The First Cancellation Of The Gem Audit In The Year?

Three rounds of inquiries have been completed, and we are just about to step in. On the eve of the meeting, we are planning for the listing application of Simba technology for more than half a year. According to the Shenzhen Stock Exchange, Xinba technology, which was originally scheduled to be deliberated at the meeting on June 9, suddenly had major issues after the announcement of the Municipal Committee's deliberation meeting on the gem, and its application for listing was cancelled on June 8.

As a result, Xinba technology became the first company to be listed on the gem in 2021, which was canceled before the meeting. In the public information, Xinba technology has not disclosed any major matters related to it. It is uncertain whether its listing application will be completely terminated as a result.

It is worth noting that this is the second major change of the company after the announcement of Xinba technology conference.

On June 2, the municipal Party Committee on the gem issued the announcement of the Xinba technology review meeting. Bao Jingxuan, Yang Xiong, Zhang Tao, Huang yinghuai, Shu Ping and other members of the Municipal Committee on the gem will participate in the deliberation of the company's listing application. On June 3, Bao Jingxuan suddenly applied to avoid attending the Xinba science and technology review meeting, and the municipal Party committee changed to Shi Bo member to attend the meeting.

It is also the first case since this year that the municipal Party committee temporarily replaced the members of the deliberation meeting on GEM. However, the reason why Bao Jingxuan applied for withdrawal and what kind of relationship it has with Xinba technology have not been explained by the municipal Party committee and Xinba technology on the gem.

After two unexpected accidents, can Xinba technology normally land on the GEM market? How many questions are waiting for publicity?

Listing in five years

Xinba technology is engaged in the R & D, design and sales of automatic logistics system. Its main products include cross belt sorting system, automatic conveying system, automatic storage system and other logistics equipment.

Looking at the entrepreneurial development of Xinba technology, it can be said that the road is smooth. Xinba technology was founded in 2015, and its customers were mainly garment industry customers and contractors of automatic logistics system. In the second year of its establishment, Xinba technology quickly entered the express industry automated logistics system market and became the supplier of express giant Yunda shares.

According to its prospectus, during the reporting period from 2018 to 2020, the revenue of Xinba technology was 480 million yuan, 812 million yuan and 1.036 billion yuan respectively, and the net profits were 54.0708 million yuan, 46.7509 million yuan and 103 million yuan respectively.

On November 4, 2020, the IPO application of the company's gem was accepted, and it entered the inquiry stage on December 1 of the same year. As of April 28, 2021, Xinba technology has successfully completed three rounds of inquiry, waiting for the gem to be released by the municipal Party committee.

If it is not for this major event, Xinba technology will enter the capital market with 481 million yuan of fund-raising plan, and formally establish its own automatic logistics equipment production base, R & D center construction, and replenish working capital and other projects.

From its establishment to its listing, Xinba technology has achieved a leap forward development in only five years, and the speed has crushed most of the listed companies on the gem, and is far more than all listed companies in the express industry it serves.

It is worth noting that within five years, Xinba technology has not established its own production system and has always adopted the "light manpower" operation mode. The company has neither production site nor specialized production and processing personnel. Compared with the listed companies in the same industry, the number of engineering and technical personnel and sales personnel of the company is also less.

Xinba technology disclosed that there were 84 employees, 134 employees and 229 employees at the end of each reporting period, and the per capita business income was 7.1639 million yuan, 7.4485 million yuan and 5.7106 million yuan respectively.

This means that only relying on providing customers with integrated solutions with automatic sorting and transportation as the core, Xinba technology can quickly shoulder the responsibilities of express delivery services to listed companies in the same industry.

Founded in 2000 and landed on GEM in 2016, the company is also a provider of integrated solutions for automated logistics systems. From 2019 to 2020, today's international performance will increase, with revenue of 712 million yuan and 930 million yuan, and net profit of 47.5148 million yuan and 60.4931 million yuan, respectively.

Founded in 1995 and listed on the gem in 2015, Dongjie intelligent is mainly engaged in the design, manufacture, installation, commissioning and sales of complete sets of intelligent logistics equipment. Its products include intelligent sorting and conveying system, intelligent logistics storage system, intelligent stereo parking system, intelligent coating production system, etc. In 2019 and 2020, the company's revenue is 736 million yuan, 1035 million yuan, and the net profit is 90.5201 million yuan and 104 million yuan respectively.

Xinba technology said that at this stage, the company mainly focuses on cross belt sorting system and automatic conveying system, and the product category is relatively single. With a single product solution that can not be produced by itself, Simba technology outperforms listed companies in the same industry in terms of per capita business income and profitability.

Independence questioned

How can Xinba technology attack the market in just five years? On GEM, the municipal Party committee issued 51 questions in three rounds, focusing on the historical change of the company's actual controller, related parties and related transactions, customer sources, and revenue authenticity.

In fact, Simba technology can achieve rapid growth in performance, which is difficult to get rid of the influence of the former actual controller.

In March 2015, when Xinba technology was just established, three natural persons, Zhu Lingyan, Jin Weiping and Li Haixing, established the limited company with 65%, 30% and 5% shares respectively; In July 2015, Zhu Lingyan transferred all the shares of Xinba Co., Ltd. held by Zhu to Jin Weiping.

In August 2015, the listed company Yongli increased the capital of Xinba Co., Ltd. at the price of RMB 22.49 million, and held 51% of the shares of Xinba Co., Ltd. After two years of actual holding, in December 2017, Wynn transferred its 26% equity of Xinba Co., Ltd. to Jin Weiping at the price of 15.6 million yuan.

After December 29, 2017, the controlling shareholder and actual controller of Xinba Co., Ltd. was changed to Jin Weiping. After previous equity transfer and capital increase, Jin Weiping directly held 43.50% of the equity of Xinba technology and indirectly controlled 4.02% of the company's shares through Shanghai xinkuo and Shanghai Xinheng. Therefore, Jin Weiping is the controlling shareholder and actual controller of Xinba technology. Yongli shares still hold 12.96% of the shares of Xinba technology, which is the second largest shareholder of the company.

After three actual controller changes, as of the beginning of the company's report period in 2018, the actual controller talent of Xinba technology was changed to Jin Weiping.

It is worth noting that among the three actual controller changes of Xinba technology, Jin Weiping's investment method is very rare. In July 2015, Zhu Lingyan transferred the capital contribution of Xinba Co., Ltd. of 13 million yuan (paid in 5.2 million yuan) to Jin Weiping. Both parties agreed that Jin Weiping could complete the payment of equity transfer within 5 years, and pay the occupation fee at the annual interest rate of 10%.

In 2017, when Yongli transferred 26% equity of Xinba Co., Ltd. to Jin Weiping at the consideration of 15.6 million yuan, 15 million yuan of the equity transfer payment paid by Jin Weiping came from the loan of Shanghai living stoneware investment, and the remaining capital came from its own funds.

Jin Weiping's above-mentioned loans and interests were not fully paid off until August 2019, and most of his repayment sources were obtained from the follow-up dividends and equity transfer of Xinba technology.

In other words, the existing actual controller of Simba technology has obtained the actual control right of the company to be listed without any real investment. How deep is the relationship between the early investors, Wynn, etc. and Jin Weiping and Xinba technology that can support them so strongly?

The change of the actual controller of Xinba technology has been questioned by the market and Shenzhen stock exchange for many times. The Shenzhen Stock Exchange asked Xinba technology to focus on the background and reasons involved in the previous changes, whether the procedures are legal and compliant, whether the pricing is fair and whether the source of funds is legal and compliant, etc.

The Shenzhen stock exchange even directly questions whether the equity changes related to Xinba technology are true, whether there are co production, sharing procurement, sales channels, sharing raw materials, providing outsourcing for the company, and whether there are situations such as related party transactions being unconnected, costs borne for the company, benefit transmission or other benefit arrangements.

Xinba technology believes that after the transfer of the controlling right of Yongli shares in December 2017, there are no significant adverse changes in the business strategy, organizational structure and middle and senior management personnel of Xinba technology, and the company's operation is independent. But its business intersection with the former controller and the current shareholders is difficult to convince investors.

According to the public information, Wynn is a leading enterprise in the domestic light conveyor belt industry, specializing in the R & D, production and sales of various light conveyor belts. The customer market of Yongli shares shares a common intersection with Xinba technology.

Since 2015, Wynn has been paying close attention to the application market of downstream industries. At that time, the purpose of entering Xinba technology was to lay out the downstream market. Strangely, in 2016, Xinba technology quickly entered the express industry automated logistics system market by participating in the bidding of Yunda shares, and its performance began to improve significantly. However, Yongli shares chose to give up the controlling right, and the logic behind it is difficult for investors to ponder.

In the reply letter to the Shenzhen Stock Exchange, Xinba technology said that during the reporting period, there were no situations similar to or similar to the company's main business, non related party transactions, and no situation of avoiding horizontal competition and share lock-in by not identifying the actual controller of Yongli as the company's actual controller.

Growing questions

After the change of actual controller, Xinba technology has achieved rapid growth in performance during the reporting period and met the listing requirements. However, can it grow for a long time under the independent operation?

In the prospectus, Xinba technology points out that the company is facing the operation risk of customer concentration and industry concentration. During the reporting period, the sales revenue of the company's final customers belonging to express logistics industry accounted for 97.24%, 99.08% and 99.45% respectively.

According to the same actual controller's consolidated caliber, Xinba technology's revenue from the top five customers accounted for 89.25%, 95.42% and 85.56% of the company's revenue respectively, of which the revenue from Yunda shares accounted for 68.47%, 65.05% and 46.85% respectively.

Xinba technology believes that in a short period of time, the company's revenue from the express logistics industry will still be relatively high. If the domestic express logistics industry has a significant adverse change in the investment demand for automated logistics system in the future, it will have an adverse impact on the company's business performance. At the same time, the company's customer concentration is relatively high, if the company can not continue to obtain new big customers, it will have an adverse impact on the company's business performance, so the company may have operational risks due to relatively high customer concentration.

In fact, high customer concentration is also a common phenomenon in the industry of Xinba technology. For example, in the same industry in 2019, dema technology's sales to the top five customers accounted for 29.12%, Lanjian Zhineng accounted for 70.87%, today's international reached 68.55%, Dongjie Zhineng reached 39.43%, Tianqi shares reached 29.47%, Yinfei storage reached 28.09%, Zhongke micro reached 93.40%, and Xinba technology reached 95.42%.

Industry insiders pointed out that the market structure of express industry has basically formed. The upstream and downstream suppliers of three links and one access, Shunfeng express, rookie network, Jingdong Logistics and other giants have basically been in a stable state, and relevant industry chain companies are difficult to achieve market breakthroughs, and their growth may be constrained.

Compared with the listed companies in the same industry, the operation status of Xinba technology is hard to say, and its advantages are obvious. The company relies on leasing business premises, operates in light of assets and labor mode, and does not have its own production team. It can be said that it relies on integrated service providers providing solutions, and its profits are shared by upstream suppliers and third-party installation companies.

Gross profit rate is the comprehensive embodiment of the company's profitability, product pricing ability and cost control ability. During the reporting period from 2018 to 2020, the gross profit margin of main business of Xinba technology was 22.51%, 21.13% and 20.50%, which was significantly lower than the average gross profit rate of about 30% in the industry.

Due to major issues, the listing application of Simba technology has been cancelled. There are still many problems to be explained, such as its control, growth, related party transactions, etc. it is still unknown whether the company will make a comeback. However, the question may provide a reference for the science and Technology Innovation Board of Zhongke Weizhi.

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