[Source: "High-tech LED" magazine September issue (total 57th) Wen | reporter Zhao Hui] According to statistics, as of August 14, the national stock transfer system listed companies just reached 1,000. At present, there are more than 400 companies in the trial. According to the current work schedule and market preparations, there is no suspense in the listing of 1200 companies in this year.
Since January 24 this year, the national share transfer system has ushered in a large expansion, LED companies have landed on the new three boards. However, recently, "High-tech LED" found that many of the listed LED companies did not have satisfactory transcripts.
In September in Sichuan, the continuous rains dissipated the heat and the weather slowly turned cold.
For Jiuzhou Optoelectronics (830995), a new three-board listed company located in Mianyang, Sichuan, what they feel may be more of a chill. The sluggish performance of the first half-year report after the listing made this LED company that had introduced too many venture capitals also "something to see Jiangdong's father."
According to the data of the semi-annual report, Jiuzhou Optoelectronics' main business income from January to June 2014 reached 252,354,900 yuan, an increase of 45.96% over the same period of last year. The net profit attributable to the listed company's shareholders was 271.07 million yuan, although the loss was reduced compared with the same period last year. Nearly 40%, but the profit situation is still worrying.
For a number of reinvesting bets on Jiuzhou Optoelectronics, the LED company that had intended to be listed on the SME board or the GEM has almost no chance to invest in the dozens of investment income after the "falling down" of the new three board. To achieve the possibility, and the continuous loss, even the only profit dividends per year has become a thing of the past.
Jiuzhou Optoelectronics may have become another "failure" case of VC in the LED field.
VC "beloved"
Established in April 2007, Jiuzhou Optoelectronics was initially recognized by the LED industry because it relied on the state-owned “rich dad†– Sichuan Jiuzhou Electric Group Co., Ltd. (hereinafter referred to as “Jiuzhou Groupâ€).
At that time, LED is still a high-tech industry in the country, and it has also attracted the attention of all parties such as state-owned capital.
As a state-owned large-scale electronic military backbone enterprise, Jiuzhou Group covers dozens of sub-divisions such as real estate development, electronic information, radar systems, and electromechanical appliances. It is known as a “large-scale high-tech enterprise group integrating military and civilian developmentâ€. At present, it has formed a diversified military and civilian industry layout with multi-field military industry, diversified civilian products industry and multi-integration of military and civilian sharing industries with electronic information technology as the core.
As the carrier of the LED optoelectronics business of Jiuzhou Group, Jiuzhou Optoelectronics is destined to attract the attention of all parties from the date of its birth.
In January 2010, Jiuzhou Optoelectronics, which was established less than three years ago, introduced Sichuan Yuxiang Investment Co., Ltd. and natural person Wang Xihua as strategic investors. Among them, Xiangxiang Investment's shareholding ratio was 23.43%, and Wang Xihua accounted for 8.63%.
The identity of Yuxiang Investment is relatively special. Sichuan Provincial Development (Holdings) Co., Ltd. (hereinafter referred to as “Sichuan Developmentâ€), a provincial comprehensive investment and financing platform supervised by its parent company Sichuan Provincial State-owned Assets Supervision and Administration Commission, is a pure investment and financing platform. Subordinate enterprises, but holding shares in 22 large state-owned enterprises.
The investment of Jixiang Investment in Jiuzhou Optoelectronics does not rule out the local government's support for the LED industry.
Just less than three months after the investment of Yuxiang Investment, Jiuzhou Optoelectronics was approved by the State-owned Assets Supervision and Administration Commission of Mianyang City and changed to a joint stock limited company. At this point, the initial plan to operate Jiuzhou Optoelectronics' listing should be in the pipeline.
At the end of the year, Jiuzhou Optoelectronics issued shares to the company's 27 core team members, initially solving the issue of equity incentives for management holdings. The core management team holds a share of 4.13%. At the same time, the shareholding ratio of Xiangxiang Investment and Wang Xihua also decreased to 22.46% and 8.27%.
The domestic LED industry has gradually developed from 2009, especially the “Ten Cities and Ten Thousand Cities†of the Ministry of Science and Technology has ignited the explosion of the LED industry. Then from 2010 to 2011, the largest investment in the industry was ushered in. The state-owned assets, private capital, foreign capital and various venture capitals flocked to various LED companies. The upstream epitaxial chips, midstream packaging and downstream applications all entered the field. The age of not bad money.
Jiuzhou Optoelectronics, such a strong LED, and backed by state-owned LED companies naturally become a hot spot for investment. During this period in January 2011, Jiuzhou Optoelectronics “Hui Ying†was famous for its domestic venture capital.
According to the approval of Mianyang City State-owned Assets Supervision and Administration Commission on agreeing to increase the capital and shareholding of Sichuan Jiuzhou Optoelectronics Technology Co., Ltd., Jiuzhou Optoelectronics separately paid Suzhou Jiayue Jiuding Investment Center (limited partnership) and Suzhou Jinze Jiuding at a price of 2.35 yuan/share. Investment Center (Limited Partnership) and Galaxy Innovation Capital issued 21.6 million shares, 5 million shares and 5 million shares. At the same time, 3 million shares and 1.5 million shares were issued to two natural persons, Li Hao and Xie Xu. The Jiuding Department invested a total of 62.51 million yuan, and Galaxy Capital invested 11.75 million yuan.
After the capital increase and share expansion, the total shareholding ratio of the venture capital Jiuding is 15.18%, and Galaxy Capital holds 2.96%. After several shares of equity transfer, Jiu Ding Optoelectronics was listed on the New Third Board, the shareholding ratio of Jiuding Department was 13.11%, Galaxy Capital was 2.97%, and four natural person investors Wang Xihua, An Zhen, Li Hao and Xie Xu were together. There is a 11.3% stake in Jiuzhou Optoelectronics.
If you count natural investors, the overall VC investment has reached 27.38%, Jiuzhou Optoelectronics can be said to be the unyielding VC darling.
“Jiuzhou Optoelectronics had good conditions in all aspects at the time, and it started early. It is also a major shareholder of state-owned assets. Many venture capitalists are very optimistic about the development of Jiuzhou.†Some people familiar with the LED industry in Sichuan told the reporter of Gaogong LED. Zhou has contracted a lot of government lighting projects in Sichuan. These advantages are places that VCs value.
Judging from the distribution of dividends published by Jiuzhou Optoelectronics over the years, the net profit for 2011 was not distributed. The net profit for 2012 and 2013 was distributed at a rate of 0.2 yuan and 0.1 yuan per 10 shares.
It is roughly estimated that the cash dividends of Jiuding and Galaxy Capital will not exceed 800,000 yuan in two years. For VCs that have invested tens of millions of yuan, the return is almost negligible. The biggest profit for VCs is that Jiuzhou Optoelectronics can be listed on the SME board or the GEM, which is hundreds of times smaller than the SME board and the GEM. In terms of PE value, VCs will make a lot of money.
Perhaps it is a bad fortune. Starting in November 2012, A shares entered the eighth IPO suspension period. In addition, the domestic LED industry was generally overcapacity, and the downstream market has not yet opened. The fierce price war has caused many LED companies to fall into difficulties. Jiuzhou Optoelectronics is no exception. Its net profit has rapidly declined from 2.053 million yuan in 2012 to 2,174,300 yuan in 2013, and the decline rate is close to 50%.
At this point, the listing is obviously impossible.
According to the "Investment Cooperation Agreement" signed at the time of the venture capital entry, if Jiuzhou Optoelectronics did not complete the public offering of shares and listing before June 30, 2015, Venture Capital has the right to request its controlling shareholder Jiuzhou Group to repurchase its shares.
In desperation, Jiuzhou Optoelectronics chose to list on the New Third Board.
The VCs who originally invested in the stock market seem to have inevitably lost this investment.
Weak profitability and poor channel expansion On August 26, Jiuzhou Optoelectronics announced its first semi-annual report after listing on the New Third Board. The loss is still the "protagonist" of this semi-annual report.
According to the semi-annual report, Jiuzhou Optoelectronics' main business income in the first half of 2014 reached 252,354,900 yuan, an increase of 45.96% over the same period of last year. The net profit attributable to the listed company's shareholders was 271.07 million yuan, but it is worth noting that Jiuzhou Optoelectronics In the first half of the year, a government subsidy of 780,000 yuan was also included.
In particular, as a company with a revenue scale close to that of the GEM and small and medium-sized LED listed companies, in the first half of 2014, such a good market, actually lost more than 20 million yuan, which has to be alarmed.
Jiuzhou Optoelectronics' loss history can be traced back to 2013.
According to the 2013 annual report, in 2013, Jiuzhou Optoelectronics realized a main business income of 571.828 million yuan, an increase of 72.57% compared with 2012. The net profit attributable to shareholders of the parent company was 2,174,300 yuan, a decrease of 46.32%. After deducting non-recurring gains and losses, the net profit loss was 439.70 million yuan.
"Jiuzhou Optoelectronics is mainly based on lighting, and the display and packaging are not large." Industry insiders familiar with LED told the "High-tech LED" reporter that the scale Jiuzhou photoelectric computing is a first-line enterprise, but profitability It’s so weak that I didn’t expect it.
Jiuzhou Optoelectronics did not disclose in detail the income and expenses of its specific businesses in the 2014 semi-annual report. It only announced that its largest proportion of lighting products revenue was 178,958,200 yuan, with a gross profit margin of 10.87%. The proportion of lighting products revenue in Jiuzhou Optoelectronics' total revenue in the first half of the year accounted for 70.77%. The gross profit of Jiuzhou Photoelectric Lighting Products in 2013 is still at 11.85%.
It is also the fact that this part accounts for 70% of the lighting products, the gross profit margin is obviously too low, resulting in the weak profitability of Jiuzhou Optoelectronics. Although the comprehensive gross profit margin of the package and display in the first half of the year has not been announced, with reference to its 2013 figure of 6.81%, it can be imagined that it will not be too high, far lower than the average gross profit level of the general display companies.
According to the latest semi-annual report of LED listed companies, Zhouming Technology, which is similar to Jiuzhou's business type, had an overall gross profit margin of 29.73% in the first half of 2014 and a gross margin of 19.15% in lighting products.
At the same time, in the LED lighting business of Jiuzhou Optoelectronics, the export accounted for nearly half of the proportion, and most of the exported products are sold by ODM and OEM. "This part of the business has a low gross profit margin," Jiuzhou Optoelectronics also confessed in the report.
The data shows that the gross profit margin of Jiuzhou Optoelectronics' export business fell to an all-time low of 4.97% in the first half of 2014, and this figure was also 7.06% and 6.63% in 2012 and 2013, respectively.
Although Jiuzhou Optoelectronics said in its 2013 annual report: “In 2014, the company will optimize its product mix and introduce high value-added products to increase the profitability of products sold abroad.â€
However, judging from the actual results, this goal has not only failed to achieve this goal, but has also worried about slipping into the abyss.
In terms of channels, the “Grip†brand that Jiuzhou Optoelectronics has created is not open in the market.
Many dealers reported that they barely saw this brand of lighting products on the market.
The biggest market for lighting is still in the civilian market, and channels are the weapon to enter the civilian home lighting market. With the current "Grip" brand in the weak channel, the prospects are worrisome.
In the current situation, the competition for channels has entered a fever, and the quality channels have been basically divided. If you want to enter it again, the time and resources will be multiplied several times.
The pace of Jiuzhou Optoelectronics in terms of channel and brand building has obviously slowed down...
Accounts receivable and inventory pressure <br> <br> although with support for state-owned major shareholder and numerous venture, but Jiuzhou Optoelectronics continuing scale expansion also allowed the financial pressure is too large.
According to the semi-annual report, as of June 30, 2014, Jiuzhou Optoelectronics held a total of 99.833 million yuan in cash and cash equivalents, and its short-term borrowings reached 15.825 million yuan.
According to calculations, Jiuzhou Optoelectronics has a flow ratio of 1.24 at the end of the first half of the year, which is lower than the normal 2 standard. The quick ratio of 0.85 is also lower than the normal one, indicating that the solvency is insufficient.
All of this has a great relationship with Jiuzhou Optoelectronics' high receivables.
As of the end of June 2014, Jiuzhou Optoelectronics' accounts receivable balance was RMB 40.95 million, far exceeding the current main business income of RMB 25,235,490, which also resulted in a significantly lower cash flow from operating activities. 2547.02 million yuan.
The high receivables have always been a major hidden danger in Jiuzhou Optoelectronics.
In the "Public Transfer Instructions" announced by Jiuzhou Optoelectronics at the time of the listing of the New Third Board, a major warning was made on the risk of collection of receivables. "At the end of 2013, the company's accounts receivable increased by 47.77% compared with the end of 2012, with the company's future business. As the scale expands, the accounts receivable may increase year by year, and the company still has the risk of unforeseen bad debt losses due to the uncollectible accounts receivable."
In view of the situation in the past few years, the balance of accounts receivable of Jiuzhou Optoelectronics in 2012, 2013 and the first half of 2014 was 265,355,700 yuan, 38,944,800 yuan and 40,940,000 yuan respectively, accounting for the proportion of the main business income of the current period. 76.91% and 68.17% climbed to 162.33% today.
The risk of accounts receivable has not only failed to resolve the weakening trend, but has intensified.
Another big hidden danger of Jiuzhou Optoelectronics is the continuous push of inventory goods.
The data shows that as of June 30, 2014, Jiuzhou Optoelectronics inventories reached a peak of 139,367,600 yuan, which was 5,677,300 yuan and 95,558,000 yuan at the end of 2012 and the end of 2013, respectively. In the first half of this year, inventory goods increased by 33.32% compared with the end of last year.
At present, Jiuzhou Optoelectronics has been able to compete with LED companies listed on small and medium-sized boards and GEM in terms of revenue scale, but its vague market positioning, low gross profit margin and constantly high receivables and inventory all indicate. There are unclear risks in its operations.
Since January 24 this year, the national share transfer system has ushered in a large expansion, LED companies have landed on the new three boards. However, recently, "High-tech LED" found that many of the listed LED companies did not have satisfactory transcripts.
In September in Sichuan, the continuous rains dissipated the heat and the weather slowly turned cold.
For Jiuzhou Optoelectronics (830995), a new three-board listed company located in Mianyang, Sichuan, what they feel may be more of a chill. The sluggish performance of the first half-year report after the listing made this LED company that had introduced too many venture capitals also "something to see Jiangdong's father."
According to the data of the semi-annual report, Jiuzhou Optoelectronics' main business income from January to June 2014 reached 252,354,900 yuan, an increase of 45.96% over the same period of last year. The net profit attributable to the listed company's shareholders was 271.07 million yuan, although the loss was reduced compared with the same period last year. Nearly 40%, but the profit situation is still worrying.
For a number of reinvesting bets on Jiuzhou Optoelectronics, the LED company that had intended to be listed on the SME board or the GEM has almost no chance to invest in the dozens of investment income after the "falling down" of the new three board. To achieve the possibility, and the continuous loss, even the only profit dividends per year has become a thing of the past.
Jiuzhou Optoelectronics may have become another "failure" case of VC in the LED field.
VC "beloved"
Established in April 2007, Jiuzhou Optoelectronics was initially recognized by the LED industry because it relied on the state-owned “rich dad†– Sichuan Jiuzhou Electric Group Co., Ltd. (hereinafter referred to as “Jiuzhou Groupâ€).
At that time, LED is still a high-tech industry in the country, and it has also attracted the attention of all parties such as state-owned capital.
As a state-owned large-scale electronic military backbone enterprise, Jiuzhou Group covers dozens of sub-divisions such as real estate development, electronic information, radar systems, and electromechanical appliances. It is known as a “large-scale high-tech enterprise group integrating military and civilian developmentâ€. At present, it has formed a diversified military and civilian industry layout with multi-field military industry, diversified civilian products industry and multi-integration of military and civilian sharing industries with electronic information technology as the core.
As the carrier of the LED optoelectronics business of Jiuzhou Group, Jiuzhou Optoelectronics is destined to attract the attention of all parties from the date of its birth.
In January 2010, Jiuzhou Optoelectronics, which was established less than three years ago, introduced Sichuan Yuxiang Investment Co., Ltd. and natural person Wang Xihua as strategic investors. Among them, Xiangxiang Investment's shareholding ratio was 23.43%, and Wang Xihua accounted for 8.63%.
The identity of Yuxiang Investment is relatively special. Sichuan Provincial Development (Holdings) Co., Ltd. (hereinafter referred to as “Sichuan Developmentâ€), a provincial comprehensive investment and financing platform supervised by its parent company Sichuan Provincial State-owned Assets Supervision and Administration Commission, is a pure investment and financing platform. Subordinate enterprises, but holding shares in 22 large state-owned enterprises.
The investment of Jixiang Investment in Jiuzhou Optoelectronics does not rule out the local government's support for the LED industry.
Just less than three months after the investment of Yuxiang Investment, Jiuzhou Optoelectronics was approved by the State-owned Assets Supervision and Administration Commission of Mianyang City and changed to a joint stock limited company. At this point, the initial plan to operate Jiuzhou Optoelectronics' listing should be in the pipeline.
At the end of the year, Jiuzhou Optoelectronics issued shares to the company's 27 core team members, initially solving the issue of equity incentives for management holdings. The core management team holds a share of 4.13%. At the same time, the shareholding ratio of Xiangxiang Investment and Wang Xihua also decreased to 22.46% and 8.27%.
The domestic LED industry has gradually developed from 2009, especially the “Ten Cities and Ten Thousand Cities†of the Ministry of Science and Technology has ignited the explosion of the LED industry. Then from 2010 to 2011, the largest investment in the industry was ushered in. The state-owned assets, private capital, foreign capital and various venture capitals flocked to various LED companies. The upstream epitaxial chips, midstream packaging and downstream applications all entered the field. The age of not bad money.
Jiuzhou Optoelectronics, such a strong LED, and backed by state-owned LED companies naturally become a hot spot for investment. During this period in January 2011, Jiuzhou Optoelectronics “Hui Ying†was famous for its domestic venture capital.
According to the approval of Mianyang City State-owned Assets Supervision and Administration Commission on agreeing to increase the capital and shareholding of Sichuan Jiuzhou Optoelectronics Technology Co., Ltd., Jiuzhou Optoelectronics separately paid Suzhou Jiayue Jiuding Investment Center (limited partnership) and Suzhou Jinze Jiuding at a price of 2.35 yuan/share. Investment Center (Limited Partnership) and Galaxy Innovation Capital issued 21.6 million shares, 5 million shares and 5 million shares. At the same time, 3 million shares and 1.5 million shares were issued to two natural persons, Li Hao and Xie Xu. The Jiuding Department invested a total of 62.51 million yuan, and Galaxy Capital invested 11.75 million yuan.
After the capital increase and share expansion, the total shareholding ratio of the venture capital Jiuding is 15.18%, and Galaxy Capital holds 2.96%. After several shares of equity transfer, Jiu Ding Optoelectronics was listed on the New Third Board, the shareholding ratio of Jiuding Department was 13.11%, Galaxy Capital was 2.97%, and four natural person investors Wang Xihua, An Zhen, Li Hao and Xie Xu were together. There is a 11.3% stake in Jiuzhou Optoelectronics.
If you count natural investors, the overall VC investment has reached 27.38%, Jiuzhou Optoelectronics can be said to be the unyielding VC darling.
“Jiuzhou Optoelectronics had good conditions in all aspects at the time, and it started early. It is also a major shareholder of state-owned assets. Many venture capitalists are very optimistic about the development of Jiuzhou.†Some people familiar with the LED industry in Sichuan told the reporter of Gaogong LED. Zhou has contracted a lot of government lighting projects in Sichuan. These advantages are places that VCs value.
Judging from the distribution of dividends published by Jiuzhou Optoelectronics over the years, the net profit for 2011 was not distributed. The net profit for 2012 and 2013 was distributed at a rate of 0.2 yuan and 0.1 yuan per 10 shares.
It is roughly estimated that the cash dividends of Jiuding and Galaxy Capital will not exceed 800,000 yuan in two years. For VCs that have invested tens of millions of yuan, the return is almost negligible. The biggest profit for VCs is that Jiuzhou Optoelectronics can be listed on the SME board or the GEM, which is hundreds of times smaller than the SME board and the GEM. In terms of PE value, VCs will make a lot of money.
Perhaps it is a bad fortune. Starting in November 2012, A shares entered the eighth IPO suspension period. In addition, the domestic LED industry was generally overcapacity, and the downstream market has not yet opened. The fierce price war has caused many LED companies to fall into difficulties. Jiuzhou Optoelectronics is no exception. Its net profit has rapidly declined from 2.053 million yuan in 2012 to 2,174,300 yuan in 2013, and the decline rate is close to 50%.
At this point, the listing is obviously impossible.
According to the "Investment Cooperation Agreement" signed at the time of the venture capital entry, if Jiuzhou Optoelectronics did not complete the public offering of shares and listing before June 30, 2015, Venture Capital has the right to request its controlling shareholder Jiuzhou Group to repurchase its shares.
In desperation, Jiuzhou Optoelectronics chose to list on the New Third Board.
The VCs who originally invested in the stock market seem to have inevitably lost this investment.
Weak profitability and poor channel expansion On August 26, Jiuzhou Optoelectronics announced its first semi-annual report after listing on the New Third Board. The loss is still the "protagonist" of this semi-annual report.
According to the semi-annual report, Jiuzhou Optoelectronics' main business income in the first half of 2014 reached 252,354,900 yuan, an increase of 45.96% over the same period of last year. The net profit attributable to the listed company's shareholders was 271.07 million yuan, but it is worth noting that Jiuzhou Optoelectronics In the first half of the year, a government subsidy of 780,000 yuan was also included.
In particular, as a company with a revenue scale close to that of the GEM and small and medium-sized LED listed companies, in the first half of 2014, such a good market, actually lost more than 20 million yuan, which has to be alarmed.
Jiuzhou Optoelectronics' loss history can be traced back to 2013.
According to the 2013 annual report, in 2013, Jiuzhou Optoelectronics realized a main business income of 571.828 million yuan, an increase of 72.57% compared with 2012. The net profit attributable to shareholders of the parent company was 2,174,300 yuan, a decrease of 46.32%. After deducting non-recurring gains and losses, the net profit loss was 439.70 million yuan.
"Jiuzhou Optoelectronics is mainly based on lighting, and the display and packaging are not large." Industry insiders familiar with LED told the "High-tech LED" reporter that the scale Jiuzhou photoelectric computing is a first-line enterprise, but profitability It’s so weak that I didn’t expect it.
Jiuzhou Optoelectronics did not disclose in detail the income and expenses of its specific businesses in the 2014 semi-annual report. It only announced that its largest proportion of lighting products revenue was 178,958,200 yuan, with a gross profit margin of 10.87%. The proportion of lighting products revenue in Jiuzhou Optoelectronics' total revenue in the first half of the year accounted for 70.77%. The gross profit of Jiuzhou Photoelectric Lighting Products in 2013 is still at 11.85%.
It is also the fact that this part accounts for 70% of the lighting products, the gross profit margin is obviously too low, resulting in the weak profitability of Jiuzhou Optoelectronics. Although the comprehensive gross profit margin of the package and display in the first half of the year has not been announced, with reference to its 2013 figure of 6.81%, it can be imagined that it will not be too high, far lower than the average gross profit level of the general display companies.
According to the latest semi-annual report of LED listed companies, Zhouming Technology, which is similar to Jiuzhou's business type, had an overall gross profit margin of 29.73% in the first half of 2014 and a gross margin of 19.15% in lighting products.
At the same time, in the LED lighting business of Jiuzhou Optoelectronics, the export accounted for nearly half of the proportion, and most of the exported products are sold by ODM and OEM. "This part of the business has a low gross profit margin," Jiuzhou Optoelectronics also confessed in the report.
The data shows that the gross profit margin of Jiuzhou Optoelectronics' export business fell to an all-time low of 4.97% in the first half of 2014, and this figure was also 7.06% and 6.63% in 2012 and 2013, respectively.
Although Jiuzhou Optoelectronics said in its 2013 annual report: “In 2014, the company will optimize its product mix and introduce high value-added products to increase the profitability of products sold abroad.â€
However, judging from the actual results, this goal has not only failed to achieve this goal, but has also worried about slipping into the abyss.
In terms of channels, the “Grip†brand that Jiuzhou Optoelectronics has created is not open in the market.
Many dealers reported that they barely saw this brand of lighting products on the market.
The biggest market for lighting is still in the civilian market, and channels are the weapon to enter the civilian home lighting market. With the current "Grip" brand in the weak channel, the prospects are worrisome.
In the current situation, the competition for channels has entered a fever, and the quality channels have been basically divided. If you want to enter it again, the time and resources will be multiplied several times.
The pace of Jiuzhou Optoelectronics in terms of channel and brand building has obviously slowed down...
Accounts receivable and inventory pressure <br> <br> although with support for state-owned major shareholder and numerous venture, but Jiuzhou Optoelectronics continuing scale expansion also allowed the financial pressure is too large.
According to the semi-annual report, as of June 30, 2014, Jiuzhou Optoelectronics held a total of 99.833 million yuan in cash and cash equivalents, and its short-term borrowings reached 15.825 million yuan.
According to calculations, Jiuzhou Optoelectronics has a flow ratio of 1.24 at the end of the first half of the year, which is lower than the normal 2 standard. The quick ratio of 0.85 is also lower than the normal one, indicating that the solvency is insufficient.
All of this has a great relationship with Jiuzhou Optoelectronics' high receivables.
As of the end of June 2014, Jiuzhou Optoelectronics' accounts receivable balance was RMB 40.95 million, far exceeding the current main business income of RMB 25,235,490, which also resulted in a significantly lower cash flow from operating activities. 2547.02 million yuan.
The high receivables have always been a major hidden danger in Jiuzhou Optoelectronics.
In the "Public Transfer Instructions" announced by Jiuzhou Optoelectronics at the time of the listing of the New Third Board, a major warning was made on the risk of collection of receivables. "At the end of 2013, the company's accounts receivable increased by 47.77% compared with the end of 2012, with the company's future business. As the scale expands, the accounts receivable may increase year by year, and the company still has the risk of unforeseen bad debt losses due to the uncollectible accounts receivable."
In view of the situation in the past few years, the balance of accounts receivable of Jiuzhou Optoelectronics in 2012, 2013 and the first half of 2014 was 265,355,700 yuan, 38,944,800 yuan and 40,940,000 yuan respectively, accounting for the proportion of the main business income of the current period. 76.91% and 68.17% climbed to 162.33% today.
The risk of accounts receivable has not only failed to resolve the weakening trend, but has intensified.
Another big hidden danger of Jiuzhou Optoelectronics is the continuous push of inventory goods.
The data shows that as of June 30, 2014, Jiuzhou Optoelectronics inventories reached a peak of 139,367,600 yuan, which was 5,677,300 yuan and 95,558,000 yuan at the end of 2012 and the end of 2013, respectively. In the first half of this year, inventory goods increased by 33.32% compared with the end of last year.
At present, Jiuzhou Optoelectronics has been able to compete with LED companies listed on small and medium-sized boards and GEM in terms of revenue scale, but its vague market positioning, low gross profit margin and constantly high receivables and inventory all indicate. There are unclear risks in its operations.
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