Although the establishment of less than 3 years, but Foxconn shares resolutely took the pace in the A-share IPO for 'continued to operate less than 3 years' flawed, Foxconn shares in the prospectus (draft) that has been Foxconn shares of course have such confidence, review of 2017, its operating income of more than 350 billion yuan, the total profit of more than 20 billion yuan, there is no doubt that the Big Mac, but set Foxconn proud of the shares Its performance is as high as 260,000 of its staff, if calculated according to this calculation, the contribution of their employees per capita profit, less than 100,000 yuan; R & D spending last year spent 7.9 billion yuan, the absolute amount of more than A shares actually more than Company, but only 2.24% of its own revenue ...
Foxconn shares to be IPO, the capital market is full of expectations, at the same time, sail the grand cruise, whether it will meet all the way 'downwind'?
Amazon, Apple, Huawei, Lenovo ... The world famous electronics industry brand companies all have the same supplier - Foxconn, this time, this giant company formally announced the impact of A-share.
This time to be listed, not the usual concept of Pan-Foxconn, but Foxconn Industrial Internet Corporation (hereinafter referred to Foxconn shares.) As part of the proposed split listing, Foxconn shares controlling shareholder of Hon Hai Precision wholly-owned holding the backbone The company, according to Foxconn shares introduce themselves, because there is no actual controller of Hon Hai Precision, so the company does not exist the actual controller.
"Daily Economic News" reporter noted that according to Foxconn shares currently disclosed prospectus (application draft, the same below), as of December 31, 2017, Foxconn shares of debt ratio reached 81.03%, representing an increase of 38.14 percentage points compared with the end of 2016 .
Even Foxconn shares this explanation is subject to asset restructuring, but it is unavoidable that, as of the end of 2017, total liabilities of Foxconn shares up to 120.4 billion yuan, of which accounts payable reached 76.809 billion yuan, an increase of nearly 33.8 billion yuan over the previous year. The shares disclosed in the prospectus said that since 2017, the order volume of downstream orders showed a good growth trend and the Company increased the purchase amount of raw materials and equipment accordingly.
Asset-liability ratio over 80%
Recently, Foxconn shares disclosure prospectus in the CSRC website, intended to be listed on the Shanghai Stock Exchange.
It is worth noting that 'OEM' is not the entire business of the listed Foxconn shares in the prospectus, Foxconn shares themselves as' the world's leading telecommunications network equipment, cloud services equipment, precision tools and industrial robotics Design and manufacture of service providers.
Relying on these businesses, Foxconn achieved a revenue of 272.8 billion yuan, 272.713 billion yuan and 355.444 billion yuan respectively from 2015 to 2017, with net profit reaching 14.35 billion yuan, 14.39 billion yuan and 16.219 billion yuan respectively over the same period.
According to the prospectus, if successfully listed on the A shares, Foxconn shares raised funds intended to be used for industrial Internet platform construction, cloud computing and high performance computing platform, efficient computing data center, communications network and cloud service equipment, 5G and Internet of Things Interoperability solutions, intelligent manufacturing new technology research and development applications, intelligent manufacturing industry upgrade, intelligent manufacturing capacity expansion of eight projects with a total investment of 27.253 billion yuan.
Hundreds of billions of revenue and tens of billions of net profit so that the capital market for the listing of Foxconn shares are looking forward to, but behind this, Foxconn shares of high debt ratio is also cause for concern.
Foxconn prospectus disclosed that, as of December 31, 2017, the company's consolidated statement of caliber liabilities amounted to 120.414 billion yuan, of which current liabilities amounted to 120.382 billion yuan, total non-current liabilities of 0.32 billion.
As of the end of last year, Foxconn's debt-to-asset ratio was as high as 81.03%. As of the end of 2016 and the end of 2015, the gearing ratio of Foxconn's shares was 42.89% and 45.72% respectively. In contrast, in 2017, Foxconn shares of assets and liabilities increased significantly.
Reporters noted that Foxconn shares in the prospectus disclosed in the industry comparable companies, by the end of 2017, Chang Ying Precision, Victory precision assets and liabilities are both at about 53%, the total shares, Zhuo Yi technology is less than 40%, comparable The company's average debt to equity ratio was 57.73%, both lower than Foxconn shares.
In this regard, Foxconn shares in its prospectus explained that as of the end of 2017, the company debt ratio increased 38.14 percentage points compared with the end of 2016, mainly due to the acquisition of the restructuring of the assets to bring the balance of restructuring costs included in the other end of 2017 included in other Payables and other factors.
Accounts payable soared by about 33.8 billion yuan
On the other hand, "Daily Economic News" reporter also noted that, according to disclosure of Foxconn shares, its liabilities mainly by the accounts payable, other payables, short-term borrowings, payroll payable etc. As of the end of last year, the corresponding amount of the project respectively It was 76.809 billion yuan, 32.01 billion yuan, 6.957 billion yuan and 3.012 billion yuan respectively.
If we compare the changes in recent years, we can find that the total liabilities of Foxconn will substantially increase in 2017, which will ultimately contribute to the Company's accounts payable and short-term borrowings.
From 2015 to 2017, the payables of Foxconn's shares were RMB37,703 million, RMB43,013 million and RMB76,509 million respectively, representing an increase of 24% and 73.45% over the two years to the year 2014. Accounts payable increased by approximately 338% over 2016 100 million yuan.
Foxconn shares in the prospectus also made this description, which said the company accounts payable mainly to meet the purchase of raw materials and equipment.Specific aspects, Foxconn said the fourth quarter of 2016 due to orders, the company increased the scale of procurement of raw materials Resulting in a corresponding increase in payables due to the increase in book value of accounts payable due to the change in foreign currency exchange rates. In addition, since 2017, the order volume of downstream orders has been increasing well and the Company has also increased the purchase amount of raw materials and equipment accordingly.
Reporters found that the main raw material Foxconn shares of PCB, components, IC, the reporting period, Foxconn shares of the above three purchases accounted for more than 85% of the total procurement of raw materials.
However, Foxconn's purchase of raw materials actually did not increase so much in comparison with the $ 33.8 billion increase in accounts payable.
Reporters through the total purchase of Foxconn shares and purchase price calculation found that, in 2017, Foxconn shares of total PCB procurement increased 8.028 billion yuan; purchase increased 10.56%; procurement of components, in 2017, Foxconn shares of this project Total purchases increased by RMB3,918 million and total purchases increased by 15.87% over the same period of previous year. In addition, in 2017, Foxconn's total purchases of ICs increased by RMB13,029 million and total purchases increased by 25.41% from a year earlier.
Statistics show that in 2017, Foxconn shares of these three major raw materials increased by nearly 25 billion purchase.
In addition, the reporter also found that by the end of 2017, Foxconn shares short-term loans reached 6.957 billion yuan, an increase of 5.314 billion yuan.
Related Reading:
'The proportion of the main business income is low Foxconn industrial robot production dropped 50% 2 years'
Every time by reporter Wang Jing edited by Chen Junjie
In the past ten years, Foxconn make full use of China's demographic dividend, through a huge foundry team will itself become the world's largest foundry.
Foxconn Industrial Internet Co., Ltd. (hereinafter referred to as Foxconn), which is seeking A-share listing, is seeking frequent restructuring in recent years due to the sharp drop in the profits of foundry enterprises with the pressure of labor shortage and rising labor costs, As well as Foxconn's parent company Hon Hai Precision Group, have started a series of transformations, including the robot plan, but just from Foxconn shares, its industrial robot business is not good.
Robot production dropped by 50% in 2 years
Foxconn Equity is not Hon Hai's entire business in mainland China. Its main companies include only three main businesses, including communications network equipment, cloud service equipment, precision tools and industrial robots.
For the third business, industrial robots, Foxconn shares in the prospectus (draft report, the same below) said that industrial robots are industrial-oriented, by their own power and control capabilities to achieve a variety of functions of the machine device. Produced by the company Industrial robots are mainly used to perform work with high repetition or high risk, thus saving a lot of manpower, increasing process flexibility and shortening working time.In addition, the company's industrial robot related products are mainly used by the company itself and external customers, and are Companies and external customers to achieve automated production and intelligent manufacturing an important guarantee.
But in fact, Foxconn's industrial robots bring little revenue.According to the prospectus shows that from 2015 to 2017, the company's sales of precision tools and industrial robots were 934 million yuan, 651 million yuan and 966 million yuan , Accounting for 0.34%, 0.24% and 0.27% respectively of the main business revenue of the current period, while in the catalog of customer purchasing as of December 31, 2017 announced by the Company, the top three largest industrial robotic plate units being sold by the Company Purchase orders totaled only 153.74 million yuan, and all from Hon Hai's affiliates.
Not only that, the reporter also noticed that during the period from FY2017 to FY 2017, the production volume of industrial robots owned by Foxconn was respectively 0.78 million, 43,300 and 39,000, and the production in 2017 has dropped by 50% compared with 2015. With this At the same time, the utilization rate of robots has also dropped year by year, from 0.61%, 0.37% and 0.35% from 2015 to 2017 respectively.
Although Foxconn shares of the robot business development is not satisfactory, but Hon Hai Precision Group Chairman Terry Gou obviously did not want to give up the dream of Foxconn from foundry transformation.
In recent years, Foxconn has repeatedly tried to achieve its goal of "de-manufacturing" by restructuring. Terry Gou has been repeatedly emphasizing that Foxconn will adjust its marketing strategy in the future. Insiders at Foxconn have also said that electronic manufacturing has reached a marginal profitability , Hon Hai will pay more attention to the layout of the sales market in the future.
Transition to automation
Earlier, the outside world to see more is the expansion of Foxconn channels, further forward, Foxconn has also started in the field of e-commerce attempts, while in recent years, Foxconn has targeted the field of artificial intelligence platforms and robots.
Earlier this month, Hon Hai Precision Industry Group officially announced the launch of the AI Research and Cultivation Program: It will set up the "Hon Hai Industrial Internet AI Application Research Institute" to assist the Group in developing the AI innovation of "Industrial Internet + Robots" and will provide NT $ 10 billion A total of 342 million U.S. dollars), and vigorously promoted the transformation of the Group into an AI-driven industrial Internet company from the fields of AI talent cultivation, IoT industrial field application and big data analysis.
Terry Gou said: 'In the next five years, the group will invest NT $ 10 billion to recruit AI-related talent and deploy AI applications at all manufacturing sites.' "A Foxconn insider added that both the experts Or the industry, have mentioned before the 'substitution machine' argument, but Foxconn do AI or robot is not simply to replace the staff, but to replace the production of robots which is more boring, the staff is not high, relatively dangerous Work content and allow workers to liberate them, to enhance the ability to become a robot operating the company, the company's overall employment size will not change much.
In fact, as early as 2011, Foxconn started to increase the mix of capital and labor by equipping robots, while Gou also said that Foxconn will manufacture 300,000 robots at a speed of 1,000 a day for monotonous, Dangerous work to improve the company's automation and production efficiency.While setting up a base for research and development and production of robots at the same time, hope to assemble 1 million robotic arm by 2014, in 5 to 10 years to see the first fully automated factory .
Although machine automation has become the trend of China's factory development, but for now, China's intelligent manufacturing-related industries are still early days of development, manufacturing benchmarking company Foxconn is no exception.Media reports that within Foxconn, it was not recognized Robot plan. '' The current robot arm used by Foxconn costs more than 100,000 yuan and the cost of robots is more than 1 million yuan. In short, robots can work continuously for 24 hours and work three times as long as workers But robotics and robotic arms are costly to maintain, and as the life cycle of consumer electronics shrinks to weeks and demands for precision, the robotic arms on the production line after a product is manufactured and Robots need to be re-commissioned, the basic is equal to scrapped robot breakthrough costs and technological breakthroughs is a worldwide problem, in the short term is simply not realistic. "Foxconn's middle said that the robot can only be used for production line front-end work, The core of Foxconn is the back-end assembly, the robot can actually replace the process less than 50% .
For the current Foxconn robotics research and development and application in mainland China, "Daily Economic News" reporter called to understand the situation, but the other side did not respond positively.