Ming Micro Electronics twice halt gross profit margin lower than peers
Chen Yun
After a lapse of six years, Shenzhen Ming Microelectronics Co., Ltd. (hereinafter referred to as 'Ming Microelectronics') broke through IPO again failed.
On the evening of February 27, the website of China Securities Regulatory Commission disclosed that two of the three companies that made the initial application for the meeting on the very day met the two sides successfully, and Ming Microelectronics was not approved.
In recent years, under the support of national policies and funds, China's IC industry has entered a fast lane of development. Enterprises in the industry have seized the opportunity and gained remarkable strength.
IC design companies Ming Microelectronics also fancy the market opportunity, following the revocation of the application in 2012, on January 5 this year, once again submitted a prospectus, plan to raise funds 457 million yuan into a new generation of LED display driver chip R & D and industrialization projects, integrated circuit packaging and other three projects.
For the IPO issue, "China Business" reporter called Microelectronics, the staff told reporters that the company is not convenient for interviews.
Operating performance fluctuations
Ming Microelectronics is a high-tech enterprise specialized in R & D, design, testing and sales of integrated circuits, and has been working in the field of driver chip design since its establishment. The products are widely used in LED display, LED lighting and power supply, LED landscape Lighting and other fields.
According to the prospectus, operating income during the reporting period were 2.395 billion yuan, 2.218 billion yuan, 312.5 million yuan and 181.4 million yuan, showing a rising trend of development.Reporters learned from the financial data, Ming Microelectronics report period There is an abnormal financial relationship between operating revenue and trade receivables, receipts in advance and cash flows over the same period.
Taking 2016 as an example, Ming Microelectronics revenue in 2016 was 312.5 million yuan, accounting for 17% of the output tax impact of VAT, including tax revenue of 365.6 million yuan from the general financial analysis of the relationship between the number of hundred million Revenue requires corresponding cash inflows and financial data such as accounts receivable.
In terms of cash flow, the revenue from sales of goods and services provided by Ming Microelectronics in 2016 was RMB174.8 million. Compared with revenue of RMB366.6 million, the revenue received from cash and taxes Less 190.8 million yuan, which also means that Ming Microelectronics should have about 200 million yuan of operating claims.
As for operating claims, bills receivable at the end of 2016 were Rmb379 million and accounts receivable amounted to Rmb326 million, adding an additional amount of Rmb241 million over accounts receivables totaling Rmb046.4 million at the end of 2015. In addition, as of the end of 2016, advances The balance of accounts payable was 0.0233 billion yuan, a decrease of 0.0005 billion yuan from 0.0238 billion yuan as of the end of 2015. Combining the two data, we can find that the operating claims increased by only 0.2415 billion yuan in 2016. Compared with the aforementioned figure of 190.8 million yuan A far cry from this also means that more than 160 million yuan of tax revenue in 2016 did not receive reasonable cash flow or corresponding claims data.
At the same time, the reporter also noticed that revenue growth of Ming Microelectronics increased significantly from 2014 to 2016, but the growth of sales expenses and management expenses of the Company was not obvious.Generally speaking, the sales expenses and management expenses will increase with the increase of operating revenue The data shows that the sales expenses for 2014 to 2016 were respectively 0.065 billion yuan, 6.067 billion yuan and 0.067 billion yuan, with administrative expenses of 38.22 million yuan, 0.412 billion yuan and 0.415 billion yuan respectively.
Abnormal gross profit margin
According to the prospectus shows that from 2014 to 2016, Ming Microelectronics deduction of non-net profits were 16.9392 million yuan, 6.2448 million yuan and 305.3398 million yuan not only performance fluctuations, and three years after deducting non-net profit of only 53.72 million yuan .Moreover, the gross profit margin of the Company is abnormal, and the gross profit margin of Ming Microelectronics is far below the average gross profit margin of comparable listed companies from 2014 to 2016. According to the data, in the first half of 2014 to the first half of 2017, the gross profit margin of Ming Microelectronics was 26.25 %, 25.43%, 26.85% .Compared with the average gross margin of listed companies were 38.29%, 35.27%, 33.83% .From the data can be seen, of which 2014 and 2015 were lower by about 10% .But in 2017 1 ~ 6 Month, Ming Microelectronics gross margin rose to 32.35%, the industry level of 35.86%, still below the average of 3.5%.
For less than the comparable gross profit margin of listed companies, Ming Microelectronics explained that the main reason is the company's earnings composition with the industry listed companies, product applications, customer base, etc., which will affect the gross margin of chip products. In the first half of 2017, the Company benefited from the continued prosperity of market demand. Due to the tight capacity of upstream suppliers and the large downstream demand, the Company optimized the product system and expanded the sales volume of new products. The new products tended to have higher gross profit margin and high gross margin The increase of sales ratio of interest rate products brings the overall gross profit margin to rise.
In addition, Ming Microelectronics also admitted that with the development of product types, the proportion of high gross margin products increased year by year, the company's main business gross profit margin steady rise, but in a highly market-oriented industry background, by the industry cycle and the market Competition, the gross profit margin of the Company's main products fluctuates. If the favorable changes in the product mix are not enough to offset the negative impact caused by the market competition, the gross profit margin of the Company will fluctuate to a certain extent.
At the same time, the reporter noted that in comparable listed companies, Shenzhen Fu Man Electronics Co., Ltd. (hereinafter referred to as 'Full Electronic') business and Ming Microelectronics are more similar.
Rich Man Electronics is an integrated circuit design company, mainly engaged in high-performance analog and digital-analog hybrid integrated circuit design, development, packaging, testing and sales.Relying on the company's technology, research and development, product, market, design, production integration advantages, the company Has become the integrated circuit industry power management chip, LED control and drive chips and other segments of outstanding enterprises.
Reporters access to information shows that from 2014 to 2016, Fu Man Electronics main business consolidated gross profit margin was 30.59%, 29.80% and 28.32% .From the data can be seen that the company's gross profit margin is declining.According to full electronic said due to Fierce market competition led to lower prices of the company's products, gross profit margin declined.
Microelectronics also said that the company is close to Fullman's gross margins, but its gross profit margin is slightly lower than that of 2014-2016 due to some differences in products and rich electronic has its own packaging line. In the first half of 2017, the overall demand of the industry increased. The Company's new products achieved a good sales scale and raised the overall gross profit margin.
In fact, the reporter consulted the prospectus shows that the company's main product prices of Ming Microelectronics declined in 2016, while the gross margin increased in 2016. Therefore, the CSRC also said: 'The issuer's unit price of main products is in a downward trend, However, the reason why the consolidated gross profit margin continued to rise and its rationality.
Another issue that should not be overlooked is that Ming Microelectronics, the No. 1 distribution customer, is a member of the former employee relatives. In 2016 and 2017, Oneka and Chuangrui Microelectronics were both under the same control. In the second half of 2016, the two companies merged , The Department of Microelectronics in 2016 and the first half of 2017 the largest distribution customers.In addition, One Card Technology in 2015 is the fifth largest distribution micro-electronics customers, the transaction amount of 5.57 million yuan. A sharp micro-electronics technology is the Ming Microelectronics in 2014 the fourth largest distribution customers, the transaction amount 11,117,300 yuan.
'There are many doubts about financial data and some connection with the largest customer, which may be why Microelectronics failed to meet.' Economist Song Qinghui told reporters that he analyzed whether the main reason for the decline of microelectronics May be the sustainability of profitability, gross margin abnormalities, such as the proposed listed companies if there is greater uncertainty about the sustainability of the IPO, the IPO is more likely.According to previous audit findings announcement of the Board of Directors, sustained profitability Capacity issues are of great concern.