The Securities Regulatory Commission has approved but did not disclose the size of the initial fundraising; last year’s debt increased by RMB 62.2 billion compared to 2016, an increase of 106.8%
Foxconn is one step closer to the A-share market.
On the evening of May 11, the China Securities Regulatory Commission’s official WeChat news released said that Foxconn Industrial Internet Co., Ltd. (hereinafter referred to as FII, Foxconn)’s initial application was approved according to legal procedures. Foxconn and its underwriters will negotiate with the Shanghai Stock Exchange to determine the issuance schedule. And publish the prospectus document.
36 days passed before the meeting was approved. The size of the initial fundraising became a mystery.
Previously, Foxconn’s IPO road speed was extremely fast.
According to the official website of the China Securities Regulatory Commission, on February 1st, Foxconn submitted the original manuscript submission, which was accepted by the China Securities Regulatory Commission on that day. On February 9, the Securities and Futures Commission disclosed the prospectus of Foxconn’s initial public offering of shares, indicating that the world’s largest OEM company will soon be impacted. A shares. On Feb. 23rd, the Beijing News reporter saw on the official website of the China Securities Regulatory Commission that the Foxconn prospectus had entered the status of “pre-disclosed update” on February 22. On March 8, the official website of the China Securities Regulatory Commission disclosed that the Foxconn IPO had successfully It was proved that Foxconn took only 36 days from the first submission to the meeting, setting a record for history.
According to the IPO procedure, Foxconn passed the road show inquiry and offline placement after the meeting was approved and issued. If there is no accident, it can be listed and traded.
On May 11, Foxconn finally waited for approval. However, it is worth noting that in the official WeChat of the China Securities Regulatory Commission on Friday, Foxconn’s initial fundraising scale was not disclosed. On the afternoon of May 13, the Beijing News reporter Check the Securities and Futures Commission’s securities and futures supervision and management information disclosure catalog, Foxconn has not yet received the relevant approval, the latest one is April 23.
According to a prospectus issued by Foxconn previously, the IPO will be used to raise funds of 27.253 billion yuan. The funds will be used for the construction of industrial Internet platforms, including cloud computing, 5G, Internet of Things, and intelligent manufacturing. Through this IPO , Foxconn will improve its financial statements.
As of the end of last year, the total liabilities were 120.4 billion, and the debt ratio was approximately 81%.
According to the prospectus, Foxconn’s liabilities are relatively large. As of the end of 2017, Foxconn’s total assets were RMB 148.6 billion, total liabilities were RMB 120.4 billion, and the debt ratio was approximately 81%, which was nearly doubled compared to 43% as of the end of 2016. Its total liabilities as of the end of 2016 was 58.2 billion yuan, which means that compared to 2016, Foxconn’s liabilities increased by 62.2 billion yuan, an increase of 106.8%, which doubled.
The prospectus shows that as of the end of last year, the total liabilities were 120.414 billion yuan, the current liabilities totaled 120.38 billion yuan, and the non-current liabilities totaled 32 million yuan. The company's liabilities were mainly due to accounts payable, other payables, short-term loans, and payable employees. Compensation and other components.
At the end of 2017, the company's gearing ratio was 81.03%, an increase of 38.14 percentage points compared to the end of 2016. This was mainly due to the fact that the balance of payable reorganization costs arising from the company's restructured assets acquired through cash payment was included in other payables at the end of 2017, resulting in the company The current liabilities have increased substantially.
The Beijing News reporter noted that as of the end of 2017, the book value of accounts payable by Foxconn increased by 33.796 billion yuan compared to the end of 2016. Foxconn said that the main reason was that the growth of downstream orders since 2017 was good, and the company increased the procurement of raw materials and equipment accordingly. Amount.
Compared with the same industry, Foxconn’s debt ratio is also at a high level. According to the listed companies in the same industry disclosed in the prospectus, Foxconn’s asset-liability ratios in 2015-2016 were 45.72% and 42.89%, respectively, which was lower than the comparable company’s average of 57.17%. And 56.88%. In 2017, Foxconn’s debt ratio was 81.03%, which was higher than the comparable company’s average of 57.73%.
Foxconn stated that after the raised funds are in place, the company’s total assets and net assets will increase significantly, the current ratio and quick ratio will increase substantially, and the level of assets and liabilities will further decline. The company’s capital structure is optimized, as well as its financing capacity and risk resistance capabilities. The improvement will provide a favorable guarantee for the company's market expansion and strategic deployment.
Exchange loss is on the rise, up to 900 million in 2017
The Beijing News reporter noted that Foxconn’s interest expense is not high despite its large scale of liabilities.
The prospectus shows that Foxconn’s interest expenses in 2015 were 990 million yuan, 620 million yuan in 2016, and 1.06 billion yuan in 2017. If the total debt is 120.4 billion yuan and the financing cost is 5%, Foxconn’s financing costs should reach 6 billion yuan. The actual interest expenditure of one billion yuan was significantly lower than the estimated financing cost.
Although interest expenses are not high, Foxconn’s exchange losses are relatively large. Due to the overall upward trend in the US$/RMB exchange rate during the reporting period, the company’s exchange losses amounted to RMB 22 million in 2015, 2016 and 2017 respectively. 236 million yuan and 901 million yuan.
What is slightly optimistic is that the prospectus shows that Foxconn's profitability is good.
Foxconn achieved operating revenue of 272.8 billion yuan, 277.2 billion yuan, and 354.5 billion yuan for 2015-2017, of which 2016 operating income slightly decreased by 0.03% compared to 2015, and operating revenue in 2017 increased by 30.01% compared to 2016.
Foxconn's net profit for 2015-2017 was 14.35 billion yuan, 14.37 billion yuan and 15.87 billion yuan, of which net profit increased by 0.11% in 2016 compared with 2015, and net profit increased by 10.45% in 2016 compared to 2016.