'Questioning' Shanghai Botong's abnormal sales situation | Inconsistent with inventory and sales data

1. The abnormal inventory of Shanghai Broadcom is inconsistent with the production and sales data; 2. Hudson’s 3D memory gating technology is dedicated to building China-made memory chips; 3. The 'Xi'an IC' has become a 'global player'; 4 .The Shaoxing Municipal Government Delegation visited Xi'an High-tech Zone

1. The abnormal situation of Shanghai Broadcom's marketing and sales is inconsistent with the inventory and production and sales data;

Red Finance

Recently, Broadcom Integrated Circuits (Shanghai) Co., Ltd. ("Broadcom Integration"), which specializes in R&D and sales of integrated circuit chips for wireless communications, announced the latest version of the prospectus (draft), and plans to issue 3467.8384 million shares on the Shanghai Stock Exchange for the first time. New shares, to raise 671 million yuan to invest in the 'standard protocol wireless interconnect product upgrade project' and other five projects.

Analysing the related financial data disclosed in the Broadcom IPO prospectus, it can be seen that the data on its procurement has experienced anomalies of several tens of millions of yuan for two consecutive years in the reporting period (2015 to 2017), and has exceeded its operating revenue in 2017. The tax-bearing revenue of RMB 10 million has not been corroborated with corresponding data, and it is not ruled out that enterprises may have “incident increase” for the purpose of listing.

Purchase data is abnormal

The main business of Broadcom Integration is the R&D and sales of integrated circuit chips for wireless communications. The company's procurement mainly focuses on wafer raw materials and packaging, and testing services. During the reporting period, Broadcom’s purchases from the top five suppliers have seen larger purchases. The volatility of the fiscal year amounts to RMB 175.2509 million, RMB 347.4406 million and RMB 234.408 million (see Table 1), accounting for 89.23%, 82.11% and 72.27%, respectively. From this set of data, it can be calculated that Broadcom is integrated During the reporting period, the total purchases for each year reached 19,604,600 yuan, 423.989 million yuan and 324,350,500 yuan. An in-depth analysis of Broadcom's integrated procurement data, "Red Weekly" reporter found that its total purchases and related cash flow, accounts payable, etc. There is a great deal of contradiction in the relationship between data.

For instance, the total purchase amount of Broadcom's integration in 2017 is 324,350,500 yuan. On this basis, taking into account the impact of the 17% VAT input tax amount, the total tax-inclusive purchase amount is 37,949.01 ten thousand yuan. From the perspective of financial review, this year will theoretically be The cash flow with approximately the same amount is reflected in the 'consolidated cash flow statement', or the operating liabilities such as payables of equal size are reflected in the 'consolidated balance sheet', or both.

In the consolidated statement of cash flows, Broadcom integrated 2017 'Cash of Purchased Goods and Acceptance of Labor Services' was RMB 38,917.35 million. At the same time, the prepayments in the balance sheet were reduced by RMB 469,500 in the current year (this was the previous year's advance payment. The amount settled this year is theoretically to be added back when considering the relevant cash flow. After the two hedge, the cash flow related to the purchase this year is 389,642,900 yuan, compared with 37,990,100 yuan including tax procurement. Obviously, the cash flow generated by procurement in 2017 was 10,129,900 yuan more than the total tax-inclusive purchases during the same period. In theory, this extra cash outflow was due to the repayment of business debts such as accounts payable in previous years. In the balance sheet, changes in the accounts payable purpose.

However, the consolidated balance sheet data for the year indicated that the amount of accounts payable at the end of 2017 was 45,912,900 yuan, which was a decrease of 61,465,100 yuan from the amount at the beginning of the period. In addition, there was no bill payable. From this, the accounts payable in the liability sheet are real. The amount of reduction is much larger than the theoretical reduction, a difference of 51,330,700 yuan.

The same logic analyzes the 2016 data. It can also be found that the total tax-inclusive purchases in 2016 are related to this year's related cash flow, and the accounts payable cannot be matched in the processing.

In 2016, the total purchase price of Broadcom's tax-inclusive purchases was 495,205,700 yuan, which was compared with the 'Cash of Purchased Goods and Accepted Labor Services' 377.4745 million yuan in the cash flow statement. After theoretical impact on the increase of 605,500 yuan in the increase in prepayments, it will be affected. There are 120,869,500 yuan unpaid part of the corresponding liabilities will be reflected in the new balance sheet payables. However, in fact, the accounts payable in this year's sheet only added 79,290,900 yuan. Obviously, the theory The difference between the actual value and the value is also 41.5766 million yuan.

It needs to be mentioned that Broadcom integration is focused on the design and development of integrated circuits, and its dependence on fixed assets such as machinery and equipment, land, and factory buildings during the business process is relatively low, and it has the characteristics of 'light assets'. The financial statements show that although the book balance of long-term assets such as fixed assets and intangible assets is reduced, the 'payment of cash for purchases and construction of fixed assets, intangible assets and other long-term assets' can already cover changes in their related long-term asset investments. Therefore, The change of this data has a very limited impact on the aforementioned analysis results, and it is basically negligible.

Or assault 'increased income' to ensure smooth listing

In addition to doubts in the procurement data that cannot be matched with each other, the revenue-inclusive tax revenue of Broadcom in 2017 cannot be supported by relevant financial data.

The prospectus shows that Broadcom integrated in 2017 recorded an operating income of RMB 5,632,215,000 (see Table 2), as the company’s income composition is divided into two parts, domestic and foreign, with mainland China accounting for 53.83% of revenue, and this part of income is also Need to account for 17% of the value-added tax output tax, so after the overall accounting, Broadcom integrated 2017 tax-inclusive operating income reached 613,054,600 yuan.

Theoretically, under the scale of such tax-inclusive operating income, it is inevitable that operating liabilities such as related cash flows and receivables in the balance sheet and cash flow statement will support the data. Otherwise there is no income for 'data'.

The consolidated cash flow statement shows that the Company's 'cash for sales of goods and provision of labor services' in 2017 was 53,349,922 yuan, and the cash flow related to this year's operating income after impacting on the reduction of 4,229,100 yuan in advance receipts for the year. There are 53,772,830 yuan, which compares it with the tax revenue of 617,054,600 yuan. Theoretically, there will be 79,232,300 yuan of operating income that will not be able to generate cash inflows will create accounts receivables and other operational claims in the balance sheet. .

However, in fact, Broadcom integrated the accounts receivable at the end of 2017 of RMB 147,748,400, which was an increase of only 49.6203 million yuan compared to the amount at the beginning of the period. At the same time, bad debt provision is also very small and almost negligible. From this point of view, the theoretical value is There is a difference of RMB 297.24 million between the real values, that is, the tax-included operating income of RMB 297.2400 million for the year did not receive any cash, and there was no new phenomenon of accounts receivable.

Using the same logic to analyze the situation in 2016, we can see that the difference between the actual and theoretical values ​​has become very small. This year, after considering the value-added tax of sales income in mainland China, the company’s tax-inclusive operating income was 52,362,280,000. In the same period, 'cash received for sales of goods and services provided' was 537,653,300 yuan, advance receipts decreased by 548,900 yuan, in addition, accounts receivable increased by 3,017,300 yuan. The taxable operating income and related cash flows will be included. With the new accounts receivable, it can be seen that although there are still some differences in the data between the three, compared to the difference of nearly 30 million yuan in 2017, the difference in this year is only 5,190,800 yuan.

This result is truly surprising. There was only a relatively small difference between 2016 tax-included operating income and related financial data. By 2017, when the prospectus was submitted, suddenly there was a total of 29.72 million yuan in tax-included business. The fact that income is not corroborated by relevant data suggests that the company intentionally whitewashed the revenue data for the year in order to ensure the smooth success of IPO listings?

'Coincidence' Inventory Differences

In fact, behind the problem of operating income in 2016 and 2017, if the change in the inventory of the product from the perspective of production and sales is compared with the changes in the two-year inventory disclosed in the prospectus, it can also be found to be suspicious.

The prospectus shows that Broadcom's integrated products are classified into 'wireless data transmission' and 'wireless audio'. In 2017, a total of 14,852.12 million wireless data transmission products were produced (see Table 3), and this year's sales There are 154.5747 million pieces, which is 5.9935 million more than the output. This means that the inventory of wireless data transmission products will be reduced correspondingly from the previous year.

Since the cost of wireless data transmission products was not disclosed in the prospectus, the average price of these products is RMB 1.58 per unit and the subtotal of the product's gross profit margin is 41.64%. The wireless data transmission products in 2017 can still be calculated. The average cost is RMB 0.92 per piece. As a result, the corresponding cost of the 599.35 million inventories reduced by this type of product is about RMB 5,526,500.

At the same time, Broadcom integrated another type of product, the “wireless audio”, with a production volume of 148.72 million units in 2017, which is 5,822,300 units less than the sales volume of 154,551,100 units, which means that there will be a corresponding reduction in the amount of such products. In 2017, the average price of wireless audio products was 2.08 yuan each. Calculated with a subtotal of 34.03% of the gross profit of the product, the cost per wafer is approximately 1.37 yuan. This means that the inventory of wireless audio products is comparable. In the previous year it was probably reduced by 7.9892 million yuan.

When comparing the production and sales of the above two types of products in 2017, the sales volume is larger than the output. Theoretically, this means that the total amount of inventory items corresponding to the product should be reduced by 13.61548 million yuan. It can be considered as a fact, from the inventory changes disclosed in the prospectus. Among the company's inventory in 2017, there were 47.7152 million yuan in inventory, which was a decrease of 44.433 million yuan compared with the inventory value at the end of the previous year. Obviously, the reduction calculated from the perspective of production and sales was less than the inventory change value disclosed in the prospectus. Ten thousand yuan.

The situation in 2016 is exactly the opposite. The output of wireless digital products was 12.706 million more than the sales volume. If the average price was 1.62 yuan per unit and the gross profit rate of such products was 45.53%, the average cost would be about 0.88 yuan, from this inferred, in 2016 wireless digital products inventory should be added 11.1192 million yuan. The same method to measure wireless audio products, its output is more than the sales of 2.618 million, which means that the inventory should be new in 2016 Increase of 3,270,200 yuan. Comprehensive accounting of the increase and decrease of inventory caused by the production and sales of the two types of products in 2016, theoretically, the stocks in stocks in this year should add a total of 14.3894 million yuan.

However, in fact, the amount of 9,188.44 million inventories disclosed in the prospectus was 40.67 million yuan more than the amount of unstocked products in the previous year. Obviously, this result is more than 30.217 million yuan more than the theoretical data calculated from the perspective of production and sales. This also means that the company may have more inventory in the year's data calculation. 'Coincidentally', this data is the same as the difference data in 2017 but the amount is very similar. Obviously, this is Very doubtful.

2. Huda 3D memory gating technology is dedicated to building China-made memory chips;

On the 9th of June, Changjiang Daily (Changjiang Daily reporter Chen Cheng correspondent Wu Shan Chen Jie) On the 9th, the reporter learned from the fourth batch of scientific and technological achievements signing convention of Hubei University in 2018 that he was led by Professor Wang Hao of the School of Physics and Electronic Science of Hubei University. The team, which has signed a contract with Changjiang Storage Technology Co., Ltd. to acquire 3D memory gating technology, is expected to reach an annual output value of 6 billion yuan. The two parties reached a strategic cooperation and will continue to work on 3D memory gating tubes and high-density resistive memory and its Research on integration technology will be carried out in cooperation to develop next-generation 3D memory chips and contribute to the localization of memory chip technology as soon as possible.

Gating tube technology is an essential part of 3D memory manufacturing. With the support of major national science and technology projects, national key R&D projects and major technological innovation projects in Hubei Province, Professor Wang Hao’s team has specialized in gate tube technology in recent years. Currently, R & D results have published many academic papers, have won seven national invention patents.

According to Professor Wang Hao, with the development of applications such as cloud computing, big data, and internet of things, the demand for memory will continue to increase in the future. The consumption of memory in our country accounts for more than 50% of the total global consumption, and the market is approximately US$41.5 billion. However, 85% of the memory chips are dependent on imports, which is a big challenge for the development of the autonomous and controllable Chinese IT industry. The research of the Wang Hao team is a subproject of domestic production of memory chips. The gating tube is 3D X- An important part of the Point memory chip will provide technical support for the production of next-generation 3D memory.

According to reports, the market value of 3D memory put into mass production is about 100 billion, and gating tube technology will account for 6 billion. Wang Hao introduced that currently Huda is trying to select the R&D of the management technology, and hopes to cooperate with Changjiang Storage. , Jointly multi-pronged research, jointly promote the actual transformation of information technology, and create 'Made in China' of memory chips.

Prof. Wang Hao said that for Hubei University, in-depth cooperation with the National Memory Base can understand the most advanced integrated circuit technology and look for possible project cooperation opportunities so as to achieve targeted training for students and improve their competitiveness. This kind of cooperation is not only an important way to serve the locality in the province, but also to promote the national storage industry to become better and better.

3. To make 'Xi'an IC' become a 'global speaker';

Jiao Jiye displayed the automotive instrument display chip 'Our company's English abbreviation is 'XAD-IC', the Chinese original meaning is 'Xi'an analog digital integrated circuit', where IC is the abbreviation for the English 'Integrated Circuit'. But more and more friends I am more willing to take the homonym to jokingly say that our brand is 'Xian's IC' and I like this! ' At the beginning of the interview, the CEO of Xi'an Endi Integrated Circuit Co., Ltd., CTO Jiao Jiye, used a witty opening remark. A long-term vision in my own heart.

'Big Cow' Startup

Want to do something 'interesting'

Unlike many entrepreneurs who started from scratch, Jiao Jiye before the start of the business was already known as the “winner of life”. He graduated from Xidian University with a doctoral degree in integrated circuit design. With a short period of time, he was able to rely on his excellent knowledge and technology. Jumping as an engineer, senior engineer, design manager, design director, research and development deputy general manager who has served as a famous enterprise, is still an associate professor at Xi’an University of Posts and Telecommunications.

Already the industry's 'big cow', why do you need to 'treat your brains' to start another business? 'In the course of leading the research team for more than 10 years, I gradually felt that the country vigorously develops and promotes the electronic industry as economically oriented. Huge power, suddenly sprouted his own idea of ​​entrepreneurship, focusing on the B2C model of innovative design service company that mixes chip design and chip application solutions. 'In view of Jiao Jiye, entrepreneurship is a particularly interesting and meaningful thing. The vision and ability will continue to expand and improve during the experience. Thus, Xi'an Endi IC Co., Ltd. was formally established at the end of 2013, and Jiao Jiye and like-minded partners started their own entrepreneurial journey.

“In the early days of entrepreneurship, we also experienced nine deaths, such as the financing of corporate operations, the loss of personnel, internal management, market development, etc. It is not easy to do everything well. We all need our joint efforts. Initially we will often face Where are the funds for the next month? The project can't get down to the dilemma. 'But because they are not afraid of suffering, they don't give up, they don't forget to stick to the heart, and finally realize the company with investment value from debt to profit and paying taxes to the country.' At the most difficult time, our team had only 2 people left, and we were faced with no funds, the problem of chip revision was not solved, and mass production orders did not win. I was reluctant to see the company disband, and we raised funds by ourselves. , Doing the film production, will face the problem one by one to break, finally survived.

'Big Cow' Voice

Willing to develop in Xi’an and seek 'listing'

After several years of hard work, Xi'an Endi has developed into a well-known scientific and technological innovation company specialized in chip B2C design patterns. It has a group of professional IC design engineers with more than 15 years of experience, covering digital architecture, CPU/DSP core applications, Low-power analog circuit design to accurate layout back-end design and production, packaging, testing and other back-end processes. More than 80% of the company's employees are R&D and design positions, and it is an out-and-out private 'hard' technology company. '.

'In the first five months of this year alone, we have continuously developed five new chips for different segments. The market has responded very enthusiastically. For example, this intercom MCU is based on Endi's integrated technology, price, etc. Advantages: We have gradually eaten the 'positions' of big companies like France and Japan before, and now we have occupied about 70% of the global market in this market segment. ' Pick up a chip on the sample stage As an example of a circuit board, Jiao Jiye spoke with such disappointing statistics. He revealed that Xi'an Endi has cooperated with well-known automobile instrument companies in China to develop a year-and-a-half year of 'vehicle instrument display chip' products. Has entered the tape, test phase. The chip's early products have been applied to the domestic well-known car company's products. 'Now the high-end passenger car is setting off a 'virtual display to replace the mechanical dashboard' trend, and the current Mercedes-Benz , BMW and other luxury cars need more than a few seconds or even ten seconds to enter the system after power-up. Our chips will bring you a sub-millisecond instant disruptive experience. Wait.'

Looking into the future development of the company, Jiao Jiye revealed that the sales target in 2018 is expected to exceed 30 million yuan. The future development of the company will be targeted at green energy (battery BMS management chip, battery fast charging technology), vehicle-mounted SoC, RF MCU and other 'blue ocean' fields. 'Our goal is to use the next three years to board the GEM and board the board for five years to contribute to China's integrated circuit business.' Jiao Jiye said.

Jiao Jiye said: After Xi'an Endi became a company in the domestic chip B2C design industry, it successively had development zones in many cities, software parks, and incubators. They hoped Endi and the entire R&D team would be able to In the past few days, Hefei Development Zone sent another person to the company to introduce the local preferential conditions. To be honest, they gave a series of supporting policies, such as the industrial fund and entering and supporting, to the current stage of the 'jointing'. In fact, it is quite tempting. But I still prefer to stay in Xi’an. After all, my youth and roots are in this city.

Text/graph reporter Liu Ning

Xi'an Evening News

4. Inspection group of Shaoxing City Government visited Xi'an High-tech Zone

Binhai Hi-tech Network News On May 27th, a Shaoxing city government delegation led by Xu Guolong, executive deputy mayor of Shaoxing City, visited the Xi'an High-tech Zone. The deputy party secretary of the High-tech Zone Party Committee Wang Bin accompanied.

Xu Guolong and his party visited and inspected the Hi-tech Zone Exhibition Hall, ChinaSoft International Co., Ltd., and Samsung (China) Semiconductor Co., Ltd. in the High-tech Zone, and learned more about the economic and social development of the Hi-tech Zone and the development of the enterprise's innovation.

Wang Bin welcomed Xu Guolong and his entourage during his visit. He said that after 27 years of development, Xi'an High-tech Zone has become the largest economic growth pole in Xi'an and Shaanxi's opening to the outside world. The overall ranking is at the forefront of the national high-tech zone. Currently, Xi'an High-tech Zone identified the strategic objectives of “Da Qiang 123, Building a good area” in the next three years in accordance with the requirement of “Catch-up and Transcendence”, and launched the “Eight Challenges” to set off an upsurge in catching up and overtaking, to build the world as soon as possible. First-class science and technology park. He hopes that the high-tech zone can make more exchanges with Shaoxing in terms of innovation and development, promote cooperation between enterprises in the two places, and jointly promote greater economic and social development in the two places.

Xu Guolong thought during the inspection that the experience and successful practices accumulated in the development of the High-tech Zone are worth learning from Shaoxing.

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