Ocean King Lighting Technology Co., Ltd. (hereinafter referred to as "Ocean King Lighting"), which had pre-disclosed the prospectus as early as June 2012, has not been arranged yet. The reporter's investigation found that Ocean King Lighting has flaws in terms of business performance, product quality and senior management. "Not bad money" still wants to list the money of the ocean king lighting, the IPO road may be blocked.
Holding huge amounts of money or having a large amount of money due to financial reports
The Ocean King Lighting Prospectus shows that this listing is going to publicly issue 5 million shares of common stock, accounting for 12.5% ​​of the total share capital after the launch. The funds raised will be mainly used for the following three projects: production line construction project (planned investment amount is 336 million yuan), R&D center construction project (planned investment amount is 140 million yuan), and domestic marketing center expansion project (plan The investment amount is 69.77 million yuan, and the total investment is about 550 million yuan.
In this regard, Ocean King Lighting said that in recent years, the company's business scale has expanded rapidly and its production capacity has been seriously insufficient. If it can be implemented smoothly, the company's production capacity, technology level, research and development capabilities and marketing capabilities will be greatly enhanced, which will help the company further enhance its core competitiveness and profitability.
In fact, Ocean King Lighting, with a registered capital of 350 million yuan, is not bad for its company accounts. From the end of 2009 to the end of 2011, the balance of marine king lighting currency funds was 312 million yuan, 274 million yuan and 346 million yuan respectively, while the net operating cash flow of the company for the past three years was 127 million yuan, 155 million yuan and 1.58 respectively. 100 million yuan.
In addition, from 2009 to 2011, Ocean King Lighting had a total cash dividend of 240 million yuan. In this way, the book cash plus three years of historical dividends reached 586 million yuan, 36 million more than the proposed fundraising. Moreover, Zhou Mingjie, the actual controller of Ocean King Lighting, holds 83.62% of the company's shares, and its absolute degree of control also excludes the possibility of dissatisfaction among shareholders.
In this regard, an industry analyst believes that Ocean King Lighting has to invest heavily in listing financing, there are two possibilities: First, Zhou Mingjie and his wife are not willing to use their own money to expand capacity; second, the company's account is far from described So "glamorous".
An insider who worked in Ocean King Lighting revealed that the company's performance in the three years from 2007 to 2009 did increase rapidly, and the company's leaders were too optimistic to divide the market very carefully. In the following three years, due to the bad economic environment, the company's overall performance has declined. Leaders at all levels apportion performance indicators to their subordinates for their own benefit. The reason why the data in the financial report is "good-looking" is because of the effect of doing a lot of fake contracts. He revealed that nearly 80% of the company's contracts after December 20th each year are fake.
Price distortion performance is difficult to sustain
For Ocean King Lighting, the industry generally has the impression that "the product price is high and the sales are strong." The reporter found on Taobao that the price of the same strong light tube is generally less than 100 yuan, and foreign brands are ranging from 150-200 yuan, while the products of Ocean King Lighting are sold for nearly 300 yuan.
Is such a large price difference that is the higher end, the atmosphere and the upper grade of the lighting of the Ocean King? The Ocean King Lighting Prospectus shows that Ocean King lighting products are mainly industrial lighting equipment, including fixed lighting equipment (industrial hanging lights, projection lights), mobile lighting equipment (mobile lights) and portable lighting equipment (explosion-proof searchlights, flashlights) three Big class. The above-mentioned industry analysts bluntly said that the most important core components for these types of lamps are light sources, ballasts, and electronic components. However, in the production process of Ocean King Lighting, all of the above parts need to be purchased from outside. The company's so-called "production" is just to buy the above-mentioned core parts, and then put on a shell to change the face into a "high-tech lighting." According to analysts in the industry, “In the past, Ocean King Lighting had experienced a failure of the national quality inspection.â€
In this regard, the reporter checked the website of the AQSIQ and found that Ocean King Lighting, wearing the “China Well-known Trademarkâ€, was found to have failed the product in the results of the national supervision and inspection of the quality of explosion-proof electrical products in 2010. The model number of the product is BFC8120150W 220V. The specific reason is that the internal field glare explosion-proof lamp housing pressure test item is unqualified.
The company's financial statements show that the gross profit margin of the company's products has reached 70% over the years, which is far from the industry's average gross profit margin of 25%. So what made the low-end lamps of Ocean King Lighting buy a good price? In this regard, the above-mentioned industry analysts revealed that the main reason is that Ocean King Lighting adopts the “reward†sales strategy – behind the high gross profit, the company actually pays a high commission to the sales staff. According to the prospectus, the wages, bonuses and welfare fees provided by the company to local sales personnel (expressed as “service centersâ€) reached 27% of the income in three years. Among the comparable listed companies listed in the prospectus, the average annual gross profit margin of Qinshang Optoelectronics is 32%, while the ratio of sales personnel to income is only 2%.
“Ocean King Lighting's customers are mostly large enterprises and institutions. They sell through high prices and high commissions, and the sales staff also take out some rewards as rebates to state-owned enterprise purchasers. The same is 100 yuan lamps, diligently 68 yuan in cost, 2 yuan in sales staff costs; while Ocean King lighting only spent 30 yuan on the cost, but gave the sales staff 27 yuan as a sales incentive!" said the insider.
In this regard, industry analysts believe that the above model will not be sustainable. The high rewards of Ocean King sales personnel and even headquarters management personnel are derived from the high price of their products. According to the objective laws of the market, the price of products will surely converge with the value trend. Objectively speaking, the performance of Ocean King is now the result of many sales staff twisting sales.
Independent Dong is not alone in the market brand confusion
According to the prospectus of Ocean King Lighting, the company's board of directors consists of 13 directors, including five independent directors: Chen Yansheng, Wang Jinxi, Fan Shiqing, Hu Yuancheng and Wang Yong. Among them, the independent director Chen Yansheng is currently the vice chairman and secretary general of the China Lighting Association. In addition to his appointment at Ocean Wang Lighting, he is also an independent director of four listed companies including Sunlight Lighting, Feile Audio, Qinshang Optoelectronics and Yuanfang Optoelectronics. According to the current regulations of the China Securities Regulatory Commission, no one may serve as an independent director of a listed company at no more than five. Chen Yansheng can be said to just "step on the policy red line."
Another independent director, Wang Jinxi, is 76 years old. He is currently the honorary chairman of the China Lighting Society and concurrently an independent director of NVC Lighting. In addition, Fan value Qing and Wang Yong are also independent directors in non-lighting enterprises.
For the above-mentioned issues of independent directors and multiple positions and related to competitors, the Economic Information Daily attempted to contact the relevant departments of Ocean King Lighting, but as of press time, their telephones were never answered.
In fact, in addition to the company's independent director is not alone, the job is complex, the "Ocean King Lighting" brand is also very chaotic in the market. The reporter used Baidu search to find that at least nine brands are “Ocean King†lighting companies, and their business scope includes explosion-proof lighting, lighting manufacturing, processing, sales and installation.
Such a major brand risk hazard, Ocean King Lighting's prospectus does not specify. In this regard, the above-mentioned industry analysts said that a situation may be that the sponsor experience is not rich, negligent, and there is a situation where the sponsor institution deliberately concealed.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
Holding huge amounts of money or having a large amount of money due to financial reports
The Ocean King Lighting Prospectus shows that this listing is going to publicly issue 5 million shares of common stock, accounting for 12.5% ​​of the total share capital after the launch. The funds raised will be mainly used for the following three projects: production line construction project (planned investment amount is 336 million yuan), R&D center construction project (planned investment amount is 140 million yuan), and domestic marketing center expansion project (plan The investment amount is 69.77 million yuan, and the total investment is about 550 million yuan.
In this regard, Ocean King Lighting said that in recent years, the company's business scale has expanded rapidly and its production capacity has been seriously insufficient. If it can be implemented smoothly, the company's production capacity, technology level, research and development capabilities and marketing capabilities will be greatly enhanced, which will help the company further enhance its core competitiveness and profitability.
In fact, Ocean King Lighting, with a registered capital of 350 million yuan, is not bad for its company accounts. From the end of 2009 to the end of 2011, the balance of marine king lighting currency funds was 312 million yuan, 274 million yuan and 346 million yuan respectively, while the net operating cash flow of the company for the past three years was 127 million yuan, 155 million yuan and 1.58 respectively. 100 million yuan.
In addition, from 2009 to 2011, Ocean King Lighting had a total cash dividend of 240 million yuan. In this way, the book cash plus three years of historical dividends reached 586 million yuan, 36 million more than the proposed fundraising. Moreover, Zhou Mingjie, the actual controller of Ocean King Lighting, holds 83.62% of the company's shares, and its absolute degree of control also excludes the possibility of dissatisfaction among shareholders.
In this regard, an industry analyst believes that Ocean King Lighting has to invest heavily in listing financing, there are two possibilities: First, Zhou Mingjie and his wife are not willing to use their own money to expand capacity; second, the company's account is far from described So "glamorous".
An insider who worked in Ocean King Lighting revealed that the company's performance in the three years from 2007 to 2009 did increase rapidly, and the company's leaders were too optimistic to divide the market very carefully. In the following three years, due to the bad economic environment, the company's overall performance has declined. Leaders at all levels apportion performance indicators to their subordinates for their own benefit. The reason why the data in the financial report is "good-looking" is because of the effect of doing a lot of fake contracts. He revealed that nearly 80% of the company's contracts after December 20th each year are fake.
Price distortion performance is difficult to sustain
For Ocean King Lighting, the industry generally has the impression that "the product price is high and the sales are strong." The reporter found on Taobao that the price of the same strong light tube is generally less than 100 yuan, and foreign brands are ranging from 150-200 yuan, while the products of Ocean King Lighting are sold for nearly 300 yuan.
Is such a large price difference that is the higher end, the atmosphere and the upper grade of the lighting of the Ocean King? The Ocean King Lighting Prospectus shows that Ocean King lighting products are mainly industrial lighting equipment, including fixed lighting equipment (industrial hanging lights, projection lights), mobile lighting equipment (mobile lights) and portable lighting equipment (explosion-proof searchlights, flashlights) three Big class. The above-mentioned industry analysts bluntly said that the most important core components for these types of lamps are light sources, ballasts, and electronic components. However, in the production process of Ocean King Lighting, all of the above parts need to be purchased from outside. The company's so-called "production" is just to buy the above-mentioned core parts, and then put on a shell to change the face into a "high-tech lighting." According to analysts in the industry, “In the past, Ocean King Lighting had experienced a failure of the national quality inspection.â€
In this regard, the reporter checked the website of the AQSIQ and found that Ocean King Lighting, wearing the “China Well-known Trademarkâ€, was found to have failed the product in the results of the national supervision and inspection of the quality of explosion-proof electrical products in 2010. The model number of the product is BFC8120150W 220V. The specific reason is that the internal field glare explosion-proof lamp housing pressure test item is unqualified.
The company's financial statements show that the gross profit margin of the company's products has reached 70% over the years, which is far from the industry's average gross profit margin of 25%. So what made the low-end lamps of Ocean King Lighting buy a good price? In this regard, the above-mentioned industry analysts revealed that the main reason is that Ocean King Lighting adopts the “reward†sales strategy – behind the high gross profit, the company actually pays a high commission to the sales staff. According to the prospectus, the wages, bonuses and welfare fees provided by the company to local sales personnel (expressed as “service centersâ€) reached 27% of the income in three years. Among the comparable listed companies listed in the prospectus, the average annual gross profit margin of Qinshang Optoelectronics is 32%, while the ratio of sales personnel to income is only 2%.
“Ocean King Lighting's customers are mostly large enterprises and institutions. They sell through high prices and high commissions, and the sales staff also take out some rewards as rebates to state-owned enterprise purchasers. The same is 100 yuan lamps, diligently 68 yuan in cost, 2 yuan in sales staff costs; while Ocean King lighting only spent 30 yuan on the cost, but gave the sales staff 27 yuan as a sales incentive!" said the insider.
In this regard, industry analysts believe that the above model will not be sustainable. The high rewards of Ocean King sales personnel and even headquarters management personnel are derived from the high price of their products. According to the objective laws of the market, the price of products will surely converge with the value trend. Objectively speaking, the performance of Ocean King is now the result of many sales staff twisting sales.
Independent Dong is not alone in the market brand confusion
According to the prospectus of Ocean King Lighting, the company's board of directors consists of 13 directors, including five independent directors: Chen Yansheng, Wang Jinxi, Fan Shiqing, Hu Yuancheng and Wang Yong. Among them, the independent director Chen Yansheng is currently the vice chairman and secretary general of the China Lighting Association. In addition to his appointment at Ocean Wang Lighting, he is also an independent director of four listed companies including Sunlight Lighting, Feile Audio, Qinshang Optoelectronics and Yuanfang Optoelectronics. According to the current regulations of the China Securities Regulatory Commission, no one may serve as an independent director of a listed company at no more than five. Chen Yansheng can be said to just "step on the policy red line."
Another independent director, Wang Jinxi, is 76 years old. He is currently the honorary chairman of the China Lighting Society and concurrently an independent director of NVC Lighting. In addition, Fan value Qing and Wang Yong are also independent directors in non-lighting enterprises.
For the above-mentioned issues of independent directors and multiple positions and related to competitors, the Economic Information Daily attempted to contact the relevant departments of Ocean King Lighting, but as of press time, their telephones were never answered.
In fact, in addition to the company's independent director is not alone, the job is complex, the "Ocean King Lighting" brand is also very chaotic in the market. The reporter used Baidu search to find that at least nine brands are “Ocean King†lighting companies, and their business scope includes explosion-proof lighting, lighting manufacturing, processing, sales and installation.
Such a major brand risk hazard, Ocean King Lighting's prospectus does not specify. In this regard, the above-mentioned industry analysts said that a situation may be that the sponsor experience is not rich, negligent, and there is a situation where the sponsor institution deliberately concealed.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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