Source jie technology: from “core” to “capital” can be fulfilled
In the book “Innovation of Digital Intelligence: The Transformation and Upgrading of Chinese Enterprises”, it is mentioned that digital technology will be the “biggest variable” for the development of enterprises in the future.In order to grasp the “biggest variable”, many leading enterprises choose the transformation of science and technology.However, “there is no beginning, fresh gram has the end”, enterprise transformation is no exception.Since 2018, when the wave of core shortage started, many companies announced to enter the semiconductor industry, but now the tide has faded, and there are more “naked swimming” people.In the chip enterprises that have been eliminated, there are those who give up halfway for various reasons.In this technology-intensive industry, it is absolutely impossible to be short of money. Both semiconductor enterprises and practitioners have a strong desire for capital. Companies need money for start-up, research and development, attracting talents, purchasing equipment, and so on.On January 10, The Shanghai Stock Exchange formally accepted shaanxi Yuanjie Semiconductor Technology Co., LTD. (hereinafter referred to as Yuanjie Technology) ‘s application for listing on the Science and Technology Innovation Board.According to small money mi understand, Shaanxi source Jie Semiconductor Technology Co., LTD., the proposed issuance of shares not more than 15 million shares.The raised funds used for the project and the amount to be invested are: 10G and 25G optical chip production line construction project, the amount of raised funds is planned to be 570 million yuan;50G optical chip industrialization construction project, intends to use the raised fund of 120 million yuan;Research and development center construction project, planned to use the raised fund of 140 million yuan;To supplement working capital, we plan to use 150 million yuan of raised funds.However, xiaocaimi found through the exploration, insufficient capacity constraints competitiveness, single financing channels into a short board, inventory rise and fall risk is still the source of Jie technology, the “stickler” can not avoid the linlin.According to Xiaocaimi, Yuanjie technology carries out research and development, design, production and sales of optical chips through IDM mode. Key equipment investment is limited by space and capital, which restricts its production capacity.It is reported that The production capacity of Yuanjie technology has been in a relatively saturated state for a long time. In 2020, it adjusted the capacity allocation of high-end products, middle and low-end products to meet the market demand of high-end products, but the growth of low-end and low-rate products market share is still limited by insufficient capacity.Therefore, industry insiders said, in order to expand sales scale, enhance market share, enhance competitiveness, Source Jie technology needs to further expand capacity.Secondly, there is a gap in industry experience accumulation between Yuanjie technology and international leading optical chip manufacturers.Foreign optical chip manufacturers developed earlier, such as Sumitomo Electric, Mitsubishi Electric, MACOM, Lumentum and so on have accumulated profound experience in the field of optical chips.The product characteristics and reliability of optical chips are the key indicators, which require manufacturers to continuously improve the process according to the product testing situation. With rich production experience, foreign manufacturers can ensure better product characteristics and reliability.In addition, foreign manufacturers have occupied the high-end optical chip market earlier, while downstream customers need to go through qualification review, product verification, small batch trial and other links when selecting new suppliers, which costs a lot of time and is difficult to replace.As a result, although the IDM model of Yuanjie technology has accumulated more experience in product design, technology development, production process and other aspects, there is still a big gap compared with the leading foreign manufacturers.Moreover, the current financing channels of Yuanjie technology are relatively single, mainly relying on private equity financing and business accumulation to solve the capital needs of business development.The optical chip industry is facing fierce competition from foreign giants and the domestic industry. Yuenjie technology needs to continuously improve product performance and diversify product categories through research and development and production process improvement, and seize market share by expanding production capacity, all of which require a lot of investment from enterprises.From this point of view, source jie technology really need funds to further improve the comprehensive strength.After talking about the macro, let’s look at the “micro” — at the end of each reporting period, the book value of the inventory of Yuanjie Technology was 22.93668 million yuan, 34.3996 million yuan, 32.6078 million yuan and 43.3232 million yuan, showing an overall upward trend.In this regard, Source technology explained that this is mainly due to the increase in production and stock of laser chip products.Little rich m son believes that the source jie inventory is on the rise of science and technology is the “mixed”, happy is to keep certain inventory can guarantee the stability of the production and operation scale, sorrow is if the source of jie technology mainly appear a sharp fall in the price of the product or the sales not free, but it failed to effectively cope with and make the corresponding adjustment, will probably make inventory realizable net value below cost,It’s a bit of a pyrrhic loss.In addition, Xiaocaimi found that at the end of each reporting period, the book value of accounts receivable of Yuanjie technology was 22.4968 million yuan, 25.5462 million yuan, 62.0327 million yuan and 51.6747 million yuan respectively.Yuenjie said that while its major customers’ credit and collection status is good, the absolute amount of receivables is likely to continue to increase as revenue scale further improves.This makes people question: if the accounts receivable management is improper, it may be faced with accounts receivable can not be recovered and the corresponding bad debts.In this way, during the reporting period, the accounts receivable turnover of Yuanjie technology was 3.75, 3.08, 4.84 and 2.80 respectively.Although Yuanjie technology explained the decrease of receivables turnover rate in 2019 compared with the previous year as “poor collection of some customers in 2018”, it explained the decrease of receivables turnover rate in the first half of 2021 compared with the previous year as “high receivables turnover rate due to the small opening balance of receivables in the previous year.However, from the overall analysis of Xiaocaimi, the rapid expansion of Yuanjie Technology makes the average balance of receivables increase year by year, and the growth rate of receivables at the end of the period is higher than the growth rate of current operating income, making the turnover rate of receivables present a downward trend.In addition, xiaocaimier found through comparison that during the reporting period, The inventory turnover rate of Yuanjie technology was lower than the average level of comparable companies in the same industry.”This is mainly because of our production process covers the epitaxial wafer, chip test screening stage, the product has a certain production cycle, that commonly according to their order in the production process and judgment of the intention to customers, arrange the epitaxial wafer and chip cutting test in advance, in view of the major categories of products have a certain amount of finished product and the product inventory.”Source jie technology explains.It has to be said that this explanation is similar to “big but different” and does not well clarify the gap between Yuanjie technology and comparable companies in the industry.There are third-party paybacks through supplier loans and talk about “medium view”. Xiaocaimi found that during the reporting period, the third-party paybacks of Yuanjie Technology were 649,400 yuan, 1.0442,500 yuan, 5.432,000 yuan and 12,900 yuan, accounting for 0.92%, 1.28%, 2.33% and 0.01% of the operating revenue, respectively.The payment is mainly made on behalf of customers, shareholders or employees, including “collection through employees” and “shareholders”.In 2020, the third-party payment collection amount of Yuanjie Technology is relatively high.According to XiaoCaimiler, the payment is collected on behalf of the employees of Yuanjie Technology, mainly in the product sales of Yuanjie Technology, the downstream customers entrust their shareholders or employees to pay for the goods.Yuanjie technology regularly checks and confirms payments with major customers. Although there is no dispute over payment ownership, it is indeed non-standard operation.The other is the payment on behalf of the shareholders of Yuanjie Technology. In its business with Top Century, there is a large amount of long-term overdue payment due to the poor management of Top Century and aksim, an overseas manufacturer.In order to implement the property preservation, when Deng Yan, the actual controller of Aksim, carries out the equity transfer with Zhang Xinying, the shareholder of Yuanjie Technology, he, Deng Yan and Zhang Xinying reach an agreement that Zhang Xinying will pay part of the equity transfer money to Yuanjie Technology to repay the loans owed by Aksim.There are also irregularities.In addition, according to xiaocaimi, during the reporting period, the amount of money returned by Yuanjie Technology as a third party was 8.1584 million yuan, 4.0738 million yuan, 3.2448 million yuan and 5897 million yuan respectively, accounting for 11.59%, 5.01%, 1.39% and 0.67% of the operating revenue.Small money mi son found that the third party is regarded as the case:In the early stage of business development, Yuanjie focuses on product production and research and development. When it carries out business with overseas manufacturers such as Aksim, ALL PLUS and Hei Yi Co., LTD., Yuanjie settles business with Shaanxi Electronics and Topu Century in the form of purchase and sale, and exports and sells goods to overseas manufacturers through Shaanxi Electronics and Topu Century.In addition, Yuanjie technology also obtains bank loans through suppliers.According to xiaocaimi, during the reporting period, Yuanjie technology through Shaanxi electronic procurement of raw materials, consumables, equipment, etc.It applies to Xianyang Branch of China Merchants Bank for entrusted payment based on the accounts payable generated in the real transaction with Shaanxi Electronics. After the bank makes the entrusted payment to Shaanxi Electronics, Shaanxi Electronics will temporarily return the outstanding accounts payable to Yuanjie Technology.Although source jie technology already in September 2019 and October 2020 to repay the bank loan, but to better regulate the internal management, source jie technology to establish and perfect the financing management, cash management, and other related to the funds of the internal control system and regulating the behavior of financing of the company and management of monetary funds, improve the internal control standard consciousness.”The Strategy of the Warring States · Chu Ce iv” said: “It is not too late to see a rabbit and look after a dog.For Source Jie technology, aware of the lack of compliance, it is never too late to change.