Source: Beijing Business Daily

IPO has been queuing for nearly two years, but Jiangsu Meike Solar Technology Co., Ltd. (hereinafter referred to as "Meike Co., Ltd.") has not yet got a "ticket" for listing. Since the meeting in December 2022, Meike IPO has made slow progress and submitted registration in November 2023, which has not yet been approved, while Huayang Intelligence, a passing company, has already gone public. Behind the A-shares, Meike shares also have a lot of troughs, in which the company's asset-liability ratio is high during the reporting period, and is rising year by year. In addition, Meike shares plan to raise 5 billion yuan in this listing, of which 12.Senecabingo0.5 billion yuan is used to replenish the flow, but there seems to be no shortage of money in the company's account, with nearly 3 billion yuan in currency.

The progress of IPO is slow after the meeting.

Meike shares IPO progress has lagged far behind the same period of meeting enterprises.

According to the prospectus, Meike is a specialized manufacturer of silicon rods / ingots and wafers in the upper reaches of the photovoltaic industry chain. At present, it is mainly engaged in monocrystalline silicon rods and wafers.SenecabingoResearch and development, production and sales, as well as single crystal wafer entrusted processing services, the company is comparable to listed companies in the same industry are Longji Green Energy, TCL Central, Hongyuan Green Energy, Jingke Energy and so on.

It is worth mentioning that the IPO of Meike shares lasted for a long time, and the company's prospectus was accepted on June 7, 2022. It entered a state of inquiry on July 5 of that year, and will be adopted on December 12 of that year. However, after the meeting, there was a "jam" in Meike's IPO, and the application for registration was not submitted until November 10, 2023, 11 months after the meeting. In addition, since the submission of registration, Meike shares have not been approved for registration to take effect.

At the debut meeting on December 12, 2022, Huayang Intelligence and Jialiqi were also present at the same time as Meike shares, of which Huayang Intelligence was listed on February 2 this year, and Jialiqi has been approved to register and take effect.

Financial data show that from 2021 to 2023, the realized operating income of Meike shares is about 3.612 billion yuan, 12.9 billion yuan and 12.552 billion yuan respectively, and the corresponding realized vested net profit is about 201 million yuan, 988 million yuan and 1.065 billion yuan respectively. The corresponding realized vested net profit is about 203 million yuan, 977 million yuan and 1,062 million yuan respectively.

Xu Xiaoheng, an expert in investment and financing, told the Beijing Business Daily that recently there have been many cases of withdrawal of IPO "stuck" enterprises, and the market attention for such enterprises is also relatively high, and there may be some issues to be solved if there is no new progress in the company's IPO for a long time. "however, this does not mean that there is a problem with the company's IPO." Xu Xiaoheng said so.

Asset-liability ratio is higher

During the reporting period, the asset-liability ratio of Meike shares is high, and it is increasing year by year.

The data show that from 2021 to 2023, the asset-liability ratio of Meike shares is 67.92%, 71.08% and 75.83% respectively, which is higher year by year. Compared with listed companies, Longji Green Energy, TCL Central, Hongyuan Green Energy, Beijing Yuntong, Shuangliang Energy Saving and Ates have lower asset-liability ratios in 2023. The asset-liability ratio is 55.99%, 52.25%, 42.8%, 50.2%, 69.98% and 69.5%, respectively.

From 2021 to 2023, the average asset-liability ratios of comparable listed companies were 60.46%, 60.17% and 59.3% respectively, all of which were also below Meike shares. For the reason that the level of the company's asset-liability ratio is higher than that of comparable companies in the same industry, Meike shares said that the company is in a period of business development, and there is a large demand for funds for daily production and operation and investment in fixed assets, while the company's financing channels are relatively single. mainly through bank loans, operating liabilities and other capital turnover, so the asset-liability ratio is higher than comparable companies in the same industry. After this IPO and raising funds are in place, the company's financing channels will be more diversified, the financial strength will be significantly enhanced, and the asset-liability structure will be further optimized.

It should be pointed out that at the initial meeting, the listing committee paid attention to the high asset-liability ratio of Meike shares, requiring the company to explain the financing channels and financing measures to meet the capital demand, and whether there is a greater liquidity risk.

In addition, the listing committee also questioned the fact that the gross profit margin of Meike's single crystal silicon wafers was lower than that of comparable companies in the same industry, and paid attention to whether there was a risk of further decline in the gross margin of the company's main products.

According to the latest data released by Meike, the company's gross profit margin on single crystal silicon wafers rose in 2023. From 2021 to 2023, the gross profit margin of Meike's single crystal silicon wafer business was 13.55%, 12.37% and 16.25% respectively, and the gross profit margin of the company's main business also rebounded to 13.5%, 12.13% and 16.71%, respectively.

Meike said that the gross profit margin of the company's main business is mainly affected by many factors, such as industry development, industry technology trend, competition pattern, customer product structure, product price, raw material price, employee salary level, cost control and capacity utilization.

Raise funds to make up the flow, but there is no shortage of money.

The impact of IPO, Meike shares to raise a large amount of 5 billion yuan.

According to the prospectus, Meike shares raised 5 billion yuan to invest in Baotou Meike Silicon Energy Co., Ltd. phase III 20GW single crystal pull rod project and supplementary liquidity, of which 1.25 billion yuan is used to replenish the flow.

However, behind the fund-raising replenishment, Meike shares have relatively abundant monetary funds, and by the end of 2023, the company's monetary funds are about 2.93 billion yuan.

It is understood that Meike shares are actually controlled by Wang Lubao, Wu Meirong and Wang Yicheng and Bian Xiaochen, and their combined voting rights are 62.71%, of which Wang Yicheng is the son of Wang Lubao and Wu Meirong.

Meike shares warned in the prospectus that if the actual controller uses its controlling position to improperly control the company's business decisions, personnel, finance, etc., it may harm the interests of the company and other shareholders, or will have a greater adverse impact on the company's operating performance.

In response to related issues, the Beijing Business Daily reporter sent an interview letter to Meike shares, but as of the press release, the other side did not reply.

Buna Xin, vice president of the Science and Technology Industry Investment Branch of the China Association for the Promotion of International Science and Technology and executive director of the Strategic Investment think Tank, said in an interview with the Beijing Business Daily that the concentration of shares of real controllers in general companies will arouse the focus of the CSRC. "the dominance of the absolute meaning makes the actual controller in an absolute holding position, which is not conducive to the formation of effective decision-making, but also not conducive to the formation of effective corporate governance, resulting in many drawbacks. For example, large shareholders encroach on the interests of minority shareholders at will, completely control the operation of the company and subordinate companies, and so on." That's what Buna Xin said.

Beijing Business Daily reporter Ma Chengchuan