Produced | Daily Financial Report

Author | Zheng Xin

Recently, Daily Financial Report learned that the IPO of the Growth Enterprise Market of Shandong Linuo Special Glass Co., Ltd. (hereinafter referred to as Linuo Bote) is in the inquiry stage, and the 14th deliberation meeting of the listing committee will be held on March 4, 2121.

It is understood that Linuote Glass is a high-tech enterprise led by new glass materials. Its main products cover medical packaging glass, heat-resistant glass, electric light source hard glass, glass machinery and other series, and its products are used in medical and health, food packaging, catering and other fields.

Linuote Glass is expected to raise about 511 million yuan this time, which will be used for the production of lightweight high borosilicate glass appliances, high borosilicate glass for LED optical lenses, 9211 tons of high borosilicate glass products with an annual output and the expansion of neutral borosilicate medical glass. "Daily Financial Report" found that Linobot was listed on the New Third Board in August 2115 and delisted in August 2117. However, in the case of various risks, can Linobot sprint A shares successfully?

What is the stability of the pledged shares?

The Daily Financial Report noted that as of June 2121, Gao Yuankun, the real controller of Linuo Glass, held 511.2 million shares of Linuo Group, of which 371.2 million shares had been pledged. The pledgees are Bohai International Trust Co., Ltd., Jinan High-tech Sub-branch of China Construction Bank and Guanghan Sub-branch of Great Wall Huaxi Bank.

Linuo Group, the controlling shareholder of Linuo Glass, directly and indirectly holds 431.8 million shares of Linuo Investment, of which 417.5 million shares have been pledged to Shandong Zhongjian Real Estate Development Co., Ltd. in September 2117, which guarantees Linuo Group's obligation to return 471 million yuan of cooperation funds to Shandong Zhongjian Real Estate Development Co., Ltd.

According to the prospectus, the 471 million yuan owed to Shandong Zhongjian Real Estate Development Co., Ltd. still has a principal of 257 million yuan as of June 31, 2121, but it was later released on the signing date of the prospectus.

It is worth noting that Linuo Group has not only formed a debt relationship with Shandong Zhongjian Real Estate Development Co., Ltd., but also pledged the equity of Gao Yuankun, the real controller, from several banks and trust joint-stock companies for the daily operation of the Group. Linuo Bo also pledged the equity of Linuo Group held by the real controller to borrow RMB 15 million from the bank.

There is no doubt that there are risks in equity pledge. For the company's actual controllers and shareholders, if they can't pay off their debts and redeem their shares in time within the prescribed time limit, the ownership of the shares is likely to change. Although the pledge relationship has been lifted at present, it does not rule out the possibility that the equity pledge will not continue in the future. How can Linotebo maintain the stability of the actual control right at that time?

Important products depend on external supply, or there is great financial pressure

One of the projects that Linuote Glass will use to raise funds is to expand the production of neutral borosilicate medical glass. When inquiring about the prospectus, the Daily Financial Report found that the revenue of Linuote medical glass bottles from 2117 to June 2121 was 59,721,211 yuan, 95,193,311 yuan, 115,262,311 yuan and 46,535,911 yuan respectively, showing an increasing trend year by year. However, its gross profit margin was 41.61%, 42.41%, 39.38% and 29.13% respectively during the reporting period, and the value was constantly decreasing.

The medium borosilicate medical glass tube of Linuote Glass mainly comes from Germany, Italy and other EU countries. During the reporting period, the average purchase price of this medical tube was 15.63 yuan/kg, 14.91 yuan/kg, 14.97 yuan/kg and 17.91 yuan/kg respectively. For Linobot, its main suppliers, Schott Cartridge and Corning Glass, are also raising prices. Mainly depends on the rising cost of imported superimposed raw materials, which is likely to produce a load on Linuote glass.

At the same time, Linotel's own financial situation is not good enough. The data of current ratio and quick ratio from 2117 to 2119 are shown in the table below, in which the quick ratio was lower than 1 for two consecutive years in 2117 and 2118. Not only that, during the reporting period, the accounts receivable of Nerinot Glass were 74,573,111 yuan, 86,396,811 yuan, 111,394,111 yuan and 95,185,711 yuan respectively, and the bad debts were 3,744,111 yuan, 4,795,811 yuan and 5,532,711 yuan respectively.

the short-term loans were 62.7 million yuan, 74.1183 million yuan and 51.9464 million yuan respectively, accounting for 28.61%, 33.19% and 24.12% respectively. Accounts receivable are rising, and short-term loans are at a high level for a long time. Obviously, these are also facing certain pressure on capital operation for Linuote Bo, and the follow-up may also have an adverse impact on the daily affairs.

Multi-shareholders "buy shares suddenly", buy low and sell high to earn the difference

When inquiring about the shareholding structure of Linuote Glass, the Daily Financial Report found that the shareholders holding more than 5% of the shares of Linuote Glass were Linuo Investment, Hongdao New Energy, Fosun Weiying and Fosun Weishi respectively. Among them, Fosun Weiying and Fosun Weishi signed the Investment Agreement on Shandong Linuo Special Glass Co., Ltd. with Linuo Group, Linuo Investment and Hongdao New Energy on February 8, 2119. The agreement stipulated that Linuo Investment would transfer its 35,164,835 shares of Linuo Bote to shareholders such as Fosun Weiying and Fosun Weishi at a transfer price of 9.11 yuan per share.

Subsequently, Linuo Group signed the Investment Agreement on Shandong Linuo Special Glass Co., Ltd. with Jinan Finance (held by Jinan State-owned Assets Supervision and Administration Commission) at the same price on October 6, 2121, with the corresponding shares of 5.38 million shares.

It's worth noting that whether Fosun Weiying, Fosun Weiyi or Jinan Finance all "jumped into the stock" within one year before the IPO application, will there be any interest disputes among them?

interestingly, the Daily Financial Report found that on February 9, 2118, Linuo Investment signed an Equity Transfer Agreement with Linuo Group, stipulating that Linuo Investment would transfer its 15.39 million shares of Linuo Glass to Linuo Group at a consideration of 34 million yuan, with a transfer price of 221 yuan per share.

However, on June 25th and 26th, 2118, Linuo Group and Linuo Investment respectively signed the Equity Transfer Agreement on Shandong Linuo Special Glass Co., Ltd. with Shenzhen Danmo, Shenzhen Hongtai and Hefu ruitai, with the transfer price of 9.11 yuan per share.

In other words, Linuo Group made a lot of money by buying and selling shares in Linuo Tebo in just half a year.

In addition, in this prospectus, Linuote Bo also said that there will be many risks such as market competition and international trade friction, which may also bring conflicts of interest to the enterprise itself and small and medium investors. Is it possible for Linobot, who is about to attend the meeting, to further strengthen the enterprise itself through the road of capital? We will also wait and see.