Increasing Accounts Receivable, Shangbang Technology IPO Raises Over 4% of Funds for Cash Flow
As a clean and natural energy source, solar photovoltaic applications have gradually entered people's daily lives. The bright development prospects have led to more and more companies joining the solar photovoltaic industry, making the industry landscape increasingly crowded and competitive.
Recently, Shangbang Technology Co., Ltd. (hereinafter referred to as "Shangbang Technology") updated its IPO prospectus and responded to the first round of inquiry questions, covering topics such as solar film materials, ChiNext positioning and industry policy, accounts receivable, debt and cash flow, etc.
Among them, "accounts receivable" and "debt and cash flow" have become the focus of attention for regulatory agencies and the market.
The net cash inflow from operating activities has been negative year after year
Shangbang Technology is a high-tech company specializing in the development, production, and sales of solar photovoltaic encapsulation films. The company's main products include POE film and EVA film, with report period POE film sales revenue accounting for a relatively high proportion.
In July 2006, Shangbang Technology was registered and established in Hangzhou, Zhejiang Province, with Cao Shangcai as the controlling shareholder and actual controller.
According to Shangbang Technology's prospectus, the total amount of funds raised through this issue will not exceed RMB 7.5 billion, with a minimum of 10% of the company's total share capital after completion of the issuance. The funds raised will be used for project investment and working capital replenishment, with an estimated RMB 9.70 billion for the "3 billion square meters per year solar film construction project" and RMB 8.30 billion for working capital replenishment.
The cash flow from operating activities has been negative year after year, and the company's management believes that this is mainly due to the rapid growth of revenue, which has led to an increase in working capital requirements.
As a result, Shangbang Technology's net profit and cash flow from operating activities have shown significant differences. The company attributes this difference to the rapid growth of revenue, which has led to an increase in working capital requirements.
Accounts receivable continues to grow
The company's accounts receivable has been increasing year after year, and the company's management believes that this is mainly due to the company's credit policy and the industry's characteristics.
In response to the inquiry questions from the Shanghai Stock Exchange, Shangbang Technology explained that the company's accounts receivable has been increasing year after year, with the main reason being the company's credit policy and the industry's characteristics. The company believes that this is not a major risk factor for the company's financial status and operating performance.
However, the company also noted that there are risks associated with accounts receivable, such as delays in payment or non-payment by customers, which may have an impact on the company's financial status and operating performance.