IPO Observation: "Couple Store" Control Hui Shares One-Sided Increase and Cash Dividend: Four-Year Five-Times Cash Dividend, Gross Profit Rate Continuously Downward Trend, Bad Debt Provision Amount Soars

Another "Couple Store"-controlled company breaks into A-share market! Recently, the Wu-Huo couple-controlled Shenzhen Hui Intelligent Co., Ltd. (hereinafter referred to as Control Hui Shares) submitted an IPO application to the Northbound Stock Exchange and has been approved.

Notably, Control Hui Shares' IPO financing behind the scenes is a combination of one-sided increase and cash dividend; at the same time, its main business revenue continues to grow, while its accounts receivable also continues to soar, with the proportion of accounts receivable to total revenue exceeding 70% as of mid-year.

One-Sided Increase and Cash Dividend

Four-Year Five-Times Cash Dividend, Actual Controller Couple Takes Away 80%

According to the prospectus, this issue will raise a total of approximately RMB 1.05 billion, of which about RMB 0.39 billion will be used for the "Industrial Control Machine and Core Component Expansion Project", about RMB 0.19 billion will be used for the "Research Center Construction Project", and about RMB 0.19 billion will be used for the "Informationization Construction Project".

It is worth noting that during this financing expansion, Control Hui Shares has repeatedly implemented cash dividends. According to the prospectus, from 2020 to 2023, Control Hui Shares made a total of six dividend payments, with five involving cash dividends.

Why does one side increase and another side pay dividends? Industry insiders point out that companies with high levels of ownership by large shareholders tend to have higher dividend intentions.

According to the prospectus, as of the date of this announcement, Wu Hucai directly holds approximately 38.2 million shares, accounting for 58.57% of the total outstanding shares, and indirectly holds approximately 1.23% through Shenzhen Hui Winning Investment Partnership (Limited Partnership), with a combined direct and indirect holding ratio of 59.8%. Yuan Linna directly holds approximately 9.93 million shares, accounting for 15.22%, and indirectly holds approximately 10.74% through Shenzhen Hui Winning Investment Partnership (Limited Partnership). Wu Hucai and Yuan Linna are the actual controllers of the company.

According to the prospectus, Control Hui Shares is a high-tech company specializing in the development, production, and sales of industrial automation control products. The main products include smart industrial control machines, industrial control boards, and related accessories, widely used in various fields such as 3C product manufacturing, intelligent equipment, IoT, new energy, machine vision, artificial intelligence, and industrial automation.

Looking at the specific products, the smart industrial control machine has seen a significant increase in revenue from RMB 1.30 billion to RMB 1.79 billion over the past four years, accounting for 84.16%, 73.58%, 73.53%, and 83.38% of total revenue respectively.