IPO Raises Questions: Company Issues Dividends and Seeks Financing Before Listing
Before listing, the company issued dividends totaling 3.5 billion yuan to its original shareholders, and then planned to raise an additional 5.5 billion yuan to supplement working capital. This move has raised doubts about the company's motivations.
Recently, the company responded to a first-round inquiry from the Shanghai Stock Exchange, covering 17 questions, including market concerns about the use of funds, operating income, and accounts receivable, as well as changes in shareholders' stakes.
Additionally, the company has had shareholders enter and exit within two months, with the actual controller, Wang Rongzheng, borrowing money to purchase shares.
Prior Dividends, Follow-Up Financing
Data shows that Jingshu Technology was established on June 22, 2001, primarily engaged in the research and development, manufacturing, and sales of large-scale high-end equipment components, with a product structure mainly focused on wind turbine gearboxes and related accessories. The company's products are mainly used in the fields of large-scale wind power installations and plastic injection molding machines, making it one of the few companies in China that can provide comprehensive services for wind turbine gearbox manufacturing.
The company's prospectus reveals that from 2020 to 2022, its operating income was 7.08 billion yuan, 8.78 billion yuan, and 9.42 billion yuan, respectively, with net profits of 1.80 billion yuan, 2.16 billion yuan, and 1.84 billion yuan, respectively. During the reporting period, the company's operating income showed an upward trend, with the wind turbine gearbox business performing well, with a compound annual growth rate (CAGR) of 15.33%.
In recent years, with the promotion of national energy-saving and emission-reduction policies, as well as the rapid development of wind power, the demand for wind turbine gearboxes has increased significantly.
At the same time, the rapid growth of wind power and the increasing demands for precision have driven the wind turbine gearbox market to grow rapidly, with companies expanding their market share by seeking out more opportunities.
This time, Jingshu Technology plans to list on the main board of the Shanghai Stock Exchange. The company plans to raise 20.48 billion yuan, with funds going into wind turbine core equipment industrialization projects (Phase I), research and development center construction projects, and working capital supplements.
As for the 5.5 billion yuan working capital supplement project, which has attracted attention from the Shanghai Stock Exchange, Jingshu Technology issued dividends totaling 3.5 billion yuan to its original shareholders before listing, which is a significant increase compared to previous dividend payments of 80 million yuan and 281.8 million yuan in 2019 and 2020, respectively.
The company's net profits from 2020 to 2021 were only 3.96 billion yuan, with the 3.5 billion yuan dividends issued before listing taking up a significant portion of the company's working capital.
Regarding the unusual situation where Wang Jiping, a shareholder, entered and exited within two months, the Shanghai Stock Exchange has asked Jingshu Technology to explain Wang Jiping's specific circumstances and the source of his funds, as well as any potential violations or irregularities in his behavior.
Jingshu Technology has provided detailed explanations for these questions, stating that Wang Jiping is a natural person with no foreign permanent residency status, who has been engaged in various business management positions and personal investment activities since 2011. The company's funds are derived from its own self-funded or self-raised funds, and there are no connections between Wang Jiping and the other shareholders.
Actual Controller's Multiple Transactions
It is worth noting that the actual controller and his wife have repeatedly transferred funds to the company. In 2019, they transferred 1.033 billion yuan to the company, which was still outstanding at the end of the year. In 2020, they added another 1542.03 million yuan, with a total outstanding balance of 1390.92 million yuan.
In 2021, they again transferred 1150.4 million yuan, with an outstanding balance of 1742.76 million yuan at the end of the year. In 2022, they added another 71.55 million yuan, and by the end of the year, they had repaid all outstanding balances.
In addition to the actual controller's repeated transactions, his brother Wang Guozheng has also borrowed money to increase his stake in the company.
Jingshu Technology's prospectus shows that in March 2022, the company conducted its second round of financing, increasing its registered capital by 1875 million yuan, with funds coming from Wang Rongzheng and Wang Guozheng. However, Wang Guozheng's portion was financed through a loan from his sister-in-law Wang Aihe.
The Shanghai Stock Exchange has asked Jingshu Technology to explain the background of Wang Guozheng's loan financing, the repayment status of the loan, and the source of the repayment funds, as well as any potential violations or irregularities in his behavior.