"Investor Network" Hou Shuqing
Yili Electromechanical is mainly engaged in the research and development, production and sales of high-pressure cleaners, vacuum cleaners and other products, and has gradually expanded its business to the fields of spray disinfection, steam cleaning, lithium battery cleaning, etc. Brands have established partnerships.At present, Yili Electromechanical is launching an IPO on the main board of the Shanghai Stock Exchange.
Yili Electromechanical's revenue mainly comes from high-pressure cleaners and vacuum cleaners, which contribute more than 95% of the company's revenue.However, 80% of the market for high-pressure cleaners is located overseas. Although Yili Electromechanical's own brand business has a leading market share in China, the low market share of high-pressure cleaners in China has also become a bottleneck restricting its development. .
From 2019 to 2020, the total dividend amount of Yili Electromechanical is 387 million yuan, which is equivalent to 45% of the funds raised in this IPO, and far exceeds the 100 million yuan supplementary funds in the fundraising plan.As of the signing date of the prospectus, the chairman of Yili Electromechanical and his spouse together controlled about 95.24% of the company's equity.The large dividends flowed into the pockets of the actual controller's family, which also put a question mark on the rationality of Yili Electromechanical's fundraising.
Big customers, don't like to pay
Yili Electromechanical's product sales are mainly in overseas markets. From 2018 to June 2021 (hereinafter referred to as the "reporting period"), the company's overseas sales revenue accounted for 78.10% and 73.22% of its main business revenue, respectively. , 78%, and 77.72%, which also means that the operating conditions of overseas customers will have a greater impact on Yili Electromechanical.
From the end of June 2018 to the end of 2021, the accounts receivable of Yili Electromechanical increased year by year, which were 224 million yuan, 251 million yuan, 318 million yuan, and 387 million yuan respectively.The proportion of accounts receivable in operating income is 14.44%, 15.25%, 16.33% and 32.55% respectively, and the proportion will increase significantly in 2021.
In this regard, Yili Electromechanical stated in the prospectus that the increase in the proportion of accounts receivable in revenue was mainly affected by the cooperation between the company and SNOW JOE.The two cooperate in the ODM model, and the revenue of this model accounts for more than 70% of the total revenue of Yili Electromechanical all year round.
SNOW JOE was founded in 2004. According to Frost & Sullivan data, SNOW JOE has become the fourth largest company in the pressure washer market in 2020.During the reporting period, under the ODM model, SNOW JOE has always been the largest customer of Yili Electromechanical except in 2019.
In 2020, affected by the epidemic, the demand for cleaning products in overseas markets has increased, resulting in a significant increase in Yili Electromechanical's sales revenue to SNOW JOE.In June 2021, Yili Electromechanical and SNOW JOE negotiated the payment extension, and agreed that the latter should delay part of the payment.
Among the major customers of Yili Electromechanical, SNOW JOE has always been a special existence: compared with other customers, SNOW JOE's ending balance of accounts receivable accounts for the highest proportion of current sales.
During the reporting period, the balances of accounts receivable of SNOW JOE were RMB 95 million, RMB 104 million, RMB 143 million, and RMB 219 million, respectively, and the sales excluding tax were RMB 303 million, RMB 232 million, RMB 519 million, and RMB 304 million, respectively. billion.This is in sharp contrast with another major customer, ANNOVI REVERBERI SPA. According to Frost & Sullivan, in 2020, the company is the world's second largest cleaning machine manufacturer, and the transaction with Yili Electromechanical during the reporting period The amount is stable between 200 million and 300 million yuan, but the balance of accounts receivable at the end of the period is often only 20 million to 40 million yuan.
Although the cooperation between Yili Electromechanical and SNOW JOE has been started since the beginning of the reporting period, it is worth noting that on June 25, 2021, Shanghai Yili, a subsidiary of Yili Electromechanical, signed an agreement with China Export & Credit Insurance Corporation Shanghai Branch. A "Detailed List of Short-Term Export Credit Insurance Renewal Insurance Policy", the agreed insured amount is 210 million US dollars, and the policy is valid from June 1, 2021 to May 31, 2022.
Net profit declines, can domestic sales save lives?
From June 2018 to June 2021, the net profit of Yili Electromechanical was 93.8309 million yuan, 86.9258 million yuan, 143 million yuan and 37.41 million yuan respectively, and there was a significant decline in the first half of last year.In this regard, Yili Electromechanical said that the company's gross profit margin was greatly affected by factors such as rising raw material prices and the decline in the exchange rate of the US dollar against the RMB, which in turn led to the poor performance of the net profit margin.
During the reporting period, the gross profit margins of Yili Electromechanical were 20.59%, 22.68%, 22.24%, and 16.67%, of which there was a significant decline from January to June 2021.
In terms of products, the gross profit margins of pressure washers and vacuum cleaners will stabilize at around 22% and 17% respectively before 2021, and in 2021, their gross profit margins will drop to 16.63% and 13.65%, respectively.Compared with its peers, the gross profit margin of Yili Electromechanical was not much different from the industry average during 2018-2019, but in 2020, it was about 10 percentage points lower than the industry average.
The higher proportion of export sales may be the reason for the poor performance of Yili Electromechanical during the reporting period.
From the perspective of business model, the business model of Yili Electromechanical includes ODM (Original Design Manufacturing), OEM (OEM) and OBM (own brand manufacturing).During the reporting period, the ODM model accounted for 79.32%, 73.87%, 81.1% and 82.59% of the operating income respectively, which is the most important business model of Yili Electromechanical.The vast majority of products produced through this model are sold overseas.
Yili Electromechanical Export Regional Sales and Proportion
In the reporting period, the proportion of revenue from independent brands using the OBM model was 18.20%, 21.62%, 16.13%, and 13.97%, respectively.Yili Electromechanical said that the company has continued to invest in the marketing promotion and sales channels of its own brands, but for a period of time in the future, export sales will still be an important source of cash flow for Yili Electromechanical.
According to data from Frost & Sullivan, the global pressure washer market is mainly in Europe and the United States, accounting for more than 80% of the global market.High-pressure cleaners have a high penetration rate in these regions, so companies in these regions have obvious first-mover advantages in product design, sales channels, brand influence, etc. The competition pattern has been formed, and some leading companies have already become Yili Electromechanical customers.
The independent brand of Yili Electromechanical currently mainly relies on the domestic market. In 2020, the market share of the domestic market is 14.8%, ranking first, contributing 22.28% of the revenue to Yili Electromechanical.But in the context of the low overall penetration rate of domestic high-pressure cleaners, how much room is there to improve the current market share?Has it hit the ceiling?These issues remain to be seen.
In the context of the severe winter in the foreign trade industry, Yili Electromechanical still lacks the ability to break the situation.The company expects that from January to September 2021, operating income will increase by 17.81%-36.64% year-on-year, but net profit will decline by 35.7%-27.13%.
Dividend first, then fundraising
The IPO of Yili Electromechanical intends to raise 867 million yuan, which will be used for the expansion project with an annual output of 5 million units of cleaning equipment, the construction of the R&D center and the replenishment of 100 million yuan of working capital.
However, from the perspective of Yili Electromechanical's dividend action, Yili Electromechanical does not seem to be short of money.From 2019 to 2020, Yili Electromechanical has conducted 3 rounds of dividends.From the perspective of shareholding ratio, most of the dividends fell into the safe of the actual controller's family.
On May 15, 2019, Yili Electromechanical distributed a cash dividend of 130 million yuan to all shareholders.Among them, the shareholder Taizhou Yili allocated 11,100 yuan, and the shareholder Mao Caiping allocated 19.5 million yuan.
On October 31, 2019, Yili Electromechanical distributed a cash dividend of 160 million yuan to all shareholders, of which Taizhou Yili received 72 million yuan.Among the 32 million yuan cash dividends distributed on the same day, Taizhou Yili received another 17.6 million yuan.
On April 16, 2020, Yili Electromechanical distributed a dividend of 65 million yuan to all shareholders, Taizhou Yili 60.5215 million yuan, and shareholder Mao Caiping shared 1.3845 million yuan.
And Taizhou Yili is the actual controller holding platform of Yili Electromechanical.Mao Caiping, whose name appeared twice in the three rounds of dividends, is also the spouse of Huang Jianping, chairman of Yili Electromechanical.
Among them, Taizhou Yili holds 93.11% of the shares of Yili Electromechanical, and Huang Jianping and Mao Caiping hold 100% of the shares.In addition, Jiaxing Yilian, an employee shareholding platform, indirectly controls 4.76% of the shares of Yili Electromechanical. According to the company's investigation, as of May 7, 2021, Chairman Huang Jianping holds 52.85% of the shares in Jiaxing Yilian, and Mao Caiping also directly holds Holding a 2.13% stake in Yili Electromechanical.
In other words, Huang Jianping, Mao Caiping and his wife directly and indirectly hold more than 95.24% of the equity of Yili Electromechanical.During the reporting period, the three rounds of dividends totaled 387 million yuan, most of which were received by Huang Jianping and Mao Caiping.At the same time, the cumulative dividend amount is equivalent to 44.64% of the total fundraising, which is also far more than the 100 million yuan used to supplement the working capital in the fundraising plan.(Produced by Thinking Finance)■
