Changjiang Commercial Daily News Changjiang Commercial Daily reporter Jin Du
In terms of production capacity, Emma Technology has spread its legs; in terms of sales, Emma Technology has slapped its feet again.
On the evening of July 11, Emma Technology (603529.SH) announced that the total amount of funds raised by the company to publicly issue convertible corporate bonds will not exceed 2 billion yuan, and the raised funds will be used to expand production and upgrade marketing networks.
After Emma Technology went public in June 2021, it will continue to expand its production capacity to meet the company's future business development and market expansion needs.
However, a reporter from the Changjiang Commercial Daily found that in the 2021 annual report, Emma Technology "kept silent" and did not disclose key data such as production capacity.
In fact, in 2021, Emma Technology will produce 8,775,200 units, an increase of about 11% year-on-year; sales will reach 8,670,400 units, a year-on-year increase of about 9%.And Gao Hui, president of Emma Technology Group's domestic business department, once said: "In 2021, the domestic business department's production and sales target must be guaranteed to be 16 million vehicles, and sprint to 18 million vehicles."
From this point of view, Emma Technology has only completed 54% of the "must guarantee" target and 48% of the "sprint" target.
It should be noted that Emma Technology's sales expenses in 2021 will reach 551 million yuan, a year-on-year increase of 38.07%, which is a huge gap compared with the increase in sales in exchange.
Continuously expand production capacity layout
On the road of expanding production capacity, Emma Technology is running fast.
On the evening of July 11, Emma Technology released the 2022 annual public issuance of convertible corporate bonds, showing that the total amount of funds raised from this public issuance of convertible corporate bonds will not exceed RMB 2 billion. After deducting issuance expenses, the funds raised will be invested in Lishui Emma Vehicle Technology Co., Ltd. New Energy Smart Travel Project (Phase I), the total investment of the project is 2 billion yuan, and it is planned to invest 1.5 billion yuan in raised funds; invested in the marketing network upgrade project of Emma Technology Group Co., Ltd., the total investment of the project 536 million yuan, and plans to invest 500 million yuan in raised funds.
Emma Technology was established in 1999 and entered the electric two-wheeled vehicle industry in 2004. It is one of the earliest electric two-wheeled vehicle manufacturers in China.The company's main business is the research and development, production and sales of electric bicycles, electric mopeds, and electric motorcycles.
However, in the capital market, Emma Technology is still a "newcomer". The company will land on A-shares on June 15, 2021 and raise 1.81 billion yuan from the listing, which is mainly used for Tianjin Emma electric vehicle bicycle and accessories processing and manufacturing projects, Jiangsu Emma's plastic parts spraying production line technical transformation project and the company's terminal store marketing network upgrade project, etc.
On July 30, 2021, the signing ceremony of the Emma Southwest Manufacturing Base project was held in Tongliang. Emma Technology announced that it would invest 2 billion yuan to build the Emma Southwest Manufacturing Base in Tongliang. 3 million vehicles, with an annual output value of 10 billion yuan
At that time, according to the relevant person in charge, the first phase of the project will be put into production in 2021, and the production capacity will be 1 million in 2022.It is expected that the entire project will drive supporting enterprises to form a new energy short-distance smart travel industry cluster of 20 billion yuan.
In September 2021, Emma Technology announced that it plans to build a Taizhou smart electric vehicle and high-speed electric motorcycle project. The total planned investment of the project is about 1 billion yuan, of which about 700 million yuan will be invested in land and fixed assets. The company plans to use its own funds. , direct or indirect financing, etc.
On July 5, 2022, Emma Technology issued an announcement that the company intends to sign an "Investment Agreement" with the Guigang Municipal People's Government.
The announcement shows that the company plans to invest in the construction of the Emma Smart Travel Industrial Park project in Guigang City. The total planned investment of the project is about 1.15 billion yuan, the total project land is about 400 mu, and the project construction period is 24 months.
Emma Technology said that the project will further improve the company's production capacity layout, meet the company's future business development and market expansion needs, and meet the interests of all the company's shareholders.
No capacity guarantee for sales target
Under the rampant expansion of production, can Emma Technology digest it?
From 2018 to 2020, the output of Emma Technology was 4,553,300, 5,645,000, and 7,540,700 units; sales were 4,563,700 units, 5,488,000 units, and 7,570,700 units; production and sales ratios were 100.23%, 97.22%, and 1,004,000. %.
In the same period, the production capacity of Emma Technology was 4.7987 million units, 5.9292 million units and 7.6106 million units respectively; the capacity utilization rate was 94.89%, 95.21% and 99.08% respectively.
According to the 2021 annual report, including electric bicycles, electric two-wheeled motorcycles, electric tricycles and bicycles, Emma Technology will produce 8,775,200 units in 2021, a year-on-year increase of about 11%; sales will reach 8,670,400 units, a year-on-year increase of about 9%. .
Specifically, Emma Technology will produce 5,112,900 electric bicycles in 2021 and sell 5,018,800 units; produce 3,337,700 electric two-wheeled motorcycles and sell 3,331,700 units; produce 211,900 electric tricycles and sell 204,500 units; produce bicycles 112,800 units and 115,400 units sold.
At the 2020 Global Suppliers Conference, Gao Hui, President of Emma Technology Group's Domestic Business Unit, said: "In 2021, the domestic business unit's production and sales target will be guaranteed to be 16 million units, and 18 million units will be sprinted."
From this point of view, Emma Technology has only completed 54% of the "must guarantee" target and 48% of the "sprint" target.
Interestingly, Yang Fei, representative of Emma Technology’s securities affairs, said in an interview that it is illegal for listed companies to disclose sales targets in advance, and Emma Technology has not disclosed sales targets.
Another report shows that relevant personnel in the Office of the Secretary of the Board of Directors of Emma Technology said that the failure to complete the production and sales target in 2021 is related to the business strategy implemented by Emma."2021 is our first year of listing. During the listing period, we adopted a steady business strategy, and we were relatively conservative in terms of channel expansion and capacity expansion."
One does not admit that there is a production and sales target at all, and the other makes an excuse to be conservative in the listing year. Both of these two logics seem a little untenable.
Interestingly, Emma Technology disclosed the company's production capacity and capacity utilization rate in more detail in the prospectus, but in the 2021 annual report, the company "kept silent" and did not disclose key data.
According to the goal stated by Gao Hui, Emma Technology does not have the corresponding production capacity as a guarantee. Even if it works overtime, it will be difficult to complete the goal of 16 million vehicles.
It should be noted that Emma Technology's sales expenses in 2021 will reach 551 million yuan, a year-on-year increase of 38.07%. The company said that the main reason is the company's expansion of its sales team and increased marketing investment.
However, from the effect point of view, the sales expenses of Emma Technology increased by 38.07%, and in exchange, the sales volume increased by only about 9%. The two are extremely mismatched.
