Recently, Chongqing jinghongyi Technology Co., Ltd. (hereinafter referred to as jinghongyi) submitted application documents to the national share transfer system and planned to be listed on the basic layer of the new third board. Jinghongyi is mainly engaged in the R & D, production and sales of intelligent electronic parts. Although it has been established for less than five years, it has formed a certain sales scale. In 2019, 2020 and January October 2021 (hereinafter referred to as the reporting period), the company's operating revenue is 203 million yuan, 229 million yuan and 253 million yuan respectively.
The reporter of the daily economic news noted that jinghongyi has a high concentration of customers. The largest customer is Hangzhou Hikvision Digital Technology Co.Ltd(002415) ( Hangzhou Hikvision Digital Technology Co.Ltd(002415) , SZ) and its wholly-owned subsidiaries. During the reporting period, the proportion of its sales amount to its operating revenue reached 87.28%, 60.44% and 68.91% respectively, which poses the risk of dependence on important customers. Jinghongyi said that since the company was established and operated for a short time, it relied on the orders of important customers for growth.
more than directors and supervisors have worked in the same company
Jinghongyi Co., Ltd., the predecessor of jinghongyi, was established in August 2017. At present, the shareholder structure is relatively simple. Liu Xinnian and Liu Hua hold 70% and 30% of the shares respectively, and together hold 100% of the shares of the company. They are the actual controllers of jinghongyi.
The reporter noted that before the establishment of jinghongyi Co., Ltd., many directors, supervisors and senior staff worked in an enterprise called Chongqing Tongliang Jingyi computer accessories Co., Ltd. (hereinafter referred to as Jingyi computer). Among the eight directors, supervisors and senior managers listed by jinghongyi, those who have worked in Jingyi computer include Chairman Liu Xinnian, director and general manager Zhao Bing, chairman of the board of supervisors Huang Fayi, supervisor and manager of R & D department Chen Xiang. In addition, core technicians Tan Xuanyu and AI Dengfeng also had working experience in Jingyi computer.
The production and sales of computer parts and accessories of Yixin, including the production and sales of computer parts of Yixin; Auto parts processing, electronic products sales, etc. Before the establishment of jinghongyi Co., Ltd., Liu Xinnian was one of the two shareholders of Jingyi computer and withdrew his shares in November 2017.
As a component supplier of 3C electronics industry, jinghongyi's main products also include computer components. Will it compete directly with the old owners of many directors, supervisors and senior executives, and whether there are potential disputes over patent ownership, personnel non competition or restrictions? We don't know yet.
In addition, before Jingyi computer took office, Liu Xinnian, Zhao Bing and Yi zhiliu, the director, worked in an enterprise called Jingyi computer accessories (Shanghai) Co., Ltd. (hereinafter referred to as Shanghai Jingyi). Shanghai Jingyi was cancelled in 2017. However, the experience of Liu Xinnian and others in this company has provided a basis for jinghongyi to develop new business.
According to the public transfer statement (application draft), during their work in Shanghai Jingyi, the company's founder Liu Xinnian and the core technical team Zhao Bing and Huang Fayi accumulated experience and technical level in the field of computer parts, actively invested in the research, development and production of computer parts products, and expanded Renbao computer (Chongqing) Co., Ltd Dafeng (Chongqing) Computer Co., Ltd. and other customers, and the proportion of sales in operating revenue increased year by year during the reporting period.
According to Jing Hongyi, "computer parts are new products that the company has gradually developed since 2019 and rapidly expand the market in 2020." At present, computer parts are the second largest main business of jinghongyi. In 2019, 2020 and January October 2021, the revenue accounted for 8.42%, 24.69% and 26.22% respectively.
the largest customer is Hangzhou Hikvision Digital Technology Co.Ltd(002415)
For jinghongyi, computer parts are a newly emerging business, and the sales revenue is growing. However, its largest main product is security equipment parts. The sales stability of this main product has an extremely important impact on jinghongyi.
In 2019, 2020 and January October 2021, jinghongyi's sales of security equipment components were 177 million yuan, 138 million yuan and 174 million yuan respectively, accounting for 87.28%, 60.45% and 68.91% of its revenue. Comparing the revenue composition with the sales of the top five customers, the reporter found that the security equipment parts business is highly dependent on a single customer, that is, the company's largest customer Hangzhou Hikvision Digital Technology Co.Ltd(002415) group ( Hangzhou Hikvision Digital Technology Co.Ltd(002415) and its wholly-owned subsidiaries).
In this regard, jinghongyi said that because the company was established and operated for a short time, it relied on the orders of important customers for growth. For security equipment parts business, "( Hangzhou Hikvision Digital Technology Co.Ltd(002415) ) has high market share, large demand scale and stable procurement plan." However, Jing Hongyi also reminded that if Hangzhou Hikvision Digital Technology Co.Ltd(002415) appears product upgrading, industrial transformation or seeks more competitive suppliers, the company may lose a large market share.
How stable is the cooperation between the company and Hangzhou Hikvision Digital Technology Co.Ltd(002415) group? Jing Hongyi said that the company initially obtained Hangzhou Hikvision Digital Technology Co.Ltd(002415) orders through commercial negotiation. After gradually establishing a long-term business cooperation relationship, the company established a commodity supply cooperation relationship with companies affiliated to Hangzhou Hikvision Digital Technology Co.Ltd(002415) group and signed a procurement framework agreement, which is valid for two years. If one party to the agreement did not submit a written notice of termination before the termination of the contract, the contract will continue for one year, There is no amount in the contract. Up to now, the company and Hangzhou Hikvision Digital Technology Co.Ltd(002415) are still within the cooperation period agreed in the agreement, and the cooperation between the company and Haikang group is sustainable.
As for the high risk of relying too much on a single customer, jinghongyi said that the company has the foundation to expand its sales at the product level. In the future, it will get rid of the high dependence on Hangzhou Hikvision Digital Technology Co.Ltd(002415) and other major customers by expanding diversified customers in the market and gradually increasing the scope of cooperation.
For matters related to the listing of the new third board, on February 28, the reporter of daily economic news called Jing Hongyi and sent an interview email, but as of press time, no reply was received.
