Securities code: Poco Holding Co.Ltd(300811) securities abbreviation: Poco Holding Co.Ltd(300811) Poco Holding Co.Ltd(300811)
(POCO Holding Co., Ltd.)
(room 301306, floor 3, building 2, Nantou Fifth Industrial Zone, Beihuan Road, Nanshan District, Shenzhen)
The gem issues a prospectus for convertible corporate bonds to unspecified objects
Sponsor (lead underwriter)
15 / F, block a, Zhaotai International Center, 10 Chaoyangmen South Street, Chaoyang District, Beijing
Co lead underwriter
Room 618, No. 2, Tengfei 1st Street, Zhongxin Guangzhou Knowledge City, Huangpu District, Guangzhou, Guangdong
March, 2002
statement
The company and all directors, supervisors and senior managers promise that there are no false records, misleading statements or major omissions in the prospectus and other information disclosure materials, and bear corresponding legal liabilities for their authenticity, accuracy and completeness.
The person in charge of the company, the person in charge of accounting and the person in charge of the accounting organization shall ensure that the financial and accounting materials in the prospectus are true and complete.
Any decision or opinion made by China Securities Regulatory Commission and Shenzhen Stock Exchange on this issuance does not indicate that they guarantee the authenticity, accuracy and integrity of the application documents and the information disclosed, nor do they indicate that they make substantive judgment or guarantee on the profitability, investment value of the issuer or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, the issuer shall be responsible for the changes in the operation and income of the issuer after the securities are issued according to law. Investors independently judge the investment value of the issuer, make investment decisions independently, and bear the investment risks caused by changes in the operation and income of the issuer or changes in the price of securities after the issuance of securities according to law.
Tips on major issues
When evaluating the convertible corporate bonds issued by the company this time, investors should carefully read the full text of "risk factors" in this prospectus and pay special attention to the following risks. 1、 Risk of impact of raw material price fluctuation on operating performance
During the reporting period, the company's direct materials accounted for 35.28%, 31.72%, 32.80% and 37.17% of the main business costs respectively, accounting for a relatively high proportion. The price change of raw materials has a certain impact on the company's operating performance. The main raw materials of the company's products include large raw materials such as pure iron, silicon and aluminum ingots. The price of bulk raw materials has a certain market periodicity. Since the second half of 2020, the price of bulk commodity raw materials has continued to rise, which directly leads to the increase of the company's raw material purchase cost and then transmitted to the company's production link, This has led to an increase in the cost of unit products. At the same time, the downstream users of the company are mainly the world's top 500 enterprises or leading enterprises in photovoltaic power generation, variable frequency air conditioning and other industries. Compared with the company, the overall scale of the company is relatively small and the bargaining power is relatively limited. In addition, the company's Alloy soft magnetic particle core products need to be processed into inductive elements by inductive element manufacturers before they can be used in photovoltaic inverter, variable frequency air conditioning and other power electronic equipment, The overall business chain is relatively long, and there is a certain time lag in the price transmission mechanism. Therefore, the periodic price rise pressure of raw materials has a direct impact on the company's gross profit margin and net profit scale, and has a certain negative impact on the company's overall operating performance.
It is assumed that the quantity of pure iron, silicon and aluminum ingots consumed by the company's production, product output, sales unit price and sales quantity remain unchanged, and the bases calculated by sensitivity analysis in each period are the actual gross profit margin level, net profit level and average purchase unit price of main raw materials in each period. On this basis, it is assumed that the purchase unit price of pure iron, silicon and aluminum ingots increases and decreases by 20% and 50% respectively 80% and 100%, and the sensitivity coefficient of its impact on gross profit margin and net profit is calculated as follows:
Sensitivity coefficient pure iron silicon aluminum ingot
Sensitivity coefficient of gross profit margin -0.28 ~ -0.43 -0.06 ~ -0.09 -0.04 ~ -0.06
Net profit sensitivity coefficient -0.56 ~ -0.90 -0.12 ~ -0.19 -0.07 ~ -0.13
The average purchase unit price of the company's main raw materials pure iron, silicon and aluminum ingots from January to September 2021 increased by 20.63%, 19.09% and 34.32% respectively compared with the average purchase unit price in 2020. During the reporting period, the above main raw materials pure iron, silicon and aluminum ingots accounted for about 60%, 13% and 8% of the main business costs on average. Among them, the proportion of pure iron is higher than that of other raw materials, and its price change has a great impact on the operating performance. For example, when other factors remain unchanged: (1) during the reporting period, when the price of pure iron increases by 20%, 50%, 80% and 100% respectively, the direct material cost in the operating cost will increase by 14.48%, 36.21%, 57.93% and 72.41% on average, As a result, the gross profit margin decreased by 6.55%, 16.36%, 26.1% and 32.72% on average, and the net profit decreased by 12.90%, 32.24%, 51.58% and 64.48% on average. (2) Each period of the report period: ① when the price of pure iron rises by 341.94%, 355.07%, 323.47% and 235.04% respectively, the gross profit margin of each period will be zero; ② When the price of pure iron rises by 179.96%, 178.24%, 179.31% and 110.52% respectively, the net profit of each period will be zero and reach the breakeven point.
According to the above analysis, although the price fluctuation range of pure iron is much larger than the 20.63% increase in the purchase price of pure iron from January to September 2021 when the above breakeven point is reached, the risk of negative profit caused by the price fluctuation of raw materials is relatively small, but if the price of raw materials continues to rise in the future, it deviates from expectations, In addition, the company's poor cost control or the company's inability to pass on the cost pressure of rising raw material prices to downstream customers in time may have an adverse impact on the company's future operating performance. 2、 Risk of gross margin decline
In the last three years and the first period, the gross profit margin of the company's main business was 40.76%, 42.14%, 38.88% and 34.49% respectively. The gross profit margin was relatively high, but it began to show a downward trend since 2020. Among them, it decreased by 3.26% in 2020 compared with 2019, and decreased by 4.39% and 7.65% from January to September 2021 compared with 2020 and 2019 respectively.
The gross profit margin of the company has decreased to a certain extent in the past two years, mainly due to the pressure of part of the price reduction in downstream Cecep Solar Energy Co.Ltd(000591) photovoltaic, household appliances and other industries, and the price of alloy soft magnetic products shows a certain downward trend. In order to weaken the impact of product price decline on the gross profit margin and the overall profitability of the company, the company has continuously carried out process improvement, product upgrading and capacity expansion in recent two years, and achieved certain results by reducing cost and increasing efficiency, improving management and scale effect, but due to the rapid periodic rise of raw material prices and other factors, Since 2020, the effect of the company's product cost reduction measures has been eroded more, which has affected the overall gross profit margin accordingly.
If the company cannot continue to launch new products in the leading market in the future, or the price of raw materials continues to rise too fast, resulting in the rise of product costs, and the company cannot transmit the pressure of rising raw material prices to the downstream, or the sharp price reduction of products caused by the intensification of other market competition, it may lead to the further decline of the gross profit margin of the company's main business, Then it will have an adverse impact on the overall operating performance of the company. 3、 The net cash flow from operating activities in the latest period is negative, which may cause debt repayment risk
The net cash flow generated by the company's operating activities in the latest period is negative, which is mainly affected by the settlement method. The accounts receivable are settled by bills, which accounts for a relatively high proportion. The cash purchase and labor costs received by the company from the sale of goods and the provision of labor services in each period of the reporting period still need to be settled by cash. Therefore, relatively speaking, the scale of acceptance bills endorsed and transferred by the company in each period is relatively low, The relatively large scale of cash paid for purchasing goods and receiving labor services, cash paid to and for employees and various taxes and fees leads to the relatively small net cash flow of the company's operating activities, especially in the stage of continuous and rapid expansion of business, due to the rapid growth of cash outflow from operating activities, It may result in a negative net cash flow from operating activities in some periods. Although the above situation matches the customer settlement mode, the company's business characteristics and development stage, if the negative net cash flow of the company's operating activities in the future cannot be effectively improved and the funds required for operation cannot be raised in time, the company will face debt repayment risk. 4、 Risk that the economic benefits of the raised investment project cannot reach the expected level
The company's investment project with raised funds comprehensively considers various factors such as the profitability of the existing business, the development expectation of the downstream industry and the position of the company in the industry. After careful analysis and demonstration by the company's board of directors, it is in line with the national industrial policy and industry development trend and has good development prospects. However, as there is a certain period in the implementation of the raised capital investment project, if the implementation process, construction speed, operating cost and product market price of the raised capital investment project in the future are different from the prediction, and the company cannot effectively deal with the possible adverse changes, the raised capital investment project will not fully achieve the expected objectives or benefits. In addition, the benefit calculation of the company's investment projects with raised funds is based on the current market environment, industrial policies and the company's future development strategy. In the company's future operation, there may be major changes in the market environment, significant adjustments in industrial policies and continuous fluctuations in the price of raw materials, And the possibility that the project cannot produce the expected income due to various unforeseen factors or force majeure factors. 5、 Capacity digestion risk of projects invested with raised funds
The new capacity of the company's raised investment project is comprehensively determined based on the development expectation of the downstream market, the company's production and marketing situation and market position, the cooperation of existing customers and users, the company's future business layout and overall development strategy. In combination with the construction progress of the raised investment project, the corresponding product market capacity and other factors, the company has formulated the future production scheduling plan and the expected production capacity to be put into operation in the future. The overall new production capacity will be gradually released during the construction period of the raised investment project. Although the above plan has been fully market research and feasibility demonstration, the digestion of new capacity needs to rely on the company's product competitiveness, sales expansion ability and the development of downstream application market, which is uncertain. If the existing or potential competitors in the industry invest large amounts of money in the R & D, production and sales of relevant products, and can supply products of the same quality or even higher cost performance in a short time, or the price of raw materials continues to rise, deviates from expectations and the company's cost control is not effective, it will cause competition and squeeze on the downstream market of the company's raised investment project, Increase production capacity and digestion pressure. At the same time, if the development and incremental market demand of downstream industries such as Cecep Solar Energy Co.Ltd(000591) photovoltaic, variable frequency air conditioning, new energy vehicles and charging piles are less than expected in the future, it may cause the new capacity of this raised investment project to be unable to be digested smoothly. 6、 Risk of decline in operating performance due to increased depreciation of fixed assets and amortization of intangible assets
After the completion of the raised investment project, the scale of the company's fixed assets and intangible assets will be further expanded. According to the company's existing fixed asset depreciation policy and intangible asset amortization policy, the total annual depreciation of fixed assets and amortization of intangible assets after the completion of the raised investment project is about 23 million yuan. In the last three years, the total profits of the company were 789547 million yuan, 97.438 million yuan and 1242764 million yuan respectively. Considering that it will take a certain period of time and there is uncertainty to generate economic benefits from the projects invested with raised funds, if the overall operating performance of the company does not increase significantly in the future and the economic benefits generated by the projects invested with raised funds are significantly lower than expected, after the implementation of the projects invested with raised funds, the company will face the risk of decline in operating performance caused by the increase of depreciation of fixed assets and amortization of intangible assets. 7、 Macroeconomic environment and policy change risk
As a widely used functional material, the development of magnetic material industry has a high correlation with the economic situation outside China. Changes in the international situation, the adjustment of China's macroeconomic policies and other uncontrollable factors may have a great impact on the production and operation of the company. On the one hand, since the covid-19 epidemic, the global economic development has been greatly impacted. The uncertainty of the future development trend of the epidemic may have a sustained and far-reaching impact on the macroeconomic environment. On the other hand, the changes in international trade relations represented by Sino US trade frictions and the import tightening in developed countries have further deepened the uncertainty of economic development. China's economic development still faces many uncertain factors in the change of macroeconomic environment.
The alloy soft magnetic materials produced by the company are mainly used in the fields of new energy and energy conservation and environmental protection, including photovoltaic power generation, variable frequency air conditioning, new energy vehicles, charging piles, data centers (UPS, server, server power supply, communication power supply), energy storage, consumer electronics, power quality improvement (active power filter APF), rail transit and other fields, Most of the above-mentioned fields are industries that the state focuses on encouraging development, but they are greatly affected by national policies.
If there are significant adverse changes in the macroeconomic environment in the future, or the state's incentive policies for downstream industries do not continue, resulting in lower than expected downstream demand, it may have an adverse impact on the company's future operating performance. 8、 Risk of intensified market competition
Alloy soft magnetic materials are of great significance for the development of power electronic products in the direction of high efficiency, high power density and miniaturization because of their good temperature characteristics, low loss, good DC bias characteristics and high saturated magnetic flux density. The application of alloy soft magnetic materials in downstream industries has the characteristics of cleanness, environmental protection, low carbon and high efficiency. With the proposal of the goals of carbon peak and carbon neutralization, alloy soft magnetic materials will be more and more widely used in the market in the future.
At present, several enterprises engaged in the production of magnetic materials and inductive magnetic components in China have been listed on China's A-share market. According to the publicly disclosed information, Nbtm New Materials Group Co.Ltd(600114) ( Nbtm New Materials Group Co.Ltd(600114) ), Sinomag Technology Co.Ltd(300835) ( Sinomag Technology Co.Ltd(300835) ), Yunlu shares
