Yingperry (430555, NQ) announced on April 7 that the company had completed the listing guidance and acceptance of the Beijing stock exchange, accepted the application materials, and disclosed the prospectus. This time, Ingrid plans to raise 140 million yuan, of which 100 million yuan is planned to be used for the automatic upgrading and transformation of the production line of nylon tie series products, the main product.
It is understood that the nylon ribbon business accounted for more than 70% of the operating revenue of yingperry in 2021. Affected by the price fluctuation of raw material PA66, the gross profit margin of the company in 2021 decreased by nearly 10 percentage points compared with the same period of last year, of which the raw material expenditure of PA66 accounted for about 80% of the operating cost. As a downstream industry of petrochemical industry, yingperry frankly said that the recent outbreak of the conflict between Russia and Ukraine has put its cost under pressure.
facing a sharp drop in profits or even losses
Yingperry is controlled by Changhong Plastic Group Co., Ltd. (hereinafter referred to as Changhong plastic), a well-known enterprise in Wenzhou. In the list of well-known enterprises disclosed in Wenzhou Local Chronicles in 2010, more than 10 enterprises, including Changhong plastics, are juxtaposed with Qingshan holdings, which was widely known for the "nickel war" not long ago.
Ingrid was founded in 2010 and has been listed in the national stock transfer system since 2014. The company mainly cultivates the field of modified plastic products and sells nylon ties, steel nail line cards, wiring terminals, polymer alloy cable trays and other plastic accessories. Kingfisher PLC, a well-known building materials home retail group, is one of its important customers. Among them, nylon ties are the main products of enperry. In the past three years, although the proportion of revenue of nylon tie products has a downward trend, it is more than 70%.
According to the financial data of yingpeirui in recent three years, its operating income fluctuated and rose, but its net profit fell for two consecutive years. In 2021, the operating revenue of yingpeirui was 612 million yuan, with a year-on-year increase of 29.84%; The net profit was 34.371 million yuan, a year-on-year decrease of 31.44%; The comprehensive gross profit margin was 17.24%, down 9.84 percentage points year-on-year.
For the increase in income but no increase in profit in 2021, Ingrid explained that the main reason was the sharp increase in the market price of raw material PA66. PA66 is the raw material of nylon tie and is the downstream product of petrochemical industry. In 2021, the gross profit margin of enperry nylon ties was 13.41%, a year-on-year decrease of 13.01 percentage points.
"From the fourth quarter of 2021, the price of PA66 has gradually dropped, but the recent outbreak of the conflict between Russia and Ukraine has caused sharp fluctuations in the prices of some bulk commodities, which is expected to have a certain impact on the prices of various raw materials of the company." Yingperry said in the prospectus that PA66 is a bulk trading commodity with small difference in market quotation. Affected by the characteristics of the upstream chemical industry, the company has little choice for suppliers. It mainly considers the other party's price advantage and timely delivery ability to adjust suppliers and procurement volume.
In addition, yingperry's export revenue accounts for more than half of the total revenue, and the product transportation is mainly by sea. If the shipping capacity is tight and the shipping cost increases, the relevant impact will be transmitted to the company's export revenue. As of March 11, 2022, China's export container freight index (CCFI) was 336601, still at a high level.
Yingpirui also suggested that if the pressure of rising costs cannot be effectively alleviated through cost control, price transmission and other measures in the future, the company may face the risk of sharp decline in operating profit or even loss.
1 million fund-raising is intended to double the production capacity
The listing standard selected by Ingrid is "the estimated market value is no less than 200 million yuan, the net profit in the last two years is no less than 15 million yuan, and the weighted average net asset ratio is no less than 8%". Data show that at present, the total market value of yingperry is nearly 700 million yuan.
In 2020, Ingrid had planned an IPO on the gem, and then it was listed on the selected layer of the national stock transfer system at that time. On March 14, 2022, the board of directors of yingpirui passed a resolution to change the listing from the national share transfer system to the application for public offering of shares and listing on the Beijing stock exchange.
According to the prospectus, yingpirui plans to raise 140 million yuan this time, of which 100 million yuan is used for the automatic upgrading and transformation project of nylon tie series product production line (hereinafter referred to as nylon tie upgrading project), and 40 million yuan is used to supplement working capital and repay bank loans.
According to the prospectus, the total investment of the nylon tie upgrading project is about 194 million yuan, and the construction period of the project is expected to be 3 years. "The existing production capacity can no longer meet the needs of subsequent business development, and the capacity bottleneck has become a key factor restricting the further development of the company." This move is mainly to expand the production capacity of nylon ties and improve product quality, further enhance the company's core competitiveness and meet the growing market demand.
Specifically, enperry said: "using intelligent manufacturing technology, 11594 square meters of new plant will be built, and a variety of advanced equipment such as injection molding machine, manipulator and full-automatic binding packaging machine will be added. After completion, a new production capacity of 11000 tons of nylon binding products will be formed."
By the end of 2021, enperry had more than 180 injection molding machines, with an annual output of more than 10000 tons of nylon ties. This means that if the fund-raising is successful and the project construction is smooth, the production capacity of enperry's Nylon ties will double.
At present, the operating cost of enperry is affected by the rising cost of raw materials. How to deal with the cost of raw materials while expanding production capacity? In this regard, the reporter of "daily economic news" contacted the Secretary of yingpirui on April 8, 2022 and sent the interview appeal to the public email, but as of the press release, there was no response.
