Hopes that IPO will solve the difficulties of research and development of autonomous auto parts enterprises

Several families are happy!

The China Securities Regulatory Commission has finally restarted the IPO. In this wave, many auto and component companies that are extremely eager for funds have appeared on the stage. However, the lack of core technologies, low gross profit margins, and weak scale advantages have led to a number of auto parts companies being â€œdiscussedâ€ on the IPO.

For parts and components companies that are looking to solve the funding problem through IPO, they must find new breakthroughs.

Rough Road Listing Shanghai Gumi is a well-known automotive interior parts manufacturer in the industry.

On June 18, Shanghai Minmei suffered â€œWaterlooâ€.

As early as February 2011, Shanghai Minmei began to accept CITIC Securities listed counseling and has been seeking listing on the Main Board. However, due to the increasing difficulty of listing in recent years, its listing plan has been delayed until this year. In April this year, the Shanghai IPO pre-disclosure list appeared in Shanghai. However, on June 18, the Main Board Issuance Review Committee of the China Securities Regulatory Commission (hereinafter referred to as the Issuing and Approving Committee) rejected the listing application of Shanghai Hao Mei.

The problem stems from Shanghai's debt-to-equity ratio, high borrowing, and an unfinished $5 million lawsuit.

According to the reporterâ€™s review of the documents disclosed by Shanghai Minmei, Shanghai Minmeiâ€™s subsidiary has 12 subsidiaries, 6 of which are in losses. As for the cause of the loss, Shanghai Jingmei explained that it was caused by the decrease in purchases of enterprises such as FAW Xiali and Harbin Songhuajiang Interior Decoration Co., Ltd. In fact, because auto parts companies are in a relatively weak position in the auto industry chain, once the OEMs' procurement is reduced, it will inevitably affect the company's business in the current year.

In addition to half of the losses of its subsidiaries, the gross margin of Shanghai Zhuomei dropped from 34.03% in 2011 to 28.39% in 2013. In addition, the media also questioned the use of funds raised by the United States and the United States. With this intensive focus, Shanghai's beautiful and beautiful dreams are lost.

Coincidentally. On May 27, five companies such as Chongqing Qinchuan Industrial Co., Ltd. (hereinafter referred to as Chongqing Qinchuan) were terminated by the China Securities Regulatory Commission. The Chongqing Qinchuan business mainly involves the manufacture of automotive parts, integrating R&D, design, market development and sales. The main customers include Changan Automobile, Jiangling Motors, Changan Ford, and other domestic and international leading vehicle manufacturers and Delphi Pike and other large international components. Manufacturer company. People close to Chongqing Qinchuan revealed to reporters that the performance of Chongqing Qinchuan in recent years was not satisfactory.

In addition to the failure of Shanghai Minami and Chongqing Qinchuan, some auto parts companies that have been preparing for many years have been overcome by difficulties. Parts companies such as Changzhou Tenglong, Chongqing Xiaokang, and Shanghai North Special finally boarded the pre-disclosed list.

Significant problem Shanghai North special, Changzhou Dragon out of the group of death, the last step forward towards listed on the occasion, the market for which several auto parts business problems worse than doubt.

According to information disclosed by Changzhou Tenglong, from 2011 to 2013, Changzhou Tenglong's current liabilities for three consecutive years reached 196 million yuan, 169 million yuan, and 207 million yuan, which were 99.5%, 98.8%, and 100% of the total liabilities at the end of the year. At the same time, the amount of cash flow generated by the company's investment activities was negative for three consecutive years, the return of capital was difficult, and the pressure on short-term debt became prominent.

The price-to-earnings ratio of Shanghai North special above the industry also caused market concerns. The company frankly stated that there is a risk that the issuerâ€™s valuation level will return to the industryâ€™s average price-earnings ratio, and the stock price decline will bring losses to new-equity investors. Moreover, due to the slowdown in the growth of the Chinese auto industry, the auto parts industry of Shanghai Beite is facing the risk of cyclical fluctuations in the industry and the slowdown in the growth of the industry market scale. The company also stated that the degree of prosperity of the auto parts industry depends mainly on the development status of the downstream vehicle manufacturing industry. The demand and supply of the auto industry are greatly affected by the domestic and global macro economy.

And from 2011 to 2013, the company's main business gross margin also showed a downward trend. The company reminds that Shanghai Beite is in its growth phase, and pays attention to the management of costs and expenses while expanding its business. However, due to factors such as the price of raw materials, operating scale, and product structure, the company has the risk of fluctuations in the gross profit margin of its major products.

In fact, the problems with these listed companies are also common problems facing the auto parts industry. In recent years, the profit rate of the auto parts industry has been declining, and the capacity utilization has been insufficient. The data provided by the relevant research institutions shows that over 70% of the domestic auto parts suppliers' capacity utilization rate is less than 80%, and the complete release of production capacity is a fatal injury to suppliers, putting tremendous pressure on profitability.

In addition, the requirements of auto parts companies for component suppliers are also getting higher and higher, leading to increasing input from component suppliers. On June 25, a responsible person for a component company in Chongqing for Changan Automobile, Changan Ford and other companies told reporters: â€œNow business is getting more and more difficult to do, and manufacturers often let you invest millions of dollars in one line. There is simply no way to know whether this investment will pay off."

In the interview, the reporter also learned that the current problem of the debt owed by the entire vehicle company to the spare parts company is still serious, which seriously affects the reinvestment of the company. A general manager of a parts and components company in Chongqing revealed to reporters that after a rapid expansion of an automobile plant, manufacturers have even proposed to convert the outstanding accounts into shares in order to reduce their own pressure.

In the face of various problems, it may be the way out for many parts and components companies to highlight the importance of realizing the listing. In addition, Xu Changming, director of the Information Resources Development Department of the National Information Center, believes that domestic parts companies should jointly develop and research key components and technologies. , Automobile power should be based on the premise of strong parts and components.

"Auto parts companies should form a group scale advantage, and further strengthen mergers and acquisitions and joint ventures, but also need to strengthen their independent research and development capabilities to improve product quality." Jia Xinguang, a well-known analyst in the automotive industry, said.

The low gross profit margin of auto parts companies has been widely criticized. Liu Li of the China Automotive Industry Economic Research Institute pointed out that companies such as precision forging technology and Terjia, which have higher profit margins, are more specialized in their main products. Wei's gross profit margin in 2013 was only 5.35%, due to the lack of competitive core products.

Obviously, in addition to listing and financing of auto parts and components, Baotou warms up and strengthens its own research and development capabilities. Having specialized and refined products is the way to development.

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