The development of network channels and the opening of subsidiaries have led to an increase in costs during the period, which in turn has affected the growth of net profit. In addition to continuing to be used for channel development, the company's fundraising is mainly used to increase LED production capacity. However, due to factors such as industry, there may be idle capacity in the future.
As a large enterprise in the domestic LED lighting industry (revenue of more than 2 billion yuan), Foshan Lighting, Sunlight Lighting, etc. have already completed listing in A-shares, while the same level of Op Lighting Co., Ltd. (hereinafter referred to as "Opp Shares") still Waiting outside the IPO.
With the restart of the IPO, Opal shares once again ushered in the listing opportunity, but the company's performance growth has declined. From 2012 to 2014, compared with the steady growth of about 10% of revenue per year, the net profit growth rate of returning to mothers was 186%, 11% and -38%, respectively. In this regard, some investors are concerned about whether the company's performance has entered the downtrend channel. What is the reason for the company's increase in revenue without increasing profits?
In order to help investors better understand the current business situation of the company, the author recently sent an interview outline to his public mailbox and called the relevant person in charge. The person on the phone claimed to be the head of the company's securities department. Although her voice is sweet, she said in her communication with the author that the company is currently in a silent period and is not convenient for interviews.
Since the company did not receive a specific response to the relevant questions, the reporter can only analyze through public information such as prospectus.
Increasing expenses during the period increases the performance burden
According to Wind data, in 2014, Oup shares achieved operating income of 3.84 billion yuan, a year-on-year increase of 13.4%, but the operating profit and net return to the mother have both declined to a certain extent, including a net profit of 290 million yuan, a decline of 38.4. %.
In the prospectus for the increase in revenue, the company stated in the prospectus that in 2014, the company's operating income continued to grow, but the profit level declined. Mainly from the increase in operating expenses, management fees and the decrease in non-operating income.
The author found that compared with 2013, the company did increase significantly in financial expenses and management costs. Among them, sales expenses increased by 150 million yuan, and administrative expenses increased by 0.5 billion yuan, totaling 200 million yuan. If we add two billion yuan, the net profit of the company's mothers will increase slightly.
So why does the company's sales and management expenses increase significantly in 2014?
This may be related to the decline in the LED industry in recent years.
In recent years, due to various factors such as the upgrading of domestic consumer demand and the replacement of LED technology, the lighting industry is undergoing profound changes, gradually shifting from a market where many enterprises are dispersed to a competitive market in which a few enterprises concentrate. The competition elements are traditionally “ The brand + channel has been transformed into a comprehensive competency of “product + brand + channel + managementâ€.
The company also stated in the prospectus that, based on this understanding, the sales team will be expanded in sales, and subsidiaries will be established in Europe and Brazil to increase investment in overseas business. These measures help to improve the company's competitiveness as a whole, but at the same time it also leads to an increase in the company's operating expenses and management expenses, which affects the profit level.
So, what is the performance of Oup shares in 2015?
Although the company has not released its 2015 performance report, it is still not optimistic from an industry perspective.
In 2015, the LED industry entered the “mature reshuffle stageâ€. As of October 15, the number of large-scale M&A investment projects of domestic lighting companies in China has reached 33, involving more than 31.8 billion yuan, and behind the mergers and acquisitions. Excess supply and insufficient demand.
From the perspective of industry structure, the first echelon company's annual sales income is more than 2 billion yuan, mainly including companies such as Op, NVC, Foshan, Sunshine Lighting, etc., and the industry is not good, but also reflected the performance of the above companies. Among them, NVC's operating profit in Hong Kong fell 32% year-on-year, and Foshan Lighting and Sunshine Lighting also fell 34% and 15% respectively in the third quarter.
It is no wonder that Ding Long, CEO of Opt China, once bluntly said: "The painful days have just begun!"
Raising funds to expand production brings hidden risks
In the face of downward pressure on the industry, can Opu Shares improve its current situation through fundraising?
From the perspective of fundraising purposes, the IPO, the company plans to raise about 1.2 billion yuan for green lighting production projects (560 million yuan), marketing network projects (470 million yuan) and R&D center projects (170 million yuan).
Once the IPO is completed, the production capacity of LED lighting products will be greatly improved. In recent years, the domestic LED industry has shown a trend of replacing LED lighting with traditional lighting equipment, which may be beneficial to the company's further expansion in the field of energy conservation. However, we also noticed that although the production and sales rate is relatively high, the production of the company's main products has never been fully operational, and the capacity utilization rate has been around 82% in recent years. If the expansion is completed, there may be a situation of low production capacity in the future, and it will also lay a hidden danger for the increase in inventory.
In this regard, the company also admitted that the industry will undergo a new round of reshuffle, in the process, the sales and profitability of lighting companies will be affected. Although the company's current fund-raising projects have been operating well after being put into production, in the fiercely competitive environment, there is a risk of idle capacity due to factors such as unfavorable market development.
In terms of development direction, in addition to fundraising and expansion, the company's main focus in the future will be on channel construction, and the amount of funds raised in the project will reach 470 million yuan. In recent years, it has been affected by the macro environment, from TVs to washing machines to light bulbs and gas stoves. Channel construction has become an important place for enterprises to compete. It can be said that holding channels and users is crucial for enterprises, but correspondingly The land also increases the financial burden of the company.
Taking employee compensation as an example, the employee benefits for 2012~2014 were 160 million yuan, 230 million yuan and 290 million yuan respectively. This is related to the company's efforts to strengthen the construction of e-commerce channels and the establishment of the e-commerce department. Growth. Therefore, how to balance the balance between channel construction and profitability is very important for the company. With the increase in investment in e-commerce, whether the future can be reflected in its own performance, the author will continue to pay attention.
.png)
This Automation curtain is specially designed for automation industry. SDKELI LSC2 light curtain is designed for automation field, with small size, compact structure and strong anti-interference ability, and the product meets IEC 61496-2 standards. The Automatic Light Curtain is with reliable quality and very competitive price. It has been used in many factories and has replaced curtains from Sick, Omron, Banner, Keyence, etc.
Automatic Light Curtain,Laser Light Curtain,Automation Light Beam Sensor,Automatic Infrared Beam Sensor,Infrared Beam Curttain Sensor,Infrared Beam Sensor
Jining KeLi Photoelectronic Industrial Co.,Ltd , https://www.sdkelien.com