Ocean King lighting prospectus has many doubts about the "male and wife shop" ownership structure hidden dangers

Recently, Ocean King Lighting Technology Co., Ltd. issued a prospectus. According to the plan of Ocean King Lighting, the IPO will issue no more than 50 million new shares, and plans to raise about 550 million yuan. However, after reading the prospectus of Ocean King Lighting, the reporter found that the company had a “male and wife”-style shareholding structure, the investment project was put into production, or the company’s production and sales imbalances were aggravated, and the company’s continued assault dividends before the company’s listing.

"Mom and pop" hidden ownership structure or possessing <br> <br> Ocean King Lighting prospectus shows that the company's actual control of ZHOU Ming-jie, Xusu Fu Fu, which ZHOU Ming-jie hold 28,131.4 million shares, the controlling shareholder, holding his wife Xu Su There are 11.375 million shares, and the two hold a total of 83.62% of the company's shares, which is in an absolute controlling position. After the completion of this public offering, the two will hold a total of 73.17% of the shares and remain in an absolute controlling position. It can be said that this is a typical "mother shop" company.

Zheng Fa, an investment adviser of GF Securities, believes that family members have absolute control over listed companies, which means that they may use the status of their controlling shareholders and key decision makers to influence major issues such as major capital expenditures, related party transactions, personnel appointments and dismissals, and corporate strategies. May cause the company's decision to deviate from the best interests of the minority shareholders. After the listing, due to the existence of absolute controlling advantage, the actual controller of Ocean King Lighting will also have a large initiative in the fields of cash reduction and cash dividends.

Independent director also disclosed in a part-time competitor <br> <br> prospectus, the company's board of directors currently consists of 13 directors, including five independent directors, namely Chen Yansheng, Wong Kam Sui, Van value clear, Hu Yuancheng and Wang Yong.

It is worth noting that Chen Yansheng is currently the vice chairman and secretary-general of the China Lighting Association. In addition to the marine king lighting that is going to be listed, it is also listed in Sun Lighting, Feile Audio, Qinshang Optoelectronics and Yuanfang Optoelectronics. Independent director of the company. Another independent director, Wang Jinxi, is 76 years old and is currently the honorary chairman of the China Lighting Society. He is also an independent director of NVC Lighting.

Gongcheng, an investment consultant of Great Wall Securities, said that Sunlight Lighting and NVC Lighting are both industry competitors of Ocean King Lighting. Whether independent directors who work part-time at competitors can fully protect the company's interests and promote the company's operations remains to be seen. Especially in some industry-competitive issues, the possibility of non-objective judgment by these independent directors cannot be ruled out.

Cash dividends imply "not bad money"?

According to the plan of Ocean King Lighting, the 550 million yuan raised by the IPO will be used for the construction of three fundraising projects: an annual production capacity of 1 million sets of special environmental lighting equipment production lines, R&D center construction projects, and domestic marketing center expansion projects.

According to the prospectus, from 2011 to 2013, the company's monetary fund balance was 346 million yuan, 415 million yuan and 426 million yuan respectively, while the company's net cash flow from the above three years was 158 million yuan, 149 million yuan and 2.05 respectively. 100 million yuan. It can be seen that Ocean King Lighting has a relatively good financial situation in the past three years.

However, Ocean King Lighting has been intensively implementing cash dividends since 2011, while actively planning IPO fundraising. According to Ocean King Lighting, during the period from April 28, 2011 to February 21, 2014, the company implemented four cash dividends, totaling up to 230 million yuan. In this way, Ocean King Lighting's current book cash and cash dividends in the past three years totaled 656 million yuan, which is 100 million more than the funds required for the construction of the three fundraising projects. Ocean King Lighting is fully capable of undertaking the investment alone. Investment in investment projects.

Ocean King Lighting has to invest heavily in listing financing. There are three possibilities: First, in addition to the three fundraising projects, there are other investment intentions, so the existing funds cannot be used; second, the company is not willing to use its own funds to raise funds. Investing in projects, I hope to “pay” for investment through the capital market; third, the actual financial situation of the company is not as optimistic as the prospectus says, forcing the company to raise funds in the capital market.

Fundraising projects or exacerbate the imbalance between production <br> <br> Ocean King Lighting according to plan, after three raise investment projects put into operation, will greatly enhance new product research and development, marketing services as well as production capacity, strengthening R & D and marketing The advantages. However, it is doubtful that Ocean King Lighting can successfully digest the above new capacity.

According to the prospectus, Ocean King Lighting's products are mainly fixed lighting equipment, mobile lighting equipment and portable lighting equipment. The sales revenue of fixed lighting equipment has occupied more than 50% of total revenue in the past three years. However, as a core product, the capacity utilization rate of fixed lighting equipment has been declining year by year, and the market share has also shrunk. According to data released by Ocean King Lighting in the “Market Position of the Company” section, the company’s share of the domestic special environmental lighting market in 2008 was 8.73%, and by 2010 it had fallen to 8.2% (after 2011). The data is not disclosed).

According to the information disclosed in the prospectus, during the period from 2011 to 2013, the company's main customers were basically energy, metallurgical and steel enterprises such as Daqing Oilfield and Baoshan Iron and Steel. Since 2012, the fundamentals of these industries have continued to weaken, and the demand for special lighting equipment is shrinking. Once the three fund-raising projects of Ocean King Lighting are put into production, their production capacity will be doubled on the existing basis. Under the background of declining market demand, it is difficult to predict whether Ocean King Lighting can successfully digest new investment production capacity.

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