Amway Synthetic Leather IPO Concealed Many Financial Risks

Anhui Amway synthetic leather Limited by Share Ltd (hereinafter referred to as "Amway synthetic leather") Gem The first application was approved and approved by the SFC in March 22nd. But a financial analyst pointed out that a large part of the profits of Amway synthetic leather came from various tax concessions. Debt risk It needs investors' attention.

Amway synthetic leather was established in 1994 and changed to Limited by Share Ltd in July 6, 2006. Since its foundation, Amway synthetic leather has been engaged in R & D, production, sale and service of middle and high grade polyurethane synthetic leather. After many years of development, the production and sales of polyurethane synthetic leather products ranked second in the same industry in China for three consecutive years from 2007 to 2009. During the reporting period (2008, 2009 and 2010), the net profit of the company was 32 million 316 thousand and 300 yuan, 51 million 898 thousand and 400 yuan and 76 million 623 thousand and 400 yuan respectively, the annual growth rate of net profit was 60.6% and 47.6% respectively, and the performance and growth rate were quite eye-catching.

However, behind the rising profits, many financial risks are hidden.

After carefully reading the prospectus of Amway synthetic leather, reporters found that a considerable part of the company's higher profit data came from the state's preferential tax policies and government financial subsidies. This can not help but ask people, what is the real profit growth situation of Amway synthetic leather?

At present, Amway's synthetic export products enjoy the preferential tax policy of "exemption, offset and refund". From 2008 to July, the export tax rebate rate was 1, 11%, 2008 8 to October, the export tax rebate rate was 13%, November 2008 to January 2009 export tax rebate rate was 14%, January 2009 2 to the export tax rebate rate was 15%, and the export tax rebate rate was 16%.

According to the relevant data shown in the prospectus, the total tax incentives and government subsidies during the reporting period of Amway synthetic leather were 7 million 340 thousand and 600 yuan, 33 million 466 thousand and 200 yuan and 36 million 241 thousand and 200 yuan respectively, accounting for 22.7%, 64.5% and 47.3% of net profit. If these tax deductions and financial subsidies are deducted, the net profit of the company will be sharply reduced.

Generally speaking, the enterprises listed on the growth enterprise market will get preferential policies from all aspects of the country due to their own technological advantages. However, during the reporting period of Amway synthetic leather, the total amount of tax concessions and government subsidies will be relatively large in profits. For investors, we cannot fail to consider the impact of this factor on the future of the company. A financial analyst told reporters.

The source also pointed out that although VAT export tax rebate policy is a relatively stable long-term preferential policy, the company's exports will be affected by the international market supply and demand. If the export volume of Future Ltd decreases sharply, the export tax rebate will not be able to enjoy the domestic sales, which will have an impact on the company's performance. In addition, the company is a chemical enterprise, there is a certain environmental risk, if the relevant national policies are tight, the relevant government subsidies may also be canceled.

"The prospectus shows that the asset liability ratio of Amway synthetic leather has also reached the" warning line ", which will bring a lot of debt risk to the company. The analyst further hints.

"Compared with similar enterprises, the asset liability ratio of Amway synthetic leather should not be worried. Once the business situation has changed, a high proportion of debt may turn into a huge debt risk." The financial analyst said.

At the same time, the financial analysts pointed out that although the Amway synthetic leather prospectus introduced, the company sales rate is good, but high inventory also increased the risk of asset impairment, also may cause financial situation deterioration.