Chang Gao Group'S Performance Suddenly Changed Face &Nbsp; Investors Questioned False Listing.

Long Gao group (002452) landed on small and medium-sized boards last July achievement "Blitz". In May 6th, the company held its annual shareholders' meeting in Changsha, and the reporter went to see the meeting.

Chang Gao group is mainly engaged in the production of high voltage isolation and grounding switches. Sale IPO issued 25 million shares and raised 647 million yuan.

However, when the company enters the capital market, its performance is quite different from the blueprint depicted in the prospectus.

Over reliance on big customers

Increased financial risk

According to Chang Gao group annual report Disclosed that the company achieved operating income of 304 million yuan in 2010, a decrease of 22.6% over the previous year, and a net profit of 45 million 680 thousand yuan, a sharp decrease of 38.6% over the same period last year.

In the first quarter, the newspaper not only failed to get better results, but worse. In the first quarter of 2011, Chang Gao achieved a business income of 49 million 40 thousand yuan, a decrease of 27.1% over the same period last year, and net profit of only 5 million 760 thousand yuan, down 49.2% from the same period last year. The company expects net profit in the first half of this year to decline by 30%-50% compared with the same period last year.

"Is there any fraud in the performance of the listed companies? Why is the landslide so strong? " Investors questioned the long high group's online performance briefing.

The company explained that the investment in the construction of the State Grid reached its peak in 2008, especially the investment in 220kV and 550kV substations in 2009 and 2010 showed a downward trend, which resulted in a larger decrease in the tender amount of the 2010 network and the total volume of business in the industry. Moreover, competition in the power spanmission and spanformation industry has intensified. The contract signed in 2010 decreased by 20.8% compared with the previous year.

However, the company stated in the prospectus that "the industry will be in a long period of prosperity in the next 5 to 10 years". The face of investors questioned Ma Xiaowu, chairman of the company.

According to the 2010 annual report statistics, in the spanmission and distribution and control equipment manufacturing industry 63 listed companies, Chang Gao group net profit growth rate ranked fifty-seventh, the last seventh. Although the industry was generally depressed last year, the net profit growth rate remained at an average of 8.4%. However, the deviation between the index of long high group and the industry average reached -560%.

Behind the performance of Chang Gao group, the butterfly effect of over reliance on big customers is also gradually emerging.

According to the annual report, the sales volume of 5 customers in the past 3 years accounted for 33%, 38%, 28% of the total annual sales volume, and the dependence on large customers was deeper. As a result, the sharp decline in the tender amount of the company's two major client network companies and the south network company in 2010 directly reflected the unsatisfactory performance of the group.

On the other hand, the accounts receivable turnover rate of Chang Gao group in recent 3 years also showed a decreasing trend year by year. In 2008, the index for 2.562009 years was 2.152010 years only 1.56. The accounts receivable balance of the top 5 accounts for the total accounts receivable of the company has always been high. Therefore, the amount of accounts receivable is too large, and the ability to withdraw money is declining year by year.

Products return to low end

"Cake" fickle investors

According to the prospectus of Chang Gao group, the 126kV and the following disconnector market is a fully competitive market, 363kV and above are in oligopoly market, 252kV is between the two, and is a monopolistic competition market. Analysis of the industry, 550kV and above the high-voltage switch market, due to the technology is closely guarded, few competitors, the market potential is huge.

However, the flagship product of Chang Gao group has a tendency to return to the low end.

In 2008, sales of high-voltage switches at 252kV and above accounted for 73% of total revenue; in 2009, the proportion dropped to 62%; in 2010, the figure dropped to 49%. In this regard, Ma Xiao Wu said the industry policy factors.

2010 annual report shows that the 252kV and above high voltage switch gross margin has varying degrees of decline, only 72.5kV and below the high voltage switch gross margin has improved. And the average selling price of the products in the past three years has been going downhill.

Ma Xiao, the company's secretaries, said the company will develop the low-voltage switch, photoelectric spanformer and GIS circuit breaker to smooth the industry risk. At the same time, he also admitted that the market of low-voltage switch is fierce.

The high-end products that investors are looking forward to -- Optical spanformers and GIS circuit breakers are just a "cake" to console themselves. Last year, the company issued a bold saying that it is expected that in 2010, optical spanformers can be used in many intelligent substations. However, the actual situation is lower than expected, Liao Junde, deputy general manager of the company, said that R & D and market progress are lagging behind.

As for GIS circuit breaker, according to Ma Xiao, the product needs to be qualified for three years to enter the market, and the company's product is still in the first year trial run stage. He also revealed: "at present, several competitors of the company have entered the market, so we also want to try other ways to enter the market as soon as possible."

In addition, the company said in the prospectus that it should sell 1 billion yuan in the next 2~3 years, but the 2011 business plan, which was set up in the annual report, was 360 million yuan in sales revenue and 50 million yuan in net profit. However, in the first two years of the listing, the company's sales revenue has reached 390 million yuan and its net profit is about 70000000.

What puzzles investors is that after listing companies hold hundreds of millions of dollars to raise funds, why are they running back for several years? And the company's current growth rate should reach 1 billion yuan in 3 years, and the annual compound growth rate of operating income should reach 49%. At the current rate of development, the sales revenue of 1 billion yuan is only a "cake".

Huatai co sponsor does not guarantee quality

Huatai Group, a sponsor of Chang Gao group, was known for its reputation in the capital market in 2010. From the unknown in 2009 to the number of underwriting IPO and underwriting income in 2010, Huatai became the big black horse of IPO.

Since the resumption of IPO in 2009, Huatai Securities has sponsored 39 companies, of which 32 have successfully passed the meeting. According to the data, the pass rate of Huatai's underwriting business is 82%.

And Huatai jointly sponsored these companies are high price earnings ratio issued shares. For example, the highest price earnings ratio of small and medium sized boards is 113.64 times higher than that of the small and medium sized board. The New Zealand and European countries have 111.5 times and 96.27 times earnings respectively. In addition, the price earnings ratio of fire control technology, Wordsworth and WAN Banda is more than 70 times.

At the same time, China and Thailand jointly processed a number of high PE stocks, while the malpractice of sponsoring no warranty gradually emerged. Among them, the green land, which is notorious for fraud, is the honorary product of Huatai Union.

In the wake of the green earth fraud issue, there was another scandal in Huatai. In August 2010, the China Securities Regulatory Commission issued a warning letter to Lei Wenlong and Zhang Miao, a joint sponsor of China and Thailand. The reason was that the two had unauthorized changes in the prospectus when they recommended the High German infrared IPO.

In addition to these scandals, Huatai co sponsored company has seen many performance changes. Among them, double arrow shares bear the brunt. Net profit in 2010 was only 36 million 840 thousand yuan, down 39% compared with the same period last year. The long group's net profit fell by 38%. In addition, the New Guinea, which was issued at 111.5 times price earnings ratio, is not worthy of the name.

Recently, in view of the fast changing performance of the IPO performance, the SFC issued a letter to the sponsor to examine the IPO false statements and feedback the results before May 15th. The article stipulates that if there is a public offering of securities and the operating profit in the main board and small and medium board is down more than 50% over the previous year, its sponsors will face 3~12 months freeze and even more sponsors' qualification.

The Commission's responsible person said, "this is mainly about the situation of" sudden change of face "after the IPO. She said that if there was a noticeable decline in performance in the year of listing, then there might be "false statements" and other letters.