Jay Chou "Overweight" Emma Technology To A Shares "Speeding" Prospectus Leaked "Cooperation" Past

"Love acts immediately". Ten years ago, with the endorsement of Jay Chou, the Emma electric vehicle, which swept the streets and lanes, was flying to the domestic capital market ten years later.

The SFC's official website shows that the 187th meeting of the issuance of the trial committee in November 28, 2019 will examine the first application of Emma Technology Group Limited by Share Ltd (hereinafter referred to as "Emma technology").

Emma technology was founded in 1999, formerly Tianjin Tai Mei Motor Co., Ltd., mainly bicycle assembly, parts processing and manufacturing. In 2004, it entered the electric bicycle industry. It was one of the earliest manufacturers of electric bicycles in China. In 2009, it became a joint stock company. It was renamed as Emma Technology in 2015, and is mainly engaged in R & D, production and sales of electric bicycles.

However, in the capital market, Emma technology was "early in the morning and late in the night".

It was later than Emma technology's electric vehicle manufacturer, 01585.HK and 603787.SH, which landed in Hong Kong and A shares in 2016 and 2017 respectively. In addition, NIU.US was also listed on NASDAQ in October 2018.

Then, a year ago (June 22, 2018), Emma technology, which submitted the listing application, could successfully become the third listed electric vehicle manufacturers in China?

Growth is blocked?

In September 5, 2019, Emma technology updated the prospectus prospectus in the SFC. It intends to issue 65 million shares on the Shanghai Stock Exchange, accounting for 16.1% and raise about 1 billion 681 million yuan.

Prospectus shows that in terms of production, Emma technology has established four manufacturing bases mainly based on Tianjin Emma, Jiangsu Emma, Zhejiang Emma and Guangdong Emma. In marketing network, it has established a flat domestic marketing channel based on district / county, and there are more than 1900 dealers nationwide.

Judging from the performance, in 2016, 2017, 2018 and 2019 1-6, Emma technology revenue was 6 billion 444 million yuan, 7 billion 794 million yuan, 8 billion 990 million yuan and 4 billion 455 million; net profit were 447 million yuan, 263 million yuan, 430 million yuan and 199 million yuan respectively.

For 2017 net profit fell by 41.49%, Emma technology explains that it is affected by industry competition, upstream raw material prices, advertising and advertising fees and the payment of shares.

From the point of view of income structure, Emma technology's income mainly comes from five items: electric bicycles, electric two wheeled motorcycles, electric tricycles, bicycles and accessories sales. Among them, the electric bicycle has accounted for more than 70% of the revenue in recent three years.

However, the gross profit margin of Emma technology is not high.

In the first half of 2017 -2019, the gross margin of Emma technology remained at 13%-14%. By contrast, in the first half of 2019, the gross profit margin of the same industry's Ya Di holdings was 16.77%, and the gross profit margin of the new Japanese shares was 16.52%.

From the perspective of asset liability ratio, Emma technology is higher than that of Ya Di holdings and new Japan shares.

In the 2016-2019 years and 1-6 months, the assets and liabilities ratio of Emma technology was 81.97%, 80.85%, 74.84% and 72.88% respectively, while in the same period of 2016-2018 years, the assets and liabilities ratio of the company held at 60%, while the asset liability ratio of the new Japanese stock was about 50% lower.

However, Emma technology is still heavily invested in marketing publicity.

In addition to inviting Jay Chou to be the image spokesperson for ten years, Emma technology also invited Kim Su Hyon to endorse.

In 2016, Kim Su Hyon's brand endorsement fee was 6 million. Emma technology pointed out that at the end of 2017, the brand endorsement fee increased by 5 million 208 thousand and 200 yuan compared with that in 2016, which mainly increased the endorsement fee of by 8 million 966 thousand and 600.

The prospectus also revealed a story of cooperation between Emma and technology.

In 2017, with the heat of sharing bicycles, Emma technology began to cooperate with Beijing (Information Technology Co., Ltd.), bicycle orders increased significantly, contributed 346 million yuan of sales, accounting for 4.44%. In those days, Emma was also the first major customer of science and technology.

But in 2018, Emma's technology came down from the number of orders in Hangzhou, instead of the green orange bicycle under the drip flag. The operator of the green orange bicycle, Hangzhou Qingqi Technology Co., Ltd. went beyond it to the second place of the top ten customers of 2018.

However, as the share sharing industry became saturated and slowed down in 2019, orders for Hangzhou Qingqi Technology Co. Ltd. and Beijing (Information Technology) Co. Ltd. declined.

In the first half of 2019, Hangzhou Qingqi Technology Co., Ltd. and Beijing (Information Technology Co., Ltd.) were relegated to Emma technology's third largest customers and the ninth largest customers respectively, and the sales volume accounted for 1.37% and 0.67% respectively.

A person who pays attention to the Internet travel industry pointed out that "sharing electric vehicles in 2018 is another outlet, including harrow travel, street rabbit and dripping".

Then, can the share electric vehicle emerging under the help of capital become the next growth point of Emma technology?

Quality problems of electric vehicles

In December 21, 2018, Emma technology received the first feedback from the SFC, paying attention to 58 questions in three aspects: its standardization, information disclosure and financial accounting information. Until August 20th this year, Emma technology submitted the updated prospectus.

Feedback shows that Emma technology has been punished for repeated violations.

For example, in 2017, Tianjin Emma Vehicle Technology Co., Ltd. in 2017 did not change the declaration of occupational hazards in time, and did not provide fines for the workers in the spraying workshop to meet the national standards or industry standards. The security supervision departments were fined 10 thousand yuan and 30 thousand yuan respectively, and Emma technology and its subsidiaries were fined 403 million yuan, 500 million yuan and 600 million yuan respectively for violating the environmental protection laws and regulations.

In addition, the latest prospectus shows that Emma technology involved in the manufacturing business of 9 enterprises, including Tianjin Emma, Emma movement, Guangdong Emma, Zhejiang energy, Guangxi Emma and other 5 companies have not yet obtained the "sewage permit".

The quality problem of Emma electric vehicle has also attracted much attention.

In August 29th this year, the Beijing municipal market supervision and Administration Bureau issued the "public inspection of the quality of electric bicycle products." among them, the 5 batches of electric bicycles produced by Tianjin Emma Automobile Technology Co., Ltd. had the following problems: maximum speed, pedal driving ability, vehicle quality, ejector and horn device, undervoltage and over current protection function.

As early as 2018, the products produced by Emma in Tianjin also appeared in the list of unqualified electric bicycles sampled by the Guangdong provincial market supervisory authority.

In addition, in the Emma technology IPO process, CITIC Securities is not only a sponsor, but also an important shareholder, such "direct investment + sponsorship" dual identity, has also become one of the concerns of the market.

Prospectus shows that Emma technology's sponsor broker is CITIC Securities.

In the list of Emma technology shareholders, CITIC investment, Jinshi intelligent entertainment, Jinshi Hao Feng and Three Gorges Jinshi are all citic securities holding companies.

Among them, CITIC investment is a wholly-owned subsidiary of CITIC Securities; Jinshi Zhi Yu, Jinshi Hao Feng, a direct investment fund established by a wholly-owned subsidiary of Jinshi investment company; Three Gorges Jinshi is a direct investment fund established by the Three Gorges Jinshi Cci Capital Ltd; at the same time, Jinshi investment and Three Gorges Jinshi Cci Capital Ltd are CITIC private equity fund subsidiaries.

Judging from the equity ratio, CITIC Securities collectively holds 6.99% stake in Emma technology through CITIC investment, investment in Jinshi and Three Gorges Jinshi.

In this regard, Emma technology in the latest prospectus stressed, "CITIC investment and other four institutions in October 2017 to Emma technology to increase capital, and by January 2018, CITIC Securities and Emma technology signed a guidance agreement, so CITIC Securities as a sponsor agency in line with the relevant regulations."

Besides, Emma, one of the directors of science and technology, is a director and deputy general manager of CITIC investment. Apart from that, there is no relationship between CITIC investment and related parties and internal staff members.