University Scientific Research Empowerment, "Star" Customers Plus IPO, Snov Changed The Runway To Sprint The Science Board.

The Polytron Technologies Inc of Beijing Jiaotong University, which was listed on the new third board in March 23, 2017, will be greeted by its IPO at the end of three years. In March 26, 2020, the application of Sino gem will be formally accepted by the SFC.

It is worth mentioning that the Shanghai Romanian lighting Polytron Technologies Inc, Jiangsu Tu Nan alloy Limited by Share Ltd and Nanjing Kos chemical Limited by Share Ltd, which were on the same day with the Shanghai Jiaotong University, were all from the new three boards. Among them, Coase shares and Tu Nan shares have been delisted, and the Sino foreign joint stock is still on the list.

As the core component supplier of the railway train control system in China, in 2008, the company developed a track circuit reader (TCR) as the only fully developed domestic vehicle equipment in the Beijing Tianjin inter city high-speed train control system.

Located in the "research and development enterprise" of the Sino Russian joint venture, relying on Beijing Jiaotong University's R & D capabilities, most of its executives, shareholders and core technical personnel have served as teachers of Beijing Jiaotong University.

In addition, Jiaotong Connaught sits on a string of "Star" customers: including the central enterprises with the current market value of 64 billion 500 million, the first "A+H share" China general serial number (688009.SH), the 688015.SH, the 688015.SH HOLL, and the general contractor of the railway "four electric" project and the Railway Bureau of China Railway.

However, the IPO process of Shanghai University is not smooth.

As early as December 20, 2017, the first application of the company was listed on the main board of the Shanghai Stock Exchange. The sponsor was Oriental Citigroup, and it received an acceptance notice in December 26th of that year.

However, it didn't last long. Six months later, in May 29, 2018, the company decided to withdraw the listing materials and suspend the listing.

In November 8, 2018, cNOS again launched a sprint to A shares, submitted the first listing guidance materials to the Beijing Securities Regulatory Commission, and disclosed the prospectus in May 10, 2019.

The latest prospectus in September 26, 2019 showed that the joint venture would move from the main board to the Shenzhen Stock Exchange gem, and the sponsor would be changed to Guoxin Securities. The proposed public offering would not exceed 21 million 733 thousand and 400 shares, raising 533 million yuan.

Motherboard switch to gem

The University of Beijing Jiaotong University has a profound origin.

In April 10, 2001, Beijing Jiaotong University issued a statement that "SJ digital universal cab signal is the scientific research achievement of Northern Jiaotong University", and authorized the scientific research results to the company's predecessor.

As a whole, it turned into a joint stock company. Beijing Jiaotong University's wholly owned subsidiary of Jiaotong University has become one of its shareholders by holding 10% stake.

In addition, Qiu Kuanmin, Xu Xun, Zhang Min and other companies executives, shareholders and core technical personnel, most of them have the teaching experience of Beijing Jiaotong University.

Qiu Kuanmin, one of the founders of snob, was from Beijing to Jiaotong University from March 1991 to December 2014. He served as assistant professor, lecturer, associate professor, and National Key Laboratory of urban rail traffic control and safety, and one of the founders, Xu Xun, worked in Beijing Jiaotong University from July 1991 to December 2014 as a teacher of the school of electronic information engineering. Zhang Min, chief engineer of the company, was also a teacher of Beijing electronic and Information Engineering College of Jiaotong University.

At present, the main R & D, integration, sales and technical support of the key equipment of rail transit train operation control system are mainly three categories: transponder system, cab signal CPU module and track circuit reader (TCR).

In the 1-6 month of 2019, the sales revenue of the transponder system accounted for nearly 60%, and the sales income of the CPU component of the cab signal was nearly 30%, while the rest was the sales revenue of the track circuit reader (TCR).

As for the main board of the "breakthrough" in 2017, and the withdrawal of declaration materials in May 2018, it did not explain why.

However, at that time, the market rumours raised by the financial threshold raised by IPO were four, claiming that the main board declared that there was a "invisible red line" which deducted the net profit of 80 million in the latest year, which triggered a batch of enterprises withdrawing the application tide.

The prospectus disclosed in December 2017 by the trade union showed that the net profit in 2014 -2016 was 58 million 309 thousand and 600 yuan, 70 million 183 thousand and 300 yuan and 79 million 474 thousand yuan respectively, compared with the 80 million yuan "invisible red line".

In contrast to the latest prospectus, in 2017 -2018, the net profit growth of the Sino US joint venture was 82 million 533 thousand and 500 yuan and 104 million yuan, obviously more than 80 million.

It needs to be pointed out that in September 6, 2019, the SFC also focused on the reasons for its withdrawal.

From the point of view of revenue size, in 2016 -2018 and 2019 1-6, the revenues of the company were 241 million 800 thousand yuan, 241 million 900 thousand yuan, 305 million yuan and 130 million yuan, respectively. Among them, the main business revenue of Jiaotong University in 2018 increased by 62 million 306 thousand and 700 yuan, an increase of 26.23%.

"Train control system is the core area of rail transit equipment manufacturing industry. It is very difficult for technology to focus on the degree of substitution in China." in March 23rd, a transportation industry analyst told the economic report in twenty-first Century.

China's total number is the largest customer.

From the prospectus, in 2016 -2018 and 2019 1-6, the top five customers of the top five customers accounted for 88.96%, 90.02%, 82.79% and 84.61% respectively, with a high degree of customer concentration.

Take 1-6 months in 2019 as an example, the top five customers are China general serial number (Shanghai communication factory, general design institute, Shenyang signal factory, Beijing signal factory, etc.), China Railway General (subordinate railway bureaus), traffic control technology, China Zhong Qi and Ho Li Shi.

The central enterprises, China's total number, is the first largest customer in the first three years of the recent year, but its sales share has decreased from 57.31% in 2017 to 36.76% in 2019. On the other hand, it is also a supplier of the Sino Japanese joint venture company in the 1-6 years.

In response to the above feedback, the SFC asked the company to explain whether there is a significant dependence on China's general and cross control technology. Detailed description and analysis of whether the sales of the Chinese serial number will be adversely affected by the total number of China's total number of subsidiary companies as the main competitors.

"The transaction with China's serial numbers is in line with industry characteristics and practices, and there is no significant dependence".

China's total number is China's largest train control system integrator. Its market share in the field of cab signaling was close to 50% in 2018, and its market share in the ATP field exceeded 37%.

The company has been working with China Unicom (Shanghai communication factory and Beijing Signal Factory) since 2001. Since 2005, the Shenyang signal factory has been working together since 2005. Since its cooperation in 2006, the general design institute has maintained continuity and stability since 2011.

In the same way, the cooperation mode between China and China has different emphasis on different products.

For example, transponder system products, the Xi'an signalling factory affiliated with China's general serial number is commissioned to complete the production and assembly of the transponder system products, while the general number Design Institute of China's total number is also engaged in the design, production and sale of the transponder system products, so China generally does not buy the transponder system products from the company.

The CPU component of cab signal is distributed directly to the Beijing signal factory, Shanghai communication factory and Shenyang Signal Factory under the general signal of China. The company provides hardware production related technical information and authorizes it to produce and sell the whole locomotive signal CPU.

In terms of track circuit reader products, Jiaotong Connaught is the only supplier of China's universal track circuit reader. After commissioning the whole production and assembly of the track circuit reader of the Beijing Signal Factory affiliated to China's total number and the Shanghai communication factory, it was independently sold to the general design institute and Kasco of China's general serial number.

The other side of the coin has a high degree of customer concentration, which also brings a certain risk of accounts receivable recovery to Jiaotong University.

The data show that in 2016 -2018 and 2019 1-6, the book value of the accounts receivable of Jiaotong University was 86 million 535 thousand and 300 yuan, 76 million 60 thousand and 800 yuan, 130 million yuan and 168 million yuan respectively, accounting for 24.96%, 21.1%, 31.69% and 36.31% of current assets respectively, and the turnover rates of accounts receivable were 2.81, 2.76, 2.76 and 36.31% respectively.

In March 23rd, in twenty-first Century, the economic report reporters called the Sino Nov securities affairs department and sent an interview outline, but no reply was received as of press release.

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