The output value forecast of Sino-Swiss electronic construction project or the production capacity and equipment data are inconsistent with the current environmental impact assessment

“Jin Zheng Yan” Southern Capital Center Leng Yun/Author Yi Xi Nanjiang/Risk Control
Under the regulatory background of strictly controlling the “entrance” of issuance and listing under a multi-pronged approach, in 2022, the Shenzhen Stock Exchange issued more than 260 “tickets”, of which information disclosure violations accounted for about 39%, including financial fraud, major information disclosure violations, and performance forecast disclosure violations.
On the other hand, Changzhou Wujin Zhongrui Electronic Technology Co., Ltd. (hereinafter referred to as “Zhongrui Electronics”), which hit the GEM this time, invested 1 billion yuan in a construction project and claimed to achieve an annual output value of 800 million yuan, but after the completion of the project, the product income generated by Zhongrui Electronics involved in the project was less than 30 million yuan. Is the above goal of achieving an output value of 800 million yuan “empty talk”? Moreover, the prospectus discloses that the capacity of the combined cap is less than the official capacity data. Based on the capacity of the combined cap disclosed in the environmental impact assessment document, the capacity utilization rate of Sino-Swiss Electronics may be less than 70% in 2021 and January to June 2022. In addition, the number of injection molding machines disclosed by Sino-Swis Electronics also contradicts the EIA documents. At this point, the authenticity of Sino-Swiss Electronics’ letter drapes has been misted.
1、 It is claimed that the expansion project will achieve an annual output value of 800 million yuan, but the corresponding products will generate less than 30 million yuan after completion
People do not stand without faith, and businesses do not thrive without faith. Zhongrui Electronics invested 1 billion yuan in the construction of explosion-proof and shock-absorbing combined cap project, and plans to add 3 billion explosion-proof and shock-absorbing combined caps, with an estimated annual output value of 800 million yuan. However, from 2021 to the first half of 2022, Sino-Swis Electronics’ capacity-based portfolio cap revenue was less than 30 million yuan.
1.1 Zhongrui Lithium Battery Explosion-proof Combined Cap Project with an investment of 1 billion yuan is expected to achieve an annual output value of 800 million yuan
According to the content released by Wujin National Hi-tech Industrial Development Zone on September 30, 2019, the total investment of Sino-Swiss lithium battery explosion-proof combined cap project is 1 billion yuan, and it is planned to form a production scale of 3 billion explosion-proof and shock-absorbing combined caps for lithium batteries annually, with an estimated annual output value of 800 million yuan.
It should be noted that the explosion-proof and shock-absorbing combined cap is a capacity-type combined cap.
1.2 The explosion-proof and shock-absorbing combined cap needs to be added with PTC components, which is a capacity-type combined cap
According to the Environmental Impact Report of the Power Lithium Battery Precision Structure Project and the R&D Center Construction Project (hereinafter referred to as the “Construction Project EIA Report”) prepared by Sino-Swiss Electronics of Guangzhou Green Network Environmental Protection Service Center (hereinafter referred to as “Green Network”) in February 2022, Sino-Swiss Electronics obtained the approval opinion of the “Environmental Impact Report of the Project with an Annual Output of 3 Billion Explosion-proof and Damping Composite Caps for Lithium Batteries” on September 25, 2018, The corresponding project is the explosion-proof and shock-absorbing combined cap project with an annual output of 3 billion lithium batteries (hereinafter referred to as the “explosion-proof and shock-absorbing combined cap project”).
By comparing the construction content and capacity scale, it is not difficult to see that the explosion-proof and shock-absorbing combined cap project of Sino-Swis Electronics, or the “Sino-Swis lithium battery explosion-proof combined cap project” announced by the above officials.
In addition, according to the environmental impact assessment report of the construction project, the production of the explosion-proof and shock-absorbing combined cap is basically the same as that of the power lithium battery precision safety structure cap. The difference is that the explosion-proof and shock-absorbing combined cap adds PTC components in the assembly process of the finished product.
According to the prospectus (hereinafter referred to as the “prospectus”) signed by Sino-Swis Electronics on December 4, 2022, Sino-Swis Electronics is mainly engaged in the research, development, manufacturing and sales of precision safety structural parts of cylindrical lithium batteries, and its main products include power and capacity lithium battery combination cap series products.
It should be pointed out that according to the prospectus, compared with the power type combination cap, the capacity type combination cap has added PTC components to meet the requirements of high internal resistance and small current discharge of the capacity type combination cap.
That is to say, the explosion-proof and shock-absorbing combined cap invested by Sino-Swis Electronics in 1 billion yuan expansion needs to add PTC components, which is a capacity-type combined cap.
It is worth noting that the explosion-proof and shock-absorbing combined cap project has not reached the target of 800 million yuan of annual output value in actual production.
1.3 The above projects were accepted in January 2021, and then the total revenue of capacity-based portfolio cap was less than 30 million yuan by the first half of 2022
According to the environmental impact assessment report of the construction project, the explosion-proof and shock-absorbing combined cap project completed its independent acceptance on January 30, 2021.
According to the prospectus, from 2019 to 2021 and from January to June 2022, the revenue of Sino-Swiss electronic capacity-type combination cap was 25.4476 million yuan, 22.1977 million yuan, 14.4777 million yuan and 8.4731 million yuan respectively.
According to the calculation of the Southern Capital Center of the Financial Securities Research, the total revenue of the capacity-based combination cap of Sino-Swis Electronics in 2021 and January to June 2022 was 22950800 yuan.
Not only that, the market of capacity-based portfolio cap is gradually “shrinking” due to the reduction of demand.
1.4 The market demand for capacity-type combination caps has gradually decreased due to customers’ switching to power-type combination caps
According to the prospectus, the capacity-type combined cap is applicable to lithium batteries with high resistance and low current discharge, and the terminal is mainly used in digital consumer electronics and other fields. It should be pointed out that the market demand for capacity combined caps has gradually decreased due to the use of power combined caps in some downstream capacity lithium batteries.
In short, Sino-Swis Electronics has invested 1 billion yuan in the construction of explosion-proof and shock-absorbing combined cap project, and is expected to achieve an annual output value of 800 million yuan. It should be noted that the explosion-proof and shock-absorbing combined cap is a capacity-type combined cap. However, after the acceptance of the explosion-proof and shock-absorbing combined cap project in January 2021, the total revenue of Sino-Swiss electronic capacity-type combined cap in 2021 and January-June 2022 was less than 30 million yuan, and the revenue scale decreased year by year. In addition, the market of capacity-type combination caps is gradually decreasing.
So far, Sino-Swis Electronics has invested 1 billion yuan in the construction of explosion-proof and shock-absorbing combined cap project, and is it “empty talk” that it is expected to achieve the annual output value of 800 million yuan? Can the production capacity of the project be digested? Or “put a question mark”.
2、 The capacity of combined cap products may be reduced by more than 100 million units compared with the EIA, and the capacity utilization rate may be less than 70% to raise funds to expand production
There is no small thing in a letter. The prospectus discloses the production capacity of Sino-Swiss electronic combination cap in 2021 and the first half of 2022, which is “different” from the EIA document.
2.1 From 2019 to 2021 and from January to June 2022, the combined cap accounted for more than 90% of the main business income
According to the prospectus, from 2019 to 2021 and from January to June 2022, the main business products of Zhongrui Electronics are mainly divided into power type combination cap and capacity type combination cap, which account for 98.61%, 98.76%, 98.74% and 99.14% of the main business income respectively.
That is to say, during the reporting period, the combined cap is the main product of Zhongrui Electronics.
It should be pointed out that the combined cap capacity disclosed in the prospectus does not match the data disclosed in the EIA document.
2.2 The prospectus discloses the capacity of the combined cap in 2021, which may be 752 million units less than the capacity disclosed in the EIA document
According to the EIA report of the construction project, Zhongrui Electronics moved to No. 11 Jinghu Road, Wujin National High-tech Zone in 2018. In addition, on September 25, 2018, Zhongrui Electronics obtained the approval of the environmental impact assessment of the explosion-proof and shock-absorbing combined cap project, which was issued by the Ministry of Finance of the People’s Republic of China (WBS) [2018] No. 292.
After that, in 2019, Zhongrui Electronics expanded the production of the combined cap project for lithium batteries. On May 28, 2019, it obtained the reply of the Environmental Impact Report on the Expansion Project of Power Lithium Battery Precision Safety Structure Cap. The corresponding project is the expansion project of power lithium battery precision safety structure cap (hereinafter referred to as “the expansion project of combined cap”). It is worth mentioning that the explosion-proof and shock-absorbing combined cap project and the combined cap expansion project completed independent acceptance on January 30, 2021.
According to the environmental impact assessment report of the construction project, the product and scale of the explosion-proof and shock-absorbing combined cap project is 3 billion pieces/year of explosion-proof and shock-absorbing combined cap for lithium battery, and the construction site is No. 11, Jinghu Road, Wujin National High-tech Zone.
In addition, the products and scale of the combined cap expansion project are 150 million/year No. 18 cap (combined cap) and 600 million/year No. 21 cap (combined cap). The construction site is No. 11 Jinghu Road, Wujin National High-tech Zone.
According to the EIA report of the construction project, as of the preparation date of February 2022, the actual acceptance capacity of the explosion-proof and shock-absorbing combined cap project is 2.25 billion explosion-proof and shock-absorbing combined caps for lithium batteries, with an annual operation time of 7200h; The actual acceptance capacity of the combined cap expansion project is 150 million No. 18 caps (combined cap) and 600 million No. 21 caps (combined cap), with an annual operation time of 7200h.
It is worth noting that according to the environmental impact assessment report of the construction project, the production of the explosion-proof and shock-absorbing combined cap is basically the same as that of the power lithium battery precision safety structure cap (No. 18 and No. 21 combined cap), the difference is that the explosion-proof and shock-absorbing combined cap is added with PTC components during the assembly process of the finished product, and about 10% of the steel cap needs to be reflow welded during the welding process.
It can be seen from the above that as of January 30, 2021, the actual capacity of Zhongrui Electronics is 2.25 billion explosion-proof and shock-absorbing combination caps for lithium batteries, 150 million No. 18 combination caps and 600 million No. 21 combination caps per year. It is estimated that the production capacity of the combined cap products of Sino-Swiss Electronics can reach 3 billion pieces per year.
If the production period is 10 months in 2021, the combined cap capacity of Sino-Swiss Electronics in 2021 may be at least 2.5 billion. In the first half of 2022, the combined cap capacity of Sino-Swiss Electronics may be at least 1.5 billion.
However, according to the prospectus, from 2019 to 2021 and from January to June 2022, the effective capacity of Sino-Swiss electronic combination cap products was 1.336 billion, 1.388 billion, 1.748 billion and 1.032 billion, respectively.
It should be noted that the above effective capacity is based on the theoretical capacity corresponding to the normal operation of machinery and equipment, combined with factors such as equipment conversion, product type switching, equipment shutdown and maintenance, normal holiday rest, product yield, etc.
It can be seen from the prospectus that the combined cap capacity of Zhongrui Electronics in 2021 will be 1.748 billion, and the combined cap capacity from January to June 2022 will be 1.032 billion.
Compared with the capacity of Sino-Swiss electronic portfolio cap disclosed in the EIA document in 2021, or at least 2.5 billion, the prospectus disclosed that Sino-Swiss electronic portfolio cap in 2021 was only 1.748 billion, with a difference of at least 752 million; Compared with the disclosure in the environmental assessment document that the combined cap capacity of Sino-Swiss Electronics was at least 1.5 billion in the first half of 2022, the prospectus disclosed that the combined cap capacity of Sino-Swiss Electronics was only 1.032 billion in the first half of 2022, with a difference of at least 468 million.
It is worth noting that, based on the combined cap capacity disclosed in the EIA document, the capacity utilization rate of Sino-Swis Electronics may be less than 70% in 2021 and January to June 2022.
2.3 According to the capacity disclosed in the EIA document, the capacity utilization rate in 2021 may be 67.56%
According to the prospectus, from 2019 to 2021 and from January to June 2022, the actual output of Sino-Swiss Electronics was 730 million, 1.063 billion, 1.689 billion and 951 million, respectively.
If the combined cap capacity is 2.5 billion and the actual output is 1.689 billion in 2021, the capacity utilization rate of Zhongrui Electronics in 2021 is estimated to be 67.56%; If the production capacity of the combined cap in the first half of 2022 is 1.5 billion, and the actual output is 951 million, it is estimated that the capacity utilization rate of Sino-Swiss Electronics from January to June 2022 may be 63.4%.
However, under the above circumstances, Sino-Swiss Electronics still raised funds to expand its production capacity and increased the capacity of the portfolio cap. The rationality is questionable.
2.4 It is proposed to raise 844 million yuan to invest in the power lithium battery precision structural parts project, adding 1.2 billion combined caps
According to the prospectus, Zhongrui Electronics plans to raise 844 million yuan to invest in the power lithium battery precision structural parts project. After the project is completed and put into operation, Sino-Swis Electronics will increase the annual production capacity of 1.2 billion composite caps and 312 million cylindrical lithium battery steel shells.
It can be seen from the above situation that the capacity of Sino-Swiss Electronics’ combined cap in 2021 and the first half of 2022 disclosed in the prospectus is either less than the capacity data disclosed in the EIA document, and the quality of Sino-Swiss Electronics’ information may be tortured. And if the capacity utilization rate is calculated based on the capacity disclosed in the environmental impact assessment document, the capacity utilization rate of Sino-Swiss Electronics may be less than 70% in 2021 and January to June 2022. Sino-Swiss Electronics plans to raise capital to expand its production in this listing, can the new capacity be digested in the future? To be investigated.
3、 The number of main equipment is “different versions”, and the authenticity of the information is doubtful
The grass and fireflies are not fire at the end, but the lotus dew is not a bead. The suspicion about Sino-Swis Electronics has not disappeared. It is not only the production capacity data, but also the number of injection molding machines disclosed in the prospectus of Sino-Swis Electronics is “inconsistent” with the environmental assessment documents.
3.1 In January 2021, the explosion-proof and shock-absorbing combined cap project and the combined cap expansion project completed independent acceptance
According to the EIA report of the construction project, on September 25, 2018, Sino-Swiss Electronics obtained the EIA approval of the explosion-proof and shock-absorbing combined cap project. On May 28, 2019, Sino-Swis Electronics obtained the EIA approval of the combined cap expansion project. Since then, Sino-Swis Electronic Explosion-proof Shock Absorbing Combined Cap Project and Combined Cap Expansion Project have completed independent acceptance on January 30, 2021.
3.2 In 2021, the combined cap capacity disclosed in the prospectus will not match the EIA document
As mentioned above, as of January 30, 2021, the production capacity of Sino-Swiss electronic combination cap products could reach 3 billion pieces per year. If the production period is 10 months in 2021, the combined cap capacity of Sino-Swiss Electronics in 2021 may be 2.5 billion. However, the prospectus disclosed that in 2021, the capacity of Sino-Swiss electronic combination cap was 1.748 billion, or 752 million less than the capacity disclosed in the EIA document.
Not only that, the number of main equipment injection molding machines disclosed in the prospectus also “fight” with the data disclosed in the EIA document.
3.3 The “gap” between the number of injection molding machines disclosed in the prospectus and the data disclosed in the EIA document or more than 30
According to the prospectus, by the end of June 2022, the number of injection molding machines, the main production equipment of Sino-Swis Electronics, was 54, and the newness rate of injection molding machines was 74.03%.
However, according to the EIA report of the construction project, as of February 2022, the number of Sino-Swiss electronic injection molding machines was 69. In addition, the number of Sumitomo automatic injection molding machine SE220EV is 13, and the number of Sumitomo automatic injection molding machine SE180EV is 6.
According to the calculation of the South Capital Center of the Financial Securities Research, the environmental impact assessment documents reveal that the number of injection molding machines of Sino-Swis Electronics may reach 88. Based on this, the number of injection molding machines disclosed in the prospectus may be 34 less than that disclosed in the EIA document.
It is not difficult to see that the amount of proceeds from the disposal of fixed assets mentioned above may not cover the number of 34 main equipment injection molding machines. In other words, compared with the data disclosed in the environmental impact assessment document, the capacity of the combined cap disclosed in the Sino-Swiss electronic prospectus may be 752 million units less, and the number of injection molding machines disclosed may be 34 units less. At this point, the quality of Sino-Swis electronic mail or “discount”.
From then on, happiness and misfortune begin. If we succeed in landing in the capital market in the future, Sino-Swiss Electronics will face both opportunities and challenges.