Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits

Yunhan Core City (Shanghai) Internet Technology Co., Ltd. (hereinafter referred to as Yunhan Core City) plans to be listed on the GEM, and the sponsor is Guojin Securities. The number of shares in this public offering does not exceed 16.2791 million shares, accounting for no less than 25% of the total share capital after the issuance. It is proposed to invest 941.6 million yuan in the big data center and component trading platform upgrading project, the electronic industry collaborative manufacturing service platform construction project, the intelligent shared storage construction project and the supplementary working capital project.
The raised investment projects in this issue include the big data center and component trading platform upgrading project, the electronic industry collaborative manufacturing service platform construction project and the intelligent shared storage construction project. The big data center and component trading platform upgrade project is planned to purchase office buildings in Songjiang District, Shanghai, with a site cost of 105.1 million yuan. The construction project of the electronic industry collaborative manufacturing service platform is planned to purchase and lease real estate in Songjiang District, Shanghai for the construction of the raised investment project. The real estate to be purchased is ordinary office building and factory building, and the proposed site cost is 39.66 million yuan. It is proposed to use 420 million yuan to supplement the current, accounting for 44.6% of the total amount of raised funds.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
According to the analysis report issued by the recommendation agency in December 2021, the equity value of the company was assessed by the income method and the market method respectively, which were 6.079 billion yuan and 5.669 billion yuan. Referring to the overall post-investment valuation (2.52 billion yuan) of the latest financing (September 2020), the equity value of the company was assessed and confirmed by the market method with a lower valuation of 5.669 billion yuan.
Yunhan Core City has multiple rounds of financing, with scattered equity and many new subsidiaries; Net cash flow from operating activities continues to be negative, and customers are mainly scattered; Sales expenses are high, with sales expenses exceeding 400 million yuan in the reporting period, and R&D accounts for a small proportion; Customers and suppliers overlap, and accounts receivable and inventory both rise; There are many lawsuits between the company and customers, and the purchase mode of customer Jinlang Technology is puzzling.
Multiple rounds of financing, scattered equity and numerous new subsidiaries
On April 17, 2008, Shenzhen Yunhan Electronics Co., Ltd. and Liu Yunfeng jointly established the company’s predecessor, Shanghai Yunhan Electronics Co., Ltd., with a registered capital of 500000 yuan. Among them, Shenzhen Yunhan Electronics subscribed 250000 yuan, accounting for 50% of the registered capital; Liu Yunfeng subscribed 250000 yuan, accounting for 50% of the registered capital.
In September 2020, the company conducted the latest equity financing, which corresponds to the overall post-investment valuation of the company of about 2.52 billion yuan. Since its establishment, the company has conducted five rounds of financing. The company has signed relevant agreements with Zeng Ye, Liu Yunfeng and Weisai Consulting with investors in various rounds of financing, including performance commitments and listing commitments. The company is not the subject of obligations such as repurchase of equity or cash compensation under these terms.
Zeng Ye, the founder of the company, directly held 65.75% of the company’s equity after the adjustment of the company’s equity structure in June 2014, and indirectly controlled 6.85% of the company’s equity held by Sai Consulting. Later, due to the continuous external financing of the company, the share proportion of the company controlled by Zeng Ye gradually declined, but he has always been the largest shareholder of the company, and the share proportion of the company controlled by Zeng Ye has always exceeded 30%.
Up to now, the company’s equity is relatively scattered. Zeng Ye still controls 35.19% of the company’s shares in total, which is the single largest shareholder, and the proportion of shares in the company is much higher than that of the second largest shareholder. In addition, Zeng Ye, as the chairman and legal representative of the company, is fully responsible for the operation and management of the company and has important influence on the major decisions of the shareholders’ meeting and the board of directors. Therefore, Zeng Ye is the actual controller of the company. Zeng Ye, the actual controller of Yunliuxincheng, is still the actual controller of the company after the completion of this offering, which has a significant impact on the company’s strategic planning and business decisions.
In addition to Zeng Ye, Liu Yunfeng and Liyuan Information hold 13.22% and 10.25% of the company’s shares respectively. On January 1, 2020, Liu Yunfeng was the president of the company, Qin Guojun was the chief data officer, Li Wenfa was the chief operating officer, and Zhou Xuefeng was the chief financial officer and secretary of the board of directors.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
Wuhu Fuhai and Dongfang Fuhai respectively hold 5.81% and 5.12% of the company’s shares. Nanshan Fuhai, Fuhai Energy Conservation, SME Fund and Fuhai Shenwan are affiliated enterprises of the two companies. Fuhai is a company that holds 15.57% of the company’s shares. Guoke Ruihua holds 5.21% of the company’s shares, CASREVFUND and Zhongke Guiyin are its affiliated enterprises, and Guoke series companies jointly hold 7.59% of the company’s shares.
As of the signing date of the prospectus, Yunhan Core City has 18 wholly-owned subsidiaries, including Shenzhen Hanyun, Shanghai Xinyun, Yunhan Tianqi, Nanchang Yunhan, Ningbo Xinyun, Yunhan Electronics, Qixiang Intelligent, Shenzhen Xinyun, Yunhan Software, Guyue Electronics, Yunhan Hong Kong, Zhuoyue Hong Kong, Unikey (USA) Electronics LLC, UnikeyElectronicsLimited, UnikeyElectronicsPte. Ltd., Hong Kong Qixiang Guangzhou Core Cloud and Diamond Mountain Manufacturing Co., Ltd. has one holding subsidiary, Yunhan Shengge, and one participating company, Yunchuang Intelligence. Up to 15 of them were newly established in 2019.
Net cash flow from operating activities continues to be negative, and customers are mainly scattered
Yunhan Core City is an innovative high-tech enterprise with integrated development of electronic component distribution and industrial Internet, focusing on the R&D, production and procurement needs of small and medium-sized electronic components in the electronic manufacturing industry. Through the effective use of digital technology and Internet technology, based on the self-built and self-operated Yunhan Core City B2B online shopping mall, the company mainly provides efficient and professional one-stop service for the electronic manufacturing industry in the supply chain of electronic components, and extends to many fields including product technical scheme design, PCBA production and manufacturing services, and technical support for electronic engineers.
From 2019 to January to June 2022, the company’s revenue was 827.1 million yuan, 1533.9 million yuan, 3835.6 million yuan and 2415.9 million yuan respectively, and its net profit was – 305.996 million yuan, 307.914 million yuan, 160.9 million yuan and 84.8654 million yuan respectively. As of June 30, 2021, the accumulated undistributed profit of the company was – 32.3272 million yuan, and there were accumulated unrecovered losses. As of June 30, 2022, the company has no accumulated unrecovered losses, and the accumulated undistributed profit of the company is 147.2 million yuan.
During the reporting period, the remuneration of key management personnel in Yunhan Core City was 8.3328 million yuan, 8.4817 million yuan, 16.2115 million yuan and 5.1046 million yuan respectively. The remuneration of key management personnel mentioned above does not include share-based payment. In 2021, the remuneration of key management personnel will even be doubled directly on the basis of 2020.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
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During the reporting period, the net cash flow from operating activities of Yunhan Core City was – 71791000 yuan, – 68780300 yuan, – 50657500 yuan and – 54095800 yuan respectively. The net cash flow from operating activities continued to be negative. In this regard, the company said that it was related to the company’s business model and the mismatch of accounting periods between the purchasing end and the selling end.
From the perspective of procurement, the company’s upstream suppliers are mainly well-known electronic component manufacturers and authorized distributors at home and abroad, including TI, Arrow, Avnet, etc. The above suppliers occupy a certain market advantage position, so in terms of credit policy, the opposite party generally requires full payment in advance or a payment period of 30 days or less; From the sales side, the downstream customers of the company are mainly domestic manufacturing enterprises. The company usually gives a payment period of 1-3 months according to its credit status.
The company mainly sells semiconductor devices, passive devices and connectors. In each period of the reporting period, the company’s B2B sales revenue of electronic components accounted for more than 99%. Among them, semiconductor devices, passive devices and connectors are the main sales product categories of B2B sales business, accounting for more than 90% in each period.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
The electronic component circulation industry in which the company is located belongs to a global industry. Influenced by many factors such as international trade situation, macroeconomic prosperity, downstream terminal demand changes, upstream original factory technology development rules and capacity changes, the industry prosperity will present certain volatility. Influenced by macroeconomic and other factors, downstream demand for consumer electronics and other products has declined significantly since the fourth quarter of 2021, resulting in a certain decline in the growth of the global semiconductor industry market size. According to WSTS prediction, the global semiconductor chip market will continue to maintain growth in 2022, but the growth rate has declined. It is expected that the market size will reach 633.238 billion US dollars, an increase of 13.9%.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
In each period of the reporting period, the gross profit rate of the company’s main business was 12.94%, 11.05%, 12.16% and 12.15% respectively, with certain fluctuations in the gross profit rate. On the whole, the gross profit margin of the company is close to the average level of comparable companies in the same industry. At the same time, the gross profit margin of each company also has certain differences, which are mainly affected by the sales model, business scale, product category, customer concentration, etc.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
From the perspective of order dimension, with the continuous improvement of the company’s one-stop service capability, the depth of cooperation between customers and the company has been strengthened, and the proportion of orders with the amount of more than 10000 yuan in the operating revenue has shown an overall growth trend. However, the sales quota of the company’s main customers is still between 10000 yuan and 100000 yuan, which shows a relatively small dispersion.
High sales expenses, with sales expenses of more than 400 million yuan in the reporting period, and a small proportion of research and development
During the reporting period, the expenses of Yunhan Core City during the reporting period were 144.5 million yuan, 131.5 million yuan, 246.6 million yuan and 175.5 million yuan respectively, accounting for 17.47%, 8.57%, 6.43% and 7.26% of the operating revenue. During the reporting period, the company’s sales expenses were 83.9824 million yuan, 77.3203 million yuan, 155.3 million yuan and 102.8 million yuan respectively. During the reporting period, its sales expenses exceeded 400 million yuan, exceeding the net profit of the reporting period. Among them, employee compensation was 66.8264 million yuan, 62.4606 million yuan, 118.4 million yuan and 76.2447 million yuan respectively, accounting for 79.57%, 80.78%, 76.22% and 74.22% of sales expenses.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
During the reporting period, the number of sales personnel was 426, 345, 525 and 726, and the average salary was 156900 yuan, 181000 yuan, 225500 yuan and 105000 yuan respectively. The number of salesmen fluctuated, and the average salary of employees showed an upward trend from 2019 to 2021, mainly due to the sharp increase in the company’s performance since 2020, which led to the increase in the salary income of salesmen.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
During the reporting period, the sales expense rate of the company after excluding the impact of share-based payment was 10.14%, 5.00%, 4.03% and 4.24% respectively, higher than the industry average of 4.68%, 3.87%, 3.99% and 3.28%.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
During the reporting period, the R&D expenses of Yunhan Core City were 23.904 million yuan, 23.5416 million yuan, 36.9158 million yuan and 30.089 million yuan respectively, showing an overall upward trend. The proportion of each period in operating revenue was 2.89%, 1.53%, 0.96% and 1.25% respectively. During the reporting period, the R&D expense rate of Yunhan Core City was lower than that of Huaqiang Electronics, Yachuang Electronics and Runxin Technology, mainly due to the impact of income scale.
Customers and suppliers overlap, and accounts receivable and inventory both rise
In each period of the reporting period, Yunhan Core City’s customers are relatively scattered, and the top five customers account for a relatively low proportion of revenue. There is no case that the proportion of sales to a single customer exceeds 50% of the total. The company’s top five customers have certain fluctuations, which are mainly related to the company’s business model. On the one hand, the company mainly carries out business in online shopping malls. Orders are mainly in small and medium-sized batches, and customer concentration is low. During the reporting period, based on their own needs, different customer needs and orders usually have certain fluctuations, leading to certain changes in the top five customers during the reporting period;
On the other hand, with the continuous enhancement of the company’s supply capacity and the continuous improvement of customers’ recognition of the company, on the whole, the order size of customers has also continued to grow. With the improvement of trust, some customers have also submitted batch orders to the company, resulting in the growth of the transaction size of the top five customers during the reporting period.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
The company’s upstream suppliers are mainly well-known electronic component manufacturers or distributors at home and abroad. On the whole, the upstream manufacturers and authorized distributors in the electronic component market are highly concentrated, mainly led by European and American enterprises, and have strong competitiveness in product development, production and sales. During the reporting period, the top five suppliers of the company were mainly global large original manufacturers and well-known authorized distributors, with the purchase amount accounting for 40.01%, 44.57%, 45.32% and 36.44% respectively in each period. The concentration of suppliers was relatively high.
At present, the company has carried out data cooperation with more than 1000 high-quality suppliers, including well-known manufacturers or large authorized agents such as TI, Arrow and Avnet. Under the above background, if the operating conditions of major suppliers deteriorate, resulting in a decline in delivery capacity, or the company’s platform scale, service capacity, and technical level cannot follow up or meet the business development speed of high-quality data suppliers, or affected by the international political environment and other factors, there may be a risk that major suppliers will stop selling products to the company or carry out data cooperation, which will have a negative impact on the company’s production and operation.
At the end of each reporting period, the book value of accounts receivable of Yunhan Core City was 56.5665 million yuan, 175.5 million yuan, 398.7 million yuan and 453.8 million yuan respectively, accounting for 6.84%, 11.44%, 10.39% and 18.78% of the operating revenue of the same period. The Company’s inventory falling price reserves were 10.7276 million yuan, 8.9606 million yuan, 1337.96 million yuan and 20.6429 million yuan respectively, and the inventory falling price reserves were 23.74%, 9.78%, 5.70% and 8.09% respectively.
Yunhan Core City spends a lot of money on sales, and nearly half of the funds raised are used to supplement the current flow. Customers continue to file small lawsuits
At the end of each reporting period, the book value of the company’s inventory was 34.4593 million yuan, 82.63 million yuan, 221.4 million yuan and 234.6 million yuan respectively, accounting for 14.60%, 15.89%, 20.56% and 17.35% of the total assets at the end of each reporting period.
There are many lawsuits between the company and customers, and the purchase mode of customer Jinlang Technology is puzzling
Due to the large and scattered number of downstream customers of Yunhan Core City, the standard selection of major sales contracts