Source: GPLP Rhino Finance (ID: gplpcn)

On June 18, the official website of the Shenzhen Stock Exchange showed that the IPO review status of Shenzhen Han’s CNC Technology Co., Ltd. (hereinafter referred to as “Han’s CNC”) was changed to “Inquired”.

It is reported that Han’s CNC intends to issue no more than 42 million shares this time, and raise funds of approximately 1.707 billion yuan, which will be used for equipment production transformation and expansion and equipment technology research and development center construction projects.

Han’s Laser Splits the Pledge of Han’s CNC Listed Shares

The prospectus shows that Han’s CNC was established in 2002. Its main business is the research and development, production and sales of PCB special equipment. The registered capital is 378 million yuan. The controlling shareholder is Han’s Laser (002008.SZ). Han’s Laser directly holds 94.15% of the company’s shares.

In addition, the actual controller of Han’s CNC is Gao Yunfeng, who directly holds 9.03% of Han’s Laser, and indirectly controls 15.17% of Han’s Laser through Han’s Holdings, and controls a total of 24.20% of Han’s Laser.

The Han’s Laser’s split and listing of Han’s CNC also caused investors to worry.

On May 27, an investor asked Han’s Laser that there are a large number of related transactions and related guarantees between the parent company and listed subsidiaries. How does the company deal with such problems? It is true that the splitting of subsidiaries can better obtain financing to facilitate the further development of the subsidiaries, but it is an act at the expense of all investors. Does Han’s Laser consider the position of investors?

Han’s Laser stated that after this spin-off, Han’s Laser and Han’s CNC have no related party transactions that affect independence or are obviously unfair, which meets the requirements of the China Securities Regulatory Commission and the Shenzhen Stock Exchange on related party transactions.

However, GPLP Rhino Finance noticed that Han’s Holdings and Gao Yunfeng’s holding of Han’s Laser pledged shares have certain risks, which may indirectly affect the stability of Han’s CNC decision-making and management and the company’s production and operation.

As of April 30, 2021, the cumulative number of pledged shares of Han’s Laser held by Han’s Holdings was 5.36 million shares, accounting for 36.68% of its holdings and 5.56% of Han’s Laser’s total share capital.

The accumulated pledged shares of Han’s Laser held by Gao Yunfeng are 89.140 million shares, accounting for 92.55% of the shares held by him and 8.35% of the total share capital of Han’s Laser. The total number of pledged shares of Han’s Laser held by Han’s Holdings and Mr. Gao Yunfeng totaled 149 million shares, accounting for 57.52% of the shares held by the two and 13.92% of the total share capital of Han’s Laser.

GPLP Rhino Finance noted that the sponsor of Han’s CNC this time is CITIC Securities Co., Ltd. (hereinafter referred to as “CITIC Securities”). As of December 31, 2020, CITIC Securities held approximately 1.0635 million shares of Han’s Laser, accounting for approximately 0.10% of Han’s Laser’s total equity. Han’s CNC stated that if Han’s Holdings and Gao Yunfeng cannot repay the loan on or before the due date of the guaranteed loan, the pledged Han’s Laser shares may be subject to the risk of forced disposal, which may lead to changes in the equity structure of Han’s Laser, which may be indirect Affect the stability of Han’s CNC decision-making and management and the company’s production and operation. There are still connected transactions with Han’s Laser, and the high cash flow of accounts receivable is under pressure However, Han’s CNC still has connected transactions with Han’s Laser. From 2018 to 2020, the related sales amount of Han’s CNC is 17.2676 million yuan, 48.292 million yuan and 22.107 million yuan respectively. The sales between Han’s CNC and related parties are mainly the sale of laser forming machines and mechanical drilling machines to the controlling shareholder Han’s Laser, and the testing and sales of mechanical forming machines and mechanical drilling machines to the associated company Mingxin. The related-party purchase transactions of Han’s CNC were 127 million yuan, 60 million yuan and 118 million yuan respectively. The purchases between the company and related parties are mainly purchases of chillers, linear motors, lasers, etc. from the controlling shareholder and its controlled companies Han’s Motor and Han’s Tiancheng. Can the performance of Han’s Laser be able to maintain steady growth without Han’s Laser’s Han’s CNC? The prospectus shows that Han’s CNC has seen a sharp decline in its performance in 2019, and will only pick up in 2020. From 2018 to 2020, Han’s CNC’s operating income was 1.723 billion yuan, 1.323 billion yuan, and 2.21 billion yuan, and net profits were 374 million yuan, 227 million yuan, and 304 million yuan. The revenue growth rates in 2019 and 2020 are -23.24% and 67.10% respectively; the net profit growth rates are -39.25% and 33.86% respectively. Despite the support of Han’s Laser, the gross profit margin of Han’s CNC is far lower than the industry average. From 2018 to 2020, Han’s CNC’s gross profit margins were 34.03%, 35.90%, and 34.92%, while the industry averages over the same period were 49.94%, 46.52%, and 44.01%, respectively. (Source: Han’s CNC Prospectus) In addition, the inventory of Han’s CNC has increased year by year and accounted for a relatively high proportion. From the end of 2018 to the end of 2020, the company’s inventory book value was 246 million yuan, 261 million yuan, and 799 million yuan, accounting for 14.32%, 15.19%, and 28.69% of current assets, respectively. From the end of 2018 to the end of 2020, the total book value of Han’s CNC’s notes and accounts receivable was 1.124 billion yuan, 972 million yuan, and 1.269 billion yuan, accounting for 65.51%, 56.66%, and 45.56% of current assets, respectively. In this regard, Han’s CNC stated that in 2020, due to the increase in orders for PCB special equipment, the company increased its inventory, resulting in a relatively high inventory balance. Han’s CNC stated that the high inventory balance will occupy a large amount of its working capital on the one hand, which puts the company under pressure on working capital; on the other hand, if there is an order cancellation or customer return due to changes in customer demand or major adverse changes in operating conditions Circumstances, may lead to the risk of stagnation and impairment of inventory, and the company’s operating results will be adversely affected. GPLP Rhinoceros Finance noted that in 2020, the substantial increase in operating receivables combined with the accumulation of inventory, Han’s CNC’s net operating cash flow turned from positive to negative. From 2018 to 2020, its net operating cash flow was 185 million yuan, 270 million yuan, and -509.714 million yuan. Han’s CNC stated that if the company cannot obtain financing in a timely manner, it may result in insufficient business operating funds, which will further negatively affect its financial status and production operations. (This article is for reference only, does not constitute investment advice, and operates at your own risk accordingly)

My name is Phung Quoc Huy Hoang, born in 1995 in Nha Trang, and currently live and work in Ho Chi Minh City. I have been pursuing printing 3D products for 5 years now. Previously, I studied restaurant management at the Industrial University, but decided to stop studying in year 2 because I felt this was not my passion. During my self-study, I knew a brother on social media who worked on clay. A monkey head statue made by this man based on the movie Planet of the Apes was so beautiful that I was constantly learning about clay making. Those were the first steps that brought me into the 3D printing industry. Since October 2018, I founded Craftech – a combination of craft (craft) and tech (technology) – with the desire to create printed products based on these elements. The 3D printing market in Vietnam started to emerge from 2017, and has grown quite strongly up to now. Before that, when making a machine part, the worker had to cut CNC with iron and steel. In terms of art, it also takes time to hire people to carve or make from clay. In addition, cost is one of the reasons 3D printing is increasingly popular. Before that, people often covered with earth or porous to create shape. Then comes the process of making silicone molds, pouring plastic and removing it like jelly. It is this mold making step that causes the cost to be high. With a total of 10 employees, we only perform some main stages such as mechanical design, art drawing, accounting … Processes such as CNC cutting, mold making … will be assigned to the unit. other for cost optimization. All drawing design operations will be done by computer simulation software. The 12 V printer consumes electricity about 3-4 million / month. When printing, the layers are overlapped and formatted under the control of the computer. These printers were bought by me at a local company with the price of over 10 million VND / 1 machine. The drawing is fed into the machine. I make some adjustments before printing starts. The material is melted before printing. Depending on the nozzle, the plastic wire is packed into rolls of different size. The ingredients are quite easy to buy in Vietnam. The glue part helps the sample stick to the 3D printing table. For large-sized products, we will assemble each part instead of printing the whole, because the printing size of the machine is only 40 cm2. Small printers also work in a similar way to large machines. This is a product of a small printer. We used to produce finished products with sizes as low as 2 cm. Some products are forced to print on a liquid machine because they require many small details that take weeks to complete. Not to mention, for products to achieve high perfection, manufacturers also need to coordinate many materials. Depending on the order, we will choose the appropriate production method. For example, direct printing would apply to event bookers requiring 10-20 products. With the requirements of mass production, quantity of tens of thousands, we have to make silicon molds or steel molds. This is a product we made for the dinosaur program organizer in Hai Phong. However, this project is manufactured from composite or silicon, not 3D printed. The biggest, most expensive 3D printed product we’ve ever made is a 5-meter bear delivered to a milk tea shop. In the workshop there are now more expensive projects, but made of silicon resin and molded composite, not 3D printing. A shipment is transported by us to customers in Phu Quoc. For bulky products, I have to pay a car rental fee. Up to now, the highest value project the company has ever implemented is a miniatures set at 1.8 billion dong. We do daily activities right at the factory. Currently the company is preparing projects for customers in the central region. I have surveyed but still have a lot of work in progress.

Established in 2017, Ut Trang Sculpture Facility (Long Dien A Commune, Cho Moi, An Giang) is a unit specializing in the production and trading of fine art carpentry items, such as cabinets, tables, chairs; at the same time processing sculptural products, wooden statues … Mr. Le Hung Suc (owner of Ut Trang Sculpture Facility) said that during the operation, the establishment faced many difficulties. In addition, many products that cannot be processed have to be done by someone else. Crafting products by hand takes a lot of time and effort, so the establishment cannot complete in time for customers … Supporting the application of advanced machinery and equipment helps industrial and handicraft establishments to improve production and business efficiency. In 2020, with the support of the Center for Industrial Promotion and Industrial Development Consulting (Department of Industry and Trade), Mr. Manh bravely invested in 1 CNC machine 2614-2z-6 (6 chisels, capacity of 2.2Kw). . The total value of products is 407 million VND, of which An Giang Industrial Promotion and Industrial Development Consultancy Center supported 200 million VND, the rest of his family contributed capital. In addition to the money support, Mr. Suc also gets technical support for equipment operation, product design on the computer … so the production is more favorable. Up to now, after a period of operation, Mr. Suc evaluated: “Compared with the manual production method, the efficiency of CNC machine sculpture has increased 4 times. The quality of the products made is uniform, meeting the needs of the establishment as well as of customers ”. With the equipment of CNC machines, Mr. Suc can engrave 3D and 4D. For 3D engraving method, products are usually: doors, pictures, calendars, wardrobes, beds … Also engraved 4D products are statues: Phuc – Loc – Tho, Maitreya Buddha, Bodhisattva , Quan Cong … Currently, Ut Trang’s products are highly appreciated in the market. In addition to Ut Trang Sculpture Facility, in 2020, the Center for Industrial Promotion and Consultancy of Industrial Development also organizes acceptance and disbursement of 15 local industrial promotion projects, with a total support cost of more than 3.1 billion VND. . These include, such as: lathe support (total budget of 209 million VND) for a project to support lathes in the production of equipment and tools for agricultural production (Chau Thanh); supporting solar dryers (VND 396 million) for the project of applying advanced machinery and equipment in the production of red artichoke tea (Thoai Son); support for pressure cookers (worth VND 190 million) for the project of applying advanced machinery and equipment to the wine production process (Chau Phu) … According to the beneficiaries’ evaluation, the application of The types of machines and equipment supported have contributed to improving production efficiency, shortened production time, quality products, meeting market demand, and higher economic efficiency. compared with traditional methods. Accompany with the facility In early 2021, the province’s industrial promotion program was active, continuing to implement policies to encourage and support production of industry – handicraft establishments. Accordingly, completed disbursement documents for 2 national industrial promotion projects in 2020 for 4 beneficiaries, with a total support budget of 1.2 billion VND. In addition, 15 local industrial promotion projects have been approved in 2021 with a total support cost of more than 3.2 billion VND. Up to the present time, has coordinated City Economic Department. Long Xuyen, Department of Economy – Infrastructure of Phu Tan and Tri Ton districts surveyed and instructed establishments and enterprises in the area to formulate projects to support industrial promotion policies from the provincial budget in 2021. In the coming time, the functional sector will continue to coordinate with the Department of Economy / Economy – Infrastructure of districts, towns and cities to survey and guide establishments and enterprises in the area to formulate policy support projects. industrial promotion from the provincial budget in 2021. From there, help establishments improve the efficiency of using natural resources, raw materials, fuels and reduce emissions, limit pollution … In addition, the functional sector also strengthened the propaganda of industrial promotion activities – consulting on industrial development and propagating new legal documents and policies related to industrial promotion on the mass media. . At the same time, implementing the project under the Program for each commune one product, supporting rural industrial establishments to meet product criteria at provincial and national level according to the roadmap …

Mr. Giap Van Huan (on the right), Chang village, Viet Tien commune, planted Thai jackfruit in a net house with an inert iron frame.

According to the Department of Agriculture and Rural Development of Viet Yen district, from 2016 up to now, the district has been supported and invested more than 24.4 billion VND to build 116 mesh houses, high-tech agricultural production (CNC) film houses, each model is 1,000 m2 wide. In which, the Provincial People’s Committee supported 12,3 billion VND to build 40 models; the district supported people and cooperatives with 12.1 billion dong to build 76 models. Thereby, 100 net houses, membrane houses in Viet Tien commune, only Minh Tam General Agricultural Cooperative (referred to as Minh Tam Cooperative) has 30 houses to be built and put into use.

Despite a large investment, after a period of operation, most of the film houses, especially net houses, are ineffective. Currently, most of the net houses are left empty and torn. Many households voluntarily dismantle the steel frame and change the crop structure, wrong for the original purpose.

After the newspaper stated, the People’s Committee of Viet Yen district instructed the District Department of Agriculture and Rural Development to coordinate with the People’s Committee of Viet Tien commune to review and inspect the reality, invite Minh Tam Cooperative and the households to change the purpose of using net houses by themselves. job.

Mr. Ngo Xuan Trung, Vice Chairman of Viet Tien Commune People’s Committee, said on April 6 and April 14, the functions of the district and the commune People’s Committee invited representatives of Minh Tam Cooperative (the unit assigned by the District People’s Committee to be in charge of net houses, diaphragm houses in the area) and 9 households using net houses against the original commitment (in two villages of Chang and Ha) to the office to clarify the reasons for conversion and production orientation.

The torn net house area of ​​Minh Tam Cooperative has yet to be repaired.

Ms. Nguyen Thi Tu, Director of Minh Tam Cooperative, said that the reason for the rapid failure of the net is that the net house is not suitable for the sub-region here. Because this area often occurs strong winds that make the net quickly torn and torn. Minh Tam Cooperative as well as other households have invested in repairing, replacing but still ineffective. Due to the loss of intensive farming of vegetables (low selling price, crop failure …), farmers and cooperatives have changed crops.

At the working sessions, the Department of Agriculture and Rural Development of Viet Yen district and the People’s Committee of Viet Tien commune requested Minh Tam Cooperative and the households to self-overcome, remove perennial trees, replant vegetables, tubers and fruits according to the original commitment. . The time to complete the remedy is before May 30, 2021.

The People’s Committee of Viet Tien commune also informs households participating in the project of building plastic houses and net houses in the area: If any household does not do this, they will be recorded in writing and sanctioned according to regulations. Households whose contracts have expired will be liquidated by the District Department of Agriculture and Rural Development and the People’s Committee of Viet Tien Commune.

Requesting Minh Tam Cooperative to remove torn, damaged nets and cover new nets before April 10; cleaning roads, canals and ditches in the net house area before April 24, 2021; directing staff to regularly check, grasp and guide member households and associate with the cooperative to grow vegetables, tubers and fruits in net houses, not to leave empty land.

Up to this point, Minh Tam Cooperative has not recovered the torn nets, covered with new nets as directed. Because according to Ms. Tu: “If we cover the net, we have to spend about 900 million dong so the cooperative doesn’t have the money to do it”. Households also reported that they do not have the budget to stretch new nets and apply for changing land use purposes because they have invested a lot of money to plant perennial trees.

Households participating in the project voluntarily converting crops for the wrong purpose were invited to the office of the People’s Committee of Viet Tien commune to work in the afternoon of April 14.

Talking about this issue, Mr. Than Van Thuan, Vice Chairman of the People’s Committee of Viet Yen district, said that the main reason leading to Minh Tam Cooperative and households participating in the net house project, the ineffective production is due to The cooperative has not yet built a preliminary processing area, cold storage for agricultural products, so the cooperative cannot sign production contracts with households and businesses (DN) for consumption.

To overcome this, the locality will soon request the Provincial People’s Committee to approve the planning of the preliminary processing zone, so that the district will have grounds to support the construction of this area. This is the basis for Minh Tam Cooperative to be eligible to sign production contracts with households and purchasing enterprises. Regarding net houses whose frame has been removed and the purpose of use changed, Mr. Thuan affirmed that he will give statistics, make records and strictly deal with it, requiring net owners to restore the status quo and grow vegetables and crops according to project. “We are determined to restore the efficiency of the greenhouse and net houses as soon as possible,” said Thuan.

The investment in building high-tech agricultural production zone is the right policy. However, the net houses and plastic houses are ineffective, some of them have changed their use purpose for a long time due to lack of management. Hopefully, local rights, cooperatives and people participating in the project will soon join hands to overcome, avoid wasting investment capital.

News, photo: Dai La