Overseas sales revenue accounts for nearly 100% of Jiajing Health declaration listing new three boards

After terminating the IPO counseling, Nantong Jiajing Health Technology Co., Ltd. (hereinafter referred to as Jiajing Health) switched to the basic layer of the listing of the New Third Board, and recently received the first feedback from the listing review department.

The main business of Jiajing Health is the research and development, production, and sales of spa (SPA) equipment. In 2020 and 2021, operating income was 260 million yuan and 397 million yuan, respectively, and realized net profit of 83.854 million yuan and 99.77 million yuan, respectively.

Although the performance increased, the company's overseas revenue accounted for a high proportion. In 2020 and 2021, Jiajing Health's overseas sales revenue accounted for 99.92%and 99.79%of operating income.

Relatively speaking, the difficulty and risks of overseas customers are more difficult. "Daily Economic News" reporter noticed that Jiajing Health listed "insufficient domestic market development" as one of the competitive disadvantages within the public transfer manual (declaration draft). It is necessary to further optimize the domestic market's business layout and increase the domestic market share.

Company customer concentration is high

The main products of Jiajing Health are hydraulic massage pools (SPA) and Swimming SPA. The main customers are spa equipment brand operators in the Netherlands, New Zealand, Britain and other countries.

While overseas revenue accounts for nearly 100%, the concentration of Jiajing Health customers is also high. In 2020 and 2021, the total sales of the top five customers accounted for 96.73%and 95.33%of operating income, and the lists and sorting of the top five customers changed. Due to the increased demand for the end market, these customers have increased their procurement in 2021, making the company's sales increase significantly in 2021.

Obviously, the stability and sustainability of major overseas customers have a greater impact on the production and operation of good scenery. "If overseas customers have reduced orders, legal disputes, etc., or other reasons, the good cooperation between the company and overseas customers cannot continue, which will cause the company's product sales revenue Essence

In this regard, the listing review department requires Jiajing health supplementation instructions that the market position, share, competitors, sales channels, terminal customers of major foreign customers in their country; Reasonableness; combined with hand orders, post -period business data, customer expansion, future business planning, etc., further illustrates the sustainability of the company's performance.

Regarding the domestic market, Jiajing Health said that because the company's early market development focuses on the international market, the development of the domestic market is insufficient. In response to the response measures such as "high overseas sales" and "high customer concentration", Jiajing Health has proposed the corresponding plan, which will further increase the market development of the market, especially the domestic market, and increase the corresponding proportion of domestic sales. However, if the company's domestic market development is not expected, it will adversely affect the company's future operating performance.

It is worth noting that although the company's performance increased in 2021, the gross profit margin declined, from 41.57%in 2020 to 36.34%in 2021. The main reasons include rising raw material prices, and the use of factory buildings in the Western Factory District, which leads to an increase in depreciation.

"Daily Economic News" reporter noticed that Jiajing Health's income increased significantly in 2021. The main factors were the increase in sales of the main products, and the unit price of product sales did not change significantly. In 2021, the average unit price of the company's bathtub products increased by 1.09%, and the average unit price of swimming pool products decreased by 0.82%. Jiajing Health reminds that if the future epidemic continues to spread and the rise in raw material prices continues to intensify, the company's failure to pass the cost of selling sales prices, then the company's future performance may decline.

In this regard, the listing review department asked the company to supplement the instructions of the company's raw material costs and freight in 2021, and the rationality of the unit price did not increase accordingly, and further refined the principle of pricing.

After two years of IPO counseling

Prior to the listing of the New Third Board, Jiajing Health had conducted two years of IPO counseling. "Daily Economic News" reporter saw on the official website of the Jiangsu Securities Regulatory Bureau that in August 2019, Jiajing Health and Jianghai Securities Co., Ltd. (hereinafter referred to as Jianghai Securities) signed a listing counseling agreement and registered for counseling. By August 2021 , Reported 8 -phase counseling work report. Jiang Hai Securities stated in the eighth phase of counseling report that the main problems of Jiajing Health are "high concentrations of company customers", and the corresponding solutions are disclosed.

In September 2021, Jiang Hai Securities issued an application report on the termination of the listing counseling of Jiajing Health. Jiajing Health was based on its own development goals and plans, and adjusted the original IPO listing plan. After friendly negotiation, the two parties planned to terminate listing counseling.

However, Jiajing Health Previous Jiajing Co., Ltd. and the actual controller of the company and the company's actual controllers, and Luo Qiuyu had signed a gambling agreement on the condition of the company's IPO. In April 2019, Jiajing Co., Ltd. introduced three external natural person shareholders of Liang Tiemin, Zhao Jianguang, and Yang Chaoqun in the third capital increase process. The capital increase price was 2.10 yuan per registered capital per 1 yuan. The parties signed a supplementary agreement in the process of capital increase and expansion, stipulating that from the capital increase until December 31, 2021. If the company fails to obtain the public issuance approval of the Securities Regulatory Commission, the above -mentioned external natural person shareholders have the right to unilaterally unilateral He asked to go forward and Luo Qiuzhen to acquire his shares. In August 2021, due to strategic adjustments, Jiajing Health determined to terminate the IPO. After negotiations by all parties, the shares of the company held by the three natural person shareholders were transferred from the company, and the transfer price was 2.33 yuan/share. At this point, three natural person shareholders withdrew. At present, the couple of Luo Qian and Luo Qiuzhen directly hold 95%of the good health health, and indirectly hold a 5%of the shareholders through a partnership, and are in an absolute controlling position.

Regarding the relevant matters related to the listing of the New Third Board, on the morning of June 16, 2022, the reporter of "Daily Economic News" called Jiajing's health and sent an interview email, but as of the time, no reply was received.

Daily Economic News

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