The IPO lighting will, the Commission requires the supplement

According to the SFC website 12 news, Sichuan huati lighting Polytron Technologies Inc IPO will become, since 2017, following the auroral tospo lighting, light Pu shares, overclocking three (Fujian) LED/, Tecnon lighting related enterprises sixth IPO commercial lighting after starting the application is approved.

Data show that the lighting is composed of 2004 established China Light Industry in 2012 to the establishment of the overall change of the Limited by Share Ltd, the business covers lighting design, product development, manufacturing engineering project implementation to four plates of intelligent lighting.

The LEDinside editor noticed, huati lighting in early July 3, 2015, the first disclosure of the IPO prospectus (draft report), intends to apply for listing in Shanghai, but also in March 2, 2017 pre disclosure update "IPO prospectus".

According to the latest prospectus, 2014 year, 2015 year and 2016 year, the company's operating income was 360 million 717 thousand and 900 yuan, 370 million 887 thousand and 400 yuan and 408 million 55 thousand and 400 yuan, including lighting products (including road lighting and landscape lighting products) sales revenue accounted for revenue ratio was 76.36%, 74.39% and 78.24%; net profit was 35 million 761 thousand and 400 yuan, 42 million 620 thousand yuan and 48 million 65 thousand and 600 yuan.

According to the announcement, intends to issue not more than 25 million shares, including the company's public offering of new shares and old shares public offering of shares of shareholders, the total issued share capital of 10000 shares, about 227 million yuan to raise funds for investment in city lighting system technical renovation and expansion project, research and design center, marketing network construction project construction projects and supplement working capital.

The use of funds raised

It is worth mentioning that, although the lighting first agreed, but fashenwei required to make a further explanation on several aspects.

First of all, the implementation of lighting needs of urban and Rural Management Bureau of Kaili Economic Development Zone in 2016 and Guizhou signed the contract, the relevant income confirmation and accounting treatment in compliance with the provisions of the long-term receivables are not timely and full recovery risk.

Secondly, the lighting needs further explanation: (1) the period during the reporting period, net accounts receivable is higher, and increased year by year, the turnover rate of the specific reasons for declining and rationality, whether adverse impact on performance and sustainable operation; (2) the main customer sales settlement mode and credit policy and its actual implementation. Whether there is abnormal or significant changes; (3) the accounts receivable and overdue period after recovery; (4) the existence of adjustment of accounts receivable aging situation through the third party payment offset; whether there will be the final plan to reduce external borrowing funds, accounts receivable, and rushed at the beginning of next back to the situation; (5) provision for bad debts is full, cautious.

In fact, as early as in October 2015 the media reported that the lighting should be there is doubt accounts receivable, accounts receivable increased rapidly, but the business income is slow growth or even decline in net profit.

The lighting before the disclosure of the prospectus, 2014-2016, accounts receivable were 148 million yuan, 186 million yuan, 187 million yuan, accounting for the proportion of total assets were 43.75%, 49.69%, 40.10%; the same period accounts receivable turnover rate was 2.72 times / year, 1.97 times / year, 1.91 times / year.

Third, the lighting should be further explained that the development of specific manufacturing products to the end of each reporting period the inventory of goods, whether there is a corresponding corresponding order, are unsalable products.

Fourth, the lighting needs further explanation: (1) the issuer related patents by Sichuan Tianjian mechanical equipment manufacturing Limited by Share Ltd proposed invalid application, whether the issuer business cooperation with the company, whether its effect on the recovery of accounts receivable, accounts receivable related to whether the provision for bad debts to individual; (2) in addition to the above the abnormal situation of intellectual property rights, whether there are other cancellation, termination, or by third parties filed objections to invalidation of the abnormal situation, whether there are other intellectual property disputes or litigation; (3) whether the issuer to establish and perfect the effective management of the specific regulations and internal control system of its trademark, patent, copyright etc.. Please sponsor representatives to issue verification opinions. (text /LEDinside, Nicole)

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