Economic Observation Network reporter Li HuaqingOn July 1, ShenkangjiaA (000016.SZ) issued an announcement on the progress of the transfer of some patents related to cloud big data operations, saying that it has recently completed the transfer registration of 68 patent rights, and the rights holders of the relevant patents have been transferred. It is Shenzhen Konka Holding Group Co., Ltd. (hereinafter referred to as "Konka Company").
Kangkong Company is a related party of Shen Konka , and Kangkong Company is 100% held by OCT Group Co., Ltd., the controlling shareholder of Shen Konka .
According to the information disclosed by Shen Konka , the price of the above 68 patents is 98.6 million yuan. Shen Konka stated that the disposal of intangible assets is to revitalize the stock assets and optimize the asset structure, which will have a positive impact on the company's financial status and production and operation.
Judging from the statement in the announcement, this fund income is very important to the current Shen Konka . In fact, Shen Konka is no stranger to the action of transferring assets to Kangkong to obtain cash income.
On June 6, Shen Konka A announced that it would transfer 34% of the equity held by Nanjing Kangxing Technology Industrial Park Operation Management Co., Ltd. (hereinafter referred to as "Nanjing Kangxing") to Kangkong Company at a price of 470 million yuan. In addition, the announcement information also shows that Shen Konka has lent about 181 million yuan to Nanjing Kangxing. After no longer holding the equity of Nanjing Kangxing, Shen Konka will recover the loan and interest.
On June 30, Shen Konka A announced that the company had recently completed the industrial and commercial change registration of Nanjing Kangxing Company, and had received the equity transfer payment as well as the entire loan principal and interest of Nanjing Kangxing Company according to the agreement. .
Behind the frequent disposal of assets to related parties, Shen Konka is facing considerable financial pressure.
Financial pressure
Under the epidemic situation, Shen Konka The performance in the first quarter was not satisfactory. Shen Konka A’s first quarterly report for 2020 shows that the revenue was 7.806 billion yuan, a year-on-year decrease of 27.53%, and the net profit attributable to listed companies was -220 million yuan, a year-on-year decrease of 357.81%; the net operating cash flow was -1.031 billion yuan, A year-on-year decrease of 90.17%.
Shen Konka said that due to the impact of the new crown epidemic, the company’s factory operating rate was insufficient after the Spring Festival, labor costs increased, logistics was hindered, coupled with declining market demand and fierce market competition, it was difficult to reduce fixed cost expenditures in a short period of time. There is a loss.
As of March 31, Shen Konka had current liabilities of 22.637 billion yuan, close to the current assets of 27.209 billion yuan.
deep konka trying to find money. On June 6, Shen Konka A announced the plan for non-public issuance of corporate bonds. The total face value of the proposed non-public issuance of corporate bonds will not exceed 2.3 billion yuan.
also has times when raising money gets stuck. On May 23, Shen Konka A announced the termination of the non-public offering of A shares. This action, Shen Konka has been preparing for a year. In March 2019, the board of directors reviewed the relevant proposals for the non-public issuance of A shares. In May 2019, the shareholders meeting deliberated and passed the relevant proposals and submitted them to the China Securities Regulatory Commission for review. During the review period of the China Securities Regulatory Commission, the intermediary service agency hired by Shen Konka was suspected of breaking the law in other audit projects and was investigated by the China Securities Regulatory Commission. The review of Shen Konka non-public offering of stocks was forced to suspend. In July 2019, Shen Konka applied to the China Securities Regulatory Commission for resumption of review. In September 2019, the China Securities Regulatory Commission passed the review. Unfortunately, in February 2020, the China Securities Regulatory Commission decided to revise the implementation rules for non-public offerings of listed companies. After Shen Konka considered it, he gave up on his own and suspended the non-public offering of stocks.
If the above-mentioned non-public offering of shares goes well, Shen Konka can raise funds of 3 billion yuan.
Under the above background, it is not difficult to understand that Shen Konka transferred assets to related parties in exchange for cash. On July 1, a reporter from Economic Observer.com interviewed Shen Konka and asked about the frequency of use of the transferred 68 patents and the current impact on the company, but there was no reply as of press time. If deep Konka will need to be used in the futureIt is estimated that it is not difficult to obtain the authorization of the related party Kangkong Company.
As for Nanjing Kangxing, Nanjing Kangxing is mainly responsible for investing in the construction of a real estate complex in Jiangbei New District, Nanjing, Jiangsu. This real estate project plans to build high-rise residences, apartments, office buildings, five-star hotels, commercial complexes, street businesses and supporting facilities. Nanjing Kangxing makes profits by developing and selling the above-mentioned real estate projects.
Nanjing Kangxing is currently in a state of only investment expenditures and no revenue. The net operating cash flow in 2019 was -1.845 billion yuan, and the net operating cash flow from January to April 2020 was -1.19 billion yuan. Shen Konka ’s own net operating cash flow has been negative for a long time (-1.031 billion yuan in the first quarter of 2020, and -1.544 billion yuan in 2019), so there is no need to hold on to the current "unable to produce milk but need "grazing" Nanjing Kangxing. While
selling assets, Shen Konka also received income from government subsidies. On July 1, Shen Konka announced that its holding subsidiary Chongqing Konka Optoelectronics Technology Research Institute Co., Ltd. recently received a subsidy of 130 million yuan in industrial development funds. The 130 million yuan of government subsidies will be fully included in the current period in 2020 profit and loss.
Business Transformation
Judging from the names of the 68 patents that have been transferred, most of the transferred patents are related to TV products. On July 1, a reporter from Economic Observer.com asked Shen Konka whether this meant that the company was shrinking its color TV business. As of press time, no reply had been received.
Liu Buchen, an analyst in the home appliance industry, told a reporter from Economic Observer.com that Konka TV is currently ranked fifth among domestic brands, and Konka TV is actively deploying the next-generation display technology Micro LED. Looking at it, Konka's identity as a "color TV company" is weakening. After several years of efforts in white goods, , environmental protection, and new materials businesses, initial results have been achieved.
Shen Konka 's current business is quite complicated. Shen Konka A's 2019 annual report shows that the company is mainly engaged in consumer electronics, industry and trade, environmental protection and semiconductor businesses. Among them, consumer electronics business includes multimedia business, white goods business and mobile phone business. Multimedia business refers to color TV business and color TV-based products. The Internet business and white goods business provided include refrigerators, air conditioners, freezers, washing machines, etc.
Industry and trade business refers to the procurement, processing and distribution of IC chip storage, LCD screen and other materials involved in Shenkonka 's traditional business. Shen Konka said that this business allows the company to establish cooperative relations with upstream and downstream companies, and can also grasp material prices in a timely manner, which is conducive to cost control. The revenue of the industry and trade business can account for about 60% of the total revenue of Shen Konka , but unfortunately, this business has no technical content, and the gross profit rate is as low as about 1.1%.
In 2019, the gross profit margin of Shen Konka’s color TV business is not high, only 8.67%. The revenue and gross profit margin of this product suffered a double kill in 2019, with revenue falling by 11.39% and gross profit margin falling by 3.49%.
In fact, not only deep Konka 's color TV business is sluggish, but the color TV industry as a whole is not doing well. According to data from Aoweiyun.com and China Business Industry Research Institute, the annual retail volume of China's color TV market in 2019 was 47.72 million units, a year-on-year decrease of 2.0%, retail sales were 134 billion yuan, a year-on-year decrease of 11.2%, and the industry average price was 2809 yuan, a record high. Lowest in ten years. The decline of
color TV single product is not difficult to understand. Due to the development of the Internet, the terminals for watching TV have diversified. Watching TV on mobile phones, computers, tablets and other terminals is more convenient than using a TV set in the living room. Color TV users Viscosity drops rapidly and transformation is necessary.
If Shen Konka still bets on the industry and trade business, which accounts for a high proportion of revenue but has a low gross profit margin, and the color TV business, which is undergoing tremendous changes in the industry, it is obviously risky.
Shen Konka is undergoing transformation. In recent years, the proportion of color TV product revenue in Shen Konka ’s total revenue has been declining. In 2018, the proportion of total revenue was 21.45%, and in 2019 it dropped to 15.9%.
Shen Konka has set a strategy of "technology + industry + park" for itself, and the core line is "semiconductor + new consumer electronics + technology park". Technology-intensive semiconductor industryThe business is considered by Shen Konka as the core technology and core competitiveness of the company. This business can be applied to terminals such as color TVs and mobile phones, and can also be expanded to industrial parks.
"In 2020, the company will focus on promoting the expansion of the company's business to the upstream core areas of the electronics industry. On the one hand, the company will strengthen product research and development and core technology innovation, and actively carry out industrial transformation of new technologies to empower the industry; On the one hand, the company will strengthen the breakthrough and creation of core areas, key links and original technologies, focus on technology research and development around key links such as Micro LED and semiconductors, and promote Konka Technology’s transformation of Konka Electronics into an innovation-driven new industry operation platform .” Shen Konka said in the 2019 annual report.
Shen Konka expands to the upstream of the electronics industry, and conducts technology research and development around Micro LED and semiconductor links. The final results will be tested by time.