PV pure clean listed future haze

Polaris solar PV net news: gem impact of Shanghai to pure clean systems technology Corporation (hereinafter “the pure and clean”) was finally released in 2017. However, the company involved in the PV industry has become a drag on, many investors raised concerns. And since 2013, revenue and net profit decline year by year, in this case, listing prospects investors can not see. Reporters recently to contact companies ask questions about gives some simple answers.


Pure clean mainly electronic, biomedical and food and beverage industries to provide high purity process systems solutions. According to its prospectus, the company’s business areas industry, no other company as a reference. But pure and clean performance in recent years and has shown a new industry the rapid momentum. From 2013 to 2015, revenue growth of the company,-25.2%, and 2.8% respectively, net profit was 24.94 million Yuan, 26.26 million Yuan, 17.69 million Yuan, respectively, and 0.7%, sharp decline in 2015 or 32.5%.

The reason is, this company has investments in PV industry brought about by the “side effects” has a lot to do with it.

In 2011, the pure clean chased was popular then was the fire of the PV industry, revenues are also concentrated in the photovoltaic field, proportion of total revenue reached 84%. Due to the photovoltaic industry at investment demand, the company has made a breakthrough growth, 91% growth in revenue that year, and net profits of 62%.

However, the same person, baiyexiaohe, once-popular pure clean the PV industry to fast-growing, but with the excess capacity of the photovoltaic industry and industrial crisis, pure and clean performance also came to a standstill.

Photovoltaic industry with the first quarter of 2011 after being hit “subsidy policy”, “the European debt crisis”, “United States countervailing investigations” and other unfavorable factors, photovoltaic industry devastated, for PV companies suffered different degrees of decreased sales, cash-strapped, pure and clean is not immune. While its adjusted to customer focus, but still serious reversal in 2012, 1.8% decline in operating income, net profit fell by 30%.

Even if companies begin in 2012 to adjust Customer Center, but a “bitter pill” to influence pure clean now. Company’s accounts receivable and bad debt provision for soaring, first half of 2013 to 2016, the company the carrying amount of the receivable reach 161 million Yuan, 169 million Yuan and 185 million Yuan and 221 million Yuan, accounting for, respectively, of the total assets of up to 38%, 40%, 37%, 42%. Bad debt provision were 27.51 million Yuan, 35.27 million Yuan, 49.03 million Yuan, 49.01 million Yuan. Pure clean has been carrying these assets up to 40% of the “burden”, it is inevitable for the future development of large “drag”.

And, in light of the present circumstances, these very little chance to recover payment, arrears customers are in a State of bankruptcy or out of business. Former giant photovoltaic sinovideo LDK in 2011, is the largest customer of pure clean, when the LDK LDK lost $600 million in 2012 and a $1 billion loss, and now stands on the brink of bankruptcy. 3 of the top 5 customers are for the production of solar products.

In this regard, pure and clean in reply said in an interview, “Although the country introduced a number of PV industry support measures, but PV full recovery will take time, the financial tensions may continue to exist for some time, the future receivables recovery remains uncertain. If a large number of receivables is not possible, causing significant losses to the company, or even see a decline in performance over 50%. ”

High inventory

In the photovoltaic industry suffered from “hit”, the pure clean start adjusting business. Starting in 2013, to pure clean pharmaceutical client revenue growth in 2015, medicine and medical equipment revenues of around 90 million, accounting for total revenue of 50%. PV type of customer revenues plunged to 8.8%. However, even if forced to make adjustments and restructuring, but the company’s performance is not much better, 32% drop in net profit in 2015. In this regard, the company said in its prospectus, “company business dispersed in downstream industries such as pharmaceutical, photovoltaic, LED, semiconductor, downstream industries invest in cyclical fluctuations and climate change will have on the company’s market demand, sales profit and sales back to the direct influence, leading to performance fluctuations. Although the company’s business is spread over multiple downstream industries, but if the overall decline in future major downstream industries or major adverse change, companies will still be a direct negative impact. ”

In downstream industries, relatively strong passive a lot, the high proportion of inventory to current assets of the company. Late late 2013 to 2016, the carrying value of inventories was 71.94 million Yuan, 56.45 million Yuan, 98.24 million Yuan, the proportion of total current assets are 26.6%, 23.7%, 27.6%. Product difficult to sell performance naturally without much improvement.

But for these stocks, the company also remained relatively optimistic point of view, in response, said “these inventories mainly in order to prepare stock or has begun to customize production and higher gross profit margins of the order, there is no expected losses. Therefore, no provision for inventory write-down. “However, there are still many investors believe that, due to the fulfilment of the order there are large uncertainties, impairment of inventories are still possible. And the company’s business growth industry, industry data are lacking, disclosure of information is also not very transparent.

Ownership concentration risk unknown

In addition, pure clean equity focus. Company’s controlling shareholders are Jiang Yuan, Lu Longying, both for the mother-child relationship. Among them, Jiang Yuan holds 48.72% shares in the company, Jiang Yuan’s mother Lu Longying holds 17.86% shares in the company, while Lu Longying’s nephew Lu Lei as the company’s financial director.

In this regard, the company responded by saying: “in order to prevent control of the concentration of risk, companies have set up include the general meeting of shareholders, Board of Directors, Board of supervisors rules and complete, independent director system corporate governance system, and Dong, supervisors also make necessary arrangements. At the general meeting of shareholders, the company has introduced a new investment, new industry investment fund of two professional bodies for Vico, in finance, has a wealth of experience in supervision, management of business. ”

However, whether these measures can play in the company’s business, results, still needs further observation. At present, the company just listed, and with large accounts receivable and potential bad debts, and future performance of the company will support share prices, bring greater benefit to investors there is a great deal of uncertainty.

Original title: quagmire of listed shares sink enough PV were forced to transition to a pure clean market Outlook is clouded haze

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