Before the IPO of Blue Arrow Electronics, the 60 million related parties were liquidated and receivables became bad debts.


2022-08-08: [Chinese Article Link]  "Investor Network," Jordan. Editor Wu Yiu Following the withdrawal of the previous IPO declaration, Blue Arrow Electronics Co. Ltd. (hereinafter “Blue Arrow Electronic”) in Fushan City again applied to be listed on the business board, with new developments in recent days. On 8 June, the Blue Arrow Electronics and Insurance Agency gold dollar securities responded to a second round of in-depth inquiries. At this time on the market, the company intends to release 50 million shares and raise $600 million for semiconductor encapsulation test expansion and research and development centre construction projects. In terms of performance, Blue Arrow Electronics maintained a steady growth in revenue and net profit deductions during the reporting period, 2019-2021, but higher management costs than industry averages also limited to some extent the profitability of companies, which declined by the first quarter of 2022. In 2021, the company made a significant red mark, accounting for 78 per cent of net profits in the current period, while the current asset-liability ratio also increased from 34 to 42 per cent. On the other hand, the company also had a number of transactions with its affiliated company, Fushan City Seinhai Electronics Ltd. (hereinafter “Senhai Electronics”), and in the year following the dissolution of Seinhai Electronics and the establishment of the Liquidation Group, the company continued to pay a higher amount of remuneration to key managers working in it. 60 million red hits. According to the offer book, Blue Arrow Electronics was established in 1998 and the main semiconductor encapsulation test operation provides separate devices and integrated circuit products for the semiconductor industry and downstream areas. The company's main products are triodes, diodes, field-effect tubes, and integrated circuit products such as AC-DC, DC-DC, Lithium Protection IC and LED-driven IC products. The clients of the services include HNN (688396.SH), HN (688368.SH), U.S. Group (000333) (000333.SZ), GW (000651 (000651.SZ), Samsung Electronic, etc. The equity structure of the company is fragmented, with the ownership of 21.11 per cent, 13.14 per cent and 10.07 per cent of the shares held separately by the controlling king, Chen Cham Lwin and Zhang Sun. After the issuance of the stock, the total share voting power of the three above-mentioned persons was 33.24 per cent. In terms of performance, during the reporting period, the company collected $490 million, $570 million and $740 million, respectively, with net profits of 27,700,000 Yuan, 43250,000 Yuan and 7209 million Yuan, all growing steadily, although in terms of profitability, there is scope for a breakthrough for the company in comparison with its peers. During the reporting period, the Māori ratio of the company's main business was 19.86 per cent, 19.97 per cent and 23.11 per cent respectively, which compares with the industry average for listed companies of 18.2 per cent, 21.8 per cent, 27.9 per cent and widening the gap with counterparts in 2021. However, the dismantling of their profit schedules found that the company's management costs and R & D costs increased more noticeably in 2021. During the reporting period, the management costs of the company increased by 18 per cent in 2020 and 57 per cent in 2021, respectively, by 2011000Yuan, 2364000Yuan and 37 millionYuan. In respect of the significant increase in management costs in 2021, the company explained in the offer the increase in employee remuneration and confirmed that it was due to the withdrawal of IPO costs associated with the previous IPO declaration. By comparison, however, companies have been at a slightly higher level of this cost over the years: in the reporting period, their management rates were 4.11 per cent, 4.14 per cent and 5.03 per cent respectively, compared to the industry averages for listed companies of 3.96 per cent, 3.85 per cent and 3.8 per cent, respectively. In terms of R & D costs, the company increased by 0.3 per cent in 2020 and 30 per cent in 2021 by 27.680 million Yuan, 27.750 million Yuan and 3.6070 million Yuan, respectively, during the reporting period. In terms of cost structure, the company's significant increase in R & D costs in 2021 can be said to have been attributed mainly to an increase in R & D personnel and an increase in remuneration, which in 2021 grew by 45 to 180 R & D staff and by 7610,000 to 20170,000 Yuan. By comparison, in 2021 alone, the proportion of blue arrows in electronics was 4.9 per cent, compared to the average of 5.12 per cent for companies such as China Tech (002185.SZ), micro and micro power (002156.SZ) and microscopic (300671.SZ), respectively. Integrated circuits are typical capital, technology and human-intensive industries, with large equipment and R & D costs and a constant investment in large amounts of capital and manpower to achieve economies of scale. The company’s relatively low R & D investment appears to require more effort in raising technical barriers. According to the offer book, the company’s current revenue is still dominated by traditional envelopes, which by 2021 accounted for only 14% of the revenue. Also, in response to the second round of audit queries, the firm's continued growth in performance did not last until 2022, with no gains. In January-March 2022, the company collected $156 million, a 0.12 per cent increase in the same year and a 38 per cent decrease in non-net profit of 9928,200 Yuan, a 0.21 per cent to 8.09 per cent increase in the year-on-year revenue of January-June 2022 and a 15.73 per cent to 0.35 per cent decrease in the year-on-year deduction of non-net profit. It is worth noting that in the years prior to the fall in net profit, 2021, the company made a cash split of 60,000,000 Yuan, or 78 per cent of net profit, with a red share of 1950 000 Yuan and 0Yuan in 2019 and 2020, respectively. After the completion of the 2021 split, the net operating cash flow did not decrease from the previous year, but the asset-liability ratio increased.In 2019-2021, the net operating cash flow of companies was $115 million, 5098 million Yuan, 4764 million Yuan, and the asset-liability ratios were 39.59 per cent, 33.91 per cent and 42.29 per cent, respectively. Still paying high salaries after the liquidation of the parties involved? In addition, there are a number of problems that need to be explained in relation to related transactions, as can be seen from the information disclosed in the offer. According to the certificates, in 2019 and 2020, the company and Seinhai Electronics had separate transactions of 1880,000 Yuan and 200000 Yuan, with plastic seals. According to the information, Seinhai Electronic was established in July 2007 to mainly produce and sell semiconductor envelopes and their related products. It was originally a holding subsidiary of Blue Arrow Electronics, and in December 2015, the company lost control of Seinhai Electronics after transferring 55 per cent of its shareholdings to Jiangsu-Yung-seong New Materials Co. Ltd. (hereinafter “Gangsu-chung-chung-chung”). On August 20, 2020, Seinhai Electronics convened a shareholder meeting to agree to dissolve the company and set up a liquidation team. As at the date of signing of the statement, Blue Arrow held 35% of Seinhai Electronics shares, and its liquidation is under way. With regard to the two related transactions and the transactions of 7 million Yuan, the company did not disclose the volume of the transactions and the transaction price, nor did it clearly disclose the specific business situation in Seinhai, but merely stated in the offer of shares that it was not doing well and that it was losing a long-term loss, so that it was not possible for the outside world to make a reasonable judgement as to whether the transactions and transactions were fair and commercially reasonable. In the case of this transaction, the company expected that Seinhai Electronics would not be able to repay the loan and had already prepared the other receivables for the full amount of bad debts. In addition, the company had a number of other issues to discuss. In 2015, Jiangsu received 55 per cent of the share in Seinhai Electronics, while in the third quarter of 2015, the company was found to be operating at a loss of 897000 Yuan, with 62 per cent of the asset liability at the same time and a negative net operating cash flow for two consecutive years. In this case, what is the transfer price of 55 per cent of the share in Seinhai Electronics? At present, Jiangsu has been shown to be operating abnormally. In 2019 and 2021, the company paid 4280,000 Yuan, 5470,000 Yuan, 7630,000 Yuan to key managers in Seinhai, while Seinhai had established a liquidation team in 2020, and why did the company increase the amount paid to key managers in 2021? According to the company, the company's secretary, Zhang Guoqiang, has been a director of Seinhai Electronics since 2016 and withdrew in June 2020, when Liu Liu, one of the company's initiators and holder of 0.15 per cent of the shares, entered Seinhai Electronics to serve as a new director. (Responsible Editr: Zhou Wenkay)


Note: This is a machine translated version of the Chinese news media article. A mature and nuanced reading is suggested.




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Before the IPO of Blue Arrow Electronics, the 60 million related parties were liquidated and receivables became bad debts.


2022-08-08: [Article Link]  "Investor Network," Jordan. Editor Wu Yiu Following the withdrawal of the previous IPO declaration, Blue Arrow Electronics Co. Ltd. (hereinafter “Blue Arrow Electronic”) in Fushan City again applied to be listed on the business board, with new developments in recent days. On 8 June, the Blue Arrow Electronics and Insurance Agency gold dollar securities responded to a second round of in-depth inquiries. At this time on the market, the company intends to release 50 million shares and raise $600 million for semiconductor encapsulation test expansion and research and development centre construction projects. In terms of performance, Blue Arrow Electronics maintained a steady growth in revenue and net profit deductions during the reporting period, 2019-2021, but higher management costs than industry averages also limited to some extent the profitability of companies, which declined by the first quarter of 2022. In 2021, the company made a significant red mark, accounting for 78 per cent of net profits in the current period, while the current asset-liability ratio also increased from 34 to 42 per cent. On the other hand, the company also had a number of transactions with its affiliated company, Fushan City Seinhai Electronics Ltd. (hereinafter “Senhai Electronics”), and in the year following the dissolution of Seinhai Electronics and the establishment of the Liquidation Group, the company continued to pay a higher amount of remuneration to key managers working in it. 60 million red hits. According to the offer book, Blue Arrow Electronics was established in 1998 and the main semiconductor encapsulation test operation provides separate devices and integrated circuit products for the semiconductor industry and downstream areas. The company's main products are triodes, diodes, field-effect tubes, and integrated circuit products such as AC-DC, DC-DC, Lithium Protection IC and LED-driven IC products. The clients of the services include HNN (688396.SH), HN (688368.SH), U.S. Group (000333) (000333.SZ), GW (000651 (000651.SZ), Samsung Electronic, etc. The equity structure of the company is fragmented, with the ownership of 21.11 per cent, 13.14 per cent and 10.07 per cent of the shares held separately by the controlling king, Chen Cham Lwin and Zhang Sun. After the issuance of the stock, the total share voting power of the three above-mentioned persons was 33.24 per cent. In terms of performance, during the reporting period, the company collected $490 million, $570 million and $740 million, respectively, with net profits of 27,700,000 Yuan, 43250,000 Yuan and 7209 million Yuan, all growing steadily, although in terms of profitability, there is scope for a breakthrough for the company in comparison with its peers. During the reporting period, the Māori ratio of the company's main business was 19.86 per cent, 19.97 per cent and 23.11 per cent respectively, which compares with the industry average for listed companies of 18.2 per cent, 21.8 per cent, 27.9 per cent and widening the gap with counterparts in 2021. However, the dismantling of their profit schedules found that the company's management costs and R & D costs increased more noticeably in 2021. During the reporting period, the management costs of the company increased by 18 per cent in 2020 and 57 per cent in 2021, respectively, by 2011000Yuan, 2364000Yuan and 37 millionYuan. In respect of the significant increase in management costs in 2021, the company explained in the offer the increase in employee remuneration and confirmed that it was due to the withdrawal of IPO costs associated with the previous IPO declaration. By comparison, however, companies have been at a slightly higher level of this cost over the years: in the reporting period, their management rates were 4.11 per cent, 4.14 per cent and 5.03 per cent respectively, compared to the industry averages for listed companies of 3.96 per cent, 3.85 per cent and 3.8 per cent, respectively. In terms of R & D costs, the company increased by 0.3 per cent in 2020 and 30 per cent in 2021 by 27.680 million Yuan, 27.750 million Yuan and 3.6070 million Yuan, respectively, during the reporting period. In terms of cost structure, the company's significant increase in R & D costs in 2021 can be said to have been attributed mainly to an increase in R & D personnel and an increase in remuneration, which in 2021 grew by 45 to 180 R & D staff and by 7610,000 to 20170,000 Yuan. By comparison, in 2021 alone, the proportion of blue arrows in electronics was 4.9 per cent, compared to the average of 5.12 per cent for companies such as China Tech (002185.SZ), micro and micro power (002156.SZ) and microscopic (300671.SZ), respectively. Integrated circuits are typical capital, technology and human-intensive industries, with large equipment and R & D costs and a constant investment in large amounts of capital and manpower to achieve economies of scale. The company’s relatively low R & D investment appears to require more effort in raising technical barriers. According to the offer book, the company’s current revenue is still dominated by traditional envelopes, which by 2021 accounted for only 14% of the revenue. Also, in response to the second round of audit queries, the firm's continued growth in performance did not last until 2022, with no gains. In January-March 2022, the company collected $156 million, a 0.12 per cent increase in the same year and a 38 per cent decrease in non-net profit of 9928,200 Yuan, a 0.21 per cent to 8.09 per cent increase in the year-on-year revenue of January-June 2022 and a 15.73 per cent to 0.35 per cent decrease in the year-on-year deduction of non-net profit. It is worth noting that in the years prior to the fall in net profit, 2021, the company made a cash split of 60,000,000 Yuan, or 78 per cent of net profit, with a red share of 1950 000 Yuan and 0Yuan in 2019 and 2020, respectively. After the completion of the 2021 split, the net operating cash flow did not decrease from the previous year, but the asset-liability ratio increased.In 2019-2021, the net operating cash flow of companies was $115 million, 5098 million Yuan, 4764 million Yuan, and the asset-liability ratios were 39.59 per cent, 33.91 per cent and 42.29 per cent, respectively. Still paying high salaries after the liquidation of the parties involved? In addition, there are a number of problems that need to be explained in relation to related transactions, as can be seen from the information disclosed in the offer. According to the certificates, in 2019 and 2020, the company and Seinhai Electronics had separate transactions of 1880,000 Yuan and 200000 Yuan, with plastic seals. According to the information, Seinhai Electronic was established in July 2007 to mainly produce and sell semiconductor envelopes and their related products. It was originally a holding subsidiary of Blue Arrow Electronics, and in December 2015, the company lost control of Seinhai Electronics after transferring 55 per cent of its shareholdings to Jiangsu-Yung-seong New Materials Co. Ltd. (hereinafter “Gangsu-chung-chung-chung”). On August 20, 2020, Seinhai Electronics convened a shareholder meeting to agree to dissolve the company and set up a liquidation team. As at the date of signing of the statement, Blue Arrow held 35% of Seinhai Electronics shares, and its liquidation is under way. With regard to the two related transactions and the transactions of 7 million Yuan, the company did not disclose the volume of the transactions and the transaction price, nor did it clearly disclose the specific business situation in Seinhai, but merely stated in the offer of shares that it was not doing well and that it was losing a long-term loss, so that it was not possible for the outside world to make a reasonable judgement as to whether the transactions and transactions were fair and commercially reasonable. In the case of this transaction, the company expected that Seinhai Electronics would not be able to repay the loan and had already prepared the other receivables for the full amount of bad debts. In addition, the company had a number of other issues to discuss. In 2015, Jiangsu received 55 per cent of the share in Seinhai Electronics, while in the third quarter of 2015, the company was found to be operating at a loss of 897000 Yuan, with 62 per cent of the asset liability at the same time and a negative net operating cash flow for two consecutive years. In this case, what is the transfer price of 55 per cent of the share in Seinhai Electronics? At present, Jiangsu has been shown to be operating abnormally. In 2019 and 2021, the company paid 4280,000 Yuan, 5470,000 Yuan, 7630,000 Yuan to key managers in Seinhai, while Seinhai had established a liquidation team in 2020, and why did the company increase the amount paid to key managers in 2021? According to the company, the company's secretary, Zhang Guoqiang, has been a director of Seinhai Electronics since 2016 and withdrew in June 2020, when Liu Liu, one of the company's initiators and holder of 0.15 per cent of the shares, entered Seinhai Electronics to serve as a new director. (Responsible Editr: Zhou Wenkay)

Note: This is a translated version of the Chinese news media article. A mature and nuanced reading is suggested.

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