For Shenzhen Ocean King Lighting Technology Co., Ltd., which is twice the gross margin of the industry average, there is no reason for competitors to call. After the reporter's investigation, it was found that behind the company's glamorous gross profit margin data, it was a false high product price, high sales expenses (rebate) and unusually low procurement costs.
The opponent is calling for high profit and can't understand
The 17-year-old is the flower season, but according to the life expectancy of Chinese companies, it is the "old man" in the standard-standard company. The Ocean King, who is engaged in the production and sales of special environmental lighting equipment, is an example of this. The company's IPO plan is listed on the Shenzhen Stock Exchange, issuing 50 million shares.
The qualifications in the Ocean King market are very old. From 2008 to 2010, its sales and market share ranked fourth, second only to international manufacturers such as Philips, Cooper and Osram, ranking first among many domestic manufacturers. .
"The price of their products is high, and the sales staff is also very hard." When asked about the impression of the ocean king, a lighting product agent in Hangzhou told reporters.
How about the profitability of the Ocean King who takes the "high-end" route?
According to the prospectus, in 2009, 2010 and 2011, Ocean King's gross profit margin was 69.85%, 70.72% and 70.48% respectively. Among the listed companies in the A-share industry, the gross profit margin of Sunlight's special lamps in 2011 was only 23.52%. Zhao Fanghua, representative of Sunshine Lighting Securities, told the reporter: "Our special lamps are mainly used for mining lamps in factories and mine production areas." The special environmental lighting equipment produced by Ocean King is used in electric power, metallurgy and other industries.
"We mainly produce common lamps, special lamps and special environment lighting equipment have a certain overlap, but not exactly the same." Zhao Fanghua said frankly, "even with 70% gross profit margin, the net interest rate should not be too high." Seen in Zhao Fanghua Come, only the new varieties of lamps developed for small-scale customers will be sold at a higher price. However, as the production volume increases, the variety of lamps returns to normalization, and the price will return to normal. Therefore, the gross profit margin of each lighting company will not be too large.
This high gross margin also "smashes" other listed companies. The average gross profit margin of A-share companies such as Qinshang Optoelectronics, Snowlight, and Foshan Lighting is only about 25%. Foshan Lighting and Securities Department staff also said that 70% of the gross profit margin may be "catty": "Our competitors are mainly Philips, Cooper, Osram, NVC, etc. I don't know Ocean King. Their gross profit margin is high. It is estimated that the sales method is different, or they put the cost into the period."
Revised gross margin
“There is no such thing as the technology and product performance of the lighting products.†The above-mentioned lighting agents speculate that the high gross profit margin may be due to the gray during the sales process. Excessive spending, such as a large percentage of rebates.
What is interesting is that when Ocean King explained the high gross profit margin, he “innovated†the “corrected gross profit margin†argument and practice: “In order to eliminate the influence of the difference in sales model, the company calculated the revised gross profit margin, and compared it with the sales of each company. Differences in profit, revised gross margin = (business income - operating costs - sales expenses) / operating income."
The reporter noted that after the amendment, Ocean King's gross profit margin in 2011 was 28.14%, basically returning to normal level.
"This high gross profit margin will definitely attract attention when it is reviewed. The company wants to explain this reason, and probably hopes to pass the 'interrogation' of the regulatory layer." Haitong Securities, a senior insurance company.
Can such a statement really justify it? The company's accounting data for the last three years show that the sales expenses in 2009, 2010 and 2011 were 42.034 million yuan, 49957.27 million yuan and 56011.26 million yuan respectively, accounting for 43.42%, 42.11% and 42.35% of the revenue of the year. The sales expenses mainly include the salary, commission and welfare of the sales staff, travel expenses, marketing expenses, rent and water management fees and transportation and miscellaneous fees. Among similar listed companies, Qinshang Optoelectronics' sales expenses accounted for 5.8% of the sales revenue last year, and Foshan Lighting's 2011 sales expenses accounted for 4.6% of the revenue. Ocean King’s sales expenses are obviously abnormally high.
For the gross profit margin level that is significantly higher than the peers, the staff of the Ocean Wang Dong secret office declined to interview. “There are disclosures in the prospectus, and all the prospectus is subject to the prospectus.â€
The opponent is calling for high profit and can't understand
The 17-year-old is the flower season, but according to the life expectancy of Chinese companies, it is the "old man" in the standard-standard company. The Ocean King, who is engaged in the production and sales of special environmental lighting equipment, is an example of this. The company's IPO plan is listed on the Shenzhen Stock Exchange, issuing 50 million shares.
The qualifications in the Ocean King market are very old. From 2008 to 2010, its sales and market share ranked fourth, second only to international manufacturers such as Philips, Cooper and Osram, ranking first among many domestic manufacturers. .
"The price of their products is high, and the sales staff is also very hard." When asked about the impression of the ocean king, a lighting product agent in Hangzhou told reporters.
How about the profitability of the Ocean King who takes the "high-end" route?
According to the prospectus, in 2009, 2010 and 2011, Ocean King's gross profit margin was 69.85%, 70.72% and 70.48% respectively. Among the listed companies in the A-share industry, the gross profit margin of Sunlight's special lamps in 2011 was only 23.52%. Zhao Fanghua, representative of Sunshine Lighting Securities, told the reporter: "Our special lamps are mainly used for mining lamps in factories and mine production areas." The special environmental lighting equipment produced by Ocean King is used in electric power, metallurgy and other industries.
"We mainly produce common lamps, special lamps and special environment lighting equipment have a certain overlap, but not exactly the same." Zhao Fanghua said frankly, "even with 70% gross profit margin, the net interest rate should not be too high." Seen in Zhao Fanghua Come, only the new varieties of lamps developed for small-scale customers will be sold at a higher price. However, as the production volume increases, the variety of lamps returns to normalization, and the price will return to normal. Therefore, the gross profit margin of each lighting company will not be too large.
This high gross margin also "smashes" other listed companies. The average gross profit margin of A-share companies such as Qinshang Optoelectronics, Snowlight, and Foshan Lighting is only about 25%. Foshan Lighting and Securities Department staff also said that 70% of the gross profit margin may be "catty": "Our competitors are mainly Philips, Cooper, Osram, NVC, etc. I don't know Ocean King. Their gross profit margin is high. It is estimated that the sales method is different, or they put the cost into the period."
Revised gross margin
“There is no such thing as the technology and product performance of the lighting products.†The above-mentioned lighting agents speculate that the high gross profit margin may be due to the gray during the sales process. Excessive spending, such as a large percentage of rebates.
What is interesting is that when Ocean King explained the high gross profit margin, he “innovated†the “corrected gross profit margin†argument and practice: “In order to eliminate the influence of the difference in sales model, the company calculated the revised gross profit margin, and compared it with the sales of each company. Differences in profit, revised gross margin = (business income - operating costs - sales expenses) / operating income."
The reporter noted that after the amendment, Ocean King's gross profit margin in 2011 was 28.14%, basically returning to normal level.
"This high gross profit margin will definitely attract attention when it is reviewed. The company wants to explain this reason, and probably hopes to pass the 'interrogation' of the regulatory layer." Haitong Securities, a senior insurance company.
Can such a statement really justify it? The company's accounting data for the last three years show that the sales expenses in 2009, 2010 and 2011 were 42.034 million yuan, 49957.27 million yuan and 56011.26 million yuan respectively, accounting for 43.42%, 42.11% and 42.35% of the revenue of the year. The sales expenses mainly include the salary, commission and welfare of the sales staff, travel expenses, marketing expenses, rent and water management fees and transportation and miscellaneous fees. Among similar listed companies, Qinshang Optoelectronics' sales expenses accounted for 5.8% of the sales revenue last year, and Foshan Lighting's 2011 sales expenses accounted for 4.6% of the revenue. Ocean King’s sales expenses are obviously abnormally high.
For the gross profit margin level that is significantly higher than the peers, the staff of the Ocean Wang Dong secret office declined to interview. “There are disclosures in the prospectus, and all the prospectus is subject to the prospectus.â€
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