In March this year, Hikvision spin-off Hikang machinery separate GEM listing was accepted by the Shenzhen Stock Exchange, the overall process is faster, the Shenzhen Stock Exchange has updated the second round of inquiries on the evening of August 3.

China Fund News reporter noted that although Haikang machine has answered a round of inquiries, a number of core issues in the second round of inquiries were further “grilled”.

The first is independence and related transactions, which is almost a common problem faced by the spin-off listing, such as the company to Hikvision large loans, some of the information systems used are still Hikvision information systems. In addition, the unit price of some integrated circuit products purchased by Haikang Machinery from related parties was higher than that of non-affiliated suppliers, and the average difference rate of 10 types of integrated circuit products was 8.34%, but the company did not fully explain the reasons for the differences.

The second problem is the continuous negative net operating cash flow, the continuous decline in gross profit margin of main products and the sustainability of growth.

Only in the first quarter of this year, the company’s net cash flow negative operating activities has reached -439 million yuan, a new high, even higher than the previous annual negative data. The gross profit margin of the company’s mobile robot products fell by 30% before and after, but the regulator believed that the explanation of the reason for its first inquiry was not enough and asked for further explanation. In terms of growth, the company’s non-net profit growth rate in the first half of the year was only 8%, which was too obvious with several times of growth in previous years.

As of August 4, Hikvision’s market value reached 340 billion yuan.

1606-XL480E

Independence and related party transactions were asked twice

The unit price of affiliated purchasing is higher than that of non-affiliated purchasing

In recent years, the spin-off listing has become an important starting point for Hikvision capital operation, after the successful spin-off of Fluorite Network listed on the science and technology innovation board, this time it turned to the main machine vision and robot business of Hikkang Machine.

Haikang Machinery in March 7 this year to declare the GEM was accepted, March 30 received the first round of inquiries, the company on May 25 to reply to inquiries, but immediately received a second round of inquiries on June 30, August 3 the company responded to the second round of inquiries.

From the perspective of two rounds of inquiries, independence and related transactions have become the first and always lingering “shadow” of Haikang Machine. During the reporting period, Hikvision was inextricably linked with its parent company Hikvision in terms of funds, institutions, information systems, suppliers and customers.

In terms of funds, according to the application materials, from January to September of 2021 and 2022, the company borrowed funds from Hikvision of 1.678 billion yuan and 860 million yuan, respectively, as of the end of the report, the above fund lending has been settled, obviously Hikang machinery is trying to cut non-operational fund transactions with the parent company. From January to September of 2021 and 2022, the company borrowed R & D loan principal of 19 million yuan and 55 million yuan respectively from China Development Bank through Hikvision.

In terms of organization, Hikvision provides shared functional department services to Hikvision. In addition, there are situations in which the Company and related parties pay employee salaries and expense reimbursement on behalf of each other, but these situations have been regulated since the reporting period. Some of the information systems used by the company are even Hikvision’s information systems, and the company says it has adopted isolation measures such as account isolation, data isolation, and leave management.

In addition, during the reporting period, the number of overlapping suppliers of the company and Hikvision increased from 278 to 466, and the procurement accounted for 6.3%, 20.62%, 59.26% and 62.45%, respectively, and the process continued to rise rapidly. During the reporting period, the number of overlapping customers between the company and the parent company increased from 323 to 583, accounting for 10.62%, 13.65%, 11.6% and 12.31% of overlapping customer revenue, respectively.