On March 12, Jiangsu Jujie Microfiber Technology Group Co., Ltd. (stock abbreviation “Jujie Microfiber”, stock code “300819”) officially Listed on the GEM of Shenzhen Stock Exchange and issued 24.87 million new shares at an issue price of 15.07 yuan per share. As of the close of trading on the 12th, the company’s stock price increased by 43.99%, with the stock price climbing to 21.7 yuan/share. It is worth mentioning that public information shows that Zhong Hongtian, the legal representative of Jujie Microfiber, was born in March 1993. He graduated from Northeastern University in the United States in January 2016 with a bachelor’s degree in biology. In April 2017, he began to serve as the chairman of Jujie Microfiber.
Public information shows that Jujie Microfiber focuses on the research and development of ultra-fine composite fiber fabrics and finished products. In terms of production and sales business, it has established a long-term cooperative relationship with the internationally renowned brand Decathlon, and on this basis, it has gradually entered the supply chain system of world-renowned clothing and home furnishing brands such as ZARA, C&A, H&M, and IKEA.
Data show that Jujie Microfiber’s operating income from 2016 to January-June 2019 was 422 million yuan, 433 million yuan, 462 million yuan, and 259 million yuan respectively; Net profits not attributed to parent companies were RMB 76 million, RMB 69 million, RMB 65 million, and RMB 27 million respectively.
Source: Jujie Microfiber Prospectus
For the purpose of raising funds, Jujie Microfiber stated that after the funds raised this time are in place, it will invest in “microfiber fabrics and manufacturing Finished product reconstruction and expansion project”, “Superfine fiber dust-free and ultra-clean product construction project”, “R&D center construction project”, “Domestic and foreign marketing service system construction project”. Details are as follows:
Source: Jujie Microfiber Prospectus After years of accumulation, the company has strong R&D and design capabilities, mature With its advanced production technology, stable sales channels, and high-quality global customer resources, it is the leading domestic supplier of ultra-fine composite fiber fabrics. At present, the company has 8 invention patents and 46 utility model patents, and has carried out all-round technology research and development cooperation with relevant universities and institutions. The company has independently developed core technologies such as double-sided velvet fleece, woven suede, and weft-knitted super softness.
The prospectus shows that in 2017, the company was jointly awarded the “China Superfine Fiber Fabric Quality Production Base” and “Excellent Green and Clean Production Enterprise” by the China Textile Industry Federation and the China Filament Weaving Industry Association. title; in March 2018, the China Filament Weaving Association awarded the company “Top Ten Brands of Chinese Filament Fabrics in 2018”. The company is the vice-president unit of the China Filament Weaving Association and the first drafter of the national standard “FZ/T 43038-2016 Ultra-fine polyester and nylon fiber double-sided velvet fabric”.
It is understood that Jujie Microfiber has always invested heavily in the direct cost of environmental protection equipment and facilities, and the company’s sewage treatment and reuse have reached the industry level. advanced level. In the latest Decathlon global supplier comprehensive evaluation, the company became one of the only two suppliers to obtain an “A” rating, and the only supplier in China to achieve this level.
The successful listing leaves the market with questions. Zhong Hongtian, who took the helm of Jiangsu Jujie Microfiber Technology Group Co., Ltd. at the age of 24, dared to quickly deploy in the capital market, allowing investors to see the spirit of a newborn calf.
At present, the actual controller of Jujie Microfiber is the Zhonghongtian family. Zhong Hongtian, Lu Yuzhen (Zhong Hongtian’s mother), and Zhong Xiangju (Zhong Hongtian’s sister) indirectly hold 68.81% of Jujie Microfiber’s shares through Jujie Investment, and directly hold 7.31% and 7.31% of the company’s shares respectively. % and 2.59% of the shares. The three of them collectively hold 86.02% of the shares of Jujie Microfiber and are the joint actual controllers of the company.
Zhong Hongtian is the legal person and chairman of Jujie Microfiber, and is also the legal person and executive director of the controlling shareholder Jujie Investment. As the actual controller, Zhong Hongtian only joined the board of directors of Jujie Microfiber as a director in November 2016.
On October 23, 2016, Zhong Baijian (father of Zhong Hongtian), the actual controller of Jujie Microfibril, passed away due to illness. According to inheritance relationship� In November of that year, Zhong Hongtian inherited the company’s shareholder status and was elected as a director of the company and served as the new chairman. Jujie Microfiber, which had been operating its main business with peace of mind before, started capital operations after Zhong Hongtian took over.
In April 2017, the company’s overall shareholding system was changed; in May, it was decided to increase capital and expand shares. The registered capital was increased from 70 million yuan to 74.6 million yuan, and investments from Shanghai Xianghe Yong’an, Wang Minghuan, and Shanghai Jinpu were introduced.
In September 2017, the company received listing guidance and submitted a prospectus on June 22, 2018.
Judging from the revenue of 6 other companies that Zhong Hongtian actually controlled before, the operating capabilities are not optimistic. Except for Suzhou Bokeer Education, which has not actually started business, the other five companies are all losing money. The results in 2017 were Jujie Medicine’s loss of 1.1986 million yuan, Ji’an Jujie Medicine’s loss of 51,400 yuan, and Yongxin County Xiangzhang Technology’s loss of 242,000 yuan. Yuan, Ji’an Zhongbai Ecological suffered a loss of 208,800 yuan, and Ji’an Jujie Seedlings suffered a loss of 189,200 yuan.
It is worth noting that Jujie Microfiber, which Zhong Hongtian took over, seems to be of high quality, but in fact its revenue has stagnated. During the reporting period, the company’s performance was not optimistic. Judging from the revenue and net profit from 2015 to 2019, the company’s revenue and profit have almost stagnated. In 2017, the production capacity utilization rate of microfiber manufactured products, which accounted for 72.96% of the company’s main business revenue, was 98.68%, the total production capacity utilization rate of microfiber fabrics was 113.40%, and the production capacity utilization rate of ultrafine fiber dust-free clean products was 98.62% , with such a big difference in production capacity utilization, Jujie Microfiber’s performance has stagnated.
“The sluggish performance of the company shows that the growth pressure currently faced by the industry mainly comes from rising cost factors, or saturated competition in the downstream market, which has compressed profits.” Zhang Pan, a researcher at China CITIC Bank, told reporters that in this case, expansion Production capacity may face market pressure.
Not only has the company’s operations stagnated, Jujie Microfiber also faces multiple market risks such as high customer concentration. The company is over-reliant on a single customer. The sales of Decathlon, a world-famous large-scale sports retail supermarket chain, in 2017 were 307 million yuan, accounting for 70.85% of the revenue, and the dependence has shown an increasing trend year by year. At the same time, the company’s products are mainly used for export. In 2017, export sales revenue accounted for 74.41% of the main business revenue. The export destinations are mainly developed countries or regions such as Europe, the United States, and Taiwan, and emerging market countries.
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