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Foxconn IPO to A shares: Last year, accounts payable increased 33.8 billion due to increased purchases

via:每日经济新闻     time:2018/2/12 8:02:01     readed:340

Foxconn shares of course have such confidence, reviewing 2017, its operating income over 350 billion yuan, total profit of more than 200 billion yuan, there is no doubt that the giant. However, the record Foxconn shares proud performance is its number of employees up to 260,000, if calculated according to this calculation, the contribution of their employees per capita profits, less than 100,000 yuan; R & D spending last year spent 7.9 billion yuan, the absolute amount of the fact More than A shares of most companies, but only 2.24% of its own revenue ... ...

Foxconn shares to be IPO, the capital market is full of expectations, at the same time, sail the grand cruise, whether it will all the way "downwind"?

Every time by reporter Wu Zepeng edited by Chen Junjie

Amazon, Apple, Huawei, Lenovo ... The world famous electronics industry brand companies all have the same supplier - Foxconn, this time, this giant company formally announced the impact of A-share.

This time to be listed, not the usual concept of Pan-Foxconn, but Foxconn Industrial Internet Corporation (hereinafter referred to Foxconn shares). As part of the proposed split listing, Foxconn shareholders controlling shareholder of Hon Hai Precision wholly-owned holding company, according to Foxconn shares themselves, because there is no actual controller of Hon Hai Precision, the company does not exist the actual controller.

"Daily Economic News" reporter noted that according to Foxconn shares currently disclosed prospectus (application draft, the same below), as of December 31, 2017, Foxconn shares of debt ratio reached 81.03%, representing an increase of 38.14 percentage points compared with the end of 2016 .

Even Foxconn shares explained that this is affected by the reorganization of assets, but it is unavoidable that by the end of 2017, Foxconn total liabilities of up to 120.4 billion yuan, of which accounts payable reached 76.809 billion yuan, an increase of nearly 33.8 billion yuan over the previous year. Foxconn shares in the prospectus disclosed that since 2017, downstream orders grew trend is good, the company increased the purchase amount of raw materials and equipment.

Asset-liability ratio over 80%

Recently, Foxconn shares disclosure prospectus in the CSRC website, intended to be listed on the Shanghai Stock Exchange.

It is noteworthy that, "foundry" is not scheduled to be listed on the Foxconn shares all the business in the prospectus, Foxconn shares themselves introduced as "the world's leading communications network equipment,cloud serviceEquipment, precision tools and industrial robots professional design and manufacturing service providers. "

Relying on these businesses, Foxconn achieved a revenue of 272.8 billion yuan, 272.713 billion yuan and 355.444 billion yuan respectively from 2015 to 2017, with net profit reaching 14.35 billion yuan, 14.39 billion yuan and 16.219 billion yuan respectively over the same period.

According to the prospectus, if successfully listed on the A shares, Foxconn shares raised funds intended to be used for industrial Internet platform construction, cloud computing and high performance computing platform, efficient computing data center, communications network and cloud service equipment, 5G and Internet of Things Interoperability solutions, intelligent manufacturing new technology research and development applications, intelligent manufacturing industry upgrade, intelligent manufacturing capacity expansion of eight projects with a total investment of 27.253 billion yuan.

Hundreds of billions of revenue and tens of billions of net profit so that the capital market for the listing of Foxconn shares are looking forward to, but behind this, Foxconn shares of high debt ratio is also cause for concern.

Foxconn prospectus disclosed that, as of December 31, 2017, the company's consolidated statement of caliber liabilities amounted to 120.414 billion yuan, of which current liabilities amounted to 120.382 billion yuan, total non-current liabilities of 0.32 billion.

As of the end of last year, Foxconn's debt-to-asset ratio was as high as 81.03%. As of the end of 2016 and the end of 2015, the gearing ratio of Foxconn's shares was 42.89% and 45.72% respectively. In contrast, in 2017, Foxconn shares of assets and liabilities increased significantly.

Reporters noted that Foxconn shares in the prospectus disclosed in the industry comparable companies, by the end of 2017, Chang Ying Precision, Victory precision assets and liabilities are both at about 53%, the total shares, Zhuo Yi technology is less than 40%, comparable The company's average debt to equity ratio was 57.73%, both lower than Foxconn shares.

In this regard, Foxconn shares in its prospectus explained that as of the end of 2017, the company debt ratio increased 38.14 percentage points from the end of 2016, mainly due to the restructuring of the company acquired the reorganization of assets balance due to be included in the other end of 2017 included in the other Payables and other factors.

Accounts payable soared by about 33.8 billion yuan

On the other hand, "Daily Economic News" reporter also noted that, according to Foxconn shares disclosed, its liabilities mainly by accounts payable, other payables, short-term borrowings, wages and other workers due to composition. As of the end of last year, the corresponding amounts of the above projects were respectively 76.0890 billion yuan, 32.104 billion yuan, 6.957 billion yuan and 3.012 billion yuan.

If we compare the changes in recent years, we can find that the total liabilities of Foxconn will substantially increase in 2017, which will ultimately contribute to the Company's accounts payable and short-term borrowings.

From 2015 to 2017, Foxconn's accounts payable amounted to 34.703 billion yuan, 43.0313 billion yuan and 76.899 billion yuan respectively, up 24% and 73.45% over the two years respectively. Accounts payables in 2017 increased by about 33.8 billion over 2016.

Foxconn shares in the prospectus also made this description, which said the company accounts payable mainly for the purchase of raw materials and equipment. Specifically, Foxconn said the fourth quarter of 2016 due to orders increased, the company increased the procurement of raw materials led to a corresponding increase in accounts payable due to changes in foreign currency exchange rates led to the book value of accounts payable increased. In addition, since 2017, the volume of downstream orders has been on the rise, and the company has also increased the purchase amount of raw materials and equipment accordingly.

Reporters found that the main raw material Foxconn shares of PCB, components, IC, the reporting period, Foxconn shares of the above three purchases accounted for more than 85% of the total procurement of raw materials.

However, Foxconn's purchase of raw materials actually did not increase so much in comparison with the $ 33.8 billion increase in accounts payable.

Reporters through the total purchase of Foxconn shares and purchase price calculation found that, in 2017, Foxconn shares of total PCB procurement increased 8.028 billion yuan; purchase increased 10.56%; procurement of components, in 2017, Foxconn shares of this project Total purchases increased by RMB3,918 million and total purchases increased by 15.87% over the same period of previous year. In addition, in 2017, Foxconn's total purchases of ICs increased by RMB13,029 million and total purchases increased by 25.41% over the same period of last year.

Statistics show that in 2017, Foxconn shares of these three major raw materials increased by nearly 25 billion purchase.

In addition, the reporter also found that by the end of 2017, Foxconn shares short-term loans reached 6.957 billion yuan, an increase of 5.314 billion yuan.

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