Why does Huamai Technology have a daily limit?

First, the weak revenue began to decline. Huamai Technology is actually a network infrastructure provider. In terms of subdivision, Huamai mainly cuts in from the connection part closely related to signal transmission. The main products include: optical distribution frame, optical combiner, optical splitter, optical fiber jumper, optical cable and other optical communication physical connection products; The downstream customers of wireless communication network construction products such as microwave passive devices (referred to as hardware communication equipment similar to well-known routers) are mainly domestic and foreign telecom operators, telecom main equipment vendors, network integrators and government and enterprise customers. Huamai Technology went public on 20 17, and its revenue dropped sharply on 20 18. During the period of 20 19-202 1, although the income increased, it was also tepid. According to the report of the third quarter of 2022, Huamai achieved a total revenue of about 859 million yuan, a year-on-year increase of 2.4%. On the surface, it seems to be slow and steady, but it is not. Source: Straight Flush According to the single-season data, the revenue in the third quarter of 2022 was only 240 million yuan, down 23. 1% from the previous month. According to this trend, the annual revenue in 2022 was only 1.99 billion, which was about 85 million less than that in 20021,and the business declined significantly. Source: Straight Flush. Regarding the decline in business, the company explained that on the one hand, due to the epidemic situation, logistics was blocked and export orders were less than expected (according to the 20021Financial Report, export revenue accounted for about11%); On the other hand, downstream operators' investment slowed down, terminal consumption tightened and demand continued to decline. Source: Company Announcement (65438+20231October 20th) What the hell is the sharp drop of 20 18 due to the epidemic in recent years? Second, the gross profit margin is not the lowest, only the lower income is declining, and the gross profit margin is still low and getting lower and lower. Really, there is no minimum, only lower. Source: Since the listing of the flush, the gross profit margin of Huamai Technology has been declining. Over 20% in the last two years, fluctuating around 15%. The main reasons are as follows: 1. Unable to open source code. On the one hand, the downstream customers of Huamai Technology are mainly telecom operators and companies such as China Mobile (60094 1), China Unicom (600050), China Telecom (60 1728) and China Tower (00788). According to the semi-annual report of 2022, there are 97 major sales contracts being performed by the company, of which the proportion of operators is 68% (there are 66 operators, because they are all framework agreements, and the amount cannot be compared). With large scale and high industry concentration, operators are in the core leading position in the communication industry chain. They have the right to speak in the bidding process. On the other hand, Huamai Technology belongs to the communication network physical connection equipment manufacturing industry, with numerous manufacturers and fierce competition. Faced with strong customers and fierce industry competition, prices can only go down, not at all. The reason behind it may also be that the product itself is in the Red Sea, and the technical barriers are not high, which is the hardest hit area of the price war. 2. Unable to cut expenses. Affected by the epidemic, logistics and manufacturing costs rose and gross profit margin decreased. 3. Product Structure Change 202 1 Annual Report shows that the gross profit margin of optical cable products is the lowest, only 7.46%. Source: Annual report of the company in 20021year. However, from the sales volume in 20021year, most products are declining, and only optical cable products have the most obvious increase, which drives the overall gross profit margin down. Once again, it proves that the company's products do not have much competitive advantage. Source: 202 1 company annual report In short, it is difficult for companies to sell profitable and unprofitable ones. Third, the accounts receivable are high and the risk of impairment is high. Not only that, Huamai's only income can't be recovered. Due to the core position of downstream customers, the accounts receivable of Huamai Technology have been high. Since the listing of 20 17, accounts receivable (including bills receivable, the same below) have accounted for more than half of current assets all the year round. Source: Flush data. The high accounts receivable contain huge bad debt risk. After all, unexpected events happen. In the third quarter of 2022, the proportion of accounts receivable decreased slightly, which was caused by the provision of bad debt losses. According to the company's performance announcement, Putian Technology's bad debt loss of accounts receivable in 2022 is about 40 million, which is another reason for the pre-loss. Source: Company announcement (65438+20231October 20th) The RMB 43,628,800 yuan of Putian Technology only accounts for 8% of the total accounts receivable (the total accounts receivable at the end of the third quarter was about 574 million). It is not surprising that such a performance will lead to a loss in 2022. In fact, this is not the first loss of Huamai Technology. The data shows that since 20 18, most of Huamai Technology's net profit after deducting non-recurring gains and losses is at a loss, and the performance difference can be seen. Faced with such achievements, shareholders fled in succession, and Wu Heng was by no means the first person. According to public data, as of now, shareholders have reduced their holdings and cashed in more than 420 million. Taking Wu Heng as an example, the total income decreased by about 1 1.7 million yuan. From the cost point of view, the shares reduced this time are the original shares of Huamai Technology before listing, and the cost is about 34,000 yuan (in 2004, 6.5438+0.8 million shares were invested to acquire 6% shares, and after listing, 4.7688 million shares were reduced this time, and 900,000 shares were reduced). From this point of view, the operating income of this wave is as high as 1 1666000 yuan, and the yield is as high as 343 12 times, which is simply a big profit. In the secondary market, Huamai Technology has been continuously falling since March 6, and another wave of investors have been quilted. In this way, it is obvious who wins and loses when Huamai Technology goes public. The company really lost money, and it was a mess. Shareholders lost money, and the quilt was tightly wrapped. The original shareholders earned, the executives earned, and the chairman of the board of supervisors also earned, and it was still a big profit!