Recently, Jiangsu Taimusi Knitting Technology Co., Ltd. (hereinafter referred to as Taimusi) has pre-disclosed its prospectus and plans to apply for listing on the Shenzhen Stock Exchange’s small and medium-sized board. The sponsor is Huatai United Securities.
From the perspective of revenue structure, Taimushi’s main business is the research and development, production and sales of knitted fabrics and knitted clothing, and mainly provides OEM processing for Decathlon and Semir apparel brands. Serve.
It is worth noting that Taimushi, which has been established for nearly 30 years, has gone through three development stages of joint venture-foreign investment-domestic investment. The company’s customer concentration is relatively high. In recent years, The company’s performance growth has slowed down.
In this IPO, Taimus plans to issue no more than 26.6667 million shares. Of the approximately 605 million yuan to be raised, more than 80% is still planned to be used to increase production capacity, and the rest is used to repay bank loans and supplement Liquidity.
According to the Taimus prospectus, more than 90% of the company’s revenue relies on its top five customers, of which sales revenue to Decathlon, its largest customer, accounts for more than 50%. At the same time, Decathlon also occupies the position of the largest supplier of Taimus.
It is worth noting that from 2017 to 2019 and the first half of 2020, more than half of Taimusi’s revenue came from Decathlon, its largest customer, and its dependence has increased.
The prospectus shows that Taimushi’s main business is the research and development, production and sales of knitted fabrics and knitted clothing, mainly for Decathlon, Semir Clothing, Quiksilver, Kappa, Giordano, Quan Well-known clothing brands such as Cotton Times provide OEM processing services.
From 2017 to 2019 and the first half of 2020, Taimus achieved operating income of approximately 651 million yuan, 755 million yuan, 791 million yuan and 299 million yuan respectively; corresponding to The attributable net profits were approximately 69.9455 million yuan, 98.5711 million yuan, 93.1043 million yuan and 40.1229 million yuan respectively.
During the reporting period, Taimusi’s customer concentration was relatively high. The company’s sales to the top five customers accounted for 86.25%, 91.81%, 92.12% and 92.12% of the current operating income respectively. 92.37%, of which sales revenue to Decathlon, the largest customer, accounted for more than 50%.
In addition to Decathlon, Semir Clothing also contributed nearly 30% of revenue to Taimus. During the reporting period, Taimusi’s sales to Semir apparel accounted for 26.3%, 27.5%, 25.66% and 28.99% of the current operating income respectively.
In addition, Decathlon is also firmly ranked as the largest supplier of Taimus.
Data show that from 2017 to 2019 and the first half of 2020, Taimus purchased from Decathlon for approximately 51.5265 million yuan, 72.3089 million yuan, 82.6804 million yuan and 20.5801 million yuan respectively. yuan, accounting for 18.01%, 22.57%, 25.16%, and 19.2% of the company’s total purchases respectively. In addition to Decathlon, other major suppliers of Taimus have undergone significant changes.
It is understood that the raw materials required for the production of Taimus mainly include yarn, fabrics, accessories, dyes and auxiliaries.
In response to the fact that Decathlon is both a major customer and a supplier, Taimus stated in the prospectus that it is mainly because Decathlon has established a unified system to strengthen product quality and cost control. We have established a raw and auxiliary material procurement system and designated Shanghai Xinwei Sports Products Co., Ltd. as the main domestic raw material procurement platform to sell some of the raw materials required for production to its suppliers based on order status. The company determines the estimated consumption of raw materials based on Decathlon’s order status, and purchases yarn and other raw materials from Shanghai Xinwei Sports Products Co., Ltd.
Although Taimushi explained the situation of Decathlon, the China Securities Regulatory Commission still conducted detailed questioning. In the feedback, the China Securities Regulatory Commission requested Taimushi to explain the business situation of Decathlon, including but not limited to the proportion of domestic and foreign sales during the reporting period and the specific product types, amounts and proportions; Decathlon is both the company’s largest customer and the largest customer. The rationality and necessity of large suppliers, the importance of Decathlon to the company’s subsequent operations, etc.
At the same time, the China Securities Regulatory Commission also required Taimusi to analyze whether the company’s production and operations are significantly dependent on Decathlon from the perspective of sales and procurement, and whether it may cause damage to the company’s continued profitability in the future. Significant uncertainty.
Taimushi’s main business, knitted clothing, is divided into three major categories, namely sportswear, casual clothing and children’s clothing.
In 2019, affected by the decline in unit prices of casual clothing and children’s clothing, the company’s operating income and net profit growth rate was lower than that of the previous year.
Affected by the epidemic in the first half of 2020, the sales unit prices of the company’s various products further declined, with the unit price reductions of the three major categories reaching -23.10%, -15.54% and -33.43% respectively. . Although the company has reduced operating costs, excessive reductions may have an impact on the full-year performance. </p
