UFIDA’s 5.3 billion fixed increase will be lifted soon, the performance is not up to expectations, the stock price has fallen sharply, 17 well-known institutions have deeply invested more than 2 billion yuan.

China Net Technology, June 3 (Reporter Li Ting) Recently, UFIDA (600588.SH) set a roadshow for a 5.3 billion yuan fixed increase project at the beginning of the year, because the company’s performance fell short of expectations, the stock price fell sharply below the fixed increase price, and Trapped in “Rashomon”.

According to media reports, at the beginning of this year, Yonyou Network still gave “performance guidance” that was much higher than the actual despite the poor main business income at the end of last year. 17 well-known investment institutions such as Hillhouse Capital and Gao Yi Assets therefore And participate in the subscription of its fixed increase project. Now that it is less than 2 months before the release of the allotment shares, UFIDA’s stock price has fallen sharply below the additional offering price by about 40% after disclosing its unsatisfactory annual report performance, and 17 institutions have a total floating loss of 2.1 billion yuan.

In this regard, Yonyou Network stated in an interview with the Beijing News that Yonyou Network (during the roadshow) has not given any performance commitment to the institution from beginning to end.

Year-on-year performance growth has been sluggish, the proportion of bad debt provision for accounts receivable has been higher than that of its peers for a long time, and the market value has evaporated by 100 billion yuan from the high point. leeks”, why did the former star company Yonyou Network fall into an “eventful autumn”?

Top institutions have also been “cut leeks” UFIDA network denies “guidelines” performance

On January 25 this year, UFIDA announced the completion of a fixed increase plan of nearly 5.3 billion yuan, a non-public offering of 166 million shares, an issue price of 31.95 yuan per share, and a 6-month lock-up period. The announcement shows that a total of 17 issuers have successfully bid, and star investors such as public funds, private funds, QFII, securities companies and Niu San have gathered.

Among them, Hillhouse Capital received the most shares, and its subsidiary HHLR Management Co., Ltd. received nearly 1 billion yuan, followed by CICC with 512 million yuan, and Shenwan Hongyuan Securities Co., Ltd. ranked third with 430 million yuan. Gao Yi Asset also received a total of 400 million yuan through its two funds. Singapore Government Investment (GIC), Morgan Stanley, JPMorgan Chase Bank, E Fund, GF Securities and the well-known Niu San Ge Weidong are also on the allocation list.

According to public information, this must-added project of Yonyou Network has been counted since the company released the “2020 Non-public Issuance of A Shares Plan” on June 30, 2020 (the total amount of funds to be raised should not exceed 6.43 billion yuan for the expansion of cloud services). It took a year and a half to finally land.

During the period, UFIDA received an inquiry from the China Securities Regulatory Commission in July 2020, asking it to provide a reasonable explanation for the existence of repeated construction of the YonBIP project, the large balance of monetary funds on the book, and the large balance of short-term loans. Since then, UFIDA has lowered the total amount raised twice, and finally shrunk to 5.298 billion yuan.

Why is the UF project favored by so many star institutions? “China Times” quoted a market source in the report as saying, “perhaps because of the discrepancy between the information and facts obtained from UFIDA at that time.”

It is reported that in early 2021, UFIDA’s “market guidance” for the company’s main business to increase its annual revenue year-on-year is 25%. increase. Since then, until the fixed increase in January this year, the company has not revised the market guidance.

However, in March of this year, the company’s annual report finally disclosed that the company’s revenue growth in 2021 is only 15.7%, which is not only significantly lower than the “market guidance” at the beginning of 2021, but also lower than the 20% data in the road show at the end of 2021. Not a lot.

According to Flush data, UFIDA’s share price plummeted after a brief rise on January 24 this year. By June 2, UFIDA’s share price closed at 19.24 yuan per share, down 40% from the fixed increase price of 31.95 yuan.

Now it has been less than 2 months since the lifting of the ban on the placement of shares at the beginning of the year. The 17 institutions and individual investors who entered the market at a high level have a total floating loss of 2.1 billion yuan, of which Hillhouse has a floating loss of nearly 400 million yuan, and CICC has a floating loss of about 200 million yuan.

In an interview with the media, a person from the securities department of UFIDA said that the company has never given any performance commitment to the institution: “The company will start the roadshow in October 2021. In the case of a very high proportion of performance in the fourth quarter, the company actually did not make any performance commitments at that time. Knowing the company’s full-year performance, it is impossible to give a guide to the outside world.”

During this period, the executive changes of UF Network are also intriguing. In April 2020, Xu Zhoujin, an executive of the “HNA Department”, was airborne to UFIDA, replacing Wu Zhengping, who joined UFIDA in 1992, as the chief financial officer. Shortly after Xu Zhoujin took office, UFIDA released a fixed increase plan. As of May 6 this year, UFIDA’s 5.3 billion yuan financing was “in the pocket”, and 17 institutions and individual investors were “deeply involved”, but the company disclosed the news of Xu Zhoujin’s resignation, and veteran Wu Zhengping returned to the position of chief financial officer.

All kinds of capital operations keep performing “explosive” bad debt provision ratio is higher than that of peers for a long time

Whether there is market guidance in the roadshow to become “Rashomon”, but it is an indisputable fact that Yonyou Network has continuously handed over dismal annual and quarterly reports.

In the first three quarters of 2021, UFIDA’s revenue increased by 7% year-on-year, and its net profit increased by more than 9 times year-on-year to 130 million yuan. Subsequently, the company’s performance took a sharp turn for the worse. In the fourth quarter of 2021, revenue increased slightly by 2.3% year-on-year, and net profit fell by 42%. Dragged down by the Q4 performance, the company’s 2021 revenue will increase by 5% year-on-year, net profit will decrease by 28%, and non-net profit deducted will shrink by 55%. During the reporting period, UFIDA still invested heavily in marketing, and sales expenses soared by 32%. However, cash flow from operating activities recorded in the same period dropped sharply by 19% year-on-year, and cash and cash equivalents decreased by 1.6 billion yuan year-on-year. The revenue growth of UFIDA has been declining before, and the revenue of UFIDA in 2020 is almost the same as the previous year.

In the first quarter of this year, the company’s performance “exploded”, with a net loss of 393 million yuan, a year-on-year drop of 2931.14%, a new low since Q3 in 2001. Gross profit margin fell sharply to 49% from 66% in the previous quarter, and net profit margin was -33%.

Since its establishment in 1988, UFIDA has focused on the enterprise software and enterprise service market. From the perspective of development history, Yonyou Network has gone through the strategy 1.0 stage with financial software as the core and the strategy 2.0 stage with the enterprise ERP management system as the core. In 2016, it entered the 3.0 strategy stage to promote cloud transformation. In 2021, UFIDA’s cloud service business revenue will account for nearly 60%.

From the perspective of revenue structure, UFIDA mainly relies on large customers. Large enterprises will contribute 66% of revenue in 2021, accounting for 64% in the first quarter. At the same time, the company’s accounts receivable remained high, and the problem of bad debts became prominent. In 2021, UFIDA’s accounts receivable will total 2.07 billion yuan, and the provision for bad debts will be 800 million yuan, accounting for 33%.

UFIDA’s bad debt provision ratio for accounts receivable has been higher than its peers for a long time. From 2017 to 2020, it was 27.99%, 21.68%, 31.66%, and 38.65%, which was significantly higher than that of Kingdee International, China Software, Inspur Software and Guanglian. The averages of comparable companies in the industry are 13.89%, 14.87%, 15.42% and 17.62%.

Regarding the high proportion of accounts receivable bad debt provision, UFIDA explained in its non-public offering feedback reply released in April 2021 that the company’s main customers are large and medium-sized enterprises, state-owned enterprises, central enterprises and other large customers. Customer procurement has a relatively standardized procurement mechanism and procurement process, and the payment cycle is relatively long.

At the same time, due to the relatively complex project needs of such customers and the relatively long project cycle, the collection cycle is relatively long, which makes the company’s bad debt provision according to the bad debt policy relatively high, and the company has fully and reasonably provided for bad debts in accounts receivable Prepare.

Although the growth of main business performance is weak, UFIDA continues to carry out capital operations. By divesting assets, it promotes the listing of companies such as Xindao Technology, UFIDA Finance and UFIDA Auto.

In the secondary market, UFIDA’s highlight moment remained in July 2020, when it hit an all-time high of 53.71 yuan per share, with a market value of 170 billion yuan. Since then, especially since the beginning of this year, the stock price has been falling all the way, starting from the stage high of 40.33 yuan/share on January 24, and once dropped to 16.44 yuan/share on April 27, hitting a new low in nearly three years. Now the market value is only 66.1 billion yuan, and more than 100 billion yuan has evaporated from the high point.

Shares plummeted and investors fled. According to the calculation of the shareholding information disclosed in the third quarterly report of last year, the company’s star shareholder Ge Weidong, the chaotic Daoran, Gongqingcheng Youfu Investment Management Partnership, Liu Shiqiang of Yuandian Assets, and Shanghai Hedao sold a total of 18.12 million shares. The above four shareholders are all among the top ten shareholders of the company. The strange thing is that after Ge Weidong reduced his shares, he also participated in the fixed increase of UFIDA in January this year, and the current floating loss is about 80 million yuan.

At the same time as the institution exits, the management is also simultaneously reducing its holdings and cashing out. In October last year, UFIDA announced that the company’s senior vice presidents, Xie Zhihua, Wang Jian, Xu Yang, Ren Zhigang, Sun Shubi, Zhang Chengyu, Li Junyi, and Wu Ping, plan to reduce their holdings of 1.4849 million shares, which will be 6 months. completed within.