Recently, information disclosed on the official website of the Shenzhen Stock Exchange shows that the review of the main board IPO of Huike Co., Ltd. (hereinafter referred to as "Huike") has been suspended because the financial information has expired and needs to be supplemented by additional submissions. This is the second time that the display panel giant's IPO process has encountered obstacles in the past three years. Its previous 2022 GEM IPO application was voluntarily withdrawn in August 2023.
According to the prospectus, Huike's performance has fluctuated significantly in recent years. During the reporting period, its operating income increased from 27.134 billion yuan to 40.310 billion yuan, and the net profit attributable to the owners of the parent company increased from - 1.428 billion yuan turned a loss into a profit to 3.339 billion yuan. However, there are hidden concerns about the quality of profits. During the same period, government subsidies included in current profits and losses amounted to 2.838 billion yuan, 1.564 billion yuan, and 906 million yuan respectively, which had a significant impact on profit levels.
Debt pressure has become its core shortcoming. As of the end of 2024, Huike’s short-term borrowings were 21881 million yuan, long-term borrowings of 11.271 billion yuan, superimposed on equity to be acquired and accounts payable of 12.927 billion yuan, the debt scale is huge. Although the book monetary funds amount to 26.955 billion yuan, the short-term debt repayment pressure has become very prominent. The IPO plan to raise 1 billion yuan is used to repay loans and supplement working capital.
It is worth noting that Huike’s IPO was accepted on June 30, and was selected for on-site inspection in July. Now it has been suspended due to financial information problems, and the process has been bumpy. As a latecomer panel company, it has eased financial pressure by building joint ventures with state-owned assets in many places. However, the liability risk accumulated by its equity repurchase commitments and the risk of market fluctuations, with overseas revenue accounting for nearly half, are the focus of regulatory attention.
Industry analysts believe that against the background of fluctuating prosperity in the display panel industry, Huike needs to first solve the problems of financial data timeliness and debt structure optimization, and the follow-up progress of its IPO remains to be seen.
ANNA