Bright performance behind: Percy High Accounts receivable

The recent disclosure of the prospectus of Suzhou ke Lida Decoration Co., Ltd. (hereinafter referred to as "Ko Lida") in the past three years, the operating income and net profit have achieved a good growth, but this growth is based on a sharp rise in accounts receivable, asset-liability ratio of long-term high. For the data disclosed by the Percy, some people in the industry have expressed a more cautious view in the interview with the "First financial daily", and there is a problem of weak performance, which may depress the company's ability to continue to grow. Accounts receivable top In recent years the rapid growth of Percy performance is accompanied by the fast rise of accounts receivable. The prospectus shows that over the past three years, the growth of Ko Lida's performance is gratifying, operating income from 2011 to 973 million Yuan climbed to 2013 of 1.708 billion yuan, up to 75.54% Net profit grew from $57.6889 million in 2011 to $96.9381 million in 2013, or 68.04%. But from the point of view of net cash flows, the situation does not seem to be ideal. In 2011, the net cash flow generated by the operating activities of the company amounted to $81.8967 million, compared with $29.1415 million in 2013. Behind this is Percy accounts receivable climbed. The public information shows that the net amount of the company accounts receivable at the end of 2011, 2012 and 2013 is 511 million yuan, 643 million yuan, 924 million yuan respectively, the proportion of operating income in the current period is 52.54%, 56.65% and 54.13% respectively. The turnover of accounts receivable in the last three years was 1.82, 1.79 and 1.98, respectively. The 2011, 2012-Year Gold Mantis (002081, shares) of the accounts receivable turnover is 2.81, 2.17, is significantly higher than the KE Lida. It is worth noting that, compared with the listed companies in the industry, Percy Accounts receivable age overall long, in the end of 2013, within one year of the accounts receivable accounted for 65.03%, 1-2 years of accounts receivable accounted for up to 24.84%. In this regard, Percy explained that, with the company's internal and external loading business structure and customer structure, project completion has been recognized as income to the actual settlement of payment for a longer period of time caused. and gross margin, according to Percy disclosed data, the company's gross margin in the industry belong to a higher level. Data show that in the last three years, the overall gross profit margin of the main business is 17.39%, 17.06% and 16.73% respectively. And 2011, 2012 years Gold Mantis's comprehensive gross profit margin respectively is 17.05%, 17.14%. Percy in the design business gross margin is far more than gold mantis. The cost level is obviously more than the gold Mantis, the data show that the 2012-year gold mantis management costs relative to the operating income ratio of 1.57%, and the data of Ke Lida reached 3.74%, more than nearly 1.5 times times. Although the level of assets and liabilities of the decoration industry is generally high, compared with the listed companies in the industry, Percy's ratio of assets and liabilities seems to be much higher. "Top executives at a Shanghai-listed company are accepting the first financial daily reporterSaid in an interview. The prospectus shows that at the end of the three-year period, the asset-liability ratio was 73.52%, 71.76% and 70.41% respectively. At the end of 2011, the Gold Mantis's asset-liability ratio was only 54.12%, and in the end of 2011 and the end of 2012 the average value of the data was 44.76% and 55.2% respectively. At the same time, the flow ratio and speed ratio of Percy in recent three years are obviously lower than the average of listed companies in the same industry. In this respect, Percy explained that the company's liabilities are mainly operating liabilities, the higher asset-liability ratio will not have a significant adverse impact on the company's continued operation. As of the date of the prospectus, the company bank's comprehensive credit limit of 819 million yuan, when the company needs funds, can further through the loan to obtain the necessary funds. Therefore, the company does not exist because of the high ratio of assets and liabilities affect the company's continued operation of the situation. However, the higher asset-liability ratio is still one of the factors restricting the company's further expansion of business scale, the company urgently needs to expand its financing channels to meet the need of future rapid development through equity financing. According to the data, as at the end of 2013, the amount of short-term borrowings was 133 million yuan, and the financial expenses of the company in nearly three fiscal years were 6.514 million, 8.5372 million and 7.8816 million yuan respectively. High debt rate has made Percy feel the cost of capital pressure. Therefore, the company raises the investment project to use 85 million yuan to supplement other and the main business related operating capital project, in order to improve the company capital structure, reduces the balance of debt ratio and the debt repayment risk.