Evergreen shares: The background is not clean the future is not assured

The bizarre change of stock right and the entangled of the original shareholder and the explosion of stock, are the time bomb of this stock yesterday, Tianjin Evergreen Printing Equipment Co., Ltd. (300195.SZ) hereinafter referred to as Tianjin Evergreen, successful online purchase.　　It is reported that the public release will raise 1 billion yuan of funds.　　I did not participate in this online purchase, the reason is very simple, the company's background and prospects are not reassuring.　　Irrational Equity assignee first of all, from the background of the company, the company's equity change is quite magical. Evergreen shares predecessor Evergreen Limited was established in September 1995 for the Taiwan Company, a wholly-owned enterprise. After the long Rong Limited experienced several increase in capital, and in Evergreen Limited last time after the increase of only 4 months, Taiwan will have its 49% stake free to the company chairman Lily. At the same time, Taiwan will also be Tianjin Tai Rong 49% stake also free transfer to Lily.　　Tianjin Tai Rong is a wholly owned by Taiwan. A year later, Taiwan will be the company's 21% equity transfer to Lily, the equity payment is 28.4 million yuan. At the same time, the transfer also includes Taiwan's holdings of Tianjin Tai Rong 21% stake.　　According to the agreement signed by the two parties: as Taiwan's constancy in evergreen printing and Tianjin Tai Rong should be distributed profits from Lily, Lily is subject to the two shares must pay 37 million yuan transfer.　　In the actual payment process, Ms. Li, with its own funds to pay 16.792 million yuan, to Taiwan's persistent distribution of profits to pay 20.2217 million yuan, the total payment of 37.0137 million yuan transfer. It is noteworthy that Lily's own funds are derived from the above two companies share dividends.　　From 2005 to 2007, Lily by virtue of unpaid shares of the company has been a total dividend of about 27.5683 million yuan.　　From this, Lily almost no money to get the above two stakes.　　December 2006, Lily and other shareholders planning to set up a company in Hong Kong, and ready to be listed in Hong Kong, but because of operational procedural flaws, the plan eventually went bankrupt.　　In 2007, Evergreen Limited turned to planning the mainland listing.　　However, October 25, the same year, Taiwan will not be free to Chang Rong limited 30% equity transfer to Lily control of the name Xuan Investment (Lily holds 90% stake, its mother Peimein holding 10% stake) under the umbrella.　　At this point, as of the date of the prospectus, Li Li, holding a 65.94% stake in Evergreen Printing, indirectly holding a 30% stake through the name Xuan Investment, total holding 95.94% equity.　　For a number of free transfer, Taiwan, said Chang-Rong printing since its inception, Taiwan's constant only as a shareholder contribution, not involved in specific management operations, and Lily has been as general manager, responsible for the specific operation of the company, the actual development of the company played a leading role.　　In addition, the company also explained that the Taiwan has been in 2005 to 28.4 million yuan in the long Rong printing 21% equity transfer to Lily, it should be 28.4 million yuan as a long-term investment in Taiwan's evergreen printing of the overall transfer of 100% equity. From the operating mode,This operation is understandable, but not in love. Evergreen Printing in the overall transfer of registered capital has reached 2.81 million U.S. dollars, if the October 25, 2007 foreign exchange rate (1:7.49) calculated, about the equivalent of RMB 21.0469 million U.S. dollars.　　As of October 21, 2007, Evergreen Printing net assets has reached 77.5718 million yuan, is its 28.4 million yuan transfer price 2.73 times times. Some brokers have analyzed the assertion that Taiwan's constancy is clearly questionable. During the development of Evergreen printing, Taiwan has not been engaged in specific management, and its investment in the company has been basically recovered, the financial investment risk has been relatively small.　　In addition, for Taiwan, which invests in equity, the evergreen printing, which has an annual profit growth of 50%, is supposed to be the cash cow in its heavy handshake. For this mode of operation, the author of a friend engaged in capital operations, said, "Not rape is stolen." I also tend to this judgment.　　Despite repeated claims in the prospectus that evergreen shares have nothing to do with the original shareholder, the author prefers to believe that there is no such matter. Many of the time bombs are more crucial to the company's prospects, as the company itself claims, the company's operators face many risks.　　In the author's eyes, there are two major risks can not be circumvented. First, the relationship with the original shareholders. The stakes mentioned above are on the one hand, but more important is that the company's many patent owners are the original shareholders of Taiwanese Liu Tiansheng. The prospectus shows that of the 28 patents made by the company, 10 patents were invented for Liu Tiansheng (including the only invention patent), and one was commissioned to invent it.　　The company has nearly 40% invention patents from Liu Tiansheng. And in Liu Tiansheng as the inventor of the patent, there are 3 for the whole machine patent, the remaining 8 are all the company's products are set of patents, mainly in the company's production equipment to improve accuracy and speed.　　The 3 complete machine patents formed during the reporting period are 3.3333 million yuan, 16.0342 million yuan, 29.7826 million yuan and 24.6695 million yuan, accounting for the current operating income ratio of 1.76%, 7.61%, 11.53% and 15.47% respectively. In addition, the company has two pieces of software copyright is also commissioned by the Taiwan company hung Fat International to develop, and currently the company to buy 22,000 U.S. dollars for the use of die-ironing machine Industrial control computer.　　Evergreen shares also pointed out in the prospectus, Johon International for its own reasons can not continue to provide services to the company, the company will face the change of software developers may be caused by the technical risk of leakage. And the inventory problem is evergreen shares have to face.　　Starting from 2008, Evergreen shares of the inventory turnover began to decline significantly, in this respect, evergreen shares of the explanation is as follows: The company 2008 inventory turnover is larger than 2007, mainly due to the impact of the financial crisis, some customers did not pick up on time, leading to the end of the product and inventory goods increased, delivery time extension. Company 2009 Annual Inventory WeekThe rate of conversion is lower than 2008, mainly because: ① with the growth of business scale, considering product prices and procurement cycle factors such as the increase in safety inventory. In particular, the company 2009 8-December received more orders, during which the order amounted to 49.53% of the total annual order, and increased by 39.46% over a year earlier, the order involves some products to be delivered in 2010, the company according to sales orders increased procurement, raw materials from the end of the last year increase 1,　　5.8069 million yuan; ② because the company's capacity is close to saturation, resulting in the average production cycle of unit products lengthened. It is not hard to find out the impact of macroeconomics on the company.　　This year, there are many uncertainties in macroeconomics: inflation, natural disasters, Europe's debt crisis, the Middle East tense political situation ...　　In short, Evergreen shares of the future is not optimistic. Based on the above analysis, the author believes that it is better to circumvent this stock.