Invisible Champion SUNLD Growing doubt

Chunkai Yu Haitao July 2, ningbo Saint Lai Tatsu Electrical Appliance Co., Ltd. (hereinafter called SUNLD) smoothly. As one of the most well-known manufacturers of thermostat, in addition to the industry know, sunld unknown, is the domestic thermostat market "invisible champion." Last year, the company won an intellectual property lawsuit with the global thermostat giant.　　It was this single lawsuit that paved the way for a sunld listing.　　Yet the advantages of the company's brand, patent and standard-making are not as obvious as the repeated emphasis in its prospectus, and its expansion after its listing is subject to intellectual-property problems that have not been fully cleared. The market outlook is questionable in SUNLD's prospectus, which describes the company's competitive advantage: "In November 2008, with the British Strix Company on intellectual property disputes reached a mutual mediation, the company's own intellectual property rights protected by the law, the company's products will be unimpeded worldwide." "However, in the" Risk Factors "of the prospectus, the introduction to the intellectual property rights of its products says:" January 15, 2009, the Otter Company and the issuer signed the Patent implementation license contract ", The 98811836.X and 200310119952.7 invention patents used by the otter company's licensed issuer for plastic electric kettle products can achieve leakage-proof function, the license period is January 15, 2009 to January 14, 2014. According to the contract, the Distributor shall not export to the United Kingdom, Germany and France of the plastic electric kettle products licensed by the Otter company, otherwise the license usage fee will be calculated and collected separately.　　"It can be seen that the sunld in the Anglo-German law of the three market conditions, there are obvious constraints, and its competitive advantage described in the" global unimpeded products "against. Not only that, in fact, the Anglo-German market is the world's most important electric kettle consumption market.　　If sunld to enter these three markets, even if not lawsuit, will be charged with "licensing fees", and sunld not in the prospectus to publicize this specific fee standard, so that its future in the market expansion of the impact will not be judged. In addition, the prospectus describes the status of the industry as follows: "with independent intellectual property rights and highly competitive cost advantages quickly opened a number of well-known brands in the domestic market door, with the nine-yang, the United States, Supor and new treasures and other household appliances brands have started to establish long-term and stable cooperative relations, become its supplier of cooperation.　　"This statement has been cited many times and has appeared in many chapters of its prospectus." But in its publicity sales contract, as of December 31, 2009, SUNLD is executing a contract of seven, are thermostat long-term purchase agreement, seven cooperation objects are: Zhang San Platinum Electrical Appliance Co., Ltd., Ningbo ke Cheng Electrical Manufacturing Co., Ltd., Foshan Shunde District Snow Trump Electrical Appliance Co., Ltd., Guangzhou Electrical Industrial Co., Ltd., Zhejiang Transcendental Electrical Appliance Co., Ltd., Foshan Shunde district Mei Qi ElectricCo., Ltd., Yuyao Electronics Co., Ltd.　　The catch is that, in its prospectus, there are several well-known front-line brand partners, none of them.　　Venture investment "debt-to-equity swap" from the industry, sunld in the traditional small household electrical appliances manufacturing, which is a typical complete competition market, technical content, margin level, product prices are lower. At the end of 2009, the company achieved a net profit of 27.22 million, the profit level of the same period small and medium-sized project in the lower position, and its nearly three years of growth is generally, 2008 net profit growth rate is only 3.67%, 2009 of the net profit growth rate of 17.55%, but the same period revenue growth is only 1.29%　　Quite puzzling.　　Such a project is not attractive, but it still "attracted" two venture investment institutions before the IPO. March 2009, SUNLD Co., Ltd. as a whole changed to Foreign Investment Co., Ltd., only one months after April 18, Shanghai Yong and investment to 18 million yuan to subscribe for new shares, of which 4 million yuan into registered capital, the remaining 14 million yuan into the capital accumulation.　　Another one months later, Ningbo East Yuan investment to 9.552 million yuan to subscribe for new shares, of which 2.4 million yuan into registered capital, the remaining 7.152 million yuan into the capital accumulation.　　Calculate the investment cost of two venture capital, Yong and invest the unit price of the investment is 4.5 yuan/share, the East Yuan creates the investment to 3.97 yuan/share, the former is higher than the latter 13%--after entering the cost is lower. A record in the prospectus reveals some clues. At the end of 2008, there was a sum of 22 million of other payables on the company's books, which the company said was a proposed investment for temporary borrowing and investment.　　and Yong and investment on the website shows that its investment in the point of Saint-Lai electrical appliances on January 17, 2008. "Yong and investment in the form of debt investment, should also be accompanied by a private transfer agreement, the risk is much smaller than the direct shares, because even if the enterprise can not go to the city, or profits to return money." The risk is low and the cost of the swap may be higher.　　"Zhejiang Business venture investment manager said to reporters, sunld this situation should belong to private-equity convertible bonds, relatively rare," this also reflected from the side of the investor may not be too optimistic about the listing of the company. In addition, "Dong Yuan Venture is a local venture investment company in Ningbo, the surprise shares to help them dilute their family color output." So it makes sense that the cost of a stake is low. The investment manager said.