Jinneng Sci-tech folding gem core business gross profit margin decline worrying

⊙ reporter Zhao 0 editor Quanzeyuan 28th Board of Auditors audit passed the China policy film and other 3 companies of the Gem starter application, but Hunan Jinneng technology IPO application failed. This may be related to the company's core competition business for three consecutive years of continued decline in gross profit margins.　　Jinneng Science and technology high growth prospects remain puzzled. Jinneng technology in the prospectus described as the "domestic industrial explosive production technology and equipment industry leader" in the field of civil explosion industry, why did the IPO? The reporter found that although the company's net profit in the past three years in the growth situation, but not to 20 million yuan scale.　　At the same time, in spite of the company's comprehensive gross profit margin stability, but as the core competitive business "industrial explosive production technology and equipment" gross margin of the decline of a larger year. Jinneng Technology prospectus shows that the company's current main revenue depends on the "industrial explosive production technology and equipment" and its derivative products "industrial explosives raw materials" two, the proposed distribution scale of 12 million shares, to raise funds to the "industrial explosive technology and equipment research and Development Center", "annual output of 20,000 tons of emulsified explosives dedicated composite oil phase, 1　　million tons of high-quality emulsifier production line Construction "and other two projects. Although the revenue and net profits are growing every year, the comprehensive gross margin also appears to rise, but in fact, as the highest income ratio of the main business, but also its core competitive advantage of "industrial explosive production technology and equipment", 2007 to 2009 consecutive three-year gross margin of 52.69%, 41.35% As well as 30.07%, the decline of the trend of the year.　　The main department of the company's "second generation of packaging emulsion explosive production technology and equipment," the gross margin of the year down. The company mentioned that, although the company developed in 2004 after the industrialization of new products, in 2006, 2007 to achieve higher gross margin, but the introduction of similar products of competitors relatively mature, resulting in 2008 fell back and the company's new signing contract average price reduction of 11%, This is reflected in the 2009 income recognition, which makes the gross margin fluctuations. Therefore, although the company is expanding the third generation of packaging emulsion explosive production technology and equipment since 2008, but the new production line is also facing the market expansion and competition from the same pressure. 2007-2009 consecutive three years, the company operating income of 80.21 million yuan, 115.03 million yuan and 143.2 million yuan, attributable to the parent company net profit of 1803, 1592, 10.54 million yuan, the net profit scale is relatively limited, but on the other hand, nearly three years of core business gross profit margin decline,　　It makes it difficult to determine whether the company's high growth is sustainable. The company's fund-raising projects are closely related to the above business, one is as the core competitiveness of the "technology and equipment Research and Development Center", the second is the derivative of the composite oil phase, emulsifier production line construction, but in the core product profitability current decline, perhaps also need to consider the risk of expansion.