MJ Science and Technology GEM starting plate is the details of the flaws refraction quick success

On the evening of December 29, the Board of Auditors issued the 38th meeting of the 2009 audit Results Bulletin said, Shanghai MJ Technology Co., Ltd. (first) failed.

After reading the prospectus published by MJ Technology, a senior investment banker, who declined to be named, told reporters that the company appeared too eager to go public, with flaws in details such as the company's financial position, tax treatment, equity change, or its failure to meet.

But "details" are not "bars", the investment banker said, behind the "minutiae" of the MJ Technology prospectus, which mapped the mentality of companies and institutions to be quick in the financing boom.

Datong Securities researcher Zhang Hongbin to reporters, the impact of the Enterprise Board is not repeated, the reasons for growth and equity defects, MJ technology in this area is also inadequate.

Financial "mishap"

Financial information is to understand the company's operating conditions of the window, from the window of the MJ technology to look in, it shows some of the scenery appears difficult to enter the Commission's "discernment."

From the company's disclosure of the main balance sheet data, as of September 30, 2009, MJ Technology has calculated the proportion of assets and liabilities of only 13.07% (parent company caliber), and from 2006 to 2008, this data has been a downward trend, followed by: 64.04%, 28.91% and 8.08%.

Since the asset-liability ratio is so low, the company's use of financial leverage is inadequate, according to a financial person who has read the first-instance reports of a number of companies that have had a 27% per cent asset-liability ratio and is therefore seen as a case of inadequate financing, which is not surprising if the MJ-tech IPO is broken.

However, the problem of MJ technology is not limited to the abnormal asset-liability ratio, accounts receivable too much is the company's "unbearable weight."

As of September 30, 2009, the company accounts receivable is 46.406 million yuan, the proportion of total assets is 60.54%. Although in this, within 1 years of accounts receivable accounted for 89.33% of the total, but this is still difficult to release its negative impact on cash flow: The company reporting period of operating activities cash flow instability, 2007, 2008 operating activities cash flow NET is negative and continue to increase.

2009 1-September, the net amount of cash flow generated by MJ Technology was only 1.386 million yuan. The company's cash flow and business development are badly mismatched, with net cash flows at least 7 million to 8 million if the company's operations are kept running smoothly, the senior investment bankers said.

Zhang Hongbin told reporters that while the company's 2006 and 2007-year performance has seen a large increase, but it is clear that 2008 years of growth has slowed, by 2010, the growth rate may be only single-digit levels, the main reason for its failure this time is likely to be a growth problem.

Tax flaws

In addition, the MJ Technology disclosed the prospectus also exposes the tax flaw.

The prospectus shows that the company paid 2008 value-added tax of 3.0925 million yuan in 2009, according to the company's understanding, in accordance with the terms of the income recognition, according to the percentage of completion to confirm sales revenue, if not issued VAT invoices and not in accordance with the contract agreed to receive sales, you do not need to declare VAT. Therefore, the company has unpaid VAT at the end of 2008, but has confirmed the sales revenue by 18.191 million yuan, the corresponding VAT is 3.0925 million yuan.

However, in accordance with the requirements of the competent tax authorities, in accordance with the percentage of the completion of the sales revenue should be reported at the same time the sale of tax and pay value-added tax, the company in May 2009 when the income tax settlement, the initiative to supplement the Declaration and paid value-added tax.

The company said that although the Shanghai municipal tax authorities on the company reporting period of VAT payment in accordance with the relevant laws and regulations issued a certificate, but the company 2009 to pay 2008 value-added tax on the behavior of the tax law is still a different understanding, and in the future by the competent tax authorities the risk of additional punishment.

The senior investment bankers told reporters that the company's disclosure of the tax issue, showing that the company did not provide flawless duty-paying certificates.

Tax issues are never a minor problem in a regulatory body, listed companies should also be given high attention, the senior investment bankers said, in Beijing, there was an IT company planned to go public, but due to the differences between China and the United States accounting system, the need to pay 20 million of tax, the company delayed to pay, As an auditor, Ernst and the firm ultimately did not sign, leading to the market stranded.

As a cautionary tale, from an intermediary's point of view, these issues should be resolved before the prospectus is submitted to ensure success, the investment banker said.

Shareholder suspense

Similarly, in the equity structure, MJ Technology also exposes many problems. In addition to the concentration of equity, the staff of a few equity incentives to the audit committee in the review will be concerned about the issue, the introduction of its venture capital Beijing Tong and Tatsu many as a lot of puzzling.

The prospectus shows that Beijing Tong and Tatsu was established on February 3, 2008, the main business is equity investment, the registered capital of 10 million yuan, the legal representative of man-made Wanshaoying. Its shareholder has two: the natural person Wanshaoying and Wangjiong each contribution 5 million yuan, occupies the share 50%.

One months after the establishment of the company, Beijing Tong and Danone began to share in the MJ technology: March 17, 2008, MJ Limited shareholders will consider the adoption of: Lu Xuedong, Jianxiang, Yang Yongjun, Guo Yoo respectively held its MJ limited 3.69%, 2.77%, 2.77%, 2.44% of the stake, A total of 11.67% of the shares of the 4.9 million yuan to transfer the price to Beijing Tong and Tatsu.

What is even more puzzling is that in the basic case of the main shareholder holding more than 5% of the issuer's shares in the prospectus, Beijing Qualcomm and the registered capital of 10 million yuan, and paid-in capital of only 6 million yuan. If the company is about to be established two years ago, the funds of China Tong and the shareholders are not fully accounted for?

If a sponsor of a listed company does not even have his own registered capital guaranteed to be fully accounted for, what will happen if the company ends up meeting?