Net Profit 601 Million Subsidy 595 Million

- Oct 31, 2018-

On October 29, Mullinson released its third-quarter financial report, during which the company's operating income was 5,358,608,391.75 yuan, up 139.78 percent from a year earlier, and the net profit attributable to shareholders of listed companies was 117,095,440.90 yuan, down 12.39 percent from a year earlier.——LED lighting

Revenue in the first three quarters was 12,350,132,361.24 yuan, up 110.79 percent from a year earlier. Net profit attributable to shareholders of listed companies was 601,109,300.67 yuan, up 36.68 percent from a year earlier.——LED lighting

When the semi-annual report was published, many media predicted that Mullinson would be the first LED company with annual revenue of more than 10 billion dollars, and that Mullinson's current revenue of 100% in the third quarter might surprise many media friends. However, the data behind this 10 billion "aircraft carrier" gorgeous revenue seems to be unhappy.——LED lighting

The first is the embarrassment of "increasing profits but not increasing profits" in the reporting period. Net profit declined by 12 points on the year-on-year basis after a sharp increase of nearly 140% in revenue. The reason seems to be reflected in the 86 changes in earnings data. It is due to LED vance, which contributes 110.79% to revenue growth and 126.59% to operating costs. The contribution of LED Vance to revenue can not offset its operating costs, which is the result of Mulinsen. The main reason for the decline in net profit this quarter is.——LED lighting

Second, government subsidies account for a heavy proportion of net profit. In the first three quarters, Aladdin handed in his report card of both revenue and net profit, but Aladdin had counted the government subsidies (link jumps) for some LED companies. Public data showed that in 2018, Mulinsen received a government subsidy of 550 million yuan, which was included in the current profit and loss. According to Mulinsen's financial report, this figure should be revised to 595 million yuan, excluding. After the government subsidized, the net profit of Mu Lin Sen seems to be worrying.——LED lighting

In addition, cash flow is not enough to completely shake off the burden of equity pledge. According to Mullinson's announcement, Sun Qinghuan, the controlling shareholder, holds 715,420,600 shares, accounting for 56.02%, of which 380,949,998 are pledged, accounting for 53.25% of the company's total shares and 29.83% of the company's total equity.——LED lighting

Although the controlling shareholders still have more chips to make up their stocks, there is no strong risk. On October 13, after a round of supplementary pledges, an advance repayment of 150 million repurchases of one share was launched on October 22, as a result of the recent stock market crash. Mullinson disclosed a cash flow of 69,265,624.82 in the third quarter, compared with the previous consolidated funds tightening, there is no sufficient cash flow to support its cash repurchase, once the stock price continues to decline, there seems to be no better way than to continue to make up the mortgage. At present, the outbreak of systemic risk of equity pledge is facing the risk of full-scale warehouse explosion, is it not because of the unrestrained pledge behavior of shareholders?——LED lighting


Judging from the financial data, Mullinson did take a big step forward in building the concept of an LED carrier, thanks to the merger of LED Vance tables. But the rise in operating costs after the acquisition of LED Vance also increased the pressure on Mullinson's daily operations, and the total profit after the merger was not as good as before, which is a good answer. LEDvance, this potato will be hot. Maybe we need to see how the wood is actually going to pick it up.——LED lighting

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