Purchase customers equipment and sell it at a loss

category:Finance
 Purchase customers equipment and sell it at a loss


Is there a disguised return?

OTV sells series welding machine equipment, but there is no relevant second-hand equipment distribution business in the companys main business. However, in March 2019, the company purchased 12 second-hand series welding machines from Trina Solar. In addition, Trina Solar has also donated 10 second-hand series welding machines to OTV. The 22 used series welding machines were sold to Trina from 2014 to 2016.

The design service life of the 22 used series welding machines is 10 years. Among them, 12 purchased second-hand series welding machines are well maintained, and the service life is 5 to 7 years. However, 10 complimentary second-hand equipment have been used for 4 to 5 years, and can not be used normally at present. In other words, the 10 additional equipment did not reach the designed service life.

After purchasing the second-hand equipment, OTV directly sold it to unrelated third parties. As the sales price is relatively low, the gross profit is - 2.6344 million yuan. In short, its loss management.

OTV denies the existence of sales returns, disguised returns, and product quality issues. The company said that the purchase is to cooperate with Trina Solar technology transformation project, and the relevant equipment has passed the 12-month warranty period. The purchase of Trina Solar second-hand equipment is conducive to the maintenance of the companys relationship with its customers. Negative gross profit disposal of related assets is to reduce opportunity cost and accelerate asset turnover.

According to the data, in 2018, the net cash flow from OTVs operating activities was - 53.1586 million yuan. In the context of relatively tight operating cash flow, aotevi still helps customers deal with second-hand equipment at a loss, which may be related to its large sales contract with Trina Solar.

When the reporter inquired about the important sales contract in the first round of examination and inquiry reply, he noted that since 2016, the company and its subsidiaries have made sales contracts for Trina Solar Technology (Thailand), Trina Solar, Trina Solar (Suqian) and Trina Solar (Changzhou) worth USD 206400 (about RMB 1438800), RMB 28512000, RMB 27.4 million and RMB 29.5156 million, respectively, The total amount is 99.8164 million yuan.

All the contracted equipment will be delivered in 2019. At present, all the equipment has not been accepted. In 2018, OTVs operating revenue was 586 million yuan. It can be seen that the performance of nearly 100 million yuan sales contract of Trina Solar has a great impact on OTV.

As for the above situation, the reporters of the daily economic news respectively called autoway and Trina Solar. Trina Solars staff in charge of investor relations told reporters that the above questions need to be consulted with the companys business department, please explain the specific situation through an interview letter. However, as of the time of publication, no reply has been received. The phone in the Secretarys office was not connected.

Poor development of lithium battery equipment business

OTVs latest payment collection to Zhengzhou BIC also attracted the attention of Shanghai Stock Exchange. At the beginning of November 2019, the debt problem of bik power emerged, involving a number of Listed Companies in the upper reaches of the industrial chain, of which autoway is a subsidiary of bik power, Zhengzhou bik lithium equipment provider.

At present, there is a risk that some of the receivables of our customers may not be recovered (Far East foster, Zhengzhou bick, etc.). As of the end of June 2019, the balance of accounts receivable of Zhengzhou bick at the end of the period was 3.9548 million yuan. After there were signs of credit risk in Zhengzhou bick, the proportion of its bad debt provision by OTV increased to 35%.

As for the receivables of Far East foster, ortwell did not specify them in the reply to the letter of implementation. Considering that both far east foster and Zhengzhou bick belong to the power battery industry, this may mean that OTVs lithium battery equipment business development is not smooth.

OTV was only engaged in optoelectronic equipment business. After acquiring Wuxi OTV Intelligent Equipment Co., Ltd. in 2016, it entered the lithium equipment market and took it as a new business growth point. After the completion of the acquisition, autoway began to provide the lithium battery module pack line. The product is only used for cylindrical battery and flexible battery, but in the domestic power battery market, the market share of cylindrical battery and flexible battery is far lower than that of square battery, and the operating rate is low. Or because of this, OTVs lithium-ion equipment business is blocked and continues to lose money. From 2016 to the first half of 2019, the companys sales revenue of lithium battery equipment was 6.9665 million yuan, 43.2697 million yuan, 31.7206 million yuan and 17.2847 million yuan, respectively, with a loss of 22.329 million yuan, 22.3899 million yuan, 27.3776 million yuan and 8.7981 million yuan. Source: editor in charge of daily economic news: Yang bin_nf4368

OTV was only engaged in optoelectronic equipment business. After acquiring Wuxi OTV Intelligent Equipment Co., Ltd. in 2016, it entered the lithium equipment market and took it as a new business growth point.

After the completion of the acquisition, autoway began to provide the lithium battery module pack line. The product is only used for cylindrical battery and flexible battery, but in the domestic power battery market, the market share of cylindrical battery and flexible battery is far lower than that of square battery, and the operating rate is low.

Or because of this, OTVs lithium-ion equipment business is blocked and continues to lose money. From 2016 to the first half of 2019, the companys sales revenue of lithium battery equipment was 6.9665 million yuan, 43.2697 million yuan, 31.7206 million yuan and 17.2847 million yuan, respectively, with a loss of 22.329 million yuan, 22.3899 million yuan, 27.3776 million yuan and 8.7981 million yuan.