Emerge in an endless stream of performance suck, and do not mention the price of inventory or the number of social security payments, and so on, Zhejiangs problem of beautifying the report is emerging one after another. Not only that, Zhejiang lino suspected that the investment amount of the raised investment project was over five million yuan, which was suspected of seizing money. In addition, Zhejiang lino is suspected of horizontal competition due to overlapping with the related companies or existing products of the actual controller, and its two core technology patents are replaceable. What is the competitiveness of Zhejiang linos products?
1u3001 Negative growth of both revenue and net profit, suspected of overstating the investment amount of the raised investment project and suspected of encircling money
According to the prospectus and annual report, in 2013-2019 and January March 2020, the operating revenue of Zhejiang lino was 234 million yuan, 225 million yuan, 228 million yuan, 224 million yuan, 301 million yuan, 456 million yuan, 452 million yuan and 51 million yuan respectively, with a year-on-year growth of - 3.97%, 1.33%, - 1.8%, 34.57%, 51.22% and - 0.76% in 2014-2019.
In 2013-2019 and January March 2020, the net profits of Zhejiang lino were 32657000 yuan, 26937600 yuan, 14288400 yuan, 171717500 yuan, 31542700 yuan, 72024000 yuan, 677767000 yuan and 5445600 yuan, respectively, with a year-on-year growth of - 17.51%, - 46.96%, 20.18%, 83.69%, 128.34% and - 5.9% in 2014-2019.
In 2019, Zhejiang linos revenue and net profit both increased negatively. Moreover, Zhejiang lino did not make provision for inventory falling price or beautify the statement.
According to the prospectus and annual report, from 2014 to 2019, the inventory of Zhejiang lino was 56.2337 million yuan, 65.5415 million yuan, 67.3049 million yuan, 89.8615 million yuan, 99.5855 million yuan and 84.9089 million yuan respectively.
In 2014-2019, Zhejiang lino did not make provision for inventory falling price. In response, Zhejiang lino said that due to its production mode of setting production by sales and organizing production according to the customers order contract, the risk of inventory falling price is small. At the end of each reporting period, there is no case that the net realizable value of the inventory is lower than the book value, so no provision for inventory falling price has been made.
In contrast, Jiangsu Shentong Valve Co., Ltd. (hereinafter referred to as Jiangsu Shentong), Suzhou newway Valve Co., Ltd. (hereinafter referred to as newway) and Wuxi Intelligent Automatic Control Engineering Co., Ltd. (hereinafter referred to as intelligent automatic control) are comparable listed companies in the same industry of Zhejiang lino, which also adopt the mode of production by sales, but all have inventory Make provision for falling price.
Zhejiang lino is suspected of beautifying the report forms or more.
According to the prospectus, from 2016 to 2018, the number of social security payers in Zhejiang lino was 444, 479 and 545 respectively. During the reporting period, Zhejiang lino has only one wholly-owned subsidiary, Ruike fluid technology (Shanghai) Co., Ltd. (hereinafter referred to as Ruike fluid), which has not carried out business since its establishment and has been cancelled in June 2019.
According to the data of the market supervision administration, from 2016 to 2018, the number of social security payers of the parent company of Zhejiang lino was 495, 488 and 570 respectively; during the same period, the number of social security payers of Ruike fluid was 0.
That is to say, in 2016-2018, the number of social security payers of guanxuan was 51, 9 and 25 more than that disclosed in the prospectus.
The number of social security payers disclosed in the prospectus is lower than that of guanxuan, and the authenticity of information disclosure of Zhejiang lino needs to be marked with a question mark. Is Zhejiang lino suspected of reducing human cost to beautify the statements? can make nothing of it.
According to the prospectus, the investment amount of Zhejiang lino raised investment project is 349.2447 million yuan, including 234884800 yuan for the annual production line construction project of 25000 sets of high-performance control valves, 54.3599 million yuan for the R & D center construction project and 60 million yuan for the supplementary working capital.
According to RHJ  No. 191 document, the total investment amount of Zhejiang linos 25000 sets of high-performance control valve production base and R & D center construction project is 283.94 million yuan. That is to say, the investment amount disclosed in the prospectus is 5.3047 million yuan more than that disclosed in the EIA document.
In this regard, Zhejiang lino didnt mention the relevant information about the increase of investment in projects raised for investment in the prospectus. Is there any suspicion of encircling money? At the same time, the actual controller of Zhejiang lino cant make people worry, or there is the problem of peer competition.
. the products of the relative company of the actual controller overlap with Zhejiang lino, suspected of horizontal competition
As we all know, the horizontal competition may affect the decision-making of the actual controller of the company, while the products sold by the company controlled by the relatives of the actual controller of Zhejiang lino are similar to the products of Zhejiang lino, or there is suspicion of horizontal competition.
According to the prospectus, Zhejiang lino is mainly engaged in the R & D, production and sales of industrial control valves, whose main products are industrial control valves. The application of industrial control valve includes petroleum, chemical industry, papermaking, environmental protection and other industries. According to the official website of Zhejiang lino, its products include O-type ball valve series, V-type hemispherical valve series, gate valve series, butterfly valve series, etc.
Wu Ping is one of the actual controllers of Zhejiang lino, and his younger brother Wu Lei holds 99% of the shares of Shanghai Valve Automation Technology Co., Ltd. (hereinafter referred to as Shanghai Valve).
That is to say, Shanghai nanovalve has the situation of selling the same type of products with Zhejiang lino, and the application fields of the products of both sides include paper industry and environmental protection industry. The products of both sides overlap. Wu Ping, the actual controller of Shanghai nanovalve, is suspected of horizontal competition.
According to the supplementary legal opinions (2) issued by Beijing Deheng Law Firm (hereinafter referred to as Deheng Law Firm) disclosed by Zhejiang lino, through the verification of Deheng Law Firm, Shanghai Nava is mainly engaged in the distribution of imported positioners, which is different from the main business of Zhejiang lino. Wu Ping did not participate in the investment of Shanghai Na valve, nor in the operation and management of Shanghai Na valve. He had no capital contact with Shanghai Na valve and was independent of each other. There was no horizontal competition between Shanghai Na valve and Zhejiang lino.
It is worth noting that SVN said in its official website that it is a cooperative distributor of Flowserve valves and positioners. According to the prospectus, Flowserve is one of the major enterprises in Zhejiang lino industry and one of the major control valve enterprises abroad. In addition, the products disclosed by Shanghai Na valve on its official website include Flowserves valve products, or are contrary to the distribution of imported positioners mentioned in the above legal opinion.
As a law firm listed in this listing, Deheng Law firm has twice eaten the self-discipline supervision letter or become a stumbling block for Zhejiang lino due to its lack of diligence.
According to sgsf  No. 87 document, on March 2, 2017, when Deheng Law Firm acted as the law firm that recommended the listing company Henan zeheng environmental protection Co., Ltd. to be listed, it was required by the national stock transfer company to submit the self-discipline supervision measures of written commitment due to its lack of diligence.
Not only is the companys actual controllers law firm suspected of horizontal competition and cooperation not a fuel-efficient lamp, but also the low education level of the management of Zhejiang lino deserves our credit.
3u3001 More than 70% of directors, supervisors, junior college students and below, and the proportion of R & D investment is declining
According to the prospectus, as of the signing date of the prospectus, i.e. May 26, 2020, Zhejiang lino has 5 directors, 3 supervisors and 4 senior executives.
Among the five directors, except for two independent directors, Chen Xiaoyu served as the chairman of the board with a college degree; Ren Xiang served as the vice chairman with a college degree; Yu Jianping served as the director with a college degree.
Among the three supervisors, Hu Minggang served as chairman of the board of supervisors with a high school degree; Fang Dongjian served as employee representative supervisor with a secondary school degree; Chen Lei served as employee representative supervisor with a college degree.
In addition to Chen Xiaoyu as the general manager and Yu Jianping as the deputy general manager, Feng Huibin served as the deputy general manager and Secretary of the board of directors, with bachelors degree; Li Xuemei served as the chief financial officer, with bachelors degree.
It should be noted that, according to the 2019 semi annual report of Zhejiang lino, by the end of June 2019, there were 608 employees in Zhejiang lino, including 554 employees with junior college degree or below, accounting for 91.12%; 54 employees with bachelor degree or above, accounting for 8.88%.
This means that more than 90% of the employees of Zhejiang lino have junior college education or below, and their education level is generally low.
At the same time, in recent years, the proportion of R & D investment in operating revenue of Zhejiang lino also shows a downward trend.
It is worth mentioning that the number of patents owned by Zhejiang lino is lower than that of Companies in the same industry.
According to the prospectus, by the end of 2019, Zhejiang lino had 52 patents, including 2 invention patents.
However, newway did not disclose the number of patents it held in its 2019 annual report. That is to say, the number of patents held by Zhejiang lino is less than that of the two comparable listed companies in the same industry, and the doubts about Zhejiang lino patents are far from over.
4u3001 Core technology patents or substitutability, product competitiveness shows short board
In fact, not only the number of patents is not dominant in the industry, but also the core technology patents of Zhejiang lino may have the risk of substitutability.
According to the prospectus, labyrinth noise reduction technology is one of the core technologies of Zhejiang lino. The labyrinth fluid channel module, which is made of metal and multi-layer superposition, is used to integrate the module into the channel of valve core. When the medium flows through the labyrinth channel, the fluid pressure is weakened according to the design control value, the flow rate is slowed down, and the impact is greatly reduced, so as to reduce noise and prevent cavitation.
After adopting the new structure patented by the utility model, when the fluid enters the ball valve, it flows through the valve core and the noise reduction plate, and rapidly throttles, diffuses and expands the fluid through the through-hole on the noise reduction plate, thereby decomposing the fluid pressure, reducing the flow velocity of the fluid medium, effectively reducing the generation of noise and cavitation, and improving the accuracy and service life of the ball valve.
According to the prospectus of intelligent automatic control, ball valve and butterfly valve high pressure flow rate control technology is one of the core technologies of intelligent automatic control. The technology uses honeycomb or orifice plate flow rate control elements to control the pressure drop of valve internals, reduce the flow rate, reduce noise and vibration. That is to say, the technology is similar to the technology principle of labyrinth noise reduction technology which is the core technology of Zhejiang lino.
At the same time, according to the data of the State Intellectual Property Office, intelligent automatic control has a utility model patent named labyrinth multi-stage pressure reducing anti cavitation regulating ball valve, with the patent number of 2015200944997.
The utility model patent aims at accelerating material corrosion, generating noise, causing severe vibration and other hazards caused by fluid cavitation phenomenon, and provides a labyrinth type multi-stage pressure reducing anti cavitation regulating ball valve, which is suitable for high-pressure difference, harsh working conditions prone to cavitation, and can fundamentally avoid bubble generation, so as to ensure safe, stable and efficient operation of the equipment.
The patent aims at the problems such as high noise caused by cavitation phenomenon and destructive to valve parts, and discloses a butterfly valve noise attenuation device. By controlling the flow rate of high-speed compressible fluid, the noise produced by the valve can be reduced, and the use requirements of the valve can be met.
It should be noted that there is more than one company with similar patent of anti cavitation and noise reduction v-ball valve of Zhejiang lino.
Coincidentally, according to the prospectus, another core technology of Zhejiang lino, the magnetic drive valve shaft technology, uses the innovative external magnetic block to drive the internal valve shaft, and the induction module on the valve shaft that integrates with the external magnetic block. Because the valve rod is built-in, there is no leakage channel, the external leakage is completely eliminated.
The patent corresponding to the core technology includes anti escape magnetic pipeline fixed ball valve, patent No. zl201520466706.7.
According to the data of the State Intellectual Property Office, the utility model patent aims at the defects existing in the structure of the transmission valve itself at present, which is easy to cause the sealing leakage of the valve. By setting the isolation seal cover and the magnetic transmission, it can ensure that the pipeline fixed ball valve will not cause the leakage of the pipeline fixed ball valve due to the leakage of the valve stem seal, and the valve rod rotates through the magnetic transmission.
According to the State Intellectual Property Office, the patent of magnetic power on-off valve provides a non leaking magnetic power on-off valve, aiming at the problems of adopting ball valve control in the existing pipeline, such as large control force, short service life, easy medium leakage, and potential safety hazards. The magnetic power technology is adopted to open the components, which are fully sealed, contactless, friction free and lubrication free. The sealing is extremely reliable, avoiding the possibility of medium leakage, long service life, simple installation and maintenance free. It can be widely used in the water supply and gas supply pipelines in daily life and industrial production. All of the above phenomena show that the core technology patents of Zhejiang lino are replaceable. How can its products stand firm in the fierce competition? Thousands of miles of dike, collapse in the ant nest. All of the above questions may be the roadblocks for Zhejiang lino to go public. Can it ride the wind and break the waves in the future? It remains to be answered by Zhejiang lino. Source: Jin Zhengyan, editor in charge: Zhong Qiming_ NF5619
According to the State Intellectual Property Office, the patent of magnetic power on-off valve provides a non leaking magnetic power on-off valve, aiming at the problems of adopting ball valve control in the existing pipeline, such as large control force, short service life, easy medium leakage, and potential safety hazards. The magnetic power technology is adopted to open the components, which are fully sealed, contactless, friction free and lubrication free. The sealing is extremely reliable, avoiding the possibility of medium leakage, long service life, simple installation and maintenance free. It can be widely used in the water supply and gas supply pipelines in daily life and industrial production.
All of the above phenomena show that the core technology patents of Zhejiang lino are replaceable. How can its products stand firm in the fierce competition?
Thousands of miles of dike, collapse in the ant nest. All of the above questions may be the roadblocks for Zhejiang lino to go public. Can it ride the wind and break the waves in the future? It remains to be answered by Zhejiang lino.