Carpoly IPO: the industry encounters a growth bottleneck, high growth performance is difficult to sustain

In this context, the company still adheres to the crude production capacity expansion model, and attempts to rely on the current predicament through listing, financing and mergers and acquisitions.

Industry encounters bottlenecks and high growth is difficult to sustain

The prospectus shows that the company's performance in recent years has been unsatisfactory.

In response to the year-on-year decrease in net profit in 2013 and 2014, the company explained in the prospectus that with the expansion of business scale and the construction of production bases in Sichuan, Shanghai, Hebei, Du Ruan, and Shaanxi, as well as the continuous strengthening of publicity, the company Expenses have increased a lot, and the period expense ratio has also increased.

At the 2015 second quarter executive vice president working meeting of the Guangdong Paint Industry Association held on July 9 this year, the chairman of the group Qiu Donghang once said, “Although Jiabaoli had pressure on sales in the first half of the year, it should be Turn pressure into driving force, do a good job of performance, welcome this year’s listing plan, and vigorously develop the industrial paint sector in the future to increase growth.

In fact, in recent years, the coating industry as a whole has encountered a growth bottleneck, inventory pressure has continued to increase, and overcapacity has begun to appear.

Capacity expansion still accounts for the bulk of fundraising

At the same time, the reporter discovered that Carboli intends to use the funds raised from the IPO for five projects: one is the construction project of 100,000 tons of coatings and supporting products, and the amount of funds to be raised is 224.

The total amount of the above-mentioned funds is 536,255,300 yuan in total.

　　It is also understood that as early as 2011, Jiabaoli had a sprint for IPO.

　　According to analysis by industry insiders, “the overall decline of the coatings industry is inevitable.

　　Judging from the actual situation, in the nearly 6 years from 2009 to 2014, Carpoli’s annual sales growth rate has remained above 10%.

　　The road to listing of peer companies sounded the alarm

　　As an investor, it must be understood that the road to listing of Chinese paint companies is not smooth.

　　In this regard, Carpoly should have a deep understanding.

　　In the past 20 years or so, China's coatings industry has developed rapidly.

　　From these cases, it can be seen that after the listing of paint companies, there are few companies that can persist in doing a good job in the paint business, and the former paint stocks have been selling shells.