Recodeal(SH:688800) Xin Lang Zheng Quan·2025-08-08 11:20Core Viewpoint - The company, Ruikeda, is attempting to address concerns regarding its 1 billion yuan convertible bond issuance by outlining its fundraising plans and projected revenue growth, despite facing significant challenges related to high capacity utilization and debt levels [1][2]. Group 1: Fundraising and Project Allocation - Ruikeda plans to allocate the raised funds to three main areas: high-frequency and high-speed connection systems (500 million yuan), smart energy connection system upgrades (200 million yuan), and working capital support (300 million yuan), with projected annual revenue increase of 1.652 billion yuan and net profit of 126 million yuan post-project completion [1]. - The company has received orders from European automotive companies for energy storage and several high-frequency connector projects, although it has not disclosed specific client names or contract details, raising concerns about market expansion uncertainties [2]. Group 2: Capacity Utilization and Expansion Risks - The company's capacity utilization rates for its new energy connectors are reported at 122.15% and 135.33% for 2024 and Q1 2025, respectively, exceeding industry safety thresholds, which raises questions about the feasibility of absorbing the expanded capacity [2]. - Regulatory scrutiny highlights the risk of overcapacity, questioning whether the anticipated demand will match the increased production capabilities post-expansion [2]. Group 3: Financial Health and Debt Concerns - Over the past four years, the company's debt-to-asset ratio has surged from 35.08% to 51.13%, with short-term borrowings increasing by 61.49% to 549 million yuan in Q1 2025, and non-current liabilities due within a year skyrocketing by 809.89% to 134 million yuan [3]. - The operating cash flow is projected to plummet by 65.18% to 57.16 million yuan in 2024, with a cash-to-short-term debt ratio of only 0.5, indicating a precarious debt repayment capacity [3]. Group 4: Profitability and Cost Management - Despite a revenue increase of 55.29% to 2.415 billion yuan in 2024, net profit only grew by 28.11% to 175 million yuan, with a decline in gross margin by 2.75 percentage points to 21.79%, attributed to raw material price fluctuations and competitive pricing strategies [4]. - The company faces significant risks related to accounts receivable, with overdue amounts rising, which could impact actual profitability [4]. Group 5: Regulatory and Technical Concerns - Regulatory bodies have raised concerns about the delays in previously funded projects, such as the "key components for new energy vehicles" and "R&D center projects," which are now postponed until September 2025 [4]. - The company's reliance on Shanghai Jiao Tong University for core technology raises questions about its technological independence, as faculty members hold a stake in the company, leading to potential risks if the partnership changes [4].