Securities code: 300560 securities abbreviation: Zhong Fu Tong Group Co.Ltd(300560) Announcement No.: 2022-017 Zhong Fu Tong Group Co.Ltd(300560)
Announcement on the progress of signing the contract for the winning project
The company and all members of its board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
1. Effective conditions of the contract: the contract shall come into force from the date of sealing by both parties.
2. The performance of this contract will have a positive effect on the company’s operating performance in 2022. The specific accounting treatment and the impact on the company’s operating performance shall be subject to the results confirmed by the annual audit of the audit institution.
3. Risk tips:
(1) The contract payment of the project is paid to the company by stages, in proportion and according to the relevant assessment standards, which has the risk of long collection cycle or insufficient collection;
(2) Although the contract has been officially signed and entered into force, it may face changes in relevant policies and regulations, industrial environment and customer needs during the implementation process, as well as unforeseen and unavoidable factors such as earthquake, typhoon (above force 10 gale), flood, fire and war. There is a certain risk of uncertainty before the completion of the contract.
Please pay attention to investment risks.
1、 Contract signing overview
Zhong Fu Tong Group Co.Ltd(300560) (hereinafter referred to as “company” or “Party B”) was posted on cninfo.com.cn on December 22, 2021 The suggestive announcement on winning the bid of the project (Announcement No.: 2021-113) was disclosed. The company is the candidate selected for the 2022 centralized procurement project of comprehensive business support services (Shandong) of China Mobile Tietong Co., Ltd. Recently, the company and China Mobile Tietong Co., Ltd. Shandong Branch (hereinafter referred to as “China Mobile Tietong” or “party a”) signed a framework agreement on the 2022 integrated business support service centralized procurement project (Shandong) of China Mobile Tietong Co., Ltd. for the above projects.
2、 Counterparty introduction
1. Contractor: China Mobile Tietong Co., Ltd. Shandong Branch
2. Registered address: room 402, No. 3, Baotuquan North Road, Lixia District, Jinan City, Shandong Province
3. Unified social credit Code: 91370102ma3c305d85
4. Legal representative: Yang Baoguo
5. Business scope: Telecom Business (with license); Retail of publications; Retail food; Retail tobacco; Road freight transportation of ordinary goods (only clean energy and new energy vehicles); Technology development, transfer, consultation and service of communication technology, information system and computer software and hardware; Construction project management; Computer system services; Leasing non special control communication equipment, instruments and meters (excluding special equipment); Sales: non specially controlled communication equipment, instruments and meters; Maintenance of non specially controlled communication equipment; Technical inspection; Sales of class I medical devices, computers, software and auxiliary equipment, cultural goods, electronic products, household appliances, office equipment, automobiles, auto parts, knitwear and textiles, daily necessities, handicrafts, clothing, sporting goods, sports equipment and mechanical equipment; Renting office space; Renting commercial houses; Conference services; Undertake exhibition activities; estate management; Enterprise management consulting; Market Research; Economic and trade consultation; Health consultation (except for approved diagnosis and treatment activities); Designing, producing, acting and publishing advertisements; Technology transfer; Urban landscaping services; Family services (business activities are not allowed if they do not meet the general requirements of domestic services); Mechanical equipment leasing (excluding car leasing); Tourism consultation; Train ticket agent; Air ticket agent. (enterprises shall independently choose business items and carry out business activities according to law; publication retail, telecommunications business, tobacco retail, food sales and projects subject to approval according to law shall carry out business activities according to the approved contents after being approved by relevant departments; they shall not engage in business activities of projects prohibited and restricted by industrial policies of this city, and projects subject to approval according to law.). (for projects subject to approval according to law, business activities can be carried out only after approval by relevant departments)
6. Description of association relationship: there is no association relationship between the company and China Mobile Tietong.
7. Performance capability analysis: China Mobile Tietong is a 100% controlled subsidiary of China Mobile Communications Co., Ltd., with good credit and payment capacity.
3、 Main contents of the contract
1. Service project name: centralized procurement project of comprehensive business support services of China Mobile Tietong Co., Ltd. in 2022 (Shandong)
2. Service area: Zaozhuang, Tai’an and Dongying
3. Specific service content: the scope of comprehensive business support services includes but is not limited to maintenance, sales, engineering construction, comprehensive maintenance, information services, comprehensive services and other support services. According to the relevant professional and quality standards of Party A. After signing this agreement, Party A has the right to adjust the scale, content and settlement unit price of support services according to the actual situation of the project. Party B agrees to provide labor operation services to Party A at the same level according to all prices, terms and conditions reached with Party A in the agreement.
4. Amount of service fee: the maximum amount of service fee in this framework agreement is RMB 410446585.14 (in words: RMB 4101 million four hundred and forty-six thousand five hundred and eighty-five point fourteen). During the service period of this agreement, unless Party A puts forward a new service procurement demand to Party B or clearly indicates to continue this agreement, if the total amount of service fees actually settled by Party A and Party B reaches the upper limit, this agreement will be automatically terminated.
5. Service period: from January 1, 2022 to December 31, 2022. During the term of the agreement, if Party A and its superior units release new procurement results, this agreement will be automatically terminated.
6. Service fee settlement: the settlement fees of Party A and Party B shall be settled according to the settlement agreement, the actual workload, unit price and service assessment results during the assessment period.
7. Dispute resolution: All disputes arising from the execution of or in connection with this Agreement shall be settled through negotiation between both parties. If the negotiation fails, either party shall bring a lawsuit to the people’s Court of Party A’s domicile for settlement. Unless otherwise decided by the court, the legal costs shall be borne by the losing party. During the litigation period, other parts of this Agreement shall continue to be executed except the part under litigation.
8. Effectiveness of the agreement: this Agreement shall come into force from the date when the legal representatives / principals or authorized representatives of both parties sign and affix the official seal or special seal for contract.
9. Termination of agreement: Party A has the right to unilaterally terminate this agreement due to changes in national laws, regulations or policies. If Party A proposes to terminate the agreement, it shall send a notice to Party B 30 natural days in advance. Party B shall reply to Zi Zhengyi within 2 working days after receiving the notice, and both parties shall terminate the cooperation relationship. If Party B fails to reply within the above specified time, this agreement will automatically terminate on the date of Party A’s written notice. The termination of the cooperative relationship by both parties shall not affect the effectiveness of the purchase order that has not been fulfilled.
4、 Impact of the project on the company
During the project implementation period, compared with the business situation of the company in the past three years, calculate the expected business volume of each year from the time of winning the bid, and measure the impact of this bid on the company based on the profit margin in 2020 as follows:
1. The company’s business with China Mobile Communications Group Co., Ltd. and China Mobile Tietong in recent three years
Unit: 10000 yuan
China Mobile and China Mobile Tietong
Business scale in recent three years
14256.96 in 2018-
24689.67 in 2019-
2020 21624.25 227.56
2. Expected impact on the company’s revenue and profit in 2022
The expected business scale accounts for the total revenue in 2020 and the expected contribution profit accounts for the total profit in 2020. The contract period (10000 yuan) income (%) (10000 yuan) profit (%)
2022 38721.38 48.77% 3712.16 37.45%
3. The project will help consolidate the company’s main business, play a positive role in the company’s business development and market expansion, and ensure the company’s source of operating income in 2022, but will not affect the independence of the company’s operation.
5、 Risk tips
1. The contract payment of the project is paid to the company by stages, in proportion and according to the relevant assessment standards, which has the risk of long collection cycle or insufficient collection;
2. Although the contract has been officially signed and entered into force, it may face changes in relevant policies and regulations, industrial environment and customer needs during the implementation process, as well as unforeseen and unavoidable factors such as earthquake, typhoon (above force 10 gale), flood, fire and war. There is a certain risk of uncertainty before the completion of the contract.
Please pay attention to investment risks.
It is hereby announced.
Zhong Fu Tong Group Co.Ltd(300560) board of directors
February 10, 2022
