Special explanation on the inquiry letter on the examination of Geovis Technology Co.Ltd(688568) application documents for issuing shares to specific objects (xksbz [2022] No. zg10023)
Inquiry letter on the examination and approval of Geovis Technology Co.Ltd(688568) application documents for issuing shares to specific objects
Special description
Special instructions on page 1-64 of the catalogue special instructions on the examination and inquiry letter of Geovis Technology Co.Ltd(688568) application documents for issuing shares to specific objects
(unless otherwise mentioned, the monetary unit in this note is RMB 10000)
Xin Hui Shi Bao Zi [2022] No. zg10023 Shanghai Stock Exchange:
The examination and inquiry letter on Geovis Technology Co.Ltd(688568) application documents for issuing shares to specific objects (szkss (refinancing) [2022] No. 6) (hereinafter referred to as the “examination and inquiry letter”) issued by your exchange on January 11, 2022 put forward examination opinions on Geovis Technology Co.Ltd(688568) (hereinafter referred to as “the company” or “the issuer” or ” Geovis Technology Co.Ltd(688568) “) application documents for issuing shares to specific objects. In response to the audit opinion, Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “accountant” or “we”) explained the verification situation and verification opinion as follows on issues related to the verification or opinions of accountants.
Note: we have not accepted the entrustment to audit or review the issuer’s financial statements for the period from January to September 2021, so we are unable to express opinions or conclusions on the financial information of the above period, which does not constitute audit or review, and the results may be different from the conclusions reached by us in the audit of the issuer’s financial statements for 2021.
Question 5: income calculation of projects invested with raised funds
According to the application materials: (1) the after tax financial internal rate of return of the project is 23.73%, the after tax static payback period is 5.99 years, and the construction period of the project is 4 years; (2) The revenue model of geovis online online digital earth project is divided into three categories: cloud service subscription, edge product authorization and end-user value-added services; (3) In 2020, the company’s sales expenses accounted for 9.95% of the total operating revenue. In the calculation of the return rate of geovis online digital earth project, the issuer assumed that the sales expense rate was 8%; (4) Geovis online online digital earth construction project helps the transformation and upgrading of the company’s business from offline delivery mode to online operation mode.
The issuer is requested to explain: (1) the process and basis of income calculation of this raised investment project, including the specific calculation process of predicted income, sales volume, gross profit margin, net profit margin and after tax internal rate of return of the project in each year; (2) The reason and rationality of the significant increase in the cumulative number of end-user value-added services, active users and paying users after the third year in the revenue model of geovis online online digital earth project; The rationality of the average customer unit price of various specific services; (3) As a new product of geovis online digital earth project, the reason why the sales expense rate assumed by the yield calculation is lower than that of the issuer in 2020, and the comparison between the period expense rate assumed by the issuer and historical data; (4) After the implementation of geovis online digital earth project, whether the issuer’s main customers and suppliers, revenue and cost structure, business model, etc. will change significantly, and whether the existing offline delivery business will gradually transform into online business, and further explain the expected impact of the implementation of the raised investment project on the company’s operation in combination with the above situation; (5) The impact of relevant depreciation, amortization and other expenses on the company’s financial status and asset structure after the construction of raised investment projects reaches the expected serviceable state; (6) Whether the income calculation of the previous raised investment project can be clearly distinguished from the current raised investment project, and the basis.
Please report to the accountant for verification and express clear opinions.
reply:
[issuer’s description]
1、 The process and basis of income calculation of this raised investment project, including the specific calculation process of predicted income, sales volume, gross margin, net profit, net interest rate and after tax internal rate of return of the project in each year
Based on the principle of prudence and objectivity, the company forecasts the future income, cost, period (indirect) expenses and other indicators of the raised investment project by comprehensively considering the digital earth technology and market development trend, and the benefit calculation process of the raised investment project on the basis of historical business statistics, current actual business situation, business development planning and comparable companies The calculation basis is analyzed as follows:
The total investment of geovis online online digital earth project is expected to be 1583.154 million yuan
The calculation period is 7 years, and the planning and construction period is 4 years. After calculation, the after tax financial internal rate of return of the project is 23.73%, and the after tax static payback period is 5.99 years.
1. Calculation process of project operating income
Classification item name: the first year, the second year, the third year, the fourth year, the fifth year, the sixth year and the seventh year
Number of paid licensed users (PCS) — 2000 3000 4000 5500 6000 average customer unit price of cloud service (10000 yuan) — 9 subscriptions
Annual income (10000 yuan) — 18000 27000 36000 49500 54000
Number of deployed users 25 45 60 80 100 110 110 average customer unit price of edge production (10000 yuan) 300 product authorization
Annual income (10000 yuan) 7500 13500 18000 24000 30000 33000 33000
Cumulative number of users 40000 1240000 7000000 28600000 115000000 172600000 207160000
Number of active users (number): 20000 120000 600000 2400000 9600000 14400000 17280000
Number of end-user paying users (number): 30000 120000 480000 720000 864000 value-added services
Average passenger unit price (10000 yuan) — 0.03 0.03 0.03 0.03
Annual income (10000 yuan) — 900 3600 14400 21600 25920
Other income 570 2280 9120 13400 16416
Total income (10000 yuan, including tax) 7500 13500 37470 56880 89520 117500 129336
Total income (10000 yuan, excluding tax) 6637 11947 34297 52258 82700 108921 120087
The revenue source of geovis online online digital earth construction project is divided into three parts: cloud service subscription, edge product authorization and end-user value-added services.
Cloud service subscriptions are mainly for small and medium-sized organizations and third-party developers, and end-user value-added services are mainly for mass consumer groups. The company’s existing business mainly serves medium and large customers in the form of offline delivery. After the completion of this fund-raising project, the online operation of digital earth makes it possible for the company to serve small and medium-sized customers and mass consumers.
For cloud service subscription, the smooth implementation of this fund-raising project is expected to increase the application of the company’s digital earth products in civil scenes such as tourism, education, e-commerce and media. Taking the education scene as an example, according to the main results of national education statistics in 2020 issued by the development planning department of the Ministry of education, there were more than 500000 schools at all levels and of all kinds in 2020, forming a huge potential customer group.
For end-user value-added services, the construction objectives of this raised investment project include striving to achieve no less than 200 million registered users by the end of 2028. Considering that the user group of foreign competitive products has exceeded 1 billion and its use in China is limited, it is reasonable to set the target of reaching 200 million registered users in 2028 when China’s demand has not been effectively met. Among the 200 million users, 864000 paying users are expected to be transformed, accounting for only 0.42%. The revenue calculation is cautious and reasonable.
For edge product authorization, the main customers are medium and large-scale customers such as governments and enterprises. The company has formed a relatively mature product service mechanism, and will continue to receive key promotion and application scenario implementation support from local governments for many consecutive years in the future. The revenue realization is reasonable.
2. Total cost calculation
Unit: 10000 yuan
Serial No. project first year second year third year fourth year fifth year sixth year seventh year
1 production cost 1117 2533 8153 13318 18597 23255 24907
1-1 outsourcing 531 956 4738 7065 10003 13306 14481
1-2 storage and broadband — 376 1135 1447 1665 1771
1-3 labor cost 387 1219 2560 4480 6350 7408
