Angel Yeast Co.Ltd(600298) (600298. SH) replied to the feedback on Angel Yeast Co.Ltd(600298) non public development bank stock application documents (hereinafter referred to as “feedback”) issued by the CSRC on February 21. Previously, the CSRC focused on the violations of laws and regulations of the company’s independent directors, the implementation of the company’s financial investment, the details of the arrangement of raised investment projects and the large fluctuation of gross profit margin.
For the specific situation that Jiang chunqian, an independent director of the company, was issued a warning letter by Hubei securities regulatory bureau and criticized by Shanghai stock exchange for violation of laws and regulations, Angel Yeast Co.Ltd(600298) said that the main matters of Jiang chunqian’s punishment were Zhongzhu Healthcare Holding Co.Ltd(600568) undertaking guarantee liability for the subsidiary of the controlling shareholder, constituting the occupation of non operating funds by the controlling shareholder and its related parties, and the information disclosure of overdue guarantee matters was inaccurate. As of the issuance date of this feedback reply report, Jiang chunqian has not been placed on file for investigation by the judicial organ for suspected crimes or by the CSRC for suspected violations of laws and regulations. The company’s application for non-public offering of shares meets the provisions of Article 39 of the measures for the administration of securities issuance of listed companies and the conditions for non-public offering of shares. For the specific situation of the company’s financial investment and financial business, Angel Yeast Co.Ltd(600298) said that from six months before the date of the resolution of the relevant board of directors to the date of issuance of this reply report, the company did not implement or plan to establish or invest in industrial funds and M & a funds, nor did it borrow funds, entrusted loans In case of capital contribution or capital increase to the group finance company in excess of the shareholding ratio of the group, holding other equity investments and holding other non current financial assets, the company does not have relevant arrangements for financial investment to be implemented.
Among them, Angel Yeast Co.Ltd(600298) said that as of September 30, 2021, angel financial leasing, a subsidiary of the issuer, specifically engaged in financial leasing business and commercial factoring business. The main service objects and profit sources are Angel Yeast Co.Ltd(600298) and its subsidiaries and partners in the Angel Yeast Co.Ltd(600298) industrial chain. The main service objects are closely related to the development of the company’s main business, It is conducive to serving the real economy. It belongs to financial leasing and commercial factoring that meet the needs of business forms, industry development practices and industrial policies. According to the answers to some questions about refinancing business (revised in June 2020), it is not included in the category of financial calculation temporarily. On June 22, 2021, the issuer provided a loan of 589.23 million yuan to Angel financial leasing, and angel financial leasing then repaid the remaining entrusted loan of the issuer to Angel financial leasing in the early stage. Therefore, the loan provided by the issuer to Angel financial leasing is to repay the entrusted loan that is about to expire, not a new loan.
According to the application documents, Angel Yeast Co.Ltd(600298) the total amount of funds raised by this non-public offering of shares does not exceed 2 billion yuan (including this amount). After deducting the relevant issuance expenses, the raised funds will be used to invest in the construction project of yeast green production base, the green manufacturing project of yeast products with an annual output of 25000 tons, the green manufacturing project of new enzyme preparations with an annual output of 5000 tons and supplement working capital.
As for the adjustment of raised investment projects, Angel Yeast Co.Ltd(600298) said that after deducting the fund of 589.23 million yuan provided to Angel financial leasing from six months before the resolution date of the first board of directors to the issuance, according to the resolution of the board of directors of the company, the total amount of funds raised from the non-public offering of shares was reduced from no more than 2 billion yuan (including this amount) to no more than 1.41 billion yuan (including this amount), Considering the company’s development strategy, project implementation priorities and other factors, the raised funds will be used to invest in the following projects after deducting relevant issuance expenses:
Angel Yeast Co.Ltd(600298) stressed that after the adjustment of the non-public offering plan, the green manufacturing project with an annual output of 25000 tons of yeast products is planned to be invested by the company’s self raised funds, and the investment of the raised funds will no longer be used. The raised investment project mainly constructs yeast production workshop, does not involve new dormitories, office buildings, etc., and does not involve engaging in real estate development business in a disguised form.
For the rationality of the scale of new capacity, Angel Yeast Co.Ltd(600298) said that the yeast industry has a broad market space. As the world’s third largest yeast company, the world’s largest Ye supplier and the second largest dry yeast supplier, the company has the advantages of scale and first mover advantage. During the reporting period (from 2018 to January September 2021), the output of yeast and deep-processing products increased steadily, with 263478 tons, 275676 tons, 286280 tons and 228214 tons respectively. The new production capacity will help the company build professional advantages in yeast technology in yeast and yeast derivatives, deal with the threat of competitors, further improve the industry status, strengthen competitive advantages, and further continue to lead the development of the industry and market.
For the company’s gross profit margin fluctuated greatly in the latest period, and the change trend of the company’s gross profit margin was different from that of comparable companies in the same industry, Angel Yeast Co.Ltd(600298) said that during the reporting period, the gross profit margin of the company’s main business was 36.37%, 35.09%, 34.05% and 29.64% respectively, and the gross profit margin from January to September 2021 decreased by 4.41 percentage points compared with that in 2020, The reason for the decline in gross profit margin at the end of the latest period was the sharp rise in unit operating costs caused by the rise in the price of the company’s main raw materials. The main reason for the difference in the change trend of gross profit margin between the company and comparable companies in the same industry is that the company’s yeast products are different from comparable companies in the same industry, and the influencing factors of the change of company cost and gross profit margin are different from comparable companies. The company has taken measures such as product price increase and strategic goods preparation to alleviate the pressure on the cost side and improve the gross profit margin.
In addition, the CSRC also focused on the reasons for the high balance of Angel Yeast Co.Ltd(600298) accounts receivable and inventory, the holding of a large amount of monetary funds and foreign loans, the high amount of government subsidies included in the current profit and loss, and the significant increase in the amount of prepayments at the end of the latest period, Angel Yeast Co.Ltd(600298) made supplementary explanations in the reply report.
