Securities code: 002408 securities abbreviation: Zibo Qixiang Tengda Chemical Co.Ltd(002408) Announcement No.: 2022-013 bond Code: 128128 bond abbreviation: Qi Xiangzhuan 2
Zibo Qixiang Tengda Chemical Co.Ltd(002408)
Announcement on the reply to the letter of concern of Shenzhen Stock Exchange
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Zibo Qixiang Tengda Chemical Co.Ltd(002408) (hereinafter referred to as "the company" or " Zibo Qixiang Tengda Chemical Co.Ltd(002408) ") received the letter of concern on Zibo Qixiang Tengda Chemical Co.Ltd(002408) issued by the second Department of management of listed companies of Shenzhen Stock Exchange on February 16, 2022 (company department concern letter [2022] No. 145). After receiving the letter, the company attached great importance to it and checked the questions raised in the letter of concern. Now the reply to the relevant questions is announced as follows:
Recently, some media reported that the payment of some trust products of cedar Holdings Group Co., Ltd. (hereinafter referred to as "Cedar Holdings") was overdue, and the supply chain business related to its underlying assets was suspected of "idling" trade. Zhang Jin, founder of cedar holdings, is the actual controller of your company. Our department is concerned about this. Please explain the following problems:
1. In February 2017, your company established a wholly-owned subsidiary Zibo Zibo Qixiang Tengda Chemical Co.Ltd(002408) supply chain Co., Ltd. (hereinafter referred to as "Tengda supply chain") and engaged in supply chain management business. In the first half of 2021, your company's supply chain management business realized a revenue of 10.354 billion yuan, accounting for 58.33% of the company's operating revenue.
(1) Please explain the specific situation of the supply chain business, including but not limited to the pricing policy, settlement mode, credit policy, physical circulation and capital circulation of the company's main goods and services, and explain the revenue recognition method of the supply chain business from the perspective of "control" in combination with the new revenue standard. reply:
Since its establishment, the company has been focusing on the petrochemical industry and has a complete C4 deep processing industrial chain. Since 2017, in order to further enrich the sources of petrochemical raw materials and explore new business growth points, the company has gradually involved in the supply chain management business, mainly engaged in the bulk commodity supply chain business of chemical products. In 2018, the company acquired granite capital SA to initially lay out the field of international chemical supply chain. At present, the Zibo Qixiang Tengda Chemical Co.Ltd(002408) supply chain business is mainly divided into domestic and overseas parts. The domestic supply chain business operators are the company's wholly-owned subsidiary Zibo Zibo Qixiang Tengda Chemical Co.Ltd(002408) supply chain Co., Ltd. and its domestic subsidiary Guangzhou Zibo Qixiang Tengda Chemical Co.Ltd(002408) supply chain Co., Ltd., the domestic subsidiaries Guangzhou Zibo Qixiang Tengda Chemical Co.Ltd(002408) Energy Co., Ltd. and Chengdu Zibo Qixiang Tengda Chemical Co.Ltd(002408) supply chain Co., Ltd. (hereinafter collectively referred to as "domestic supply chain companies"); The operation subject of overseas supply chain business is granite capital S.A., an overseas subsidiary of Zibo Zibo Qixiang Tengda Chemical Co.Ltd(002408) supply chain Co., Ltd., and its subsidiaries (hereinafter collectively referred to as "overseas supply chain company").
1、 Company supply chain management business model
(I) China's supply chain business model
1. Matching mode
In the trade of chemical industry, there is often a mismatch between the upstream and downstream purchase and marketing demand, which makes it difficult for a single buyer and seller to easily reach an agreement on the price and quantity of a transaction. By strictly controlling the quality of upstream suppliers and downstream customers, domestic supply chain companies have selected a number of high-quality enterprises in the industry, gradually established good cooperative relations with them, and integrated the resources and channels of upstream and downstream supply chains. When buyers and sellers in the supply chain generate purchase and sales demand, they can realize purchase and sales matching in a short time according to the collected and integrated information, complete the transaction and improve the transaction efficiency of the market.
2. Centralized distribution mode
Relying on the sales channels of the supply chain, domestic supply chain companies provide large upstream suppliers with distribution business in specific regional markets (such as South China and East China), so as to increase the sales efficiency of upstream suppliers and improve the inventory turnover speed of upstream suppliers. At the same time, domestic supply chain companies summarize the procurement needs of small downstream customers into large orders to form the advantage of procurement scale, so as to win more competitive market prices from large upstream suppliers. While improving the transaction efficiency of upstream and downstream customers and suppliers in the supply chain, domestic supply chain companies realize income by charging a certain price difference.
(II) foreign supply chain business model
1. Matching mode
The business model of overseas supply chain companies is to make profit from the price difference by matching the transactions of chemical product suppliers and customers with corresponding needs, and arranging the best logistics solutions for them. The main trading partners of overseas supply chain companies include large multinational enterprises and state-owned enterprises. Among them, the suppliers are mainly chemical product manufacturers and their associated trading companies, and the customers are mainly end customers of chemical products and their associated trading companies.
Overseas supply chain companies keep close contact with the sales manager of manufacturers and the procurement manager of end users to maintain close customer relations, better understand the market dynamics and provide support for transactions. As an intermediary, traders sign physical sales agreements with both buyers and sellers and make settlement respectively. After the transaction is confirmed, the overseas supply chain company will arrange the third-party logistics for goods transportation according to the trade terms. Most of the purchases of overseas supply chain companies are directly sent to the destination by the supplier and signed by the customer. Some STM and pyg sales are purchased by the target group, stored in the rented savings tank, and then transported to the customer inland. The specific business process is as follows:
2、 Settlement mode
(I) China's supply chain settlement model
1. The settlement methods of supply chain procurement business of domestic supply chain companies are divided into delivery on delivery and payment on delivery, which are determined according to the needs of suppliers and negotiation between both parties. Domestic supply chain companies mainly complete settlement through bank transfer and bank acceptance.
(1) Delivery upon payment: contract signing - business initiation payment process - Financial confirmation of payment - supplier delivery - our company signs for goods.
(2) Cash on delivery: contract signing - Supplier shipment - our company signs for goods - business payment according to the contract - initiate payment process - Financial confirmation of payment.
2. The settlement methods of supply chain sales business of domestic supply chain companies are divided into delivery on delivery and payment on delivery, which are determined according to customer needs and negotiation between both parties.
(1) Delivery upon payment: contract signing - payment by the purchaser - Financial confirmation of collection - Sales Delivery - goods signed by the purchaser.
(2) Cash on delivery: contract signing - Sales Delivery - buyer signing for goods - customer paying according to the contract - Financial confirmation of collection.
(II) foreign supply chain settlement mode
The settlement method of overseas supply chain companies is essentially the same as that of domestic companies, both of which are cash on delivery or cash on delivery. The main difference is that most overseas supply chain companies use letters of credit ("LC") issued by international banks to realize receipt, payment and settlement, and a small amount of business is completed by cheque settlement, bank transfer and other means. If the buyer complies with the company's credit policy, it may also obtain a certain accounting period on the basis of comprehensive consideration of income and return.
Please refer to the following credit policies for the relevant policies of accounting period.
3、 Credit policy
(I) China's supply chain credit policy
Domestic supply chain companies strictly screen and manage upstream suppliers and downstream customers, and assess customers' credit rating according to different customers' credit status, historical transactions, contract performance and other risk control indicators, combined with industry reputation, industry prospects and business conditions, and give different trading conditions and credit policies to customers of different levels, Effectively control various risks in the process of business development. Cooperative customers can be divided into white list customers, general downstream customers and blacklist customers:
1. White list customers / suppliers: central enterprises, state-owned enterprises, listed companies and their subsidiaries, which operate well, and are given a credit period of 3-6 months according to the actual business situation;
2. General downstream customers: mainly companies that have been established for a short time, have no bad records, but have limited trading product scale and time, and cooperate for the first time. For such customers, after running in and understanding for a period of time through the business of payment before goods, we can appropriately improve the dimension and credit period of cooperation.
3. Blacklist customers: enterprises with large amount of litigation as defendants, enterprises listed as dishonest persons, enterprises with equity freezing, or partners with bad performance records after cooperation will be listed as blacklist customers by the company and will not cooperate with them.
(II) foreign supply chain credit policy
Overseas supply chain companies divide their existing customers into the following four categories: investment grade customers, credit grade customers, primary customers and secondary customers. Among the more than 300 customers, except 15-25 investment grade and credit grade customers and some secondary customers, most customers are primary customers.
(1) Investment grade customers can buy goods on credit. The credit period is 30 days after the issuance of ocean bills of lading. Specific transactions may be subject to a credit period of 45-60 days due to the long shipping period, mainly including state-owned enterprises of large state-owned enterprises, such as SABIC, ENOC and international rating agencies The quality of net assets is high and recognized by the customer's Bank (the bank needs to issue a letter of credit to the purchaser according to the pledged accounts receivable), such as shell.
(2) Credit grade customers are generally granted a 30 day credit line for credit sales, but for the control of credit risk, considering that there is no letter of credit support for accounts receivable, overseas supply chain companies uniformly purchase insurance for credit risk from Euler Hermes insurance company. If the buyer refuses or is unable to pay for the goods after the risk reward of the goods is transferred, The insurance company can compensate 90% of the payment amount, and the premium is about 0.109% of the sales contract amount.
(3) First class customers need to purchase goods with overseas supply chain companies through letters of credit, and the overseas supply chain companies can deliver goods only after receiving the qualified letters of credit; The payment term of the credit period is generally 30 days after the bill of lading. For transactions with a shipping time of more than 30 days or individual special needs, a payment term of less than 90 days is provided. For individual transactions with a short shipping time, the payment may be required to meet the bill of lading, and the payment must be paid before unloading at the port.
(4) Secondary customers are generally initial transactions or overseas supply chain companies believe that the transaction risk is high and require secondary customers to pay in full before delivery.
4、 Physical circulation
(I) actual logistics transfer of China's supply chain
1. Purchase
The procurement business of domestic supply chain companies mainly adopts a procurement mode similar to "purchase based on sales". The purchase of goods is based on the specific orders of downstream customers, or for the continuous, stable and predictable demand of some bulk chemical commodities, the purchase plan is formulated accordingly, and the buyout system is adopted to purchase goods. For goods with continuous procurement demand, domestic supply chain companies generally sign corresponding monthly or annual framework agreements with suppliers.
After purchase, the goods are usually delivered in large public warehouses or mainstream warehouses designated by the industry. Since the purchase of goods in the supply chain is generally based on specific orders or stable downstream demand, the sales speed of goods is generally fast and the inventory scale is small.
2. Sell
Based on the understanding and investigation of the downstream market and the evaluation of the demand for specific products, domestic supply chain companies mine suitable intended customers and sign corresponding framework agreements or specific orders with customers. Then, based on the similar mode of "purchase by sales", provide corresponding products to customers in time, batch by batch and in sufficient quantity according to their needs. The products are generally picked up by the customer at the passenger station / freight station where the service agreement has been signed with the domestic supply chain company (pick-up in the warehouse and transfer in the warehouse), or the supply chain company within the territory organizes the third-party logistics for distribution.
During the transaction, if the customer who has a transaction with the domestic supply chain company is a trader, the goods are mainly traded in the form of transfer in the warehouse. Although the goods have not been delivered out of the warehouse, the ownership of the goods has been transferred. If the customer who has a transaction with a domestic supply chain company is an end user (such as a production-oriented enterprise), the delivery of goods, logistics and transfer of goods rights will occur in the process of transaction.
Domestic supply chain companies mainly realize the absolute control of cargo rights from the following aspects: first, the company attaches great importance to the credit investigation of suppliers and customers to reduce the credit risk of partners; Secondly, the company carefully selects warehousing enterprises. The cooperative units are large warehousing, transportation and logistics companies in the industry, properly sign Warehousing contracts, pay attention to daily supervision, and dynamically understand the warehousing situation of the warehouse; Thirdly, in the process of business, the warehouse in and out documents are directly provided by the warehouse and sealed and confirmed by our company to ensure the authenticity of cargo rights and the effectiveness of transfer. At the same time, the company's business department, risk control department and financial department will track / verify the goods flow according to the contract, obtain logistics information and voucher data until the receipt (delivery) is completed, so as to ensure that the physical flow is consistent and matched with the contract, relevant documents and capital flow.
(II) actual logistics transfer of foreign supply chain
The physical circulation modes of overseas supply chain companies are mainly divided into two categories. The first is that when the upstream supplier transports the goods to our designated ship, the goods flow from the upstream supplier to the overseas supply chain company, and all risks are transferred with it. When the goods arrive at the port and are transferred to the reservoir area or tank farm designated by the downstream customer, the right of goods will be transferred to the downstream, and the risk of goods will also be transferred. The second situation is that the logistics transportation is completed by the upstream supplier and delivered directly to the tank farm we rent. At this time, the circulation of goods occurs when the goods enter the tank farm we rent, and the risk is transferred accordingly. In this case, downstream customers usually pick up the goods in batches in our warehouse area, and the delivery cycle ranges from 7 to 30 days. At the moment when the downstream takes the goods from the tank farm, when the products are loaded on the customer's truck / / railway tank truck / ship, the circulation of this batch of goods is completed, and the risk is transferred to the downstream customer.
5、 Capital circulation
(I) capital flow in China's supply chain
The main capital flow mode of Chinese supply chain companies is cash. In the process of business, it is mainly based on the payment mode of paying the supplier after receiving the customer's payment; For some businesses, after receiving the customer's deposit, the customer will pay the payment to the upstream supplier in the way of payment first and then goods, and the customer will pick up the goods and collect the payment successively within 7-30 days; For the prepayment and credit sales of high-quality customers, the company will recover the money or goods within 1-3 months.
For prepaid suppliers, firstly, the risk control department will investigate and evaluate the supplier's industry background, competitiveness, financial credit status, performance ability and other information, including but not limited to background review of its business team, understanding its past transaction records, market reputation, etc; For small prepayment suppliers, they pass the data review
