Reply to the inquiry letter on the examination of application documents for issuing shares to specific objects Tian Zhi Ye Zi [2022] No. 4962
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Reply to the inquiry letter on the examination of application documents for issuing shares to specific objects 1
Reply to the inquiry letter on the examination of application documents for issuing shares to specific objects
Tian Zhi Ye Zi [2022] No. 4962 Shanghai Stock Exchange:
According to the requirements of the second round examination and inquiry letter on Kbc Corporation Ltd(688598) application documents for issuing shares to specific objects (szkss (refinancing) [2022] No. 24) (hereinafter referred to as the "inquiry letter") of your exchange, Tianzhi International Certified Public Accountants (special general partnership) (hereinafter referred to as "we" or "reporting accountant") as the reporting accountant of Kbc Corporation Ltd(688598) (hereinafter referred to as "issuer" or "company" or " Kbc Corporation Ltd(688598) "), replied to the relevant questions of the reporting accountant in the inquiry letter one by one as follows:
Unless otherwise specified, the abbreviation used in this reply is the same as the interpretation in Kbc Corporation Ltd(688598) prospectus for the issuance of shares to specific objects (draft application).
In the reply to this inquiry letter, the financial data of 2021 has not been audited; If there is any difference in the mantissa between the sum of the total and the sub item values, it is caused by rounding.
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Review the questions listed in the inquiry letter in bold
Reply to questions of audit inquiry letter and verification opinions of intermediary institutions in Song typeface (not bold)
Question 3: about income measurement
According to the first round of inquiry reply, (1) after the completion of the high-purity large-scale advanced carbon matrix composite capacity expansion project, the overall gross profit margin will be reduced from 62.94% to 51.62%, and the production cost per ton will rise from 350000 yuan to 497000 yuan. (2) In the benefit forecast, the operating revenue forecast is based on two dimensions: sales volume and price. The average unit price of the company's products from the first year to the fourth year remains unchanged, which is basically the same as the average unit price of the company's products from the first year to the fifth year, and remains slightly higher than the average unit price of the current year; The project is put into operation while being built. The output reaches 60% in the second year and 100% in the third year. The sales volume is consistent with the production capacity; (3) For the financing expansion project, the issuer adopts the existing technology accumulation, and there is no significant difference between the technology of the corresponding product and the existing technology.
The issuer is requested to: (1) the reasons and rationality of the decrease of gross profit margin and the increase of unit cost caused by the completion of the project, and improve the relevant contents of "risk factors related to this issuance"; (2) Whether the basis for determining the sales price is higher than the average price of the current product is reasonable; Whether the calculation of sales volume is cautious in combination with the existing production and sales rate, orders in hand, market scale and competitors.
Please report to the accountant for verification and comment.
Question reply:
1、 Explain
(I) reasons and rationality for the decrease of gross profit margin and the increase of unit cost caused by the completion of the project, and improve the relevant contents of "risk factors related to this issuance"
In the year when the high-purity large-scale advanced carbon matrix composite capacity expansion project is completed and reaches production capacity, the amount deducted from other period expenses in the total cost is regarded as the amount of operating cost; Based on the main business income, main business cost and main business gross profit margin in 2020, it is assumed that the calculated amount of the project is directly superimposed. The calculation and comparison of unit cost and gross profit margin are as follows:
Main business income in 2020 (10000 yuan) (a) 42345.15
Main business cost in 2020 (RMB 10000) (b) 1569466
2020 sales volume (ton) (c) 448.37
Gross profit margin of main business in 2020 (a-b) / a 62.94%
Unit production cost (10000 yuan / ton) B / C 35.00
Operating income of project 1 in the year of reaching production capacity (10000 yuan) (d) 157800.00
Total cost of project 1 in the year of reaching production capacity (10000 yuan) (E) 95346.87
Other period expenses of project 1 in the year of reaching production capacity (10000 yuan) (f) 14202.00
Operating cost of project 1 in the year of reaching production capacity g = E-F (10000 yuan) 81144.87
Assumed sales volume (ton) (H) 1500.00
Overall gross profit rate [(a + D) - (B + G)] / (a + D) 51.62%
Total unit production cost (10000 yuan / ton) (B + G) / (c + H) 49.70
It can be seen from the above table that in the year after the completion of the project, the overall gross profit margin of the company's main business has decreased, but it remains at a high level.
The benefit forecast of the company is based on the principle of prudence. Therefore, after the completion of the project, the overall gross profit margin of the company will decrease and the unit cost will increase. The specific instructions are as follows:
1. Since 2021, the price of carbon fiber has increased significantly. From January to September 2021, the average purchase unit price of carbon fiber of the company was 199600 yuan / ton, an increase of 14.28% over the average purchase unit price of 174700 yuan / ton in 2020. Based on the principle of prudence in estimation, the predicted unit price of carbon fiber procurement of the company has been raised accordingly on the basis of the current market price, which is one of the factors for the rise of the overall unit production cost;
2. The company has always attached importance to the reasonable return of production employees through labor, and considered the overall rising trend of employees' salary. Based on the principle of prudence, the company calculates the average salary of production personnel at 170000 yuan / person / year, which is higher than the local average salary level and the current salary level of production employees, which is one of the factors for the rise of overall unit production cost;
3. Estimated depreciation impact of new fixed assets: during the reporting period, the service life of some fixed assets (plant, equipment, etc.) of the company is long, the original value is low, and the depreciation amount is relatively small.
With the investment in the construction of new production capacity of the company, the annual depreciation amount of new fixed assets (plant, equipment, etc.) is high in the short term, which is one of the important factors for the rise of overall unit production cost;
4. With the continuous improvement of the company's product preparation technology and process and the continuous enrichment of product types, the unit cost of the company's products shows an overall downward trend. The main impact paths include the improvement of the utilization efficiency of carbon fiber and natural gas. With the continuous enrichment of the company's product size and types, the configuration of deposited products in the vapor deposition furnace is more optimized, The production efficiency of the equipment is further improved. Based on the principle of estimation prudence, the above overall reduction trend of unit cost is not taken into account.
The issuer has supplemented and disclosed the following contents in bold italics in "III. factors that may have a significant adverse impact on the implementation process or implementation effect of this raised investment project" of "Chapter V risk factors related to this offering" in the prospectus:
“(Ⅳ) The implementation of the capacity expansion project poses the risk of reducing the overall gross profit margin and increasing the unit cost of the company. Since 2021, the overall price of carbon fiber has shown an upward trend. The implementation of the company's investment project with raised funds needs a certain time. In the process of project construction, the price of carbon fiber and labor cost may continue to rise. In addition, after the completion of the company's capacity expansion project, the company's asset scale will increase significantly, and the annual depreciation and amortization expenses will increase accordingly.
If the company fails to further reduce the unit cost of products through the continuous improvement of product preparation technology and process and the continuous enrichment of product types, so as to offset the impact of the above factors, the implementation of capacity expansion project will have the risk of reducing the overall gross profit margin and increasing the unit cost of the company. "
(II) whether the basis for determining the sales price is higher than the average price of the current product is reasonable; Whether the calculation of sales volume is cautious in combination with the existing production and sales rate, orders in hand, market scale and competitors
1. The sales price in the benefit calculation is determined based on the historical sales situation, which is higher than the current average price of products, which is reasonable
In the benefit prediction of the company, the determination basis of the sales price is the historical sales situation of the company.
The product plan of this raised investment and production expansion project is mainly used in the field of n-type silicon wafers, with higher purity and larger size. Compared with the field of p-type silicon wafers, it has higher requirements for purification process (more purification equipment, longer purification time, etc.). At present, the products of China's photovoltaic crystalline silicon manufacturing enterprises are mainly p-type battery silicon wafers. Therefore, the products sold by the company are mainly used in the field of p-type batteries, and only some products sold abroad are used in the field of n-type silicon wafers, with higher unit price.
Therefore, the estimated average unit price at the initial stage of the project is slightly higher than the current average unit price of the company's products; Based on the principle of prudence, the average unit price decreases by about 10% from the previous year from the second year to the fourth year, and the sales price remains unchanged from the fifth year, which is basically equivalent to the average price of current products.
2. According to the existing production and sales rate, orders in hand, market scale and competitors, the issuer's sales volume is calculated cautiously
During the reporting period, the capacity, output and capacity utilization of the company's main products are as follows:
Project: January September 2021, 2020, 2019, 2018
Advanced carbon capacity (ton) 1143.67 481.61 202.05 187.87
Output of matrix composite (ton) 1187.10 486.33 201.88 178.46 materials
Capacity utilization rate 103.80%, 100.98%, 99.92%, 94.99%
It can be seen from the above table that since 2020, the company's capacity utilization rate has exceeded 100%. With the further increase of downstream demand, the company's capacity is expected to be difficult to ensure the full supply of customer demand.
During the reporting period, the output, sales volume and production and sales rate of the company's main products are as follows:
Project: January September 2021, 2020, 2019, 2018
Advanced carbon sales volume (ton) 1017.49 448.37 222.94 129.72 matrix composite output (ton) 1187.10 486.33 201.88 178.46 material production and sales rate 85.71%, 92.19%, 110.43%, 72.69%
The sales of the company's main products are good. The unsold parts in the above table are mainly finished products and delivered goods, and the sales revenue has not been formed. The post period (as of December 31, 2021, Unaudited) carry over of the company's finished products and issued goods on September 30, 2021 is as follows:
Unit: 10000 yuan
Carrying forward proportion of carrying forward amount after the project book balance period
Finished products 5502.23 4507.88 81.93%
Issued goods 4641.94 4183.19 90.12%
Note: carry forward in the table refers to the transfer to the next stage. The finished products are carried forward into the issued goods after delivery, and the issued goods are carried forward to the operating cost.
As of December 31, 2021, the amount of orders on hand of the company was 973 million yuan (including tax), and there were sufficient orders on hand.
With the increasing production capacity of downstream customers, the downstream demand of the company's products also gradually increases. According to the capacity expansion plan announced by the company's main customers, the demand of its new capacity for carbon matrix composite thermal field components is about 6662.25-7106.40 tons; Carbon matrix composite thermal field components are consumables. After the above projects are completed and the production capacity is realized, the annual demand for carbon matrix composite thermal field components is about 5551.88-5922.00 tons. According to estimation, the market share of crucible products of the company in 2020 is about 33.89% ~ 36.15%. Assuming a market share of 35%, the new demand for the company's products from the capacity expansion of the above customers is about 2331.79 ~ 2487.24 tons. After completion
