Reply to the second round of examination inquiry letter on the application documents of Shanghai Weston Information Technology Co., Ltd. for initial public offering and listing on the gem
About Shanghai Weston Information Technology Co., Ltd
Application documents for initial public offering and listing on GEM
Reply to the second round of audit inquiry letter
Xhshz [2021] No. za880 Shenzhen Stock Exchange:
We have received the second round of examination and inquiry letter on the application documents of Shanghai Weston Information Technology Co., Ltd. for initial public offering and listing on the gem (examination and inquiry letter [2021] No. 011185) (hereinafter referred to as “the second round of examination and inquiry letter”) issued by you on October 20, 2021. Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “the second round of examination and inquiry letter”) As the audit institution of Shanghai Weston Information Technology Co., Ltd. (hereinafter referred to as “Weston”, “issuer” or “company”), the “reporting accountant”) has carefully verified the relevant questions raised by you based on the principle of authenticity, accuracy and completeness. Now the reply is as follows, please review.
Unless otherwise specified, the abbreviation in this reply has the same meaning as that in the prospectus.
Review the questions listed in the inquiry letter in bold (not bold)
Answers to questions in arial (not bold)
Amendments and supplements to the prospectus (BOLD)
1. Main business
The application materials show:
(1) The main products of the issuer’s software product development business include manufacturing operation management system (MOM), enterprise resource management system (ERP), it integrated operation management platform (ITSM) and data management system (datam).
(2) The issuer’s operation and maintenance services include application operation and maintenance and system operation and maintenance. Application operation and maintenance refers to the operation and maintenance services provided by the company to ensure the normal use of the software system after the delivery and acceptance of the software development project, mainly from the company’s stock customers. System operation and maintenance is an information-based platform (servers, network equipment, storage equipment, etc.) provide professional technical support services for efficient and stable operation, including stock customers and incremental customers independently expanded by system operation and maintenance. In each period of the reporting period, the company’s software development revenue continued to grow, and the increase of software development projects promoted the continuous growth of application operation and maintenance service revenue in the later period.
(3) The company’s system integration business mainly includes the construction of IT infrastructure platform related to the operation of application software system, data acquisition equipment, instruments and meters related to information projects and various industries Siasun Robot&Automation Co.Ltd(300024) Technical selection, procurement, installation, commissioning, integration and training services of supporting equipment for the overall scheme of the project such as and non-standard equipment. The cost of system integration business mainly consists of material cost, purchased software and service cost, and the labor cost accounts for a relatively low proportion.
(4) During the reporting period, the revenue from software product sales and service business was 9992100 yuan, 11383600 yuan, 35474900 yuan and 26584200 yuan respectively, accounting for 6.58%, 6.02%, 14.69% and 23.25% respectively, and the gross profit margin was 19.93%, 14.45%, 26.43% and 12.98% respectively. More than 99% of the issuer’s cost of this business came from purchased products and services, mainly through competitive negotiation and business The main customers are banks and information industry enterprises. In 2020, a customer purchased RMB 15.5042 million from the issuer, with a gross profit margin of 40.23%, higher than that of a customer purchased from the issuer in other years.
Please the issuer:
(1) The main products of software product development business are listed in the form of table: manufacturing operation management system (MOM), enterprise resource management system (ERP), it integrated operation management platform (ITSM) and data management system (datam) includes subsystems, technical route and overall architecture, specific application scenarios, main functions realized, main differences with similar industrial software products of comparable companies, and whether the software products involve standardized products.
(2) Analyze and explain whether there is a match between the operation and maintenance service revenue and the software product development service revenue, whether the operation and maintenance service and the software product development service are remote or on-site guidance, whether resident personnel are required to provide services, the accounting of relevant labor costs, and explain the operation and maintenance business and software product development of the issuer in combination with the production process of the business and the distribution of the project implementation site The rationality of personnel composition and distribution corresponding to the service, the matching with income and business, and whether the growth of operation and maintenance services and software product development services is sustainable.
(3) Explain the revenue amount and proportion of system integration business applied to application software systems and information projects, the difference between system integration business and similar businesses of comparable companies in the same industry, the reason and rationality of relatively low labor cost, the issuer’s core competitiveness of this kind of business, and whether the revenue growth is sustainable. (4) Explain the rationality of the issuer’s acquisition of software product sales and service business mainly through competitive negotiation and business negotiation during the reporting period, and whether there is a situation that the issuer should invite bidding but did not invite bidding.
(5) Explain the specific process of the issuer’s procurement and sales of software products in the software product sales and service business, and the main terms of the agency contract signed with the main suppliers, including but not limited to the cooperation period, share proportion, specific rights and obligations, etc. the top five customers of the issuer’s software product sales and service business are mainly large banks, information technology companies and related customers The rationality of purchasing big data software from the issuer.
(6) Explain the rationality that the gross profit margin of a customer purchasing software products from the issuer in 2020 is 40.23%, and the reason for the large fluctuation of the gross profit margin of the issuer’s software product sales and service business.
The sponsor and the reporting accountant are requested to express clear opinions.
reply:
1、 Issuer description
(i) The main products of software product development business are listed in the form of table: manufacturing operation management system (MOM), enterprise resource management system (ERP), it integrated operation management platform (ITSM) and data management system (datam) includes subsystems, technical route and overall architecture, specific application scenarios, main functions realized, main differences with similar industrial software products of comparable companies, and whether the software products involve standardized products
1. The main products of software product development business are listed in the form of table: manufacturing operation management system (MOM), enterprise resource management system (ERP) and it integrated operation management system
Subsystem, technical route and overall architecture, specific application scenarios, main functions and software products included in ITSM and datam
Are standardized products involved
In “I, (II) and 2. Software development business divided according to application field and system type” of “section VI business and technology” of the prospectus, the issuer has
The subsystem, technical route, overall architecture, specific application scenarios and main functions to be realized included in the product shall be supplemented and disclosed as follows:
Technical route and whether it involves the main functions realized by the main application scenarios of the main product subsystems, product features and advantages, overall architecture and standardized products
The first mock exam is mainly used in industrial enterprise intelligent manufacturing 1. It includes planning and dispatching management 1, and a unified mode of grouping and multi factories: traditional production and operation management.
The specific application scenarios, such as management, material management, workshop management and system, focus on a single factory to solve the production execution of a single factory
1. Under the management of manufacturing execution: production Kanban management and production related control issues; The company’s mom products are positioned as group management
Management system (MES) 1. After receiving the production demand, the manufacturing enterprise can realize the integration of one company and iwisdom based on the multi factory model
2. The advanced scheduling management can use APS subsystem to manage various types of management modules required for production; Centralized and unified control of production and operation of multiple factories under its jurisdiction; Czech development platform
The management system (APS) seeks to split into various tasks, seek personnel, 2. Realize production modeling, order 2. Service-oriented flexible and extensible architecture: advanced scheduling model of traditional production and operation management department
3. The process statistical control equipment, raw materials and energy closely cooperate with each other in the most management and production scheduling rules. The management system mostly adopts the single service mode, which has a high risk of system upgrading and optimization, and is characterized by type and disorderly sorting
The manufacturing operation control system (SPC) is well arranged; it is difficult to manage, plan and schedule management and optimize production performance. This product can flexibly expand the service section algorithm model and quality
Management system 4. Monitoring and feedback management of quality traceability system; Point to ensure the high performance and safety of the system, and realize the quantity prediction model, no (MOM) 2. After arranging the production plan, the workshop equipment health prediction
Qtr uses MES subsystem to ensure production responsibility. 3. Realize online non-stop release management of key links of the enterprise, and avoid in-process test models and figures caused by release
5. The process management department shall implement as planned to achieve the expected monitoring indicators related to production and quality; Break; Twin, knowledge map
PTM production effect; 4. Realize the whole product life cycle; 3. Agile and collaborative production management and control platform: traditional production and operation management spectrum and big data system
6. Power and energy pipe 3. Use SPC, quality monitoring and traceability in the production process; Management system products generally only focus on production executive management, and can not understand a management technology
Management system (EMS) PTM, EMS, etc. can control the production process 5, strengthen the fineness of process management, and solve the problem of overall production optimization. This product realizes the integration of production, research, supply and marketing
The process, quality and energy in the process can be accurately and effectively improved, which can better support the production management scheduling and execution guarantee
Management to ensure the steady state of production process and product management level; Quality and efficiency of
Technical route and whether it involves the main functions realized by the main application scenarios of the main product subsystems, product features and advantages, overall architecture and standardized products
Controllable quality; 6. Realize energy monitoring
4. Operation and management based on system records after production
Complete data were recorded and Qtr lines were used
System to help enterprises realize product life cycle
To realize logistics tracking and quality control
Quantity control and traceability
Mainly used in Enterprises
