Kbc Corporation Ltd(688598) reply to the inquiry letter on the examination of application documents for issuing shares to specific objects
Tian Zhi Ye Zi [2022] No. 104551 Shanghai Stock Exchange:
According to the requirements of the second round examination and inquiry letter on the application documents of Kbc Corporation Ltd(688598) issuing shares to specific objects (szkss (refinancing) [2022] No. 24) (hereinafter referred to as the "inquiry letter") of your exchange, As the reporting accountant of Kbc Corporation Ltd(688598) (hereinafter referred to as the "issuer" or "company" or " Kbc Corporation Ltd(688598) "), Tianzhi International Certified Public Accountants (special general partnership) (hereinafter referred to as "we" or "reporting accountant") replied to the relevant questions related to the reporting accountant in the inquiry letter one by one as follows:
Unless otherwise specified, the abbreviation used in this reply has the same meaning as that in the prospectus for the issuance of shares by Kbc Corporation Ltd(688598) to specific objects (draft declaration).
In the reply to this inquiry letter, if there is any difference in the mantissa between the sum of the total and the sub item values, it is caused by rounding.
Category font
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)
Supplement and revise the contents disclosed in the prospectus; Revised and supplementary contents of this round of inquiry letter (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 estimated average unit price at the initial stage of completion is slightly higher than the current average unit price of the company's products. From the second year to the fourth year, it will decrease by about 10% from the previous year. The sales price will remain unchanged from the fifth year and is basically equivalent to the average price of current products; 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) 4234515
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) 15780000
Total cost of project 1 in the year of reaching production capacity (10000 yuan) (E) 9534687
Other period expenses of project 1 in the year of reaching production capacity (10000 yuan) (f) 1420200
Operating cost of project 1 in the year of reaching production capacity g = E-F (10000 yuan) 8114487
Assumed sales volume (ton) (H) 150000
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. In 2021, the average purchase unit price of carbon fiber of the company was 207400 yuan / ton, an increase of 18.72% 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 made supplementary disclosure in "III. factors that may have a significant adverse impact on the implementation process or implementation effect of the raised investment project" of "Chapter V risk factors related to this issuance" in the prospectus
The following text is bold in italics:
"(IV) the risk that the implementation of the capacity expansion project will reduce the overall gross profit margin and increase the unit cost of the company
Since 2021, the overall price of carbon fiber has shown an upward trend. Of the project invested by the raised funds of the company
It will take some time to implement. In the process of project construction, carbon fiber price and labor cost may remain stable
Continue to rise. In addition, after the completion of the company's capacity expansion project, the company's asset scale will increase significantly
The annual depreciation and amortization expenses will increase accordingly.
If the company fails to continuously improve the product preparation technology and process and enrich the product types
If the unit cost of the product is further reduced to offset the impact of the above factors, the implementation of the capacity expansion project is problematic
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; Combined with existing
Production and sales rate, orders in hand, market scale, competitors, and whether the sales volume is measured carefully
1. The sales price in the benefit calculation is determined based on the historical sales situation, which is higher than the average of current products
The price 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 products of the raised investment and production expansion project are planned to be mainly used in the field of n-type silicon wafers, with higher purity and size
Compared with the field of p-type silicon wafer, it has higher requirements for purification process (more purification equipment, longer time)
Purification time, etc.), and the sales unit price is expected to be higher.
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 sincerity
Based on the principle of prudence, the average unit price decreases from the previous year from the second year to the fourth year after sales
About 10%, and the sales price has remained stable since the fifth year.
In addition, considering that the capacity utilization rate of the company has exceeded 100% since 2020, and according to the framework agreement
The future demand of customers, even if calculated based on the annual production capacity of all the projects under construction, still exists
Large capacity gap. The sales volume is calculated according to the planned product benefit.
The unit price, sales volume and revenue forecast in benefit calculation are shown in the following table:
The first year, the second year, the third year, the fourth year, the fifth year and the sixth year of the project
Sales volume (ton) - 900.00150 Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) 000
Sales unit price (yuan / kg) - 116333105200 951.80 861.62 861.62
Total income of the project (10000 yuan) -- 10470 Zoomlion Heavy Industry Science And Technology Co.Ltd(000157) 8 Shahe Industrial Co.Ltd(000014) 27700012924 Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) 24300
The 7th, 8th, 9th, 10th, 11th and 12th year of the project
Sales volume (ton) 150 Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) Yihua Healthcare Co.Ltd(000150) 000
Sales unit price (yuan / kg) 861.62 861.62 861.62 861.62 861.62 861.62
Total income of the project (10000 yuan) 12924 Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) 24 Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) 24 Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) 24 Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) 24 Shanghai Taisheng Wind Power Equipment Co.Ltd(300129) 24300
Note: the unit price in the above table is the product unit price converted by weight.
2. According to the existing production and sales rate, orders in hand, market scale and competitors, the issuer's sales volume is measured
Be cautious
At present, there is a high market demand for carbon / carbon composite parts for thermal field made of photovoltaic crystalline silicon, which is produced by the issuer
The utilization rate and production and marketing rate are high, and there are sufficient orders on hand. In addition, technology in the field of advanced carbon matrix composites
The technical threshold is high. The company relies on independent research and development and continuous innovation to produce low-cost carbon matrix composites
Major breakthroughs have been made in localization, product variety diversification and equipment design autonomy, and advanced carbon based materials have been mastered
The core technology of low-cost preparation of composites has realized batch industrialization, which has a certain cost advantage. company
Its main competitors include Xi'an Chaoma, Shaanxi meirand, etc. according to public information, its production capacity and market share
The rate is lower than that of the company.
With the expansion of downstream customers, the scale of downstream market is further expanded. It is expected that the market will be more important for the company's products
The demand will grow rapidly, and the digestion of the company's new production capacity is expected to be guaranteed. Therefore, the issuer's sales volume is
It is prudent and reasonable to estimate the built capacity of 1500 tons.
The company's existing production capacity and utilization rate, production and marketing rate, orders in hand, market scale, competitors and other specific information
For details, please refer to the second round of application documents on Kbc Corporation Ltd(688598) issuing shares to specific objects
"Question 1: About high-purity large-size advanced carbon matrix composites
(I) description of "annual cooperation agreement" and "expansion project quantity"
Analyze the annual sales volume of other cooperative customers, the expansion of new customers or intentional contracts, etc
