Sichuan Zhongtai United Design Co., Ltd. (24 / F, unit 1, building 2, No. 99, Jinhui West 1st Street, high tech Zone, Chengdu)
Reply to the second round of examination and inquiry letter on the application documents for initial public offering and listing on the gem of Sichuan Zhongtai Joint Design Co., Ltd
Sponsor (lead underwriter)
(address: No. 1, Keyuan South Road, Guancheng District, Dongguan City)
Shenzhen Stock Exchange:
We have received the second round of examination and inquiry letter on the application documents of Sichuan Sino Thai joint design Co., Ltd. for initial public offering and listing on the gem (audit letter [2021] No. 011206) (hereinafter referred to as the “second round of examination and inquiry letter”) issued by your office on October 26, 2021. Sichuan Zhongtai United Design Co., Ltd. (hereinafter referred to as “the company”, “the company”, “the issuer”, “Zhongtai design”) and Dongguan Securities Co., Ltd. (hereinafter referred to as “sponsor”, “lead underwriter”, “Dongguan securities”), Beijing Deheng Law Firm (hereinafter referred to as “issuer lawyer”, “Deheng”) Daxin Certified Public Accountants (special general partnership) (hereinafter referred to as “accountant”, “Daxin”) and other relevant parties have checked the questions listed in the second round of audit inquiry letter item by item. Now the reply is as follows. Please review.
Unless otherwise specified, the abbreviation used in this reply is the same as the interpretation in the prospectus of Sichuan Zhongtai Joint Design Co., Ltd. for initial public offering and listing on the gem (application draft).
Review the questions listed in the inquiry letter in bold (BOLD)
Answer to question
Modification and supplement of this feedback (BOLD)
Amendments and supplements to the prospectus (BOLD)
catalogue
Question 1 About the main business 4 question 2 About subsidiaries and branches 30 question 3 About employees 38 question 4 About revenue recognition 56 question 5 About operating income 66 question 6 About period expenses 81 question 7 About notes receivable 86 question 8 About accounts receivable and paying debts with houses 97 question 9 About capital flow verification one hundred and fourteen
Question 1 About main business
The reply to the audit inquiry shows:
(1) The purpose of the real estate regulation policy is to promote the sustainable and stable development of the real estate industry, and then create a stable, reasonable and sustainable growth space for the market demand of architectural design business. The real estate regulation policy further improves the concentration of real estate enterprises and brings new growth opportunities to issuers.
(2) Relying on its comprehensive professional design ability, strong talent force and excellent service level, the issuer is in a leading position in the architectural design industry in Southwest China and has a high reputation in China State Construction Engineering Corporation Limited(601668) design industry.
(3) Evergrande real estate is the issuer’s second largest customer in 2020 and the fifth largest customer in 2018. At the same time, at the end of June 2020, the issuer receivable Evergrande commercial acceptance bill of 278661 million yuan.
Please the issuer:
(1) Supplement whether the discussion on the purpose and impact of macro policies in the real estate industry is accurate, cautious and logical; The specific impact of long-term regulation of the real estate industry on the issuer’s future project contracting, business operation, liquidity and fund recovery; Objectively and accurately prompt the risks related to industrial policies in the prospectus;
(2) Supplement the internal and external reasons and relevant basis for the growth and sustainability of the main business in combination with the industry development trend and core competitiveness;
(3) Supplement the sales revenue of Evergrande and rongchuang in each period of the reporting period, the amount and proportion of Evergrande and rongchuang in the orders in hand, and the amount of commercial acceptance bills and accounts receivable receivable from Evergrande and rongchuang by the issuer in each period; Specific adverse changes in business operation, main financial indicators and liquidity of rongchuang, Evergrande and other real estate customers and other regional small and medium-sized real estate customers, and whether the above adverse changes have a significant adverse impact on the issuer’s business and sustainable operation ability; Fully prompt the business risks caused by changes in the liquidity status of major customers;
(4) Supplement the comparison with comparable companies in Southwest China in terms of operation, market position, technical strength, qualification, technicians with business qualification, key business data and indicators to measure core competitiveness, quantitatively analyze the advantages and disadvantages of relevant competition, and objectively explain the market positioning and industry position in Southwest China;
(5) Combined with macro policy, main business, business model, technical level, R & D intensity, growth and other factors, analyze and explain whether it has the characteristics of “three innovations and four innovations” and whether it is in line with the positioning of gem.
The sponsor, the issuer’s lawyer and the reporting accountant are requested to express clear opinions on the above issues, and explain whether there are significant adverse changes in the issuer’s sustainable operation ability in combination with the impact of relevant policies of the real estate industry on major downstream customers.
[issuer’s reply]
1、 Supplement whether the discussion on the purpose and impact of macro policies in the real estate industry is accurate, cautious and logical; The specific impact of long-term regulation of the real estate industry on the issuer’s future project contracting, business operation, liquidity and fund recovery; In the prospectus, the risks related to industrial policies are objectively and accurately prompted.
(I) whether the discussion on the purpose and impact of macro policies in the real estate industry is accurate, cautious and logical
1. On the purpose and influence of macro policies in the real estate industry
(1) Main contents of the central economic work conference on the real estate industry in recent years
Time: main contents about the real estate industry
Promote the steady and healthy development of the real estate market. We must insist that the house is used for housing, not for the purpose of frying. In December 2016, we comprehensively used the means of finance, land, taxation, investment and legislation to accelerate the establishment of a basic system and a long-term mechanism that conforms to the national conditions and the 14-16 day’s market rules. It should not only curb the bubble of real estate but also change radically and dramatically.
In December 2017, accelerate the establishment of a housing system with multi-body supply, multi-channel guarantee and simultaneous rent and purchase. The meeting proposed to develop the 18-20 day housing rental market, especially long-term leasing, and improve the long-term mechanism to promote the steady and healthy development of the real estate market.
In December 2018, we should build a long-term mechanism for the healthy development of the real estate market, adhere to the 19-21 positioning that houses are used for living rather than speculation, consolidate the main responsibility of the urban government and improve the housing market system and housing security system due to urban policies and classified guidance.
In December 2019, we should increase the housing security work for urban poor people, strengthen urban renewal and upgrading of existing housing, and do a better job
Time: main contents about the real estate industry
10-12 good town old community transformation, vigorously develop rental housing. We should adhere to the positioning that houses are used for living rather than speculation, fully implement the long-term management and regulation mechanism of implementing policies based on the city, stabilizing land prices, house prices and expectations, and promote the steady and healthy development of the real estate market.
Solve the prominent housing problems in big cities. We should adhere to the positioning that the house is for living, not for speculation. In December 2020, we should take measures according to local conditions and adopt multiple policies to promote the steady and healthy development of the real estate market. We should attach great importance to the construction of affordable 16-18 day rental housing, accelerate the improvement of the long-term rental housing policy, gradually make rental and purchase housing have the same rights to enjoy public services, and standardize the development of the long-term rental housing market.
We should adhere to the positioning that houses are used for living rather than speculation, strengthen expectation guidance, explore a new development model in December 2021, adhere to the simultaneous development of rental and purchase, accelerate the development of long-term rental housing market, promote the construction of indemnificatory housing, and support the commercial housing market on August 10 to better meet the reasonable housing needs of buyers, Implement policies to promote the virtuous circle and healthy development of the real estate industry.
(2) Main contents of the government work report on the real estate industry in recent years
Time: main contents about the real estate industry
Adhere to the residential nature of housing, implement the main responsibility of local governments, accelerate the establishment and improvement of a long-term mechanism to promote the steady and healthy development of the real estate market, improve the housing system of both purchase and rent, focus on the market to meet the multi-level needs of 2017, and focus on the government to provide basic security. Strengthen the classified regulation and control of the real estate market. Cities under great pressure of rising house prices should reasonably increase residential land, standardize the development, sales, intermediary and other behaviors, and curb the rapid rise of house prices in hot cities.
Adhere to the positioning that houses are used for living rather than speculation, implement the main responsibilities of local governments, continue to implement differentiated regulation in 2018, establish and improve long-term mechanisms, and promote the steady and healthy development of the real estate market. Support residents’ demand for home ownership, cultivate the housing rental market, and develop housing with common property rights. We will accelerate the establishment of a housing system with multi-body supply, multi-channel guarantee and simultaneous rent and purchase, so that the broad masses of the people can live in peace and contentment as soon as possible.
In 2019, we will better solve the housing problems of the masses, implement the main responsibilities of cities, reform and improve the housing market system and security system, and promote the steady and healthy development of the real estate market.
In 2020, adhere to the positioning that houses are used for living, not for speculation, and implement policies due to the city to promote the steady and healthy development of the real estate market.
Adhere to the positioning that the house is for living, not for speculation, and stabilize the land price, house price and expectation. Solve the prominent housing problems in big cities in 2021, effectively increase the supply of affordable rental housing and housing with common property rights through increasing land supply, arranging special funds and centralized construction, standardize the development of long-term rental housing market, reduce the tax burden of rental housing, and try our best to help new citizens and young people alleviate their housing difficulties.
(3) Other relevant policies or meeting requirements on the real estate industry
Time Name: main contents about the real estate industry
Further implement the long-term mechanism of real estate and implement the prudent management of real estate finance. In August 2020, the Ministry of housing and urban rural development and the central bank held a re management system to enhance the marketization, regularization and transparency of real estate enterprise financing, and the monthly Symposium of real estate enterprises; Form rules for fund monitoring and financing management of key real estate enterprises (“three red lines” financing new rules).
According to the asset scale, organization type and other factors of banking financial institutions, set the requirements for centralized real estate management in 2020, and encourage real estate enterprises to change from the high leverage mode of high turnover and medium management system in December to the long-term business mode.
Knowledge
All localities have taken effective measures to guide the rational competition in the residential land market. The Ministry of natural resources of key cities will organize a meeting in 2021. The city should reasonably arrange the timing of bidding, auction and hanging out of residential land, that is, release the announcement of February meeting and organize the transfer activities, In principle, the centralized transfer of residential land in key cities throughout the year shall not exceed three times.
Implement a long-term mechanism for the steady and healthy development of the real estate market, Promoting real estate and Balanced development of the real economy of the people’s Republic of China. We will adhere to the position that houses are used for living, not for speculation. We will accelerate the establishment of a housing system with multi-agent supply, multi-channel security and simultaneous rental and purchase. The 14 five-year plan and housing system for 2021 will enable the whole people to live in a balanced way. We will adhere to the vision of 2035 in March The goal is to adapt to local conditions and adopt multiple policies at the same time, consolidate the main responsibility of the urban government, and stabilize land prices, house prices and expectations. We will establish a linkage mechanism between housing and land, strengthen financial regulation of real estate, give full play to the regulatory role of housing tax, support reasonable home ownership demand and curb speculative investment demand.
In 2021, the monetary policy of the people’s Bank of China maintained the healthy development of the real estate market and the legitimate rights of housing consumers. In September, the policy committee of the people’s Bank of China made the first profit in 2021.
Regular meeting of the third quarter
The meeting stressed that the financial sector should earnestly implement the decisions of the Party Central Committee and the State Council
