About Tongyu Heavy Industy Co.Ltd(300185)
Special explanation on financial issues in the examination and inquiry letter of applying for issuing convertible corporate bonds to unspecified objects Zhitong accounting firm (special general partnership)
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Question 1 1 question 3 thirteen
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About Tongyu Heavy Industy Co.Ltd(300185) application to unspecified objects
Special instructions on financial issues in the audit inquiry letter for the issuance of convertible corporate bonds
Zhi Tong Zhi Zi (2022) No. 371a000093 Shenzhen Stock Exchange:
We have received the inquiry letter on the second round of examination of Tongyu Heavy Industy Co.Ltd(300185) application for issuing convertible corporate bonds to unspecified objects (hereinafter referred to as the "inquiry letter") issued by your exchange on December 29, 2021, As an accountant of Tongyu Heavy Industy Co.Ltd(300185) (hereinafter referred to as " Tongyu Heavy Industy Co.Ltd(300185) ", "company" or "issuer"), Grant Thornton Certified Public Accountants (special general partnership) issued convertible corporate bonds to unspecified objects and listed on the gem, implemented the relevant issues of the inquiry letter one by one, and now the reply to the inquiry letter is as follows:
Question 1
According to the application documents, the change of the issuer's gross profit margin is mainly affected by the change of operating cost, and the change of the issuer's operating cost is mainly affected by the fluctuation of direct material cost. The decline of the issuer's gross profit margin in the latest period was greater than that of comparable companies in the same industry.
The issuer is requested to supplement: (1) further analyze and explain the reasons for the decline of the issuer's gross profit margin in the latest period, the reasons and rationality for the difference between the change degree of gross profit margin and comparable companies in the same industry in combination with the change of product unit price, the composition and change of main business cost, the impact of the change of direct material price on operating cost, etc, Whether there is a risk of continuous decline in the issuer's gross profit margin; (2) Carry out sensitivity analysis on the price fluctuation of main raw materials, quantitatively analyze the issuer's breakeven point, and explain whether the issuer has loss risk in the case of raw material price fluctuation in combination with the breakeven point.
The issuer is requested to disclose the above risks.
The sponsor and accountant are requested to check and express clear opinions.
[reply]
1、 Further analyze and explain the reasons for the decline of the issuer's gross profit margin in the latest period, the reasons and rationality for the difference between the change degree of the gross profit margin and comparable companies in the same industry, and whether there is a risk of continuous decline in the issuer's gross profit margin in combination with the change of product unit price, the composition and change of main business cost, and the impact of the change of direct material price on the operating cost;
(i) Further analyze and explain the reasons for the decline of the issuer's gross profit margin in the latest period in combination with the change of product unit price, the composition and change of main business cost, and the impact of the change of direct material price on operating cost
In 2020 and January September 2021, the company's gross profit margin and gross profit margin contribution by product composition are shown in the following table:
Unit:%
January September 2021 2020
Project revenue in gross profit margin gross profit margin revenue in gross profit margin contribution to gross profit margin ratio contribution to gross profit margin ratio
move
Wind turbine spindle 29.3614.374.22-5.1936.8325.549.41
Large castings 16.8221.713.65-1.9722.9424.515.62
Casting and other forgings 30.4415.694.781.1530.5511.873.63
Forging pipe die 28.592.430.690.2420.602.210.46 forging blank
(ingot) 4.097.660.31-0.339.336.890.64
Cemented carbide products 13.627.170.980.3111.175.960.67
Wind power equipment modularization industry 4.1810.160.42-0.236.5110.110.66
Metallurgical equipment 18.703.390.630.2020.102.140.43 standby
Nuclear power business 12.011.010.120.0026.820.450.12
Other products 15.4816.422.540.3920.8610.322.15
Total 18.35100.0018.35-5.4323.78100.0023.78
Note: gross profit margin contribution = gross profit margin of each product * proportion of revenue of the product. The total gross profit margin contribution is the issuer's comprehensive gross profit margin of the current period.
It can be seen from the above table that the issuer's gross profit margin in the latest period decreased from 23.78% in 2020 to 18.35% from January to September 2021. The main reasons for the decrease are as follows: 1) after the rush for installation of onshore wind power in 2020, the proportion of the company's revenue of Wind Turbine Spindle products with high gross profit margin decreased from 25.54% of last year to 14.37% from January to September 2021; 2) Since 2021, the prices of raw materials such as scrap steel and pig iron have continued to rise, and the gross profit margin of wind turbine spindle and casting products has also decreased significantly from January to September 2021. To sum up, the total contribution of gross profit margin of Wind Turbine Spindle products and casting products decreased to
7.87%, down 7.16% from 15.03% in 2020, resulting in a significant decline in the issuer's comprehensive gross profit margin from January to September 2021.
1. The decrease in gross profit margin of wind turbine spindle and casting products is mainly due to the sharp rise in unit cost
The impact of changes in unit price and unit cost of castings and Wind Turbine Spindle products on gross profit margin from January to September 2021 is as follows:
Project casting Wind Turbine Spindle
January September 2021 2020 January September 2021 2020
Unit price (10000 yuan / ton) 1.171.000.980.98
Unit price change rate 17.01% - 0.30%
Unit cost (10000 yuan / ton) 0.970.770.690.62
Unit cost change rate 26.30% - 12.15%-
Gross profit margin 16.82% 22.94% 29.36% 36.83%
Change in gross profit margin - 6.12% - 7.46%-
11.20% - 0.19% impact of unit price change on gross profit margin
- 17.32% - 7.65% - impact of unit cost change on gross profit margin
Note: the impact of unit price change on gross profit margin = (unit price of the current period - unit cost of the previous period) / unit price of the current period - gross profit margin of the previous period; Impact of average unit cost change on gross profit rate = current gross profit rate - (current unit price - previous unit cost) / current unit price;
From January to September 2021, the unit price of castings and Wind Turbine Spindle products increased, including the single ton of castings
The bit price rises rapidly, from 10000 yuan / ton in 2020 to 11700 yuan / ton from January to September 2021,
The main reason is that the company has many kinds of casting products. With the decline of wind power subsidies and the arrival of the trend of large-scale fan, the company's large-scale casting products began to realize batch sales in 2021. The unit price per ton of large-scale casting products is high, which increased the average unit price of casting products. However, due to the impact of the sharp rise in the prices of pig iron, scrap and other raw materials in 2021, the unit cost of castings and Wind Turbine Spindle products increased rapidly, resulting in a certain decline in the gross profit margin of the above-mentioned main products. It can be seen from the above table that the impact of the unit price rise of casting products on the gross profit margin from January to September 2021 is 11.20%, but the impact of the unit cost rise on the gross profit margin is - 17.32%. The unit cost rises rapidly, resulting in a certain decline in the gross profit margin when the unit price rises; The unit price of Wind Turbine Spindle products is relatively stable, and the rise of unit cost leads to the decline of gross profit margin of Wind Turbine Spindle products.
2. Changes in purchase price of raw materials and direct material changes in main business costs
In 2020 and January September 2021, the changes in the purchase price of pig iron and scrap, the issuer's main raw materials, are as follows:
Unit: yuan / ton
January September 2021 2020
project
Average purchase price growth rate average purchase price
Pig iron 4262.7835.28% 3150.99
Scrap 3370.9528.16% 2630.28
2020
