Recently, Guizhou Qiantong Zhilian Technology Co., Ltd. (hereinafter referred to as Qiantong Zhilian) engaged in etc issuance and other businesses is rushing to be listed on the gem.
The development of etc industry is affected by relevant policies. The performance of Qiantong Zhilian in 20182020 and the first half of 2021 (hereinafter referred to as the reporting period) is largely driven by policies, so its performance faces great uncertainty.
In order to seek listing, Qiantong Zhilian introduced three strategic investors including Industrial And Commercial Bank Of China Limited(601398) wholly-owned subsidiary ICBC Financial Asset Investment Co., Ltd. (hereinafter referred to as ICBC investment) in 2020, and signed a gambling agreement with ICBC investment to complete listing within three years. During the reporting period, Industrial And Commercial Bank Of China Limited(601398) has always been a major customer of Qiantong Zhilian.
The reporter of the daily economic news noted that there was a “fight” in the sales or procurement data between Qiantong Zhilian and a number of major customers and suppliers. In particular, century Hengtong, which also plans to IPO at present, has a large “difference” in the purchase and sales data disclosed in 2018 and 2019.
solicited 3 strategic investors
In 2014, Guizhou Expressway Group Co., Ltd. (hereinafter referred to as Expressway Group) established an etc franchise company to conduct unified operation and management of etc card issuance, post service and business development. This company is Qiantong Zhilian.
In 2020, Qiantong Zhilian was listed in Guizhou Sunshine Property Exchange to prepare for listing and solicited three strategic investors: Guangdong Beizhi car union equity investment partnership (limited partnership), CCCC Asset Management Co., Ltd. and ICBC investment. ICBC investment, CCCC Asset Management Co., Ltd. and Guangdong Beizhi car union equity investment partnership (limited partnership) increased their capital and obtained 13%, 10% and 4.44% shares of Qiantong Zhilian respectively.
It is worth mentioning that Industrial And Commercial Bank Of China Limited(601398) is the largest customer of Qiantong Zhilian in 2019 and the second largest customer in 2020 and the first half of 2021. The company’s sales content is etc issuance and customer service. The sales revenue of Industrial And Commercial Bank Of China Limited(601398) in 2019, 2020 and the first half of 2021 respectively accounted for 67.89%, 22.17% and 18.85% of the overall revenue of Qiantong Zhilian in the current period.
In the capital increase agreement of ICBC investment on Qiantong Zhilian, Qiantong Zhilian and its controlling shareholder Expressway Group also signed a gambling agreement with ICBC investment, that is, Qiantong Zhilian shall declare the IPO materials before June 30, 2021 and obtain the written acceptance of the CSRC or other competent authorities, and complete the listing within 3 years from the date when the capital increase of ICBC investment enters the company’s account. Subsequently, Qiantong Zhilian promised to change the time of IPO acceptance to before December 21, 2021.
Then, will the gambling agreement signed between Qiantong Zhilian and ICBC investment generate the risk of benefit transmission? The reporter of the daily economic news sent an interview letter to Qiantong Zhilian, but he didn’t give too much explanation in his reply. Instead, he stressed: “since our company is currently in the IPO review process, the interview and inquiry information of your journal, as the undisclosed information of our IPO process, is the major information of our IPO review process, and can’t be responded. Please refer to the information publicly disclosed by our company on the Shenzhen stock exchange for relevant information.”
In addition, in 2019, Yunnan Huayuan Electronics Co., Ltd. (hereinafter referred to as Huayuan Electronics) and Qiantong Zhilian jointly established Guizhou high speed data operation Co., Ltd. (hereinafter referred to as data company). On December 30, 2020, Huayuan electronics transferred its 5% equity of data company to Qiantong Zhilian, and the transfer price is unknown. Huayuan electronics became the largest supplier of Qiantong Zhilian in 2019. Qiantong Zhilian purchased etc gantry equipment from Huayuan electronics with a total purchase amount of 407 million yuan.
subsidiaries have received anti money laundering fines
In 2020, at the same time of the above capital increase and share expansion, Qiantong Zhilian also obtained the remaining 30% equity of Guizhou huiunicom E-commerce Service Co., Ltd. (hereinafter referred to as huiunicom), the holding subsidiary, by means of share exchange with about 4% of its shares.
The prospectus (application draft) shows that huiunicom is mainly engaged in etc parking lot system development and data interface services, etc online mall trading services, etc after-sales services, Guizhou Province prepaid card issuance, intelligent transportation software system development and other businesses, and is to provide support services for Qiantong Zhilian’s etc derivative services, etc customer services, industry digital system services and so on.
The net profit of huiunicom in 2019 is about 1177300 yuan. Taking June 30, 2019 as the evaluation base date, the valuation of all shareholders’ equity of huiunicom by income method is 931472 million yuan. The premium rate of China Unicom is so high, which may be related to the payment license of a prepaid card.
Beijing Business Daily reported in June 2020 that huiunicom’s official website disclosed that the company is actively seeking regional and qualification additions to the license, striving to break through the restriction that business development is limited to Guizhou in 2019, develop to Chengdu, Chongqing, Guangxi and other places, and realize the application for Internet payment license in 2020. However, the reporter noted that as of press time, the official website of huiunicom could not be opened.
According to the renewal information of the payment business license of non bank payment institutions publicized by the central bank at the end of December 2021, the prepaid card business scope of huiunicom is still limited to Guizhou Province.
In June 2020, huiunicom was fined 200000 yuan by Guiyang Central Branch of the people’s Bank of China for violating the relevant provisions of the anti money laundering law. From June 2019 to November 2020, huiunicom was included in the list of business exceptions for a total of five times because it was “unable to contact through the registered residence or business place”, but it was removed later.
performance is greatly affected by policies
During the reporting period, the operating revenue of Qiantong Zhilian was 271 million yuan, 1088 million yuan, 1049 million yuan and 269 million yuan respectively. What happened behind the sharp increase in revenue of Qiantong Zhilian in 2019?
The prospectus (application draft) shows that the main business of Qiantong Zhilian can be divided into two parts: intelligent transportation etc industry chain service and intelligent transportation digital system service. Among them, the revenue of intelligent transportation etc industry chain service accounted for more than 80% in each period of the reporting period, which is the main source of revenue. This business segment can be subdivided into three sub businesses: etc issuance and customer service, etc charging system solution and etc derivative service.
The reporter of “daily economic news” noted that the revenue of Qiantong Zhilian increased sharply in 2019, and the sales revenue from etc issuance and customer service increased from 112 million yuan in 2018 to 1.039 billion yuan in 2019; By 2020, the sales revenue of this business will drop to 280 million yuan. At the same time, the sales revenue of Qiantong Zhilian’s etc charging system solution increased significantly from 273949 million yuan in 2018 and 6.7664 million yuan in 2019 to 674 million yuan in 2020, which made up for the impact caused by the sharp decline in etc issuance and customer service sales revenue of Qiantong Zhilian in 2020.
In the first half of 2021, the sales revenue of etc charging system solution of Qiantong Zhilian fell by 69.8% year-on-year.
With regard to the substantial growth of etc issuance and customer service sales revenue in 2019, Qiantong Zhilian admitted in the prospectus (declaration draft) that the number of etc equipment issuance and sales increased explosively due to the positive impact of policies such as the implementation plan for accelerating the application service of Expressway electronic non-stop fast charging in 2019. However, after a good harvest in 2019, Qiantong Zhilian’s etc issuance and customer service sales revenue suffered a sharp decline in 2020.
Similarly, the significant increase in the sales revenue of Qiantong Zhilian etc toll system solution in 2020 is affected by the implementation of policies such as deepening the reform of toll road system and canceling the provincial toll station of expressway. The sales revenue of this business fell year-on-year in the first half of 2021, also because the amount base of sales revenue related to this business is too large in 2020.
It can be said that the performance fluctuation of Qiantong Zhilian during the reporting period is mainly driven by national policies and has great uncertainty. In fact, Qiantong Zhilian also put forward two major challenges faced by the company in its prospectus (application draft), that is, the replacement of etc charging technology caused by technology update, and the growth of etc issuance market will be relatively flat in the future. As for the latter, Qiantong Zhilian said that by the end of 2020, the national etc popularization goal has been basically completed, and the growth rate of etc issuance will tend to be flat.
For the future, Qiantong Zhilian said it hopes to focus on smart highway construction, data empowerment and etc derivative service business. However, during each period of the reporting period, the sales revenue of Qiantong Zhilian etc derivative service business did not make a significant breakthrough. In 2020 and the first half of 2021, the sales revenue of intelligent transportation digital system services is 65.99 million yuan and 417559 million yuan respectively. It remains to be seen whether it can become the main force contributing to the future revenue growth of Qiantong Zhilian.
financial data has logical contradiction
Behind the challenging performance, the reporter of the daily economic news also noticed that there was a suspected “fight” in the relevant sales and procurement data of Qiantong Zhilian.
According to the prospectus, Guizhou Transportation Planning Survey&Design Academe Co.Ltd(603458) became the largest customer of Qiantong Zhilian in 2020, with a sales revenue of 513 million yuan, accounting for 48.9% of the overall revenue of Qiantong Zhilian in that year. According to Guizhou Transportation Planning Survey&Design Academe Co.Ltd(603458) ‘s annual report, the total amount of procurement from the top five suppliers in 2020 was only 150 million yuan.
In addition, century Hengtong is the fourth largest supplier of Qiantong Zhilian in 2019 and 2020. Qiantong Zhilian purchases etc promotion services and etc customer service services with a purchase amount of 120 million yuan and 77 million yuan respectively. At present, century Hengtong is also in the process of IPO. Its prospectus (application draft) discloses that in 2019 and 2020, the sales revenue of century Hengtong to Qiantong Zhilian was 43 million yuan and 153 million yuan respectively. Although the total number of two years is close to the procurement data disclosed by Qiantong Zhilian, there are large “differences” in each year.
“The difference between the public information disclosure of the company and that of other business partners is mainly caused by accounting policies, statistical caliber and other reasons.” Qiantong Zhilian said in its reply to the interview letter of the reporter of the daily economic news. However, Qiantong Zhilian did not specify how the disclosure differences caused by accounting policies and statistical caliber.
In fact, century Hengtong said in its reply to the third round of IPO inquiry letter that Qiantong Zhilian issued a confirmation letter on the promotion volume from the introduction of the 2019 policy (i.e. the implementation plan for accelerating the implementation of Expressway electronic non-stop fast charging application service) to the end of 2020, and there was no dispute between the two sides.
The “discrepancy” in the purchase and sales data of Qiantong Zhilian is not only reflected in its partners. According to the prospectus (application draft), as the controlling shareholder of Qiantong Zhilian, Expressway Group is the second largest customer of Qiantong Zhilian in 2018. The sales amount of Qiantong Zhilian is 668976 million yuan, and the main sales content is the solution of etc charging system. From the sales amount of main products (services) of Qiantong Zhilian, in 2018, the total sales amount of the etc charging system solution of Qiantong Zhilian was only 273949 million yuan, far lower than the above-mentioned sales amount of 668976 million yuan to the expressway group. For the logical contradiction in this data, Qiantong Zhilian also failed to give an explanation in its interview response to reporters.
