Reply to the examination and inquiry letter on the application documents for initial public offering and listing on the gem of Ganzhou Yihao new materials Co., Ltd. Tian shiye Zi [2022] No. 166157
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Reply to the inquiry letter on the second round of examination of the application documents for initial public offering and listing on the gem —— 1
About Ganzhou Yihao New Material Co., Ltd
Application documents for initial public offering and listing on GEM
Reply to the inquiry letter of the second round of audit
Tian Zhi Ye Zi [2022] No. 166157 Shenzhen Stock Exchange:
According to the requirements of the second round examination and inquiry letter on the application documents of Ganzhou Yihao new materials Co., Ltd. for initial public offering and listing on the gem (audit letter [2021] No. 011418) (hereinafter referred to as the “inquiry letter”) issued by your exchange on December 29, 2021, Tianzhi International Certified Public Accountants (special general partnership) (hereinafter referred to as “we” or “reporting accountant”) as the reporting accountant of Ganzhou Yihao new materials Co., Ltd. (hereinafter referred to as “issuer”, “company” or “Yihao new materials”), based on the principles of diligence, honesty and trustworthiness, carefully discussed, verified and implemented the questions raised in the inquiry letter one by one, and replied and explained them one by one. The specific reply is attached.
Explanation on the content, interpretation, format, supplementary and updated disclosure of the reply:
1. Unless otherwise specified, the abbreviations or terms used in this reply are consistent with the prospectus of Ganzhou Yihao new materials Co., Ltd. for initial public offering and listing on the gem (application draft);
2. Unless otherwise specified in this reply, all amounts are in RMB 10000 yuan;
3. In this reply, if the mantissa of the total count is inconsistent with the mantissa of the sum of the listed values, it is caused by rounding.
1、 Question 4 About related parties.
It was noted in the audit that: (1) the application materials showed that during the reporting period, due to the company’s tight working capital and single financing channels, the related parties Yihao meimeike and Xingguo Yihao paid for some suppliers for the company. In 2018 and 2019, the amounts paid by the related parties were 205661 million yuan and 232728 million yuan respectively.
(2) As of the end of the reporting period, among the patents owned by the issuer, 34 patents had the situation that the inventor contained personnel who did not participate in the R & D related to these patents, including 2 employees of the issuer and 3 employees of Yihao Meike, the related employees of Yihao Meike were Xiong Yijun, Xue Guoyuan and Chen Chuanlin, and the three involved a total of 8 patents.
(3) In July 2019, Yihao real estate offered 10 million yuan to Xiantao Sunshine Real Estate Co., Ltd., an affiliate of the issuer’s customer Bichen technology, and these loans were repaid in November 2019.
(4) Yihao Meike’s official website shows that the company’s business includes recycling precious metals and special metals, and its shareholder Umicore international S.A. is also engaged in similar business.
Please explain to the issuer:
(1) During the reporting period, Yihao meimeike and Xingguo Yihao paid the payment for the supplier on behalf of the issuer, corresponding to the name of the supplier, the amount advanced, the specific reason for the payment, the repayment of the issuer and the source of repayment funds.
(2) Transactions and capital transactions between related parties of the issuer and related parties of Bichen technology during the reporting period.
(3) During the reporting period, the transactions and business transactions between the issuer’s related parties and the issuer’s main customers and suppliers, the income of Yihao Meike by business type during the reporting period, and whether there are other cases of prepaid costs and expenses for the issuer.
(4) The business relationship between Yihao Meike and Meike International Co., Ltd., and whether the issuer has business dealings with Meike International Co., Ltd. during the reporting period; Meimeike International Co., Ltd., as a shareholder of Yihao meimeike, has disputes over the transfer of the patent and the change of the original inventor of the issuer’s patent.
The sponsor and the reporting accountant are requested to express their opinions on the verification method, verification process, verification evidence, verification proportion and verification conclusion of the costs and expenses borne by the related parties for the issuer, and whether the relevant verification evidence can support the verification conclusion.
reply:
1、 During the reporting period, Yihao meimeike and Xingguo Yihao paid the payment for the supplier on behalf of the issuer, corresponding to the name of the supplier, the amount advanced, the specific reason for the payment, the repayment of the issuer and the source of repayment funds
In 2018 and 2019, due to the issuer’s single financing channel and tight working capital, the related parties Yihao meimeike and Xingguo Yihao paid for some suppliers for the issuer. In 2018 and 2019, the amounts paid by the related parties were 205661 million yuan and 232728 million yuan respectively. The specific situation is as follows:
Unit: 10000 yuan
The payment time of related parties is between the repayment fund sources when the prepayment supplier and the issuer repay
Yihao meimeike February 20181108.45 gangtao industry (customer payment collection from March to April 2018, Yinhai) Co., Ltd
Yihao meimeike February 2018318.16 Shanghai Hengyue trade April 2018 customer payment collection
limited company
Xingguo Yihao June 2018630.00 Shanghai Hengyue trade July 2018 bank loan
limited company
Subtotal of 20182056.61
The payment time of related parties is between the repayment fund sources when the prepayment supplier and the issuer repay
Yihao meimeike January 2019816.72 Shanghai Hengyue trade may june 2019 customer payment collection and discount acceptance of Bank Co., Ltd
Yihao meimeike January March 20191510.56 Shangrao Haoyu copper may june 2019 customer payment collection and discount commitment of banking Co., Ltd
Subtotal of 20192327.28
2、 Transactions and capital transactions between related parties of the issuer and related parties of Bichen technology during the reporting period
In July 2019, Xiantao Sunshine Real Estate Co., Ltd., an affiliate of the issuer’s customer Bichen technology, was short of funds and borrowed 10 million yuan from the issuer’s affiliates for temporary turnover. These loans were repaid in November 2019. The details are as follows:
Unit: 10000 yuan
Related party transaction date amount opposite account name remarks
Yihao real estate 2019-7-30 -500.00 Xiantao Sunshine Real Estate Co., Ltd. fund lending
Yihao real estate 2019-8-20 -500.00 Xiantao Sunshine Real Estate Co., Ltd. fund lending
Yihao real estate 2019-9-19 300.00 Xiantao Sunshine Real Estate Co., Ltd. received capital lending
19-100 funds received from Xiantao Real Estate Co., Ltd
Yihao real estate 2019-9-19 300.00 Xiantao Sunshine Real Estate Co., Ltd. received capital lending
Yihao real estate 2019-9-20 100.00 Xiantao Sunshine Real Estate Co., Ltd. received capital lending
Yihao real estate 201911-3 200.00 Xiantao Sunshine Real Estate Co., Ltd. received capital lending
3、 During the reporting period, the transactions and business transactions between the issuer’s related parties and the issuer’s main customers and suppliers, the income of Yihao Meike by business type during the reporting period, and whether there are other cases of prepaid costs and expenses for the issuer
(I) transactions and business transactions between the issuer’s related parties and the issuer’s main customers and suppliers during the reporting period
1. During the reporting period, there were no transactions and business transactions between the issuer’s related parties and the issuer’s main customers.
2. During the reporting period, the transactions and business transactions between the issuer’s related parties and the issuer’s main suppliers are as follows:
Unit: 10000 yuan
Transaction content of supplier company 20212020 2019
State Grid Jiangxi electric power issuer 767568575365553169
Transaction content of supplier company 20212020 2019
Ganzhou power supply branch Yihao Meimei power 125153110372116873 company section
Issuer project 579.04720381 520.78
Ganzhou Jingdu decoration worker Yihao beautiful engineering 108998 73.39 – branch of Chengcheng Co., Ltd
Yihao pre deposited migrant workers — 76.80 home purchase wage deposit
(1) During the reporting period, there was no case of prepaid costs for the issuer in the transactions and business transactions between the issuer’s related parties and Ganzhou power supply branch of State Grid Jiangxi electric power company
Ganzhou power supply branch of State Grid Jiangxi electric power company is the power supplier of the issuer and Yihao meimeike. Both the issuer and Yihao Meike operate in Ganzhou City, Jiangxi Province. It is reasonable to purchase power from Ganzhou power supply branch of State Grid Jiangxi electric power company. The power transaction pricing between the issuer, Yihao meimeike and Ganzhou power supply branch of State Grid Jiangxi electric power company is fair.
(2) During the reporting period, there was no case of prepaid costs for the issuer in the transactions and business transactions between the issuer’s related parties and Ganzhou Jingdu Decoration Engineering Co., Ltd. (hereinafter referred to as “Jingdu decoration”)
The transaction volume of Jingdu decoration and Yihao real estate is in accordance with the requirements of the implementation plan for the supervision and informatization of migrant workers’ real name system in the field of construction projects in Ganzhou City (gsxlz [2017] No. 1) and the operation measures for the supervision and informatization of migrant workers’ real name system in the field of construction projects in Ganzhou City (gsxlb [2017] No. 4), Migrant workers’ wage deposit of Marriott Hotel Construction Project pre deposited by Yihao real estate. Jingdu decoration provides different engineering services for the issuer and Yihao Meike. It mainly provides the issuer with engineering services such as PCB workshop, raw material warehouse and wastewater treatment workshop. The issuer employs Qingju Engineering Consulting Co., Ltd. to review the project cost of the main projects under construction during the issuer’s reporting period and issue a report. The issuer’s book amount is consistent with the reviewed amount, and the actual project progress is consistent with the reviewed project progress. The amount of construction in progress of the issuer is reasonable.
The engineering services provided by Jingdu decoration to the issuer and Yihao meimeike are as follows:
Unit: 10000 yuan
Company name project name amount 20212020 2019
PCB workshop 597240 106.82564945 216.13
Issuer’s raw material warehouse 945.10 -34.33 851.69 12
