Reply to the opinion implementation letter of the audit center on Ganzhou Yihao new materials Co., Ltd. applying for initial public offering and listing on the gem Tian Zhi Ye Zi [2022] No. 166159
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Reply to the opinion implementation letter of the Audit Center applying for initial public offering and listing on the gem one
About Ganzhou Yihao New Material Co., Ltd
Applying for IPO and listing on GEM
Reply to the opinion implementation letter of the Audit Center
Tian Zhi Ye Zi [2022] No. 166159 Shenzhen Stock Exchange:
According to the requirements of the implementation letter of the opinions of the audit center on Ganzhou Yihao new materials Co., Ltd. applying for initial public offering and listing on the gem (audit letter [2022] No. 010244) (hereinafter referred to as the “implementation letter”) issued by your office on March 6, 2022, 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 1 On the sustainability of business performance.
According to the application materials, since 2020, driven by the downstream new energy vehicles, 5g, consumer electronics, energy storage and other industries, the demand for copper foil products has increased significantly, and the operating performance of the issuer in the last year has increased rapidly. According to the review report of the issuer in 2021, the operating revenue was 12710499 million yuan, a year-on-year increase of 51.59%, and the net profit after deduction was 1537269 million yuan, a year-on-year increase of 175.87%; According to the issuer’s prediction, the operating revenue in the first quarter of 2022 is expected to reach 350370 million yuan, with a year-on-year increase of 21.16% – 28.08%, and the net profit after deduction is 29-33 million yuan, which is basically the same as that in the same period last year.
The issuer is requested to fully disclose the sustainability of business performance and whether there are signs of significant decline or not in combination with the main financial data of 2021 and the first quarter of 2022, the sales and changes of main customers, the orders and changes of main customers, the current production scheduling, the situation of Companies in the same industry, the changes of terminal market, etc., and give major risk tips in the prospectus on the above situations.
The sponsor and the reporting accountant are requested to check and express clear opinions.
[reply]
1、 The issuer is requested to fully disclose the sustainability of business performance and whether there are signs of significant decline or not in combination with the main financial data of 2021 and the first quarter of 2022, the sales and changes of main customers, the orders and changes of main customers, the current production scheduling, the situation of Companies in the same industry, the changes of terminal market, etc
(I) main financial data of the issuer in 2021 and the first quarter of 2022
The main financial data of the issuer in 2021 and the first quarter of 2022 (expected) are as follows:
Unit: 10000 yuan
Project from January to March 2022
Operating income 3500037000 127104998384734
Project from January to March 2022
Net profit 32003 Shenzhen Heungkong Holding Co.Ltd(600162) 8416576395
Net profit attributable to owners of parent company 32003 Shenzhen Heungkong Holding Co.Ltd(600162) 8416576395
Net profit attributable to the owner of parent company 29003 Shanghai Cooltech Power Co.Ltd(300153) 7731557239 after deducting non recurring profit and loss
Note: the financial data of 2020 has been audited by accountants; The financial data of 2021 has been reviewed by accountants; The performance forecast from January to March 2022 has not been audited or reviewed by accountants, which does not constitute the company’s profit forecast or performance commitment.
In 2021, the company realized an operating income of 12710499 million yuan, and the net profit attributable to the owner of the parent company after deducting non recurring profits and losses was 1537731 million yuan; In the first quarter of 2022, the company’s operating revenue is expected to be about 350 million yuan to 370 million yuan, and the net profit attributable to the owner of the parent company after deducting non recurring profits and losses is expected to be about 29 million yuan to 33 million yuan; The operation is in good condition.
(II) sales and changes of major customers, orders and changes of major customers, and current production scheduling
Electronic circuit copper foil is the main product of the issuer. In each period of the reporting period, the issuer’s sales of electronic circuit copper foil products are as follows:
1. Sales and changes of the issuer to major customers
During the reporting period, the growth of the issuer’s sales of electronic circuit copper foil was mainly affected by the sales volume and sales price. Compared with 2020, the issuer’s sales amount to the main customers of electronic circuit copper foil in 2021 increased from 33801800 yuan to 576340700 yuan, a year-on-year increase of 70.51%; Compared with January February 2021, the issuer’s sales amount from January to February 2022 increased from 166117500 yuan to 235461100 yuan from January to February 2022, of which the sales amount of electronic circuit copper foil was 206109300 yuan, showing an increasing trend.
The transactions between the issuer and the main customers of electronic circuit copper foil were good, and the sales amount of most customers increased rapidly. The decrease in the sales amount of some customers is mainly due to the fact that the issuer actively screened the orders under the condition of limited production capacity of copper foil for electronic circuits and chose the orders with higher unit price and relatively higher profit.
(1) Sales and changes of the issuer to major customers in 2020 and 2021
Unit: 10000 yuan
Serial number customer name 2021 year 2020 year
1 Shengyi Technology Co.Ltd(600183) 14,467.76 11,150.88
2 Victory Giant Technology (Huizhou)Co.Ltd(300476) (Huizhou) Co., Ltd. 799276906554
3 Shenzhen Kinwong Electronic Co.Ltd(603228) 9,309.11 5,270.36
4 Chongqing Dekai Industrial Co., Ltd. 1343770510096
5 Nanya New Material Technology Co.Ltd(688519) 12,426.74 3,212.45
Total 57634073380018
(2) From January to February 2021 and from January to February 2022, the issuer’s sales and changes to major customers are as follows:
Unit: 10000 yuan
S / N customer name January February 2022 January February 2021
1 Shengyi Technology Co.Ltd(600183) 2,127.64 1,687.47
2 Victory Giant Technology (Huizhou)Co.Ltd(300476) (Huizhou) Co., Ltd. 135314159247
3 Shenzhen Kinwong Electronic Co.Ltd(603228) 1,627.77 1,608.26
4 Chongqing Dekai Industrial Co., Ltd. 261350121702
5 Nanya New Material Technology Co.Ltd(688519) 3,279.61 1,869.86
Total 1100166797507
2. Orders and changes of the issuer to major customers
Affected by the fluctuation of copper price and the short production cycle of electronic circuit copper foil, the issuer’s sales orders have the characteristics of high frequency and short delivery cycle, and the number of outstanding orders at a single time point is small. As of March 5, 2022, the outstanding order amount of the issuer’s electronic circuit copper foil was 894025 million yuan.
Compared with January February 2021, from January to February 2022, the amount of new orders received by the issuer from electronic circuit copper foil customers increased from 14930600 yuan to 2211745 million yuan, a year-on-year increase of 48.14%, showing an overall growth trend. The fluctuation of the amount of new orders received by some customers was mainly affected by the time point of placing orders (at the end of the month or at the beginning of the month). Among them, the amount of new orders received by the issuer from main customers increased from 513561 million yuan to 1123916 million yuan, The details are as follows:
Unit: 10000 yuan
S / N customer name January February 2022 January February 2021
1 Shengyi Technology Co.Ltd(600183) 2,201.77 96.18
2 Victory Giant Technology (Huizhou)Co.Ltd(300476) (Huizhou) Co., Ltd. 133027154956
3 Shenzhen Kinwong Electronic Co.Ltd(603228) 985.22 2,053.23
4 Chongqing Dekai Industrial Co., Ltd. 343371 687.97
5 Nanya New Material Technology Co.Ltd(688519) 3,288.19 748.67
Subtotal 1123916513561
Total receipt amount 22117451493060
3. Current production scheduling
Affected by the fluctuation of copper price and the short production cycle of electronic circuit copper foil, the sales orders in the copper foil industry have the characteristics of short term and high frequency. The sales orders are mainly monthly orders. Therefore, the issuer mainly formulates the monthly production plan based on the sales order and production capacity, and formulates the weekly production schedule according to the monthly production plan.
In January, February and March 2022, the issuer’s production plan of electronic circuit copper foil is 1100 tons
1050 tons and 1150 tons. In January and February 2022, the issuer’s output of electronic circuit copper foil was 1118 tons and 1082 tons respectively, and the issuer’s production line of electronic circuit copper foil was in full production.
(III) situation of Companies in the same industry and changes in terminal market
1. Companies in the same industry
(1) 2021
