Securities Announcement No.: Hangzhou Huaxing Chuangye Communication Technology Co.Ltd(300025)
Announcement on the reply to the inquiry letter of the second round of 2021 annual report of Shenzhen Stock Exchange
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Zhejiang Meorient Commerce & Exhibition Inc(300795) (hereinafter referred to as “the company”) received the inquiry letter on the annual report of Zhejiang Meorient Commerce & Exhibition Inc(300795) (GEM annual report inquiry letter [2022] No. 29 (hereinafter referred to as “the inquiry letter”) issued by your ministry on April 1, 2022. The board of directors of the company attached great importance to it and timely organized relevant personnel to analyze and verify it. The reply is as follows:
1、 According to the reply, the gross profit margin of your company’s digital exhibition and other businesses was 61.86%, an increase of 25.23 percentage points over 2020, mainly due to the sharp decline in costs, of which the buyer’s clue collection and sorting fee was 364700 yuan in 2021, a decrease of 172459 million yuan over 2020. Your company said that it launched digital exhibition products for the first time in 2020, purchased the buyer’s clue data information of the place where the exhibition was held from overseas suppliers, and cleaned and sorted out the data. After cleaning, this part of the data was imported into the company’s platform, which was mainly used for digital matching between buyers and sellers of digital exhibition. This part of the cost expenditure is the necessary operating cost of the company’s first launch of website trade Max products, which is included in the operating cost in 2020. Buyer information needs to be updated from time to time. In 2021, the company paid a small amount of expenses for buyer clue collection and sorting.
(1) Please list the names of the main payment objects of the buyer’s clue collection and sorting fees in 2020 and 2021, whether the company has an association with the main payment objects, purchase content and purpose, delivery date, etc., and explain the authenticity of the buyer’s clue collection and sorting fees in combination with the above matters.
(2) Supplement and list the quarterly amount of buyer’s clue collection and sorting fee in 2020, and verify whether there is sudden payment at the end of the year. If so, please explain the rationality.
(3) Please add whether the cost collection of buyer clue collection and sorting fees in 2020 and 2021 comply with the relevant provisions of the accounting standards for business enterprises.
Ask the accountant to check and give clear opinions.
[company reply]
（1） Please list the names of the main payment objects of the buyer’s clue collection and sorting fees in 2020 and 2021, whether the company has an association with the main payment objects, purchase content and purpose, delivery date, etc., and explain the authenticity of the buyer’s clue collection and sorting fees in combination with the above matters.
1. The company’s 2020 buyer clue collection and sorting fee related information is as follows:
Unit: RMB 10000
It is mainly about whether there are purchase contents and in the country of cost payment data
Image in associated use delivery date
Frontal relation
Number of PJ marking historical exhibitions
Solutions FZ 426.94 whether the UAE will deliver it successively throughout the year according to recycling and clearing, of which 2020lle washing / buyer data will be collected intensively from July to November
The number of MCO winmark historical exhibitions was delivered successively throughout the year, of which 2020exhibitions 282.83 was recycled in India and delivered from July to August of the Qing Dynasty
The historical exhibitions of wings tours were delivered in succession throughout the year, of which 2020gulf LLC 240.48 was delivered in November of the year
DIGITAL
Media 212.96 Mexico / no buyer data were delivered successively throughout the year, among which 2020solutions Au Brazil delivered Pty Ltd in August
The number of historical exhibitions was delivered in succession throughout the year, of which 2020express Arab 123.13 was recycled in Egypt and delivered in September of the Qing Dynasty
TTG Polska historical exhibitions were delivered successively throughout the year, including 2020sp Z. O.o. 119.35 whether Poland has centralized washing according to recycling and delivery from April to June of the year
The number of future media historical exhibitions has been delivered successively throughout the year, of which 2020marketing 100.30 South Africa is more concentrated in recycling and delivery in August of the Qing Dynasty
Number of historical exhibitions
The other seven supply 255.07 yuan, which will be delivered successively throughout the year according to recycling and clearing
Commercial washing / buyer data
collect
Total 176106
The company’s 2020 buyer clue collection and sorting fees are mainly divided into historical exhibition data recovery and cleaning and buyer data collection, including historical exhibition data recovery and cleaning of 140687 million yuan and buyer data collection of 3.5419 million yuan.
The data recovery and cleaning of historical exhibitions mainly refers to the cost for the company to sort out the data collected from offline exhibitions over the years from overseas partners. The above suppliers are overseas partners that the company has cooperated with for many years, and this part of the buyer data is also retained by the partners. The data cleaning cost paid by the company is the process of activating the data of potential buyers and registering on tradeChina platform to form effective traffic.
2. The information about the buyer’s clue collection and sorting fee of the company in 2021 is as follows:
Unit: RMB 10000
Does the cost amount of the main payment object have the purchase content and purpose
Association relationship
Shanghai Xiaomu Information Technology Co., Ltd. 11.70 no mail sending service
Alljoy Co., Ltd. 10.70 no buyer data collection
Twilio Inc. 9.89 no outbound call related services
Other suppliers 4.18 no buyer data cleaning
Total 36.47
As shown in the above table, the buyer’s clue collection and sorting fees paid by the company in 2021 are mainly related to the collection of new data purchased from suppliers and the payment of calls, emails and other related fees related to the subsequent sorting of data.
It can be seen from the table that the company incurred a buyer’s clue collection and sorting fee of 176106 million yuan in 2020 and 364700 yuan in 2021. The major change in the two years is mainly due to the company’s first launch of digital exhibition products in 2020, which is the necessary operating cost of the company’s first launch of website trade Max products, The buyer information of subsequent years needs to be updated from time to time in combination with the company’s own situation. Verify the authenticity of the buyer’s clue collection and sorting fee expenditure by checking the contract, invoice and settlement documents corresponding to the buyer’s clue collection and sorting fee cost.
（2） Supplement and list the quarterly amount of buyer’s clue collection and sorting fee in 2020, and verify whether there is sudden payment at the end of the year. If so, please explain the rationality.
The quarterly payment of buyer clue collection and sorting fees of the company in 2020 is listed as follows:
Unit: RMB 10000
Proportion of quarterly cost payment amount
Payment in 2019: 792.58 45.01%
617.84 35.08% in the first quarter of 2020
26.12 1.48% in the second quarter of 2020
261.01 14.82% in the third quarter of 2020
63.51 3.61% in the fourth quarter of 2020
Total 176106 100.00%
It can be seen from the table that the buyer’s clue collection and sorting fee paid in the fourth quarter of 2020 was 635100 yuan, accounting for 3.61% of the cost of buyer’s clue collection and sorting fee in the whole year. There is no sudden payment at the end of the year. Among them, 7.9258 million yuan was paid in 2019, mainly because the company paid the promotion fee and exhibition hall rental fee of the original offline exhibition. Affected by the epidemic in 2020, the company signed a change agreement with suppliers to change the original service content to historical exhibition data recovery and cleaning service.
（3） Please add whether the cost collection of buyer clue collection and sorting fees in 2020 and 2021 comply with the relevant provisions of the accounting standards for business enterprises.
Obtaining effective buyer clues is the ultimate goal of exhibitors participating in the exhibition. During the exhibition, under the offline exhibition mode, the company attracts potential buyers to the exhibition site by paying publicity and promotion fees and large buyer fees, so as to help exhibitors obtain buyer clues; In the online digital exhibition mode, the company obtains the local buyer information through the local partners, and through data cleaning, this part of the data is imported into the company’s tradeChina platform. The enterprises participating in the company’s online digital exhibition obtain the buyer’s clues through online inquiry and the exhibitors’ inquiry during the exhibition. In conclusion, in order to improve the holding effect of the exhibition, the company obtains buyer clues through various forms, which is an important cost expenditure item of the company’s daily exhibition. This part of the expenditure is recognized as the current cost with the holding of the exhibition, and the collection method is in line with the provisions of the accounting standards for business enterprises.
[opinion of accountant]
After verification, we believe that the buyer’s clue collection and sorting fees paid by the company are authentic, there is no surprise payment at the end of the year, and the cost collection complies with the relevant provisions of the accounting standards for business enterprises.
2、 Your company’s audited net profit in 2020 was – 64.63 million yuan and its operating income was 94.35 million yuan. The company’s stock trading was warned of delisting risk. Your company is requested to check one by one whether there are any stock trading restrictions stipulated in articles 10.3.1 and 9.4 of the gem stock listing rules (revised in December 2020)
