Zhejiang Yonggui Electric Equipment Co.Ltd(300351)
Reply to the inquiry letter on the 2021 annual report of Shenzhen Stock Exchange
Shenzhen Stock Exchange gem company management department:
The board of directors of Zhejiang Yonggui Electric Equipment Co.Ltd(300351) (hereinafter referred to as “the company” and ” Zhejiang Yonggui Electric Equipment Co.Ltd(300351) “) organized relevant departments and intermediaries to jointly verify the relevant matters in the inquiry letter item by item according to the inquiry letter on the 2021 annual report of Zhejiang Yonggui Electric Equipment Co.Ltd(300351) (No. [2022] 41) issued by your ministry on April 8, 2022
1、 According to the annual report, the company achieved an operating revenue of 1149332300 yuan in 2021, a year-on-year increase of 9.08%, a net profit of 122227600 yuan, a year-on-year increase of 16.43%, and a net cash flow from operating activities of 908181 million yuan, a year-on-year decrease of 17.04%. The amount of taxes and surcharges incurred by the company in the current period was 8.3757 million yuan, a decrease of 25.27% over the previous year. Please explain the reason and rationality of the inconsistency between the change trend of operating income, net profit and net cash flow from operating activities in combination with the change of the company’s sales credit policy and the situation of comparable listed companies in the same industry, and explain the reason and rationality of the decrease of taxes and surcharges due to the increase of operating income.
(I) please explain the reason and rationality of the inconsistency between the change trend of operating income, net profit and net cash flow from operating activities in combination with the change of the company’s sales credit policy and the situation of comparable listed companies in the same industry.
[reply]
The company’s credit policy has not changed compared with the same period of last year. The change trend of operating income, net profit and net cash flow from operating activities is inconsistent, mainly due to:
In order to deliver orders in time and prepare goods as planned, the company increased inventory items by 917611 million yuan at the end of the period compared with the beginning of the period, while corresponding operating payables increased by 463431 million yuan at the end of the period compared with the beginning of the period, with no year-on-year increase. (II) explain the reasons and rationality for the increase of operating income and the decrease of taxes and surcharges.
[reply]
Taxes and surcharges:
Unit: Yuan
Amount incurred in current period and amount incurred in previous period
Urban maintenance and construction tax 285516719368447143
Education surcharge 148466568191589771
Property tax 208099872329819629
Land use tax 4849919150115841
Vehicle and vessel use tax 23749222496960
Stamp duty 5277937758579241
Local education additional 91827883118499964
Environmental protection tax
Total 8375711431120882213
Compared with 2020, 2021 decreased by 2.8331 million yuan, the maintenance and construction tax and various education surcharges in major cities decreased by 1.5273 million yuan year-on-year, and the real estate tax decreased by 1.2172 million yuan. The main reasons are as follows.
Reasons for the year-on-year decrease of urban maintenance and construction tax and various education surcharges: since the second half of 2020, the price of upstream basic raw materials has continued to rise, resulting in the rise of the company’s production costs. The proportion of raw materials in the composition of main business costs is 68.83% in 2020 and 75.2% in 2021. The change of product category structure leads to the decline of comprehensive gross profit. Due to the comprehensive influence of the above factors, the value-added tax payable by the company decreases, resulting in the corresponding surcharges of value-added tax, urban maintenance and construction tax and education surcharges.
Reasons for the reduction of real estate tax: in 2021, the parent company met the real estate tax reduction policy and reduced the real estate tax by 905400 yuan before collection; In addition, the scope of consolidation has changed, reducing the real estate tax by 301900 yuan.
2、 During the reporting period, the company’s “vehicle and energy information” business realized a revenue of 411744800 yuan, a year-on-year increase of 34.42%, and the “military industry and other products” business realized a revenue of 598713 million yuan, a year-on-year decrease of 47.33%. The change trend is inconsistent with the continuous high prosperity of the military industry disclosed in the annual report. Please specify:
(I) reasons for the substantial increase in revenue of “vehicle and energy information” business in the current period, the top five customers of the business and their collection, whether there are large accounts receivable by the end of the period, and if so, please explain the collection after the period.
[reply]
In 2021, the business income of “vehicle and energy information” of the company was 411744800 yuan, with a year-on-year increase of 34.42%. The main reason is that during the reporting period, under the environment of the rapid development of new energy vehicle industry, the company seized the opportunity, strengthened efforts to expand new energy customers, deepened strategic cooperation with customers, and realized the product income of new energy vehicle business segment of 35241800 yuan, with a year-on-year increase of 81.42%.
As of March 31, 2022, the payment collection of the top five customers of “vehicle and energy information” business is as follows: unit: 10000 yuan
The customer’s income of the current year, the closing balance of the collection fund of the current year, and the bank has obtained the total name amount, deposit collection chain and credit amount after the period
Customer 1 935437493212741579132650608929741579
Customer 2 184180216946 194.41 328.93 328.93
Customer 3 131022121588 462.73 234.28 234.28
Customer 4 127172 410.60106517 265.71 265.71
Customer 5 126408 666.60165702 628.05 600.00122805
Total 15042179394651079513278347668929947276
The closing balance of the top five customers totaled 1079513 million yuan. After the period, 278347 million yuan has been recovered through bank deposits, and a total of 668929 million yuan has been obtained from Dilian and Rongxin.
Dichain is a financial information service platform for supplier accounts receivable operated by Shenzhen dichain Technology Co., Ltd. Based on the creditor’s right and debt relationship between the payer and the counterparty of the basic contract under the basic contract, the payer issues electronic record vouchers according to the business handling rules of the di chain platform. Rongxin is a supply chain financial product under the CCB financing platform ( China Construction Bank Corporation(601939) group’s Internet technology industry chain financial information integrated service platform). The core enterprise, as the debtor, records the accounts payable debts formed based on real transactions between it and its suppliers online on the platform based on its unconditional payment commitment, The supplier, as the creditor, confirms the corresponding accounts receivable creditor’s rights online on the platform to form an electronic creditor’s right and debt voucher. These two types of creditor’s rights receivable vouchers are easy to realize and there is no significant recovery risk.
(II) the reasons for the sharp decline in the revenue of “military industry and other products” business in the current period, whether it is sustainable, and the measures to be taken by the company.
[reply]
The reason why the business income of “military industry and other products” decreased significantly in 2021 compared with that in 2020 is mainly due to the change of consolidation caliber. In 2020, the “other products” in the business income of the company are mainly structural parts products of the atomic company Yiteng Electronics (Kunshan) Co., Ltd. of 469989 million yuan. In May 2020, the company has sold Yiteng electronics and is no longer included in the scope of consolidated statements. The company’s military products business has been basically stable in recent years. In the future, we will strengthen resource investment and realize rapid development with the help of the current industry boom.
3、 According to the annual report, the ending book balance of the company’s accounts receivable was 730498600 yuan, an increase of 25.39% over the beginning of the period. The bad debt provision was 8.7167 million yuan in the current period, and 9.8767 million yuan of bad debt provision of accounts receivable was recovered or transferred in the current period due to the signing of debt settlement agreement and litigation. Please specify:
(I) explain whether the provision for bad debts of accounts receivable is sufficient in combination with the expected credit loss model, aging distribution, customer credit risk status, post period collection and bad debt provision of Companies in the same industry.
[reply]
1. The bad debt provision of the company’s accounts receivable in 2021 is as follows:
Category closing balance
Book balance bad debt provision
Amount (yuan) proportion amount (yuan) accrual ratio book value (yuan) (%) example (%)
Individual bad debt provision 10078664358 13.8010062221352 99.8416443006
Provision for bad debts by portfolio 62971197703 86.203895114883 6.1959076082820
Total 73049862061 100.0013957336235 19.1159092525826
As shown in the above table, the bad debt provision of the company’s accounts receivable includes the bad debt provision withdrawn by single item and the bad debt provision withdrawn by combination. The bad debt provision withdrawn by combination is withdrawn according to the aging combination.
2. Analysis of bad debt provision proportion of accounts receivable with bad debt provision by combination
(1) Combined with the calculation of expected credit loss model
In accordance with the relevant provisions of the accounting standards for business enterprises, combined with the customer’s credit status, the company’s product characteristics and the actual situation over the years, the company has formulated the following policies for measuring the expected credit loss of receivables according to the combination:
The basis for determining the portfolio of projects and the method of measuring expected credit loss
Refer to the historical credit loss experience, combined with the current situation and
Accounts receivable – the aging group forecasts the future economic situation and prepares the aging of accounts receivable
Comparison table of aging and expected credit loss rate for the whole duration
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Expected credit loss
The recovery rate of accounts receivable is calculated based on the actual recovery of each account age of the company in 2021, and the expected default loss rate of each account age is calculated as follows:
Aging migration rate default loss rate
Within 1 year (including, the same below) 5.63% 1.91%
92.17% and 33.85% in 1-2 years
2-3 years 55.10% 36.72%
More than 3 years 66.65%
The bad debt amount of aging portfolio is calculated according to the default loss rate as follows:
Default loss rate of aging ending balance (yuan)
