Lixin Certified Public Accountants (special general partnership)
Reply on the implementation letter of the opinions of the audit center on the initial public offering of shares and listing on the science and Innovation Board of Shenyang fuchuang precision equipment Co., Ltd
Xhshz [2022] No. za221 Shanghai Stock Exchange:
Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “accountant” or “we”) received the implementation letter of the audit center on the initial public offering of shares and listing on the science and Innovation Board of Shenyang fuchuang precision equipment Co., Ltd. (hereinafter referred to as “implementation letter”) No. [2022] 165 from your exchange on April 15, 2022. According to the requirements of the implementation letter, we have conducted special verification on the following questions, and the specific replies are as follows:
Question 2. The issuer is requested to further explain: (1) the current situation of the business, the details of the accumulated investment, the amount, the future planning and the relationship with the existing business in combination with the situation of the company’s purchase of houses in 2021 for the capacity construction of new business of precision parts in special fields; (2) In December 2017, Ningbo Xiangpu, the second largest shareholder of the company, signed two equity transfer agreements on the same day. The reasons and rationality of the large difference in transfer prices; (3) Reasons for the difference between the growth ratio of net profit and operating revenue in 2021. reply:
[description of issuer]
1、 Combined with the situation of the company’s purchase of houses in 2021 for the capacity construction of new business of precision parts in special fields, explain the current situation of the business, the details of cumulative investment, amount, future planning and its relationship with existing business
(I) development context of precision parts business in special field and its relationship with existing business
Stage business development context, main products and Revenue Formation
Since 2013, the company has relied on independent research and development in the early stage and “02
The main products of precision machinery manufacturing and surface treatment formed by “major projects” are special field structures. From 2013 to 2019, special processes, welding and other processes began to expand products with good parts and components. Realize the market prospect of precision parts in the special field and high value-added precision parts in the special field. During this period, the overall business income was dense, and the parts were small batch business. The company’s parts and components products in this field have passed customer E and low. In addition to undertaking sales in 2016 and 2017, the company has completed the certification of special lead customer F and other customers, formed small batch sales, gradually handled the special domain qualification of customer e related structural parts, and accumulated relevant process experience. In addition, other annual incomes are basically considered to enter the special fields with higher added value, and the parts are received within 2 million yuan.
Domain, the company handled relevant special procedures from 2017 to 2019
Field qualification, preliminary necessary qualification.
With the policy promotion and the national “14th five year plan”, customers
B and other large-scale state-owned special-purpose manufacturers have limited production capacity, their products turn to higher value-added special-purpose manufacturers, and begin to cultivate qualified suppliers to provide supporting production capacity. The company participates in the field of spare parts, and also actively expands the first product development project of a certain product with customer B from 2020 to 2021. Through the exhibition, other special field products. After entering a series of processes such as process scheme review, first article processing, delivery and evaluation of products with higher added value, in 2020 and 2021, the company participated in the precision parts business of customer B in 2020, received parts in the field of production bidding, and began to supply specific models of products after winning the bid. With the deepening of cooperation with customer B, the precision in the special field is 202844 million yuan, accounting for the first article certification of parts in each phase and the variety of mass production products are increasing. The proportion of industry revenue is less than 3%. Compared with the end of 2020, the company has been selected as the leading unit of customer B “a certain production and application business has begun to enter the high-speed growth product specialization strategic supplier cultivation project”.
Through one-year feasibility demonstration and preliminary preparation, December 2021
Shenyang Qiangqiang company and other investors jointly set up a new subsidiary in June
Aviation, undertake the product production and processing industry in the special field of customer B
Business.
In addition, the company also actively expands its business in other special fields,
Relevant products have passed the certification of customers in corresponding special fields.
(II) investment in precision parts business in special fields
1. Investment of original plant
The company has not yet entered the customer B supplier system in the early stage, and there is less demand for products. The company mainly uses the original Shenyang plant located at No. 18, Feiyun Road, Hunnan District, Shenyang, the rented plant located at No. 18-10, Changqing South Street, Hunnan District, Shenyang (expired at the end of October 2021 and not renewed) and a small amount of special equipment for the production of corresponding products. As the company won the bid for customer B product in 2020, the corresponding business demand has increased rapidly, and the original plant capacity has been seriously insufficient.
2. Investment of new plant in Shenyang
Shenyang new plant, located at No. 22, Feiyun Road, Hunnan District, Shenyang, will be used as the production base of precision parts in the company’s special field (not involving a specific part product in the special field) (the special equipment of the original plant is planned to be moved into the new plant, and the new plant also includes the production capacity of precision parts of semiconductor equipment). By the end of 2021, the new plant in Shenyang had been converted to fixed assets, and some machinery and equipment had not arrived or completed installation and commissioning, as follows:
Unit: 10000 yuan
End of 2021
Input project name quantity paid amount
Type (excluding tax) fixed assets construction in progress prepayment residual original value process balance
Building Shenyang new factory building 110083511110349 — Building
Horizontal boring and milling machining center 1 341.15 —
Bench boring and milling machining center 1 443.99 443.99 —
Machine metal laser sintering system 2 111391111391 —
– laser additive processing machine 1 779.29 779.29-
Metal 3D printing equipment 1 852.91 —
Precision abrasive flow polishing machine 1 390.94 434.38 —
Four axis machining center 9 251362 – 332777-
Five axis machining center 5 122995 – 235163-
CNC horizontal boring and milling machine 2 378.58 – 630.97-
Vacuum electron beam welder 1 785.84 — 785.84
Worktable boring and milling machining center 5 712.27 — 712.27
Five axis linkage machining center 2 325.04 — 325.04
Horizontal machining center 3 307.18 — 307.18
Cylinder section reference measurement and machining machine tool 1 335.84 – 479.20-
Skeleton reference measurement and machining machine tool 1 491.32 – 701.05-
Total of other projects with single amount less than 3 million yuan – 297450167190158507 552.42
Total – 24059841674102907569268275
Note 1: the machinery and equipment in the above table are all special equipment for precision parts and components in the special field of Shenyang new plant, excluding the general equipment that can be used in many fields in Shenyang new plant.
Note 2: the paid amount of some items in the above table is less than the original value of fixed assets or the balance of projects under construction, which is mainly because the entry amount of projects under construction and fixed assets is estimated according to the project or equipment procurement contract and the progress of project construction or equipment installation. The full payment of some projects or machinery and equipment has not been completed, the same below.
3. Investment in new business of precision parts in special fields
The company purchased plants and supporting production equipment in 2020 and 2021 for the construction of new business capacity of a specific part product in the special field. The purchased new plants and decoration and reconstruction projects have been converted to fixed assets before the end of 2021. Some machinery and equipment have not arrived or completed installation and commissioning, as shown below:
Unit: 10000 yuan
End of 2021
Input project name quantity paid amount
Type (tax excluded) fixed assets construction in progress prepayment residual original value balance
Special field precision parts workshop 1 262622481672 – house
Decoration of precision parts workshop in special construction field – 115728173152 – Engineering
Five coordinate milling machine 3 151279 —
Machine CMM 1 340.81 388.14 — equipment
Five coordinate machining center 6 248678 – 248678-
Five axis CNC EDM high speed drilling machine 2 803.07 – 992.97-
CNC five axis creep grinder 2 586.02 – 858.10-
Vertical boring and washing machining center 6 174437 – 174437-
Five axis grinding center 4 272446 — 272446
