About Zhejiang Tongli Transmission Technology Co., Ltd
Initial public offering and listing on GEM
Reply to inquiry letter on examination of application documents
Sponsor (lead underwriter)
(unit A02, 35 / F and 28 / F, Allianz building, 4018 Jintian Road, Futian District, Shenzhen) March 2002
Shenzhen Stock Exchange:
We have received the examination and inquiry letter on the application documents of Zhejiang KONE Transmission Technology Co., Ltd. for initial public offering and listing on the growth enterprise market (hereinafter referred to as the “examination and inquiry letter”) No. [2021] 010975 issued by the exchange on July 28, 2021, Anxin Securities Co., Ltd. (hereinafter referred to as “sponsor” and “sponsor”) as the sponsor of Zhejiang Tongli Transmission Technology Co., Ltd. (hereinafter referred to as “Tongli technology”, “issuer” and “company”) for initial public offering and listing on the gem, together with the issuer and Shanghai Guangfa law firm (hereinafter referred to as “issuer’s lawyer”) Lixin Certified Public Accountants (special general partnership) (hereinafter referred to as “reporting accountant”) and other relevant parties have implemented the questions related to the inquiry letter one by one. Now the reply to the inquiry letter is as follows, please review.
Unless otherwise specified, the meaning of the abbreviation used in this reply report is consistent with the prospectus of Zhejiang Tongli Transmission Technology Co., Ltd. for initial public offering and listing on the gem (application draft). Font of this reply report:
Bold: questions listed in the inquiry letter
Song typeface (BOLD): reply to questions in the inquiry letter
Bold in italics: supplement and modification of the non-financial part of the audit inquiry letter
In the reply to this audit inquiry letter, if there is any difference in the mantissa between the sum of the total and the sub item values, it is caused by rounding.
catalogue
catalogue 2 question 1: about industry development and competition 3question 2: about business and Technology Question 3: related party transactions and financial standardization 58 question 4: about equity incentive and share based payment 105 question 5: about related parties and independence Question 6: about environmental protection Question 7: about the historical evolution 158 question 8: about Dong Jiangao 186 question 9: about personnel and social security 189 question 10: about the orientation of gem 196 question 11: About raised investment projects Question 12: about the main business and income 210 question 13: about major customers 229 question 14: about the distribution model 259 question 15: About R & D 281 question 16: about purchasing and suppliers 294 question 17: about gross profit margin 318 question 18: About period expenses 338 question 19: about accounts receivable 353 question 20: about inventory three hundred and sixty-eight
Question 1: about industry development and competition
The application document shows:
(1) Most of the large-scale and well-known reducer manufacturers in the global market, such as sew, Siemens and Bosch, are from developed countries such as Germany and Italy. Their reducer products have obvious competitive advantages in the high-end market.
(2) According to the prediction of a research institute, the market scale of China’s reducer industry will increase from 125.8 billion yuan to 160.5 billion yuan from 2021 to 2026, with a compound annual growth rate of 4.99%.
(3) In recent years, Jiangsu Guomao Reducer Co.Ltd(603915) , Ningbo Donly Co.Ltd(002164) , KONE technology and other leading enterprises in China’s reducer industry have risen rapidly. They have independently developed from small and medium-sized general reducers to supporting reducers for heavy equipment such as large rolling mills, and then to special gear boxes for high-tech equipment such as shield machines; The main products of each company have a high market position and strong technical strength in the market segments.
Please the issuer:
(1) Describe in detail the international and Chinese reducer Market structure, including the main manufacturers and industry status, main product types, main technical advantages, application fields, annual sales scale of related products, etc.
(2) In combination with the issuer’s existing product structure, explain whether the statement that the product covers “small and medium-sized general reducer, supporting reducer of heavy equipment such as large rolling mill, special gearbox of high-tech equipment such as shield machine and” is accurate.
(3) In combination with the comparison between the issuer and comparable companies in international and Chinese reducer industry in terms of structural design, quality control, power density and service life, explain the difference between the issuer’s technical ability and comparable companies.
(4) In combination with the issuer’s business scale, industry status and ranking, explain the basis for the issuer’s statement that it is a leading enterprise and whether the relevant recognition is prudent.
(5) Check the application documents, explain the data source, original basis and accuracy of the issuer’s industry data and information, and whether there are authoritative data released by the competent department or industry association in the reducer industry.
The sponsor is requested to give a clear opinion and explain the verification of the issuer’s paid purchase of third-party data in accordance with the requirements of question 45 of the answers to some questions on initial business (revised in June 2020) of the CSRC.
[reply]
1、 Issuer description
(I) describe in detail the international and Chinese reducer Market structure, including the main manufacturers and industry status, main product types, main technical advantages, application fields, annual sales scale of related products, etc
1. The international reducer Market structure is as follows:
Unit: 100 million euros
Major manufacturers and major products of the industry in 2020
Name status category main technical advantages application field degree sales
scale
Sew was founded in Germany in 1931,
It is specialized in producing various series of reducers
Transnational nature of motor and variable frequency control equipment
International Group.
Sew is engaged in reducer light industry and chemical industry
The production has reached about 90 years, and the labor, building materials
Sew has more than 18000 global standard deceleration numbers, including metallurgy and ring
(saiweichuan has more than 900 industrial engineers and 600 research, insurance, mining, 33.00)
(1) personnel such as reducer. The company has 17 automotive industries
Production base and port construction in 81 driving technologies
Heart. Sew’s production technology and deceleration industry
Machine market share has the world’s leading position
It is well-known in the field of international power transmission
The degree is high.
Flender is the world’s leading professional
One of the transmission equipment manufacturers, made in 1899
Industrial gear was founded in Germany in, after more than 100 years of pharmaceutical, environmental protection
With the development of Flender unit and wind, a perfect oil and gas reduction and construction system has been gradually established
(Flanders global power turbine speed machine product production system. The company’s business is materials, food, 21.85
Transmission) leading gears in 33 countries, with 8600 ports and mines
Employees of gearbox and turbine have sold more gear boxes and wind power in total
1.9 million transmission units, etc. Power industry provided by the company
Transmission equipment has a complete range of products, which can meet the needs of customers
Meet the needs of industrial production.
Source: Official Websites of companies, Xinda securities 20210117 weekly report: global market pattern of general reducer
Note: as of the issuance date of the reply to this audit inquiry letter, Siemens has sent Flender
It is sold to Carlyle Group (Carlyle Group), so the foreign reducer involved in the reply to this audit inquiry letter
Enterprises in the same industry are changed to sew and Flender, and the relevant statements in the prospectus are updated simultaneously.
2. China’s Reducer Market structure is as follows:
Major industries and major products in 2020 status and types of sales manufacturers major technical advantages scale of application fields
name
Gear reduction company has been engaged in the reducer industry for more than 20 years. It has a history of environmental protection and realizing the reduction and cycloid of Guomao China in 2020. It has a deep understanding of the technical requirements, cutting materials, electric power, operating income, application field and future development trend of the industry, such as chemical industry, 2184076500 enterprise machines, and in the core technology, professional products Logistics, yuan, including deceleration technical talents, have a deep sales revenue of plastic and rubber machinery products
Major industries and major products in 2020 status and types of sales manufacturers major technical advantages scale of application fields
name
Tired. Rubber, water conservancy and import
The company has modular design, lean production technology, textile, printing 21581264 million technology, finite element analysis, zinc based alloy material dyeing, feed and yuan
Use, cone wrap worm gear and worm meshing pair, cone pharmaceutical, etc
Face labyrinth seal structure and other core technologies, these economies in various industries
Core technology is widely used in all kinds of products of the company
Products, significantly improve the market competitiveness of products.
According to Ningbo Donly Co.Ltd(002164) 2021 semi annual report
According to the disclosure, the company has 89 patents, of which
There are 12 invention patents. The company has established a postdoctoral research workstation in Zhejiang Province in 2020 and a provincial high-tech metallurgy and mining revenue standard gear enterprise research institute. It has established long-term scientific research cooperation with well-known colleges and universities in mountain, water conservancy, 1237656500 Ningbo China container reduction and special purpose. Through years of accumulation, it has mastered power and stone yuan, Among them, “Chuandong Lishu machine dragon gear box, advanced hard tooth surface gear manufacturing technology, high efficiency and building materials”
