Shanghai Jiaocheng Ultrasonic Technology Co., Ltd
SBT Ultrasonic Technology Co., Ltd.
(floor 3, building 2, No. 1488, Cangyuan Road, Minhang District, Shanghai)
Reply to the second round of examination and inquiry letter on the application documents of Shanghai Jiaocheng Ultrasonic Technology Co., Ltd. for IPO and listing on the science and Innovation Board
Sponsor (lead underwriter)
(No. 689, Guangdong Road, Shanghai)
April, 2002
Shanghai Stock Exchange:
According to the requirements of the second round of examination and inquiry letter on the application documents of Shanghai Jiaocheng Ultrasonic Technology Co., Ltd. for initial public offering and listing on the science and Innovation Board (szksh [2022] No. 153) (hereinafter referred to as the "examination and inquiry letter"), Shanghai Jiaocheng Ultrasonic Technology Co., Ltd. (hereinafter referred to as "the company" and "the issuer") together with Haitong Securities Company Limited(600837) (hereinafter referred to as "the sponsor"), Rongcheng Certified Public Accountants (special general partnership) (hereinafter referred to as "the accountant" and "the reporting accountant"), Jiangsu century Tongren law firm (hereinafter referred to as "the lawyer" and "the issuer's lawyer") and other intermediaries, According to the requirements of your institute, we have carefully studied the problems raised in the audit inquiry, and now explain them one by one. Please review them. explain:
1、 Unless otherwise stated in this reply, the definitions and abbreviations used in the prospectus apply to this reply. 2、 The font in this reply represents the following meanings:
Review the questions listed in the inquiry letter in bold (BOLD)
Reply to the questions listed in the audit inquiry letter in Song typeface (not bold)
Amendments and supplementary disclosures to the prospectus (BOLD)
3、 In this reply report, if the mantissa of the total count is inconsistent with the mantissa of the sum of the listed values, it is caused by rounding.
catalogue
1. About the stability of the issuer's main business 32. About major customers and industry conditions 113. About the attributes of scientific innovation 344. About the main products 605. With regard to income 666. About Qingdao Aobo and Qingdao Rongbo 937. About re lending and inter-bank lending 1068. About projects invested with raised funds 1159. About others one hundred and nineteen
1. Stability of the issuer's main business
According to the reply of the first round of inquiry, (1) the issuer's revenue in 2019 mainly came from the power battery manufacturing automation system, welding machine and accessories of cutting machine, accounting for nearly 70%. In 2020, it mainly came from the ultrasonic mask welding equipment, accounting for 71.54%. In 2021, it mainly came from the power battery ultrasonic welding equipment, accounting for 53.04%. The product revenue structure changed greatly; (2) The main reason for the sharp increase in revenue in 2021 is that the sales revenue to Contemporary Amperex Technology Co.Limited(300750) is 130469 million yuan, accounting for 35.20%, mainly due to the integrated ultrasonic welding monitoring machine; The top five customers changed greatly during the reporting period; (3) Power battery manufacturing automation system business. During the reporting period, the main customers were Hunan Corun New Energy Co.Ltd(600478) , accounting for 100.00%, 62.14% and 86.62% of the revenue; (4) During the reporting period, the gross profit margin of the main products power battery ultrasonic welding equipment and automobile tire ultrasonic cutting equipment showed a downward trend.
Please explain to the issuer: (1) the reason why the issuer failed to obtain large quantities of orders in time after its products were verified by major customers; (2) The development trend of the issuer's main products in the future, and the type of main products from which the income will mainly come, or will maintain the current change state.
The issuer is requested to disclose: (1) the reasons and rationality of the substantial changes in the company's product business structure and customer structure; (2) Improve the tips on major events and risk disclosure on the structural changes of main business income source products, high concentration of customers in some businesses, decline in gross profit margin of main products, etc.
reply:
1、 Issuer description
(I) reasons for the issuer's failure to obtain large quantities of orders in time after the issuer's products have been verified by major customers. The issuer's power battery welding equipment usually needs to be tested in the customer's laboratory and production line. Only after passing the verification can it enter the supplier system of the power battery manufacturer, and the degree of customization of the welding equipment is high. When the issuer's products are upgraded and iterated or the customer's battery manufacturing process changes, The issuer's device also usually needs to be verified again. For major customers in the power battery field, the issuer's main equipment verification passing time and batch procurement time are as follows:
Customer name main product customer verification time obtaining batch order time
Batch orders were obtained from May 2016 to October 2017, and the horizontal welding machine was upgraded to welding monitoring Contemporary Amperex Technology Co.Limited(300750) all-in-one machine after May 2017
From September 2017 to 2018, 2019 and 2021, roll welding machines will obtain small batch orders in December 2017
The integrated welding monitoring machine obtained batch orders in November 2018 and November 2019,
-In May 2019, the order scale increased significantly in 2021
March 2018-
Horizontal welding machines received batch orders in August 2018 and December 2020, Byd Company Limited(002594) October 2020, and the order scale increased significantly in 2021
-December 2020
From August 2020 to may 2021, wedge welding machine obtained batch orders, and the order scale increased significantly after April 2021
Zhongchuang Chuang aviation wedge welding machine obtained batch orders from September 2020 to February 2021, and the order scale increased significantly after February 2021
September 2017-
Horizontal welding machines received batch orders in November 2017 and January 2018, and the order scale increased significantly from April 2019 to 2021
Gotion High-Tech Co.Ltd(002074) October 2019
Wedge welding machine February 2021 - December 2021 batch orders obtained may 2021
Welding monitoring all-in-one machine obtains batch orders from July 2020 to February 2021
November 2020
Honeycomb energy wedge welding machine February 2021 - November 2021 batch orders obtained may 2021
Eve Energy Co.Ltd(300014) horizontal welding machine July 2020 - November 2020 batch orders obtained November 2020
Note: the issuer sells to end customers zhongchuangxin airlines, Gotion High-Tech Co.Ltd(002074) , Guangdong Lyric Robot Automation Co.Ltd(688499) , Shenzhen United Winners Laser Co.Ltd(688518) , Shenzhen Yinghe Technology Co.Ltd(300457) and end customers through Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) , Guangdong Lyric Robot Automation Co.Ltd(688499) , Shenzhen United Winners Laser Co.Ltd(688518) , Shenzhen Yinghe Technology Co.Ltd(300457) and other equipment manufacturers. Among them, equipment manufacturers do not need to send samples for verification, and end customers need to send samples for verification.
It can be seen from the above table that there is a certain interval between the issuer's products obtaining the verification of major customers, obtaining batch orders, and then realizing large-scale sales. The issuer's products passing the customer certification is a necessary but not sufficient condition for the issuer to obtain batch orders. Due to the influence of technical difficulty, customer recognition and external market environment, the issuer fails to obtain batch orders immediately after passing the verification. The specific reasons are as follows:
1. Considering the difficulty of power battery welding technology, it takes a long period to improve the issuer's technical level and improve the performance of ultrasonic equipment
The power battery industry is a typical technology driven industry. Well-known power battery manufacturers have high requirements for their suppliers' technology, process level and technology renewal and iteration ability. The polar lug welding link applied by the issuer's ultrasonic welding equipment is a key process that directly affects the performance of the battery. It has high requirements for welding resistance, welding accuracy and welding stability, and it is technically difficult. With the change of the customer's Battery Specification and type and the upgrading and iteration of the battery manufacturing process, the customer continues to put forward new requirements for the issuer's R & D ability, Therefore, the improvement of the technical level of the generator and the improvement of the performance of ultrasonic equipment will be a long-term and continuous process.
In the field of polar ear welding equipment, binnengsen has occupied a dominant market position for a long time with relatively rich application experience and good stability of welding equipment. Compared with the level of horizontal welding machines in 2016 and 2017, the issuer does not have obvious competitive advantages, so it has a small market share in downstream customers. Since 2018, with the increase of R & D investment and the improvement of technical level, the performance of the issuer's ultrasonic equipment has been significantly improved. For example, the integrated welding monitoring machine independently developed by the issuer has effectively solved the problem of pole lug false welding, and the wedge bar welder has shown good welding performance on the multi-layer welding problem. The product has significant competitive advantages and has been verified by customers one after another, laying the foundation for the rapid improvement of the issuer's order scale.
Based on the above reasons, the improvement of the issuer's technical level and the improvement of the performance of ultrasonic equipment need a long period. In this process, the issuer's market share and order scale are limited and failed to obtain large quantities of orders.
2. In consideration of customer recognition, customers have high requirements for the stability and consistency of lithium battery equipment. After the product passes the verification, it still needs a certain period to gradually change from small batch application to large batch application
Lithium battery manufacturing is a typical mass manufacturing industry. If a batch of lithium battery products have performance and quality defects, it will cause great economic losses to battery manufacturers. The polar lug welding link applied by the issuer's ultrasonic welding equipment is a key step in the production and assembly of the battery cell. Once the defective product of polar lug false welding occurs, it will lead to problems such as open circuit and large internal resistance of the lithium battery cell in the use process, which will directly affect the service performance of the new energy vehicle equipped with the battery module. Therefore, the company's downstream new energy power battery customers have high requirements for equipment stability and consistency, and are strict with supplier selection standards and processes. After the supplier's equipment has preliminarily passed the customer verification, it still needs to show stable and excellent product performance in small batch application, medium batch application and other links, and gradually improve the customer recognition, so as to finally obtain large batch orders and occupy a high order share.
Taking Contemporary Amperex Technology Co.Limited(300750) as an example, in the trial stage of the welding monitoring integrated machine, the issuer needs to pass the laboratory verification, mass production line verification and other links before becoming its qualified supplier. This process lasts from November 2018 to may 2019. In consideration of the operation safety of the production line, after the issuer's equipment is preliminarily certified, it is first applied in small batches on the customer's new production line. After the operation stability of the equipment is further verified, it can be applied in large quantities on the new production line. This process lasts from the first half of 2019 to the end of 2020.
Based on the above reasons, the overall import cycle of lithium battery equipment is long, and there will be a certain time interval between the issuer's products from trial to preliminary certification, from preliminary certification to batch orders, and then to large-scale sales.
3. From the perspective of market scale, the prosperity of power battery industry in 2020 and before is not as good as today, and the scale of customer expansion is relatively small
Since the second half of 2020, the power battery industry has entered a period of explosive growth. According to the statistics of Gaogong lithium battery, there were 26 power battery production expansion projects in 2020, with a total amount of more than 137 billion yuan, involving a power battery capacity of 400 GWH. In 2021, the number of power battery investment and expansion projects has increased to 63 (including raised investment projects), with a total investment of more than 621.8 billion yuan and a planned new capacity of more than 2 billion yuan
