Special verification opinions on the second round examination and inquiry letter of the application documents for the initial public offering and listing on the science and Innovation Board of Shanghai Jiaocheng Ultrasonic Technology Co., Ltd
Rongcheng zhuanzi [2022] No. 200z0227
Rongcheng Certified Public Accountants (special general partnership)
Beijing, China
About Shanghai Jiaocheng Ultrasonic Technology Co., Ltd
Application documents for initial public offering and listing on the science and Innovation Board
Special verification opinions of the second round of audit inquiry letter
Rongcheng zhuanzi [2022] No. 200z0227 Shanghai Stock Exchange:
We have received 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 “examination and inquiry letter” or “inquiry letter”) issued by your exchange on April 2, 2022. Rongcheng Certified Public Accountants (special general partnership) (hereinafter referred to as “the firm” and “reporting accountant”) have carefully discussed, verified and implemented the questions raised in the inquiry letter one by one based on the principles of diligence, honesty and trustworthiness. The reply is as follows, please review.
Unless otherwise specified, the abbreviation in this reply has the same meaning as that in the prospectus. In the reply to this inquiry letter, if there is any difference in the mantissa between the sum of the total and the values of each sub item, it is caused by rounding.
The reply to the relevant questions raised in the inquiry letter is as follows:
catalogue
1、 Inquiry letter 5 About income 3 II. Inquiry letter 7 About re lending and inter-bank lending 24 III. inquiry letter 9 About other twenty-eight
1、 Inquiry letter 5 About income
5.1 according to the first round of reply, one of the reasons for the sharp increase in the company’s revenue in 2021 is the sharp increase in the revenue of power battery ultrasonic welding equipment. Of which Contemporary Amperex Technology Co.Limited(300750) purchased power batteries, ultrasonic welding equipment and AI online monitoring system from the company, with a total purchase amount of 1244015 million yuan, accounting for 33.56% of the operating revenue of the current year Byd Company Limited(002594) , Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) , Guangdong Lyric Robot Automation Co.Ltd(688499) purchased power battery ultrasonic welding equipment from the company of 336035 million yuan, 117133 million yuan and 8.8142 million yuan, accounting for 9.07%, 3.16% and 2.38% of the operating revenue of the current year. Please explain to the issuer: (1) the issuer’s products are mainly used for customers to build or replace the equipment of the original production line; Matching and basis of income and new capacity of major customers in 2021; Whether the new production line of main customers is put into operation normally and the basis; (2) Distinguish standardized products from non standardized products, and list the startup process, procurement cycle, production cycle, installation and commissioning cycle of products sold by the issuer to major customers; Based on the above situation, further analyze the reasons and rationality of the issuer’s significant increase in power battery ultrasonic welding equipment in 2021.
The recommendation institution and the reporting accountant shall explain the verification process and conclusion of the procurement, sales and inventory of major customers.
reply:
[disclosure and description of the issuer]
(I) the issuer’s products are mainly used for customers to build or replace the equipment of the original production line; Matching and basis of income and new capacity of major customers in 2021; Whether the new production line of main customers is put into operation normally and the basis 1. The issuer’s products are mainly used for customers to build or replace the equipment of the original production line
In recent years, downstream power battery manufacturers have continuously increased investment in new production lines to expand battery capacity. Therefore, the issuer’s power battery ultrasonic welding equipment is also mainly used for customers’ new production lines. Among them, the equipment sold to Contemporary Amperex Technology Co.Limited(300750) group is mainly used in many bases and projects, such as Ningde Huxi base, Sichuan Shidai Yibin base, Fuding Shidai Fuding base, Jiangsu Shidai Liyang base, Shidai SAIC Liyang base, Shidai FAW Xiapu base, Shidai GAC Guangzhou base and Xinjin Shidai Xinjin base; The equipment sold to Byd Company Limited(002594) group is mainly used in Qinghai ferdi base, Chongqing ferdi base, Bengbu ferdi base and other bases and projects; The equipment sold to Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) is mainly used in Changzhou production base and Xiamen production base of innovation Airlines among end customers; The equipment sold to Guangdong Lyric Robot Automation Co.Ltd(688499) is mainly used in Liuzhou production base of end customer Gotion High-Tech Co.Ltd(002074) .
2. Matching of revenue and new capacity of major customers in 2021 and basis
Taking the main customers Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) as examples, the issuer’s revenue from selling power battery ultrasonic welding equipment to Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) in 2021 was 1170322 million yuan and 336035 million yuan respectively.
According to the public information obtained, the new capacity of Contemporary Amperex Technology Co.Limited(300750) power battery and energy storage battery in 2021 is about 170 GWH, and the new capacity of Byd Company Limited(002594) power battery in 2021 is about 50 GWH. According to the cooperation experience between the issuer and Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) and Byd Company Limited(002594) , the average upper and lower limits of the demand for ultrasonic lug welding equipment per GWH are 1 million yuan to 1.3 million yuan. Therefore, the demand for ultrasonic lug welding equipment required for the new capacity of Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) in 2021 is 170 million yuan to 221 million yuan and 50 million yuan to 65 million yuan.
Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) in 2021, the products purchased by the issuer accounted for more than 50% of the similar products purchased on their new production line. Based on this proportion, the income from the issuer’s sales of power battery ultrasonic welding equipment to Contemporary Amperex Technology Co.Limited(300750) and Byd Company Limited(002594) in 2021 matched the equipment demand for new production capacity.
3. Whether the new production line of main customers is put into normal operation and its basis
Due to the different procurement modes and acceptance processes of different customers, the issuer’s ultrasonic welding equipment may be accepted before the customer’s new production line is put into operation, or it may be accepted synchronously or later when the new production line is put into operation.
The reporting accountant checks and verifies the production of new production lines of major customers by consulting relevant news reports, searching relevant forum information and on-the-spot inventory.
As of the issuing date of this reply, the new production lines of main customers to which the issuer’s power battery welding equipment is applied are in the stage of normal or partial production, as follows:
Production of main application bases of major customers
Contemporary Amperex Technology Co.Limited(300750) Huxi base partially put into operation
Yibin base of Sichuan Times New Energy Technology Co., Ltd. has been put into operation
Contemporary Amperex Technology Co.Limited(300750) Fuding Times New Energy Technology Co., Ltd. Fuding base has been put into operation
Group Jiangsu Times New Energy Technology Co., Ltd. Liyang base has been put into operation
The Liyang base of times SAIC Power Battery Co., Ltd. was partially put into operation
Xiapu base of Shidai FAW Power Battery Co., Ltd. was partially put into operation
Guangzhou base of times GAC Power Battery Co., Ltd. has been put into operation
Chengdu Xinjin Times New Energy Technology Co., Ltd. Xinjin base has been put into operation
department
Xining base of Qinghai Fudi Battery Co., Ltd. has been put into operation
Byd Company Limited(002594) Ji Chongqing Fudi Lithium Battery Co., Ltd. Bishan base has been put into operation
group
Bengbu Fudi Battery Co., Ltd. Bengbu base has been put into operation
China Innovation Airlines Changzhou base has been put into operation
Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559)
China Innovation Airlines Xiamen base has been put into operation
Guangdong Lyric Robot Automation Co.Ltd(688499) Gotion High-Tech Co.Ltd(002074) Liuzhou plant has been put into operation
(II) distinguish standardized products from non standardized products, and list the startup process, procurement cycle, production cycle, installation and commissioning cycle of products sold by the issuer to main customers; Based on the above situation, further analyze the reasons and rationality of the issuer’s significant increase in power battery ultrasonic welding equipment in 2021
1. Distinguish between standardized products and non standardized products, and list the issuer’s start-up process, procurement cycle, production cycle, installation and commissioning cycle of products sold to main customers
The issuer’s power battery ultrasonic welding equipment is designed and developed according to the production process requirements of customers, which are non standardized products. The main customers of power battery ultrasonic welding equipment business are Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) , Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) and Guangdong Lyric Robot Automation Co.Ltd(688499) . The issuer starts procurement and production after receiving the formal order from the customer. The procurement cycle of raw materials generally ranges from 1 to 5 weeks, which varies depending on the type and supply of raw materials. For some businesses with tight delivery time, the issuer will start procurement and production according to the customer’s designated email The confirmed winning shares have been purchased and prepared in advance; The production cycle of the equipment is generally 6-8 weeks, and some stable sales models can be prepared in advance; The installation and commissioning period of equipment is generally 1-6 months.
2. Based on the above situation, further analyze the reasons and rationality of the issuer’s significant increase in power battery ultrasonic welding equipment in 2021
In 2021, the issuer’s revenue from power battery ultrasonic welding equipment from 3007.5 , Byd Company Limited(002594) , Shenzhen Hymson Laser Intelligent Equipments Co.Ltd(688559) and Guangdong Lyric Robot Automation Co.Ltd(688499) was 1170322 million yuan, 336035 million yuan, 117133 million yuan and 8.8142 million yuan respectively, accounting for 87.26% of the total revenue of the business. During the reporting period, the order signing, delivery and acceptance of power battery ultrasonic welding equipment sold to the above customers are as follows:
Unit: 10000 yuan
Contract signing amount, delivery amount and acceptance amount during customer period
First quarter of 201954.30 223.27 136.72
Second quarter of 2019 – 217.20 –
Third quarter of 201981.45 26.54 61.54
Fourth quarter of 2019906.89 55.17 495.65
Quarter 26.582020
In the second quarter of 2020, 148199, 116776 – Contemporary Amperex Technology Co.Limited(300750)
Third quarter of 2020 – 314.23 27.15
The fourth quarter of 2020 is 679.65-675 degrees
824071237876130046 in the first quarter of 2021
Second quarter of 20214162.82246372216206
Third quarter of 20213584.49356814229381
Fourth quarter of 20211764.96616651594690
Third quarter of 2019 – 30.69
92.04 in the fourth quarter of 2020——
728.41 514.87 in the first quarter of 2021 – Byd Company Limited(002594)
