Securities code: Zhejiang Narada Power Source Co.Ltd(300068) securities abbreviation: Zhejiang Narada Power Source Co.Ltd(300068) Announcement No.: 2022054 Zhejiang Narada Power Source Co.Ltd(300068)
Announcement on the reply to the inquiry letter of the annual report of Shenzhen Stock Exchange
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Zhejiang Narada Power Source Co.Ltd(300068) (hereinafter referred to as ” Zhejiang Narada Power Source Co.Ltd(300068) ” and “the company”) received the inquiry letter on the annual report of Zhejiang Narada Power Source Co.Ltd(300068) (GEM annual report inquiry letter [2022] No. 268) issued by the management department of GEM companies of Shenzhen Stock Exchange on May 9, 2022. The board of directors of the company attaches great importance to it and organizes relevant departments, personnel and intermediaries to carefully check and implement the relevant issues in the inquiry letter. The relevant information is replied as follows:
Question 1 During the reporting period, your company was mainly engaged in the production and sales of lead-acid battery products, lithium battery products and recycled lead products, with the revenue accounting for 51.81%, 16.32% and 31.87% respectively, and the gross profit margin decreased by 7.1%, 13.84% and increased by 0.37% respectively. On January 4, 2022, the general meeting of shareholders of your company deliberated and approved the external disposal of 21% equity of Jieshou Nandu Huayu Power Supply Co., Ltd. (hereinafter referred to as “Nandu Huayu”) and Zhejiang Changxing Zhejiang Narada Power Source Co.Ltd(300068) Co., Ltd. (hereinafter referred to as “Changxing Nandu”). After the disposal, your company holds 30% equity of Nandu Huayu and Changxing Nandu respectively, which will not be included in the consolidated statements.
(1) Please supplement the main business contents of Nandu Huayu and Changxing Nandu, the amount of revenue and gross profit margin recognized during the reporting period, the proportion in your company’s total revenue and related business income, explain the composition and proportion of your company’s main production and operation business after disposal, whether it has a significant impact on your production and operation structure, and whether Nandu Huayu and Changxing Nandu compete with the remaining business of the listed company. Ask the accountant to check and give clear opinions.
(2) Please add whether your company has procurement, sales and other business dealings with Nandu Huayu and Changxing Nandu. If so, please explain whether the disposal of Nandu Huayu and Changxing Nandu has an adverse impact on the business of the listed company in combination with the subsequent arrangements of relevant transactions.
(3) Please explain the effective measures taken by your company in combination with the fluctuation of gross profit margin of relevant businesses of your company
Measures, whether there is a plan to continue to dispose of relevant business assets.
[reply]
（1） Supplement the main business contents of Nandu Huayu and Changxing Nandu, and the confirmed during the reporting period
The amount of income and gross profit margin, accounting for the proportion of total income and related business income, indicating the main income of the company after disposal
Whether the composition and proportion of production and operation business have a significant impact on the production and operation structure, southern capital Huayu and Changxing South
Are they competitive with the remaining businesses of listed companies
Nandu Huayu and Changxing Nandu are the production plants and sales of green travel civil power lead-acid batteries of the company
The company is mainly engaged in civil power lead-acid battery business. Among them, the main business of Nandu Huayu
For the production and sales of polar sectors and batteries (if administrative license is involved, it can be carried out only after obtaining effective administrative license
Production and operation activities); Changxing Nandu’s main business is lead-acid battery wholesale (bill), lithium battery and metal
Sales of materials (except rare, precious and radioactive metals), battery sectors, import and export of goods and technology.
The revenue amount and gross profit margin recognized by Nandu Huayu and Changxing Nandu in 2021 are as follows:
Unit: Yuan
Subtotal of the project Nandu Huayu Changxing Nandu, including the amount after consolidation and offset of internal sales
Operating income 281375563506381650037231663025 Cofco Sugar Holding Co.Ltd(600737) 282141968371380883632366
Operating cost 254642971343400025257212654668228555282141968371372526260184
Gross profit margin 9.50% – 4.81% 1.26% 2.19%
[note] internal sales refers to the sales of Nandu Huayu and Changxing Nandu to the entities within the scope of the company’s consolidated statements
Sales.
In 2021, after the merger and offset of Nandu Huayu and Changxing Nandu, the operating income was 380883632366
Yuan, accounting for 1184757028365 yuan of the company’s consolidated operating revenue in 2021, accounting for 32.15%.
According to the statistics after disposal, the composition and proportion of the company’s main production and operation business in 2021 are right
The ratio is as follows:
Unit: Yuan
Impact of operating income disposal before business classification disposal [note] proportion of operating income before disposal after disposal proportion after disposal
Lead acid battery products 613848038819 – 334889934973278958103846 51.81% 28.67%
Lithium battery products 193315893401 16.32% 19.87%
Recycled lead products 377593096145123034176758500627272903 31.87% 51.46%
Subtotal 1184757028365 – 211855758215972901270150 100.00% 100.00%
[note] the impact of disposal includes the external sales revenue recognized by Nandu Huayu and Changxing Nandu after consolidation and offset
The input amount is 380883632366 yuan, and the subsidiary Anhui Huabo Renewable Resources Technology Co., Ltd. paid to nanduhua
The sales volume of Yu is 123034176758 yuan, and its subsidiary Sichuan Nandu Guojian new energy Co., Ltd. (based on
The sales volume of Nandu warship (hereinafter referred to as Nandu warship) to Changxing Nandu is 45993697393 yuan, which is affected by the above factors
The company’s operating revenue in 2021 was 211855758215 yuan, accounting for 17.88% of the company’s total operating revenue.
According to the statistics after simulated disposal, the company’s operating income after disposal in 2021
972901270150 yuan, a decrease of 17.88% compared with the operating income of 1184757028365 yuan before disposal.
The company’s disposal of the equity of Nandu Huayu and Changxing Nandu is mainly for the purpose of adjusting the industrial and product structure and promoting
Due to the strategic demand of business development for the return of operating funds, the company is expected to further gather after stripping the civil lead-acid sector
Coke new energy energy storage, lithium battery and lithium battery recycling business. Combined with the company’s industry, market position, technology and products
Competitiveness is still highly competitive and well-known in global operators, energy storage and other fields. At the same time, it faces the global “double”
With the advent of the “carbon” market opportunity, the company expects a certain increase in sales revenue in the energy storage field. In addition,
In 2022, the company’s lithium battery recycling business officially reached production, which will not only increase the overall gross profit margin of the company’s products, but also
It will also increase the sales revenue of lithium battery recycling. Therefore, the company expects that the disposal will not affect the production and operation structure
Have a significant impact.
Nandu Huayu, Changxing Nandu and the remaining businesses of listed companies do not constitute a competitive relationship. According to yadico
Technology Group Co., Ltd. (hereinafter referred to as Yadi Technology) and the company signed the agreement on the acquisition of Jieshou Nandu Huayu
Agreement on the acquisition of shares of Zhejiang Yaxing Technology Co., Ltd
Italy, the company is no longer engaged in the civil lead-acid power battery business, and Yadi technology gives priority to Nandu national ship as yadike
Technology provides OEM lead-acid batteries. In 2022, Nandu Guojian and Nandu Huayu signed the contract for entrusted processing,
Yadi technology entrusts Nandu Guojian to process and produce licensed battery products in the mode of entrusted processing. Except for subsidiaries
Sinanduguo is no longer engaged in the R & D, production and sales of civil lead-acid power batteries outside the ship,
Therefore, the company expects that Nandu Huayu and Changxing Nandu will not compete with the remaining businesses of listed companies.
[accountant’s verification procedures and conclusions]
1. Understand the main business contents of Nandu Huayu and Changxing Nandu, and review the business conditions confirmed by the company during the reporting period
Income amount and gross profit margin;
2. Resolutions of the board of directors on the transfer of shares of Nandu company; Obtain the equity transfer agreement on Nandu Huayu and Changxing Nandu signed by the company and Yadi group; 3. Understand the company’s subsequent progress on the equity transfer of Nandu Huayu and Changxing Nandu, including equity delivery and subsequent production and operation;
4. Obtain the cooperation agreement between Nandu Guojian and Nandu Huayu, and understand the subsequent cooperative relationship between Nandu Huayu and Changxing Nandu and the company.
After verification, we believe that the disposal of the equity of Nandu Huayu and Changxing Nandu by the company to focus on new energy storage, lithium battery and lithium battery recycling business is not expected to have a significant impact on the subsequent production and operation structure; Nandu Huayu, Changxing Nandu and the remaining businesses of listed companies do not constitute a competitive relationship.
(II) Please add whether your company has procurement, sales and other business transactions with Nandu Huayu and Changxing Nandu. If so, please explain whether the disposal of Nandu Huayu and Changxing Nandu has an adverse impact on the business of the listed company in combination with the subsequent arrangements of relevant transactions.
The company has procurement and sales business contacts with Nandu Huayu and Changxing Nandu. The main business and subsequent arrangements are as follows:
1. Nandu Huayu sells waste batteries to its subsidiary huaplatinum technology, with a transaction volume of 19938567053 yuan in 2021; Subsequently, Nandu Huayu signed a waste battery sales agreement with huaplatinum technology, and Nandu Huayu continued to sell to huaplatinum technology company according to the price of waste batteries in the market, which did not constitute an adverse impact.
2. The subsidiary Huabao technology sells lead ingots to Nandu Huayu, and the transaction volume in 2021 is 123034176758 yuan; Huaplatinum technology signed a strategic cooperation agreement with Nandu Huayu. Huaplatinum technology continued to sell Nandu Huayu lead ingots at market prices, which did not constitute an adverse impact.
3. Nandu Guojian company sells batteries to Changxing Nandu, with a transaction volume of 45993697393 yuan in 2021; According to the cooperation agreement on entrusted processing of lead ingots between Nandu Guojian and Nandu Huayu, Nandu Guojian continues to process and produce batteries for Nandu Huayu. The original sales of Nandu Guojian Changxing Nandu is realized through the sales of Nandu Huayu, which does not constitute an adverse impact.
To sum up: the company has procurement and sales transactions with Nandu Huayu and Changxing Nandu, and the disposal of the equity of Nandu Huayu and Changxing Nandu does not constitute an adverse impact.
(III) fluctuation of gross profit margin of relevant businesses, indicating the effective response measures taken by your company and whether there is a plan to continue to dispose of relevant business assets.
1. Fluctuations in gross profit of related businesses of the company
Project 20212020 2019
Lead acid battery products 5.03%, 12.13%, 16.70%
2. Countermeasures to be taken and disposal plan of relevant business assets in the future
The reasons and Countermeasures for the decline in the gross profit margin of the company’s lead-acid battery products are as follows:
(1) In 2021, the company’s civil lead electricity sector made an overall transformation to high-end products. At the same time, in order to accelerate the return of funds, the company increased the sales discount of the original civil lead electricity ordinary products, resulting in the decline of gross profit margin; The company has disposed of the main business of the civil lead electricity sector and retained the subsidiary Nandu Guojian company, which has an annual sales of about 500 million yuan. Nandu Guojian company has gradually transformed to the business of selling graphene battery products, which is exclusively for Yadi company to turn to the high-end graphene battery business and increase the gross profit margin of the civil lead-acid sector.
In the future, the company will not rule out the possibility of disposing the assets of the civil lead-acid sector according to the market conditions. (2) Downstream customers of industrial lead-acid batteries of the company
