撰写Reporter | Zhang Qiaoyu
Recently, Anhui Dachang Technology Co., Ltd. (referred to as Dachang Technology) rushed to the GEM to reply to the second round of audit inquiry letter, with Guoyuan Securities as the sponsor.
Dachang Technology is mainly engaged in R&D, production and sales of stamping and welding auto parts and related tooling. The stamping and welding of auto parts are divided into body parts and chassis parts.
From 2020 to 2022 (reporting period), the operating income of Dachang Technology was 575 million yuan, 826 million yuan and 1.077 billion yuan respectively; The net profit of returning to the mother after deducting non-profit was 36.6818 million yuan, 58.2528 million yuan and 65.8451 million yuan respectively.
Although Dachang Technology has achieved good results from 2020 to 2022 (reporting period), its operating income and net profit after deducting non-profit have achieved rapid growth, with compound growth rates as high as 36.83% and 33.98% respectively.
However, behind this glamorous figure, there is a hidden risk of the company’s excessive dependence on Chery Automobile. Nearly half of the company’s income comes from Chery Automobile, and this high dependence makes the company particularly vulnerable in the face of fluctuations in the Chery automobile market.
Dachang technology predecessor Dachang Co., Ltd. was founded in 20 years.00On February 18th, 2008, Zhong Huashan, Yan Xin and Liu Shiying decided to jointly establish a limited company with a registered capital of 500,000 yuan, of which Zhong Huashan contributed 250,000 yuan, Yan Xin contributed 150,000 yuan and Liu Shiying contributed 100,000 yuan.
In order to meet the requirements of the Company Law (revised in 1999) on the number of shareholders of a limited liability company, Dachang Limited established Zhong Huashan to entrust his spouse’s mother Liu Shiying and his spouse’s uncle Yan Xin to hold shares in the company on his behalf.
In November 2002, the limited registered capital of Dachang was increased to 10 million yuan, and Zhong Huashan directly held the contribution of 7 million yuan from Dachang.andYan Xin and Liu Shiying were entrusted to hold 1 million yuan and 2 million yuan respectively; In July 2005, the limited registered capital of Dachang was increased to 20 million yuan, and Zhong Huashan directly held the contribution of 14 million yuan from Dachang Limited.andYan Xin and Liu Shiying were entrusted to hold 2 million yuan and 4 million yuan respectively. The aforementioned escrow relationship continued until November 2013.
In addition, the investment of 500,000 yuan when Dachang Limited was established was all in kind, including 133 sets of molds, 1 100T punch, 1 63T punch, 1 40T punch and 1 shearing machine.
It is reported that,This partPhysical assets are idle equipment (with a total loan of 509,400 yuan) purchased by Zhong Huashan from Wuhu Shuanglian Special Steel Pipe Manufacturing Co., Ltd. (a subsidiary of Wuhu Iron and Steel Plant, which was revoked in December 2005) in February 2000, butThe purchasing unit recorded in the relevant asset purchase invoice is Dachang Limited.And the relevant assets have not fulfilled the appraisal procedures.,existdefect of capital contribution.
In addition, Dachang Limited also had investment defects when it first increased its capital. In September 2020, Dachang Limited changed its registered capital to 10 million yuan, and this time it increased its registered capital by 9.5 million yuan. Among them, Zhong Huashan contributed 6.75 million yuan, Yan Xin contributed 850,000 yuan and Liu Shiying contributed 1.9 million yuan in the form of real estate, land and debt.right, a total of 9.5 million yuan.
It is worth noting that during this capital increase, Zhong Huashan entrusted Dachang Co., Ltd. to purchase the above-mentioned property and land from Yangwang Village Committee of Wanli Town, Jiujiang District, Wuhu City in October 2001, and it was registered under Dachang Co., Ltd. before this capital increase.
Considering that these assets are mainly used for Dachang Limited’s business, and in order to enable Dachang Limited to enjoy preferential policies for attracting investment, Zhong Huashan directly registered these assets under Dachang Limited’s name, and the limited company paid the purchase price on its behalf, and Zhong Huashan offset the purchase price paid by Dachang Limited with its corresponding bonds.
In addition, the above-mentioned creditor’s rights contributed by Zhong Huashan were formed by Zhong Huashan’s loan to Dachang Co., Ltd. and its prepaid expenses. Because most of the loans and prepaid expenses were paid by Zhong Huashan in cash and occurred for a long time, the authenticity of these bonds could not be verified.
In August, 2020, Zhong Huashan made corrections to the 500,000 yuan contribution in kind when Dachang Limited was established and the 9.5 million yuan contribution in kind and bonds in November, 2002, and all the corrected contributions were included in the capital reserve.
Before this issuance, Zhong Huashan directly held 57.69% of the shares of the company, and was the controlling shareholder and actual controller of the company.
The growth rate of Dachang Technology depends on the top five customers. During the reporting period, the company’s income from the top five customers accounted for more than 90% of its main business income. In the past three years, Chery Automobile, Guangzhou Automobile Group and Guangqi Honda ranked among the top five customers.
Chery Automobile is the largest customer of Dachang Technology. In 2001, the company passed the certification and became the first-class supplier of Chery Automobile, providing it with subframe assembly, control arm assembly, front assembly of side inner panel, door sill reinforcement plate assembly and front module assembly. In 2015, it began to provide auto parts for Chery New Energy.In each period of the reporting period, the sales amount of Dachang Technology to Chery Automobile was 239 million yuan, 393 million yuan and 508 million yuan respectively, accounting for 43.35%, 50.70% and 50.01% of the main business income respectively, which made it heavily dependent on Chery Automobile..
During the reporting period, the sales volume of Chery Automobile was 730,000, 961,900 and 1,232,700 respectively, and its rapid growth really promoted to some extent.Dachang technologyThe rapid growth of income. However, this situation of high dependence on Chery automobile actually hides risks that cannot be ignored. As the saying goes, "one glory is all glory, one loss is all loss". Once the Chery automobile market is cold or the sales volume fluctuates,Dachang technologyOur business will undoubtedly be directly impacted.
In fact, this kind of risk has already begun to appear. As the sales volume of Qiruixingtu vehicles failed to meet expectations, the company had to make a provision for impairment of 6,276,900 yuan for tooling and molds in 2021.
Besides,Dachang Technology’s Bargaining Power to Chery AutomobilealsoNeed to be improved. The company’s revenue mainly comes from body parts. During the reporting period, the gross profit margin of body parts dropped significantly, from 20.66% in 2020 to 17.06% in 2022. In 2021, mainly due to the impact of rising raw material prices, the average unit price and unit cost of products increased, while the gross profit margin decreased..
In 2022, the gross profit margin of body parts declined again, which was influenced by the adjustment of Chery automobile’s business policy, and the expenses such as punching fee and welding fee were lowered. At the same time, the initial pricing of some new products, tooling and molds was relatively low. In addition, the decline in gross profit margin is also due to the poor supply chain in the first half of 2022 and December, resulting in insufficient start-up, low output, more fixed cost allocation per unit product, and the impact of rising aluminum prices.
As the largest customer of Dachang Technology, Chery Automobile has entered the top five suppliers of Dachang Technology. In 2021, the company purchased 25,558,400 yuan of Chery automobile blocks and parts, accounting for 3.86% of the total purchase. According to the company, Chery Automobile sells parts to the company for the reasons of ensuring the stability of the supply quality of auto parts and the different division of business, while the company purchases blocks from Chery Automobile for the reasons of reducing the procurement cost of steel products.
Dachang Technology’s contacts with Chery Automobile don’t stop there. Wuhu Changrui was added to the company’s top five customers in 2022. Wuhu Changrui was established in 2013 and has cooperated with Dachang Technology since its inception. It is reported that,Dachang Technology and Wuhu Changrui, as the first-class suppliers of Chery Automobile, supply some auto parts to each other.
The company said that due to the rapid development of Chery’s automobile business, the company’s income from Wuhu Changrui increased in 2022 and became the top five customers of the company’s main business. In addition, Chengfei Ruihu is also a first-class supplier of Chery Automobile, and there are mutual parts transactions with Dachang Technology.it is reported,The components of some assemblies are produced by three first-class suppliers respectively, and then further assembled into assemblies by one of them for supply to Chery Automobile.
During the reporting period, the company also outsourced processing to outsourcing manufacturers, mainly for some stamping processing and surface treatment of some parts such as electrophoresis and electroplating. The outsourcing expenses in each period were 30.4781 million yuan, 41.2694 million yuan and 60.7198 million yuan respectively. It is worth noting that,The shareholders of the outsourcing manufacturer Maanshan (Wuhu) Material Technology Co., Ltd. include Chery Commercial Vehicle (Anhui) Co., Ltd.,The shareholding ratio is 9%.
The interface journalist noticed that Maanshan Iron and Steel (Wuhu) Material Technology Co., Ltd., together with Maanshan Iron and Steel (Guangzhou) Steel Processing Co., Ltd., Hangzhou Baojing Steel Processing and Distribution Co., Ltd., Shanghai Baosteel High-strength Steel Processing and Distribution Co., Ltd. and Guangzhou Baofengjing Automobile Steel Processing Co., Ltd., merged into China Baowu, the largest supplier of Guobao Wu Department Company in the reporting period, and the company purchased steel for it.The processing fees were 104 million yuan, 227 million yuan and 225 million yuan respectively, accounting for 26.05%, 34.23% and 24.70% of the current purchase amount respectively.
In terms of equity, Guofu Fund invested in Dachang Technology in November 2020, and currently holds 3.07% of Dachang Technology. Wuhu Ruichuang Investment Co., Ltd. (hereinafter referred to as Ruichuang Investment), a related party of Chery Automobile, holds 39.75% of Guofu Fund. Some investors of Ruichuang Investment are employees of Chery Automobile.
After Guofu Fund became a shareholder, the number of designated new projects between the company and Chery Automobile in 2021 increased by 143.24% to 90 compared with 2020, and the estimated supply amount increased by 1069.64% to 1.523 billion yuan.
In addition, Wang Jinmei, the company’s chief financial officer and director, has worked for Chery Automobile for a long time.1998Year solstice2003In, he served as the chief of the accounting department and the chief of the business plan of the finance department of Chery Automobile Co., Ltd.;2005Year solstice2006In 2008, he served as the financial controller of Chery Commercial Vehicle (Anhui) Co., Ltd.;2006Year solstice2007In 2000, he served as the financial director of Chery Automobile Test Technology Center and Chery Automobile Engineering Research Institute of Chery Automobile Co., Ltd..