Source: Yicaixin
Author: Zhu Zimiao
Anhui Dachang Technology Co., Ltd. (hereinafter referred to as Dachang Technology) is a high-tech enterprise mainly engaged in the research and development, production and sales of stamping and welding auto parts and related tooling molds.
On June 27, 2023, DCH Technology's GEM IPO application was accepted, and on March 12, 2023, the company updated its response to the second round of review inquiry letters. In this IPO, the sponsor of DCH Technology is Guoyuan Securities, and the auditor is Rongcheng.
There are many errors in the application materials
A comparison of the prospectus and the reply to the inquiry found that the two documents "disagreed" on the history of cooperation with the same customer/supplier.
According to the prospectus, from 2020 to January to June 2023 (hereinafter referred to as the "reporting period"), Chery Holding Group Co., Ltd. and its subsidiaries (hereinafter referred to as "Chery Automobile") have been the largest customers of Dachang Technology, and Chery Automobile's purchases from Dachang Technology amounted to 238.6428 million yuan, 393.2205 million yuan, 508.1618 million yuan, and 303.846 million yuan respectively, and it was disclosed that the cooperation between Chery Automobile and Dachang Technology began in 2000. The first round of inquiries showed that DCH entered the Chery Automobile supplier list in 2001.
(Screenshot from the first round of inquiry responses)
Similar happenings don't stop there. In the prospectus, Suzhou Shougang Steel Processing and Distribution Co., Ltd. (hereinafter referred to as Suzhou Shougang) is the fourth largest supplier of Dachang Technology in 2022, and Dachang Technology purchased a total of 42.4803 million yuan of steel from it that year, accounting for 4.66% of the total procurement amount, and the prospectus disclosed that the cooperation with Suzhou Shougang began in 2022, but the first round of inquiry responses showed that the two had started cooperation in 2021.
(Screenshot from the first round of inquiry responses)
Moreover, the reply to the first round of inquiries shows that in 2021, the purchase amount of Dachang Technology from Suzhou Shougang was 14.4495 million yuan, which shows that Dachang Technology cooperated with Suzhou Shougang in 2021, but for some reason the prospectus disclosed that the two only started cooperation in 2022.
In addition, DCH Technology's information disclosure problems also occurred in citing data from comparable companies in the same industry.
According to the prospectus, Dachang Technology selected a total of six companies as comparable companies in the same industry, namely Bojun Technology (300926. SZ), Dolly Technology (001311. SZ), Wuxi Zhenhua (605319. SH), Changhua Group (605018. SH), Evergreen (603768. SH), Huada Technology (603358. SH）。
Huada Technology was founded in 2002 and listed on the main board of the Shanghai Stock Exchange in 2017. According to the prospectus, from 2020 to 2022, the gross profit margin of Huada Technology's tooling molds will be 26.66%, 27.08%, and 26.93% respectively. However, according to the annual report of Huada Technology, from 2020 to 2022, the gross profit margin of Huada Technology's tooling molds will be 26.66%, 33.15%, and 26.93% respectively. Among them, in 2021, there are inconsistencies in the gross profit margins of the tooling molds of Dachang Technology and Huada Technology, and the data disparity is large.
(Screenshot from Huada Technology's 2021 annual report)
Dolly Technology was founded in 2010 and listed on the main board of the Shenzhen Stock Exchange in 2023. According to the prospectus, from 2020 to 2022, the gross profit margins of Dolly Technology auto parts will be 18.82%, 20.08%, and 18.62% respectively, and the gross profit margins of tooling molds will be 10.01%, 10.45%, and 9.54% respectively.
According to the prospectus of Dolly Technology and the data of the 2022 annual report, from 2020 to 2021, the gross profit margin data of Dolly Technology coincides with the above data, but in 2022, the gross profit margin of Dolly Technology's auto parts is 20.26%, and the gross profit margin of tooling and molds is 21.52%. The gross profit margin data for 2022 shown in the prospectus of Dachang Technology happens to be the data caliber of the semi-annual report from January to June 2022 of the prospectus of Dolly Technology, which should be analyzed as the data of the semi-annual report.
(Screenshot from Dolly Technology Prospectus)
Discrepancies between senior executives' resumes and publicly available information
According to the prospectus, the board of directors of DCH Technology currently consists of 9 directors, including 3 independent directors. In November 2022, due to the change of the board of directors, You Jia no longer served as an independent director of the company and was succeeded by Liu Fangduan. In addition to the above, there is no change in the company's supervisors, senior management personnel and core technical personnel.
According to the prospectus, the total remuneration of directors, supervisors, senior managers and core technical personnel (including the allowances received by independent directors) of DCH Technology in 2022 is 5.5606 million yuan, which is consistent with the total remuneration of key management personnel.
According to the total remuneration of directors, supervisors, senior managers and core technical personnel in the company disclosed in the prospectus, it is 5.6379 million yuan, which is 77,300 yuan more than the total remuneration disclosed above.
According to the prospectus, in 2022, the pre-tax remuneration of independent directors Zhang Chen and Wang Shulin will be 50,000 yuan, and the pre-tax remuneration of independent directors You Jia and Liu Fangduan will be 50,000 yuan. As of the date of signing of this Prospectus, except for salaries, allowances, bonuses, social insurance and housing provident fund, the Company has not provided any additional benefits to the above-mentioned personnel, nor has it arranged other pension plans. In other words, in 2022, plus the remuneration received by independent directors, the difference may reach 227,300 yuan.
The difference between the remuneration received by the above-mentioned directors, supervisors and senior executives in 2022 and the total remuneration may be due to the difference between the remuneration payable for the work of the year and the actual remuneration received during the year.
In addition, after inquiring about public information, Yicai Xin also found that there were discrepancies between the resumes of senior executives disclosed in the prospectus of DCH Technology and the public information.
According to the prospectus, independent director Zhang Chen has served as an independent director of Anhui Anquan Machinery Co., Ltd. (hereinafter referred to as Anchun Shares) since November 2022. According to the prospectus of Anxuan shares, Zhang Chen has been working in the company since January 2022, 10 months earlier than the prospectus disclosure.
(Screenshot from the prospectus of Anquan shares)
From June 1995 to January 1999, another executive, Chen Xin, served as the head of the distribution department of Wuhu Yuhe Machine Tool Accessories Co., Ltd. According to the enterprise information network, the company was established in April 1997, more than one year later than Chen Xin's tenure.
(Screenshot from Qixin.com)
To sum up, there are many problems in the preparation of the IPO application materials of Dachang Technology, and the quality of the information disclosure needs to be improved urgently, and the sponsor Guoyuan Securities is also to blame.