Source of this article: Times Business School Author: Peng Chenyu
Source: Times Business School
Author: Peng Chenyu
Edited by Sun Yiming
Customers and suppliers have become the bidding opponents of Hangzhou Tunan Electronics Co., Ltd. (hereinafter referred to as "Tunan Electronics"), and is there any trickery behind the repeated bidding on the same field?
According to the official website of the Beijing Stock Exchange, Tunan Electronics submitted for registration on January 15, 2024 and intends to land on the Beijing Stock Exchange, but 4 months have passed and the registration approval has not yet been obtained.
Times Business School research found that from 2020 to the first half of 2023 (hereinafter referred to as the "reporting period"), Tunan Electronics has repeatedly bid with customers and suppliers, and finally won the bid with an overwhelming advantage. Tunan Electronics also paid the above-mentioned suppliers to obtain bidding information collection services, and the compliance of order acquisition was questioned by the Beijing Stock Exchange.
In addition, in this IPO, the audit institution of Tunan Electronics is Grant Thornton Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Grant Thornton"), and in recent years, Grant Thornton has been repeatedly punished by regulators for issuing warning letters due to practice quality problems.
On April 30, Times Business School sent a letter to Tunan Electronics to inquire about the reasonableness of bidding with customers and suppliers on the same spot for many times, and whether the audit institution could be diligent and conscientious, but as of press time, the other party has not replied. On May 14, Times Business School called the investor relations department of Tunan Electronics several times to inquire, but no one answered the phone.
Zhejiang Province "specialized, special and new" small and medium-sized enterprisesAccording to the prospectus, the main business of Tunan Electronics is the research and development, production and sales of emergency broadcasting systems and equipment, mainly for customers such as cultural tourism (radio and television) bureaus, financial media centers, radio and television network companies, and other customers to provide overall solutions for emergency broadcasting systems.
The company is a high-tech enterprise recognized by the Zhejiang Provincial Department of Science and Technology and a provincial high-tech enterprise R&D center, and is also a "specialized, special and new" small and medium-sized enterprise recognized by the Zhejiang Provincial Department of Economy and Information Technology.
As of June 30, 2023, Tunan Electronics and its subsidiaries have 43 patents and 204 software copyrights. The company is the first to apply terrestrial digital television transmission technology (DTMB) to emergency broadcasting, solving the pain points of the last mile transmission of emergency information.
Customers and suppliers have repeatedly become bidding opponentsAccording to the prospectus, bidding is an important way for Tunan Electronics to obtain orders, during the reporting period, the company's order amount through bidding accounted for 67.27%, 57.48%, 55.44%, 39.59% of operating income respectively.
It is worth noting that in a number of winning projects of Tunan Electronics, the bidding opponent looms as a customer.
According to the reply document to the first round of inquiry letters, from 2020 to 2021, Chongqing Genzhong Electronic Technology Co., Ltd. (hereinafter referred to as "Chongqing Genzhong") was the largest and third largest software and hardware integrated product integrator customers of Tunan Electronics, and the sales amount of Tunan Electronics to it was 1.9737 million yuan and 4.3999 million yuan respectively, accounting for 5.45% and 16.35% of the sales revenue of Tunan electronic equipment respectively.
According to the Chongqing Municipal Government Procurement Network, Chongqing Genzhong is the only authorized supplier and service provider of Tunan Electronics in Chongqing.
According to the Chinese government procurement website, from 2019 to 2020, Chongqing Genzhong competed with Tunan Electronics in the bidding three times.
According to the first round of inquiry letters, Tunan Electronics also transferred 150,000 yuan to Wu Zhaoyi, the controlling shareholder of Chongqing Genzhong, in the name of paying for the goods, and then transferred the funds back to the executives of Tunan Electronics for the issuance of performance bonuses.
In addition to customers, there are also suppliers among the companies that bid on the same field as Tunan Electronics.
According to the first round of inquiry letters, from 2020 to 2022, Tunan Electronics has entrusted companies and individuals to collect project bidding information, and the amount of the service fee is 4.4548 million yuan, 3.6151 million yuan, and 3.8119 million yuan, which is mainly paid to Chengdu Fengyue Electronic Technology Co., Ltd. (hereinafter referred to as "Chengdu Fengyue"). At the same time, Chengdu Fengyue is also an integrator customer of Tunan Electronics, and in 2020, the sales amount of Tunan Electronics to Chengdu Fengyue reached 3.302 million yuan.
According to the Chinese government procurement website, from 2020 to 2022, in the bidding announcement of many projects of Tunan Electronics, Chengdu Fengyue, which is both a supplier and a customer, appeared as a bidding opponent.
In view of the above situation, in the first round of inquiry, the Beijing Stock Exchange asked Tunan Electronics to further explain the necessity, reasonableness and authenticity of sales expenses-service fees in combination with the service type, average expenditure and service frequency, whether the bidding information collection service has real business support, and whether there is commercial bribery or benefit transfer.
Tunan Electronics said in the inquiry reply document that the emergency broadcasting business covers a wide and scattered area, and the company has a demand for emergency broadcasting market research and information collection services, and the relevant collection services have real business support, and there is no commercial bribery or benefit transfer.
It should be noted that in the bidding with the participation of the above-mentioned customers and suppliers, Tunan Electronics finally won the bid, and the scores of the winning bids far exceeded those of other bidding opponents.
Auditors have been repeatedly warned by regulatorsDuring the reporting period, Grant Thornton, the audit institution of Tunan Electronics, was repeatedly fined for the quality of its practice.
According to the public information of the Shanghai Securities Regulatory Bureau, on September 23, 2020, Grant Thornton was taken by the Shanghai Securities Regulatory Bureau to issue a warning letter for failing to properly identify internal control deficiencies related to the borrowing of funds by executives and employees, failing to properly identify internal control deficiencies related to the outbound process of finished products, and failing to properly evaluate the disclosure and presentation of capital transactions of related parties in the implementation of the audit project and internal control assurance project of Xiamen Yaxun Network Co., Ltd.
According to the public information of the Zhejiang Securities Regulatory Bureau, on October 20, 2022, Grant Thornton and related accountants were taken by the Zhejiang Securities Regulatory Bureau to issue a warning letter and recorded in the integrity file of the securities and futures market due to problems such as inadequate audit procedures for equity investment disposal and acquisition and inadequate audit procedures for supplier transactions in the audit project and internal control audit report of Zhejiang Founder Motor Co., Ltd. in the 2021 financial statement audit project and internal control audit report.
According to the public information of the Shenzhen Securities Regulatory Bureau, on October 16, 2023, Grant Thornton and related accountants were taken by the Shenzhen Securities Regulatory Bureau to issue a warning letter due to problems such as insufficient implementation of risk assessment procedures, insufficient implementation of third-party payment audit procedures, insufficient implementation of income audit procedures, and lack of important audit working papers in the implementation of the audit project of the 2015 annual report of Shenzhen Huayilong Electric Appliance Co., Ltd.
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