Yoshioka Precision Sprint Select Layer suddenly changed its industry, and shinpi frequently contradicted itself

Wuxi Yoshioka Precision Technology Co., Ltd. (stock abbreviation: Yoshioka Precision, stock code: 836720. NQ) is applying for listing on the Select Tier. We found that Yoshioka Precision disclosed in the public offering prospectus that the industry classification was "metal products industry", which was not a high-polluting industry stipulated by environmental protection verification, but the industry classification disclosed in the annual report when applying for listing on the New Third Board and during the listing period was "non-ferrous metal smelting and rolling processing industry", and the company applied for a change in the industry classification in this offering but did not explain the reason for the change. In addition, Yoshioka Precision's public offering prospectus, financial statements, and review inquiry responses disclosed frequent contradictions in the amount of construction in progress and fixed assets.

Source: Photo Network

Change the classification of industries, or related to the identification of highly polluting industries

Yoshioka Precision was established in 2002 and has been listed on the national SME share transfer system since 2016, and the controlling shareholders and actual controllers are Zhou Yan and Zhang Yuxia. The company specializes in the research and development, production and sales of aluminum alloy and zinc alloy precision parts, covering electronic and electrical parts, auto parts, etc., mainly used in cleaning electrical appliances, power tools, communication equipment, body structure, power system, etc. According to the public offering prospectus, from 2018 to the first half of 2021, Yoshioka Precision achieved operating income of 199.6036 million yuan, 208.2125 million yuan, 260.1827 million yuan and 170.0380 million yuan respectively, and achieved net profit attributable to the owners of the parent company of 24.0223 million yuan, 27.1341 million yuan, 43.4772 million yuan and 28.7297 million yuan, and the performance of the reporting period increased steadily.

Yoshioka Precision said that the company has been deeply engaged in the precision metal manufacturing industry for 19 years, attaches great importance to independent research and development capabilities, and has obtained 85 patents so far, including 2 invention patents and 83 utility model patents, with high standards, high quality, and cost-effective products to enter the supply chain system of many well-known brand manufacturers at home and abroad, and the main customers include Makita, Coworth, Canon, A.O Smith, Bosch, BorgWarner, etc.

However, such a steady development of Yoshioka Precision, in the sprint to the selection layer, suddenly changed the industry classification. According to the prospectus of the public offering, according to the Classification of National Economic Industries and the Guidelines for the Classification of Managed Industries of Listed Companies, the industries engaged in by the company belong to the "C33 Metal Products Industry" and the subdivision category is "C3311 Metal Structure Manufacturing"; according to the "Guidelines for the Classification of Listed Companies" issued by the CSRC, the company's industry is "C33 Metal Products Industry".

According to the Provisions on Environmental Protection Verification of Listed Enterprises Applying for Listing and Listed Enterprises Applying for Refinancing issued by the State Environmental Protection Administration, the heavy polluting industries are tentatively designated as metallurgy, chemical industry, petrochemical, coal, thermal power, building materials, papermaking, brewing, pharmaceutical, fermentation, textile, tanning and mining. According to the "Catalogue of Classified Management of Listed Companies' Environmental Protection Verification Industries" issued by the General Office of the Ministry of Environmental Protection, the heavy polluting industries include 16 industries such as thermal power, steel, cement, electrolytic aluminum, coal, metallurgy, building materials, mining, chemical industry, petrochemical, pharmaceutical, brewing, papermaking, fermentation, textile, and tanning. Yoshioka Precision said that the company's industry is the metal products industry, which is not a heavy polluting industry identified by environmental protection verification regulations.

However, we found that when Yoshioka Precision applied for listing on the New Third Board, the public transfer prospectus disclosed that according to the "Guidelines for the Classification of Listed Companies" issued by the CSRC, the company's industry was "C32 non-ferrous metal smelting and rolling processing industry"; according to the "National Economic Industry Classification", the company's industries belonged to the "C32 non-ferrous metal smelting and rolling processing industry", and the subdivision category was "C3250 non-ferrous metal casting"; according to the "Listed Companies Management Industry Classification Guidelines", The company is engaged in an industry that belongs to the "non-ferrous metal casting" of "non-ferrous metal smelting and rolling processing industry" in the manufacturing industry. In other words, according to various industry classification guidelines, Yoshioka Precision identifies its industry as "non-ferrous metal smelting and rolling processing industry". This industry classification continued until the company's 2020 annual report, until the 2021 semi-annual report suddenly changed to "metal products industry", but during the period, the company's main business and main products did not undergo major changes.

If according to the previous industry classification of Yoshioka Precision, "non-ferrous metal smelting and rolling processing industry" is likely to belong to the metallurgical industry in the high-polluting industry, then is the company's sudden change of industry related to the avoidance of the high-pollution industry identification? From the perspective of information disclosure alone, should the company also fully explain the reasons and rationality of changing the industry classification?

It is worth mentioning that not long ago, Suzhou Xianglou New Materials Co., Ltd. (hereinafter referred to as "Xianglou New Materials") also faced similar problems when it was reviewed by the Listing Committee of the Gem. Xianglou New Material disclosed in the prospectus that its industry is "C33 Metal Products Industry", and the Listing Committee required it to combine production technology, core technology, core equipment and product characteristics to explain the reason why the company does not belong to the "ferrous metal smelting and rolling processing industry". It can be seen that whether the correct division of "non-ferrous metal smelting and rolling processing industry" and "metal products industry" is equally important to Yoshioka Precision.

There are frequent contradictions between the disclosure of projects under construction and fixed asset data

The construction in progress is a key content of the Yoshioka Precision Review Inquiry, which requires the company to explain the reasons for the high amount of equipment to be installed in the construction in progress, whether there is a situation in which the machinery and equipment have arrived at the site for a long time and has not been installed, whether the time for carrying forward fixed assets under construction is accurate, and whether there is a delay in carrying forward fixed assets. According to the reply to the inquiry, from the end of 2018 to the end of June 2021, the amount of equipment to be installed in the company's construction projects was 3.1997 million yuan, 4.984 million yuan, 6.625 million yuan and 3.2531 million yuan, respectively. However, the financial statements show that from the end of 2018 to the end of June 2021, the balance of the company's construction projects (including engineering materials) was 3.1997 million yuan, 7.9274 million yuan, 6.2965 million yuan and 3.4686 million yuan, respectively. The amount of equipment to be installed at the end of 2020 disclosed by Yoshioka Precision in its reply to the inquiry was 6.625 million yuan higher than the overall balance of 6.2965 million yuan of the construction in progress.

In addition, the review inquiry requested Yoshioka to precisely analyze the hook relationship between "cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets" during the reporting period and the corresponding balance sheet account. According to the response to the inquiry, from 2018 to January to June 2020, the original value of fixed assets increased by 12.0293 million yuan, 5.5561 million yuan, 4.6225 million yuan and 18.824 million yuan, respectively. However, the details of fixed assets show that from 2018 to January to June 2020, the original value of fixed assets increased by 12.0293 million yuan, 6.2826 million yuan, 15.3667 million yuan and 18.824 million yuan, respectively. In the response to the inquiry, the amount of the increase in the original value of fixed assets in 2018 and January-June 2021 is the same as the fixed asset details, but the amounts in 2019 and 2020 are completely different, and it is not clear where the amount in the inquiry response comes from.