Source: China Economic Network
China Economic Network Editor's Note : On July 7, the initial application of Shenghui System Integration Group Co., Ltd. (hereinafter referred to as "Shenghui Integration") will be held at the sponsoring agency (lead underwriter) It is Soochow Securities , and ’s sponsor representatives are Xia Jianyang and Zhang Boxiong.
Shenghui Integration Department is a one-stop professional service provider that provides overall solutions for clean room system integration projects for advanced manufacturing industries. This time, Shenghui Integration plans to publicly issue no more than 20 million shares on the Shanghai Stock Exchange main board, accounting for no less than 25.00% of the total share capital after the issuance. It plans to raise 485.3472 million yuan, of which 437.6442 million yuan will be used to "supplement cleanliness" "Room project supporting working capital project", 25.395 million yuan for "R&D center construction project", 22.308 million yuan for "marketing and service network construction project". The amount of funds planned to be invested in the "Supplementary Working Capital Project for Clean Room Projects" accounts for 90.17% of the amount of funds to be raised this time.
According to the prospectus of Shenghui Integration, the company's main business is capital-intensive, and capital is a prerequisite for the company's business income to maintain growth. As of December 31, 2020, the main sources of working capital for the company's clean room engineering business were self-owned funds and bank loans. After the funds raised this time supplement the clean room project supporting working capital project, it will improve the company's clean room project operating capabilities and improve the efficiency of fund use. At the same time, it will reduce financial expenses and improve the financial structure.
Shenghui Integrated's net profit has increased year by year, but the net cash flow generated from operating activities has gone in the opposite direction, declining year by year, and fell into negative value in the first half of last year. From 2018 to 2020 and January to June 2021, Shenghui Integrated's operating income was 932.873 million yuan, 934.4231 million yuan, 1.0964298 million yuan, and 886.9071 million yuan respectively, and its main business income was 931.9075 million yuan, 933.4198 million yuan, 1,095,327,400 yuan and 886,303,200 yuan. The cash received from selling goods and providing services were 1,043,659,600 yuan, 948,368,200 yuan, 1,076,574,500 yuan, and 677,308,700 yuan respectively. The net profits were 34,571,500 yuan, 78,073,200 yuan, and 88,061,000 yuan respectively. , 52.6023 million yuan, the net cash flows generated from operating activities were 171.5693 million yuan, 55.5254 million yuan, 46.4631 million yuan, -135.5809 million yuan respectively, and the net cash ratios were 4.96, 0.71, 0.53, and -2.58 respectively.
Shenghui Integration paid dividends three times during the reporting period, with a total dividend of 60.3 million yuan.
It is worth noting that the data disclosed in Shenghui Integration's prospectus does not match the data of its major customers and suppliers. Shanghai Hejing Silicon Materials Co., Ltd. (hereinafter referred to as "Shanghai Hejing") is the third and largest customer of Shenghui Integration in 2018 and 2020, with sales amounts of 118.0955 million yuan and 136.321 million yuan respectively, with sales proportions respectively. are 12.66% and 12.43%.
Shanghai Hejing's prospectus disclosed on the Shanghai Stock Exchange on June 19, 2020 shows that as of December 31, 2019, Shanghai Hejing's accounts payable to Shenghui Integration was 23.0645 million yuan. However, the prospectus disclosed by Shenghui Integration shows that Shanghai Hejing did not enter the top five accounts receivable balance of Shenghui Integration at the end of 2019. As of December 31, 2019, Shenghui Integration’s accounts receivable balance against No. 5 was 15.1033 million yuan.
According to the prospectus of Shenghui Integration, Longlong Dust-free Equipment (Kunshan) Co., Ltd. (hereinafter referred to as "Longlong Kunshan") was the company's largest supplier in 2018 and 2019, and the company's purchase amount for it was 44.6815 million respectively. yuan and 41.513 million yuan. However, according to national enterprise credit information publicity system , Longlong Kunshan 's total operating income in 2018 and 2019 was 26.84 million yuan and 31.55 million yuan respectively, which was less than the purchase amount disclosed in Shenghui Integrated's prospectus.
According to the prospectus of Shenghui Integration, from the end of 2018 to the end of 2020 and the end of June 2021, the total assets of Shenghui Integration were 571.4244 million yuan, 718.0844 million yuan, 869.3965 million yuan, and 1,009.0766 million yuan respectively, of which current assets were 512.0279 million yuan respectively. , 641.2727 million yuan, 783.4795 million yuan, and 923.4122 million yuan, accounting for 89.61%, 89.30%, 90.12%, and 91.51% respectively.
From the end of 2018 to the end of 2020 and the end of June 2021, Shenghui Integrated's total liabilities were 389.7017 million yuan, 461.3476 million yuan, 543.4899 million yuan, and 660.1263 million yuan respectively, of which current liabilities were 382.0781 million yuan, 451.7870 million yuan, and 530.513 million yuan respectively. 10,000 yuan , 646.028 million yuan, accounting for 98.04%, 97.93%, 97.61%, and 97.86% respectively.
From the end of 2018 to the end of 2020 and the end of June 2021, Shenghui Integrated's asset-liability ratios (combined) were 68.20%, 64.25%, 62.51%, and 65.42% respectively, and the averages of companies in the same industry were 53.29%, 59.41%, 60.56%, respectively. 61.17%; the current ratios of and are 1.34, 1.42, 1.48, and 1.43 respectively, and the average of companies in the same industry are 1.54, 1.37, 1.23, and 1.20 respectively; the quick ratios are 0.95, 1.00, 1.30, and 1.29 respectively, and the average of companies in the same industry They are 1.30, 1.05, 1.16, and 1.14 respectively.
During the reporting period, Shenghui Integration received guarantees from related parties a total of 65 times. From the end of 2018 to the end of 2020 and the end of June 2021, the maximum guarantee amounts provided by related parties to Shenghui Integration were 413.3898 million yuan, 445.3772 million yuan, 305.4679 million yuan and 319.7937 million yuan respectively, of which the actual guarantee balances were 128.8984 million yuan and 125.0296 million yuan respectively. yuan, 141.7361 million yuan and 108.8639 million yuan.
From 2018 to 2020, Shenghui Integration frequently borrowed funds from related parties , and the total amount of borrowed funds was 32.3644 million yuan, 72.9746 million yuan, and 91.6423 million yuan respectively. From the end of 2018 to the end of 2020, the balance of funds borrowed by Shenghui Integrated from related parties was 17.158 million yuan, 31.8882 million yuan, and 0 million yuan respectively.
Clean room system integration engineering service provider plans to raise 485 million yuan
Shenghui Integration is a one-stop professional service provider that provides overall solutions for clean room system integration engineering for advanced manufacturing industries, covering clean room plant construction planning, design suggestions, Equipment configuration, engineering construction, project management and maintenance services and other related services. The company has first-level qualifications for general contracting of mechanical and electrical engineering construction, first-level qualifications for professional contracting of building mechanical and electrical installation projects, second-level qualifications for professional contracting of electronic and intelligent engineering, second-level qualifications for professional contracting of building decoration and decoration projects, and second-level qualifications for professional contracting of fire protection facilities engineering. and other qualifications, providing a solid technical foundation and professional guarantee for the company's business development.
Shenghui International directly holds 86.66% of the company's shares and is the company's direct controlling shareholder. Taiwan Shenghui directly holds 100% of the equity of Shenghui International and is the company's indirect controlling shareholder. Taiwan Shenghui is a listed company in Taiwan (5536.TWO). During the reporting period, the ownership structure was stable and relatively dispersed. No single shareholder and its related parties can control the Taiwan Shenghui shareholder meeting or board of directors. Taiwan Shenghui has established a modern legal person governance structure . Managers are mainly market-based recruitment personnel. They are appointed or dismissed by the board of directors and perform their duties in accordance with relevant rules. They cannot control Taiwan Shenghui. Therefore, Taiwan Shenghui has no actual controller, and Shenghui Integration also has no actual controller and there was no change during the reporting period.
Shenghui Integration plans to publicly issue no more than 20 million shares on the main board of the Shanghai Stock Exchange, accounting for no less than 25.00% of the total share capital after the issuance. It plans to raise 485.3472 million yuan, of which 437.6442 million yuan will be used to "supplement supporting working capital for clean room projects." Project", 25.395 million yuan for the "R&D Center Construction Project", and 22.308 million yuan for the "Marketing and Service Network Construction Project." The amount of funds planned to be invested in the "Supplementary Working Capital Project for Clean Room Projects" accounts for 90.17% of the amount of funds to be raised this time.
According to the prospectus of Shenghui Integration, supplementing the clean room engineering supporting working capital project is a practical need for the company's existing business to expand its scale and develop rapidly. The company's main business is capital-intensive, and capital is a prerequisite for the company's business income to maintain growth. Financial strength is a key factor that reflects the company's competitive advantage and is also one of the company's core production factors.
Shenghui Integration stated in the prospectus that as of December 31, 2020, the main sources of working capital for the company's clean room engineering business were its own funds and bank loans. After the funds raised this time supplement the clean room project supporting working capital project, it will improve the company's clean room project operating capabilities and improve the efficiency of fund use. At the same time, it will reduce financial expenses and improve the financial structure.At the same time, the company will use other working capital related to its main business to further expand its business and provide financial guarantee for the company to continue to maintain its industry advantage.
Shenghui Integration’s sponsor (lead underwriter) is Soochow Securities, and the sponsor representatives are Xia Jianyang and Zhang Boxiong.
Net profit increased but operating cash flow dropped for three consecutive years
Shenghui Integration stated in the prospectus that the net cash flow generated from operating activities declined in 2019 compared with 2018, mainly due to the decline in market liquidity in 2019 and some Reduction in operating cash inflow caused by financial difficulties of customers. The net cash flow generated from operating activities decreased significantly from January to June 2021, mainly due to the decrease in operating cash inflow caused by the slow return of payments from major customers from January to June 2021.
distributed dividends of RMB 60.3 million during the reporting period.
Shenghui Integration paid dividends three times during the reporting period, with a total dividend of RMB 60.3 million.
On April 25, 2019, the board of directors of Shenghui Co., Ltd. (the predecessor of Shenghui Integration) made a resolution and agreed to distribute a total of 6.3 million yuan in cash dividends (tax included) based on the distributable profits as of 2018 based on the shareholder investment ratio. This dividend distribution was completed in November 2019.
On May 28, 2020, the company held the sixth meeting of the first board of directors, which reviewed and approved the "Proposal on Reviewing the Company's 2019 Profit Distribution Plan." On June 18, 2020, the company held the 2019 Annual General Meeting of Shareholders and reviewed and approved the "Proposal on the Company's Annual Profit Distribution Plan for 2019". Based on the distributable profits as of 2019, the company will distribute a total of cash according to the proportion of shareholders' investment Dividends are RMB 24 million (tax included). This dividend distribution has been implemented in August 2020.
On April 26, 2021, the company held the twelfth meeting of the first board of directors, and reviewed and approved the "Proposal on Reviewing the Company's 2020 Profit Distribution Plan". On May 17, 2021, the company held the 2020 Annual General Meeting of Shareholders and reviewed and approved the "Proposal on the Company's 2020 Annual Profit Distribution Plan". Based on the distributable profits as of 2020, the company will distribute a total of cash according to the proportion of shareholders' investment Dividends are RMB 30 million (tax included). This dividend distribution has been implemented in May 2021.
"Fighting" with big customer data
Shanghai Hejing Silicon Materials Co., Ltd. (hereinafter referred to as "Shanghai Hejing") is the third and largest customer of Shenghui Integration in 2018 and 2020, with sales amounts of 118.0955 million yuan respectively. , 136.321 million yuan, with sales proportions of 12.66% and 12.43% respectively.
The prospectus disclosed by Shanghai Hejing on the Shanghai Stock Exchange on June 19, 2020 shows that as of December 31, 2019, Shanghai Hejing's accounts payable to Shenghui Integration was 23.0645 million yuan.
However, the prospectus disclosed by Shenghui Integration shows that Shanghai Hejing did not enter the top five accounts receivable balance of Shenghui Integration at the end of 2019. As of December 31, 2019, Shenghui Integration’s accounts receivable balance against No. 5 was 15.1033 million yuan.
"Fighting" with supplier data
According to the Shenghui Integrated Prospectus, Longlong Dust-free Equipment (Kunshan) Co., Ltd. (hereinafter referred to as "Longlong Kunshan") is the company's largest supplier in 2018 and 2019. The purchase amounts were 44.6815 million yuan and 41.513 million yuan respectively.
However, according to the National Enterprise Credit Information Publicity System, Longlong Kunshan’s total operating income in 2018 and 2019 was 26.84 million yuan and 31.55 million yuan respectively, which was less than the purchase amount disclosed in Shenghui Integrated’s prospectus.
Total assets at the end of June last year were 1.01 billion, total liabilities were 660 million
From the end of 2018 to the end of 2020 and the end of June 2021, Shenghui Integrated’s total assets were 571.4244 million yuan, 718.0844 million yuan, 869.3965 million yuan, and 1,009.0766 million yuan respectively, of which current assets were respectively They were 512.0279 million yuan, 641.2727 million yuan, 783.4795 million yuan, and 923.4122 million yuan, accounting for 89.61%, 89.30%, 90.12%, and 91.51% respectively.
At the end of each period, Shenghui Integrated Monetary Funds were 152.5594 million yuan, 180.642 million yuan, 220.7782 million yuan, and 100.1673 million yuan respectively, accounting for 29.80%, 28.17%, 28.18%, and 10.85% of current assets respectively.
According to the prospectus of Shenghui Integration, at the end of 2018, the end of 2019, and the end of 2020, the balance of monetary funds increased year by year. The main reason was that the company's overall cash flow situation was better from 2018 to 2020; at the end of June 2021, the company's monetary funds were higher than those at the end of 2020. The larger decrease was mainly due to the net cash outflow of 136 million yuan generated by the company's operating activities from January to June 2021.
Shenghui Integration stated in the prospectus that at the end of each reporting period, the company’s current ratio and quick ratio did not differ significantly from those of companies in the same industry. Companies in the same industry are all listed companies or public companies with many financing channels, so the company’s assets The debt ratio (consolidated) is higher than that of companies in the same industry.
During the reporting period, related parties provided 65 guarantees and borrowed huge amounts from related parties.
During the reporting period, three related parties, Taiwan Shenghui, Fuyu International Trade and Taiwan Pengyi, provided guarantees for Shenghui Integrated’s bank loans or engineering projects. Among them, banks The guarantee fee for borrowing is 0.1% of the actual amount disbursed. During the reporting period, the related guarantee fees of Shenghui Integration and Taiwan Shenghui were 30,800 yuan, 36,200 yuan, 51,100 yuan, and 54,700 yuan respectively.
During the reporting period, Shenghui Integration and its subsidiaries borrowed short-term funds from related parties Seychelles NewPoint, Shenghui International and Fuyu International Trade, involving US dollars and RMB. The borrowing interest rate range refers to the local market loan interest rate of the same period in the location of the borrower. and float appropriately. From 2018 to 2020, Shenghui Integrated's interest expenses on related party funds were 156,600 yuan, 1.090 million yuan, and 746,600 yuan respectively.
The proportion of overseas revenue has increased year by year
From 2018 to 2020 and from January to June 2021, Shenghui Integration’s domestic revenue was 873.3804 million yuan, 816.1685 million yuan, 895.6589 million yuan, and 573.5762 million yuan respectively, accounting for 50% of the main business revenue. The ratios are 93.72%, 87.44%, 81.77%, and 64.72% respectively, which are the main sources of income; the income from overseas regions is 58.5271 million yuan, 117.2513 million yuan, 199.6685 million yuan, and 312.7271 million yuan respectively, accounting for the main business income respectively. are 6.28%, 12.56%, 18.23%, and 35.28%. Overseas customers are mainly concentrated in Vietnam , Indonesia and Thailand.
According to the prospectus of Shenghui Integration, during the reporting period, the proportion of revenue from domestic regions decreased year by year, and the proportion of revenue from overseas regions increased year by year. The main reason is that and the EU 's preferential tax policies for Vietnam have caused some of the company's customers to turn to Vietnam to build assembly bases. As well as food packaging customer Hongquan, it went to Indonesia to build a factory at the request of its customers; the company opened up the Thai market, and in 2020, the Thai subsidiary received an order of 123 million yuan.
The gross profit margin has increased for 2 consecutive years, while the average of peers has dropped continuously
From 2018 to 2020, the gross profit margin of Shenghui Integration has increased year by year, but the average of companies in the same industry has declined year by year. During the reporting period, the company's main business gross profit margins were 13.15%, 16.47%, 16.48%, and 12.67% respectively, and the averages of companies in the same industry were 16.69%, 13.71%, 11.19%, and 11.00% respectively.
Shenghui Integration stated in the prospectus that in 2019 and 2020, the main reason why the company's gross profit margin was higher than the average level of companies in the same industry is: because clean room business-related industry project experience is crucial to obtaining orders and the amount of a single order is relatively large Therefore, the gross profit margin is affected by factors such as owner stickiness, owner industry, and bidding conditions. During the reporting period, the company's customers were mainly old owners with long-term cooperation, who have a certain degree of stickiness to the company, and the owners are mainly in the IC semiconductor industry. In recent years, the process and technology of the IC semiconductor industry have continued to advance, and the cleanliness requirements for the production environment have also become higher and higher. is getting higher and higher. At the same time, the company's IC semiconductor industry revenue increased year by year during the reporting period. Therefore, in 2019 and 2020, the company's gross profit margin overall increased steadily. From January to June 2021, the company's gross profit margin change trend is consistent with that of the industry.
At the end of June last year receivables .39 billion
From the end of 2018 to the end of 2020 and the end of June 2021, the book balances of Shenghui Integrated accounts receivable were 209.7937 million yuan, 266.0331 million yuan, 205.5985 million yuan, and 345.4916 million yuan respectively. The book values of accounts receivable and are 192.1332 million yuan, 246.4642 million yuan, 184.7551 million yuan, and 320.3403 million yuan respectively, accounting for 37.52%, 38.43%, 23.58%, and 34.69% of current assets respectively.At the end of each reporting period, the balances of bad debt provisions of accounts receivable were RMB 17.6605 million, RMB 19.5689 million, RMB 20.8434 million, and RMB 25.1513 million respectively.
At the end of June 2021, the company's receivable financing was 17.1517 million yuan, accounting for 1.86% of current assets, all of which were bank acceptance bills.
At the end of each reporting period, the company's bill receivable amounts were 5.585 million yuan, 12.0932 million yuan, 16.3328 million yuan, and 26.7885 million yuan respectively, accounting for 1.09%, 1.89%, 2.08%, and 2.90% of the company's current assets respectively.
Based on this calculation, at the end of each period, Shenghui Integrated's receivables were 215.3787 million yuan, 278.1263 million yuan, 221.9313 million yuan, and 389.4318 million yuan respectively.
At the end of June last year, contract assets and completed and unsettled assets in inventory were 350 million
. From the end of 2018 to the end of 2020 and the end of June 2021, the book values of Shenghui Integrated's inventory were 104.6122 million yuan, 147.3362 million yuan, 9.9638 million yuan, and 30.29 million yuan respectively. Ten thousand yuan, accounting for 20.43%, 22.98%, 1.27%, and 0.03% of current assets respectively, which are mainly completed and unsettled assets formed by construction contracts. In 2020, the company implemented the new revenue standard and reclassified completed and unsettled assets formed from construction contracts to contract assets. In 2020, the balance of contract assets formed by the construction contract was 249.2687 million yuan, which increased significantly compared with 2019. The main reason was that the company's revenue from the construction contract in 2020 increased by 155.0253 million yuan compared with 2019.
From the end of 2018 to the end of 2020 and the end of June 2021, the book balances of completed and unsettled assets in Shenghui Integrated's contract assets and inventory were 105.8958 million yuan, 143.6636 million yuan, 249.2687 million yuan, and 346.6128 million yuan respectively, which are relatively large amounts. Completed and unsettled assets refer to the portion that has been recognized as income but has not been measured by the owner, and its realizability depends on the realization of settlement by the owner. During the reporting period, the company conducted impairment tests on completed and unsettled assets based on industry characteristics and the actual situation of the business operation model. The balances of impairment provisions were RMB 1.2836 million, RMB 706,500, RMB 3.4475 million, and RMB 6.1576 million respectively.
If the estimated total cost of a future construction contract exceeds the total contract revenue, the company will accrue corresponding impairment provisions, which will have an adverse impact on the company's operating results.
R&D expenses in the first half of last year were 4.71 million yuan. Sales expenses were 2.41 million
. From 2018 to 2020 and January to June 2021, Shenghui Integrated R&D expenses were 2.7032 million yuan, 7.6066 million yuan, 10.390 million yuan, and 4.7085 million yuan respectively, accounting for 10% of the operating expenses. The proportions of income are 0.29%, 0.81%, 0.95%, and 0.53% respectively. The average R&D expense rates of companies in the same industry are 2.90%, 3.34%, 2.71%, and 2.11% respectively.
According to the prospectus of Shenghui Integration, during the reporting period, the company's R&D expenses accounted for operating income as a ratio lower than the average level of companies in the same industry. The main reasons are: Taiji Industrial is engaged in engineering and technical services, semiconductor packaging and testing business, and photovoltaic power station investment and operation. Business, has the "Grade A Comprehensive Engineering Design Qualification Certificate" and more than 200 patents, with a higher level of R&D investment than the company; Ruilan Purification, China Construction South sales scale is small, and the proportion of technical personnel among all employees is relatively high. At the end of 2019, for example, Ruilan purification technical personnel accounted for 50%, China Construction Southern technical personnel accounted for 38.13%, and the company's R&D technical personnel accounted for 8.20%, so the R&D expense rate was higher than the company; the company integrated with Yaxiang They are relatively close in terms of business type, sales scale, and staff size, and Yaxiang Integration is a high-tech enterprise, so the R&D expense rate is slightly higher than the company; Shensangda A is mainly engaged in high-tech industrial engineering services, digital solutions and other businesses. Among them, the digital solution business has self-developed a number of solutions such as Xinchuang Digital Brain and Urban Digital Operation Platform. Therefore, Shensangda A’s R&D investment is higher than that of the company.
From 2018 to 2020 and January to June 2021, Shenghui Integrated sales expenses were 1.9441 million yuan, 4.4026 million yuan, 3.8797 million yuan, and 2.4092 million yuan respectively, accounting for 0.21%, 0.47%, and 0.35 of operating income respectively. %, 0.27%. The average sales expense ratios of peer and are 1.92%, 1.86%, 1.77%, and 1.71% respectively.
Shenghui Integration stated in the prospectus that during the reporting period, the company's sales expenses accounted for operating income as a ratio lower than the average level of companies in the same industry. The main reason is that sales expenses mainly consist of employee compensation, and the company's sales scale is compared with Ruilang Purification. , China Construction Southern is larger, and its sales personnel account for a smaller proportion of all employees. Taking the end of 2019 as an example, the company's sales personnel accounted for 1.09%, Ruilang Purification sales personnel accounted for 14.58%, and China Construction Southern's sales personnel accounted for 12.95% , therefore the company’s sales expense ratio is lower than that of Ruilan Purification and China Construction Southern. Shensangda A is mainly engaged in high-tech industrial engineering services, digital solutions and other businesses. In the first half of 2021, Shensangda A increased the market layout of its sales team, and the sales expense rate was relatively high. There is no significant difference between the company's sales expense rate and Yaxiang integrated and Taiji Industrial.
There were 4 penalties during the reporting period.
According to the Shenghui Integrated Prospectus, during the reporting period, the issuer and its domestic and overseas holding subsidiaries violated the laws and regulations as follows:
1. In June 2018, Shenghui Limited acquired Shenghui International’s holdings in cash. When acquiring 100% of the equity of Hong Kong Acter, the net assets of Hong Kong Acter as of May 31, 2018 were US$1.5649 million as equity consideration. In August 2018, when the agency company submitted a tax assessment to the Hong Kong Inland Revenue Department, it used Hong Kong Acter's registered capital of HK$6.5 million as equity consideration.
According to the legal opinion issued by Zhao, Situ and Zheng Law Firm, the actual price paid for this equity transfer was higher than the amount determined in the transfer document and the purchase and sale receipt, and the buyer and seller did not disclose the actual price paid to the Hong Kong Inland Revenue Department. , this approach does not comply with the requirements and norms of Hong Kong law. The
agency company submitted the revised transfer instrument and sales receipt to the Hong Kong Inland Revenue Department in March 2021. The Hong Kong Inland Revenue Department issued a stamp duty assessment result and required the buyer and seller to pay back the stamp duty (24,479 Hong Kong dollars) and the penalty (8,650 Hong Kong dollars) on or before April 13, 2021, totaling 33,129 Hong Kong dollars. On March 23, 2021, the above stamp duty and fines totaling HK$33,129 have been paid in full.
2, Acter Malaysia was fined by the Companies Commission of Malaysia for failing to publish its financial statements within six months of the end of the 2018 financial year. The fine amount was RM6,000 (equivalent to approximately RMB 9,900 based on the exchange rate on December 31, 2018. ).
3. On November 19, 2020, the Hanoi Municipal Taxation Bureau of the General Administration of Taxation of the Socialist Republic of Vietnam issued a penalty decision No. 100544/QD-CTHN-TTKT8-XPVPHC. Vietnam Shenghui failed to declare input value-added tax and failure to deduct input VAT in accordance with regulations. For incorrect tax returns such as under-declaration of corporate income tax that has occurred due to legal accounting costs, the total amount of penalties is 173 million VND (equivalent to approximately RMB 52,000 at the exchange rate on December 31, 2020); Vietnam St. Hui was required to refund VND 340 million in tax refunds, to pay VND 527 million in underpaid corporate income tax, to pay VND 2.305 billion in corporate income tax late payment fees, and to pay VND 55,419,700 in late payment fees for value-added tax. As a corrective measure for its illegal behavior (a total of approximately 346,500 yuan equivalent to RMB based on the exchange rate on December 31, 2020).
4. On April 8, 2021, the Customs Branch of Haiphong Port 3 District of the Socialist Republic of Vietnam issued a customs administrative penalty decision No. 182/QD-XPVPHC. When going through customs clearance procedures, Vietnam Shenghui declared the name, type, code, and The tax rate is wrong, resulting in the lack of taxes payable by Vietnam Shenghui. According to the provisions of Article 9, paragraph 1, point a, and paragraph 3 of the Customs Administrative Fines Regulations of Protocol No. 128/2020/ND-CP of the Socialist Republic of Vietnam on October 19, 2020 In points a and 4, a penalty of 20% of the tax payable by Vietnam Shenghui will be imposed. The total amount of the penalty is 751 million VND (equivalent to approximately RMB 208,900 based on the exchange rate on June 30, 2021), and a late payment fee of 1.5023 million VND. Dong (equivalent to approximately 0,400 yuan in RMB based on the exchange rate on June 30, 2021).
