US customers dont pay down payment of Kingfa technologys 6.8 billion orders

 US customers dont pay down payment of Kingfa technologys 6.8 billion orders

After the disclosure of the major contract, which accounted for more than 50% of last years net profit, the stock price of Jinfa technology has risen by more than 44%. Today, its share price opened 8% lower, once down limit. By the time of publication, the market value was 41.2 billion yuan.

Jinfa technology stock price trend

At that time, when Jinfa technology disclosed the impact of performing the contract, it said that the total net profit generated by the smooth performance of the goods sales contract accounted for more than 50% of the companys audited net profit in 2019, which would have a positive impact on its operating performance in 2020.

However, the above orders have not progressed. According to the agreement, the buyer shall pay 40% of the order amount to the seller within 3 working days after the buyer receives the proforma invoice provided by the seller. However, as of May 18, Jinfa technology said that it had provided the proforma invoice, but had not received the above payment.

Jinfa technology also pointed out risks to investors, saying that the transaction is affected by many risk factors, which may affect the final delivery quantity of goods and the amount of payment for goods, and the contract may not be partially or completely fulfilled as scheduled.

Screenshot of announcement

After that, Jinfa technology announced the progress of orders twice in a row.

On May 22, it received the letter of proof from the buyer on May 21, 2020 and the letter of confirmation issued by its attorney. Due to the fund collection and large amount payment process, the advance payment of 40% of the order amount will be slightly delayed. The former said that after receiving the letter, it had already replied to the buyers application for delay in payment and requested it to complete the payment as soon as possible.

Another 20 days later, in an announcement on June 11, golden hair revealed that it had not received payment from the buyer. The company has been in communication with the buyer, and discussed specific issues such as fund collection and large amount payment process proposed by the buyer, striving to achieve the goal of 2 / 3 payment as soon as possible.

According to the buyers feedback, the transaction is planned to be paid through the trust fund. There are many authorization procedures and legal compliance reviews involved in fund collection and large amount payment, which affects the progress of payment. The buyer said that its professional team is still accelerating the payment process.

Screenshot of transaction progress announcement

Until August 9, golden hair technology still did not receive 40% of the advance payment.

On the same day, Jinfa technology said in the announcement that its business department recently tried to discuss with the buyer whether to perform the contract through telephone or other means, and the buyer did not respond effectively. A letter was sent to the buyer on August 4, asking whether it still intends to continue to perform the contract and order, and asked the buyer to reply to the seller in writing before August 7. If the buyer fails to reply within the time limit, the contract and order will not be fulfilled. Up to now, no valid written reply has been received from the buyer.

In conclusion, according to the analysis of the company, according to the contract and order, the seller does not need to deliver the goods to the buyer without receiving the advance payment due from the buyer according to the contract, and the buyer does not express the intention to continue to perform the contract and order after the sellers written letter. The contract order has not been fulfilled by the buyer and the contract order has actually been terminated.

Jinfa technology said that the goods sales contract is a daily business transaction, and the signing, performance and termination of the contract will not affect its business independence, nor will it have a significant adverse impact on its business situation and financial status.

In the early morning of the same day, the Shanghai Stock Exchange issued a regulatory working letter to Jinfa technology, requiring it to implement six requirements:

1u3001 The company is requested to verify and explain the specific conditions of the early stage contract, including the negotiation, the process of signing the contract and the main terms of the contract;

2u3001 Ask the company to verify and explain whether it has conducted sufficient and necessary due diligence before signing the contract, whether it has effectively verified the credit situation and performance ability of the other party to the contract, and has not disclosed the main considerations and reasons of the trading party so far;

3u3001 Ask the company to make supplementary disclosure of the specific reasons for the other partys failure to perform the contract, the time when the company knows the relevant information, and whether there is any information disclosure that is not timely;

4u3001 Please explain whether the internal control system for the reliability evaluation of major contracts is rigorous, and disclose the implementation of relevant systems and the evaluation of this major contract;

5u3001 The company is requested to conscientiously perform the corresponding information disclosure obligations on the termination of this major contract, fully protect the investors right to know, and do a good job in communication with investors;

6u3001 Please submit the list of insiders of the above major matters for transaction verification.

According to the performance forecast of Jinfa technology, the net profit attributable to shareholders of listed companies is expected to reach 2.345 billion yuan to 2.446 billion yuan in the first half of 2020, an increase of 1.835 billion yuan to 1.936 billion yuan, a year-on-year increase of 360% - 380%.

As for the main reasons for the performance increase in advance, Jinfa technology said that in the first half of 2020, the gross profit rate of modified plastic products increased steadily, the sales volume of fully biodegradable plastics and special engineering plastics products increased steadily, and the operating profit increased. At the same time, the company increased the production line of anti epidemic materials and products such as melt blown materials, melt blown cloth and masks, which played a positive role in its performance.

Jinfa science and technology business information qixinbao screenshot source: editor in charge: Chen Hequn_ NB12679

Jinfa science and technology business information qixinbao screenshot