The seller has been warned, latest news: contract blown, "State owned enterprise buys 5000 drones for 300 million yuan"

Recently, Changda Transportation Investment and Development Co., Ltd. in Pingyu County, Henan Province spent 300 million yuan to purchase 5000 drones, which has attracted social attention. Previously, the discipline inspection and supervision commission of the county stated that it had received a report letter and was circulating it according to the procedure.

The seller of these 5000 drones is Yancheng Yongyue Intelligent Equipment Co., Ltd., a wholly-owned subsidiary of listed company Yongyue Technology Co., Ltd.

On September 18th, according to information disclosed by Yongyue Technology, the company and its chairman were issued a warning letter by the Jiangsu Provincial Securities Regulatory Bureau and recorded in the integrity file of the securities and futures market due to incomplete information disclosure in this incident, which violated the management measures for information disclosure of listed companies.

On the same day, another announcement released by Yongyue Technology stated that after multiple negotiations, Yongyue Intelligent and Pingyu Changda Trading agreed to terminate the previous purchase and sale agreement and terminate the cooperation.

Partial content of the Announcement on Signing Major Contracts released by Yongyue Technology

The company involved was warned by the Jiangsu Provincial Securities Regulatory Bureau

Pengpai News noticed that on September 18th, Yongyue Technology released a notice on the receipt of a warning letter from the Jiangsu Provincial Securities Regulatory Bureau by Yongyue Technology Co., Ltd., stating that after investigation, the Jiangsu Provincial Securities Regulatory Bureau found the following problems with Yongyue Technology:

On August 27, 2023, the wholly-owned subsidiary of the company, Yongyue Intelligent, signed a sales contract with Pingyu Changda Jiaotou, agreeing to sell 5000 drones to it for a total contract amount of 300 million yuan. On the same day, both parties signed a Supplementary Agreement, which separately stipulated the effective conditions of the aforementioned Sales Contract.

The above-mentioned Supplementary Agreement was not disclosed by Yongyue Technology on August 28, 2023, nor was it disclosed on September 5, 2023, when it disclosed the Announcement on Signing Major Contracts.

The Jiangsu Provincial Securities Regulatory Bureau believes that the incomplete disclosure of information by Yongyue Technology violates the provisions of Article 3, Paragraph 1 of the Measures for the Administration of Information Disclosure of Listed Companies. Chen Xiang, Chairman of Yongyue Technology, failed to diligently fulfill his duties and ensure that the company disclosed relevant information in accordance with the law, violating Article 4 of the Measures for the Administration of Information Disclosure of Listed Companies.

According to Article 52 of the Measures for the Administration of Information Disclosure of Listed Companies, the Jiangsu Provincial Securities Regulatory Bureau has decided to take supervision and management measures against Yongyue Technology and Chen Xiang by issuing warning letters, and record them in the integrity archives of the securities and futures markets.

Pingyu General Airport, the exterior walls of the airport building have not been painted yet, and the steel frame structure of the building is covered with weeds. CCTV Network Map

Termination of agreement and cooperation by both parties

Meanwhile, on September 18th, another announcement by Yongyue Technology Co., Ltd. regarding the termination of major contracts showed that the company's wholly-owned subsidiary Yancheng Yongyue and Pingyu Changda Jiaotou signed a Sales Contract and Supplementary Agreement on August 27th. Considering factors such as adjustments to the content of this transaction, both parties have reached a consensus through multiple negotiations to sign the Termination Agreement on September 14, 2023. From the effective date of the Termination Agreement, the original contract and supplementary agreements shall be terminated, and the cooperation between the two parties shall be terminated.

Specifically, the announcement stated that the company and relevant departments in Pingyu County will have full communication and exchange on industrial cooperation matters in Pingyu County in 2023, and have reached cooperation intentions in areas such as drone development, agricultural plant protection social service operation, flight prevention training, and high-quality demonstration fields. In the annual sales contract signed between Yancheng Yongyue and Pingyu County Changda Transportation Investment Development Co., Ltd., it is stipulated that Party A shall purchase 5000 drones from Party B for a total payment of 300 million yuan. Within 10 working days after the contract is signed, Party A shall pay 20% of the total contract price to Party B.

In terms of the impact of the termination of sales contracts on listed companies, the announcement states that the original contract was the daily operating contract of the company's wholly-owned subsidiary, Yancheng Yongyue, and the termination of the original contract does not affect the company's business independence. At present, the original contract has not been officially executed, and the termination of the original contract will not affect the normal operation of the company, and there is no situation that harms the interests of the company and all shareholders.

State owned enterprises planning to spend 300 million yuan to buy drones has sparked controversy

On September 18th, a reporter from Pengpai News called Yongyue Technology's certification representative as an investor. Regarding the reason for the termination of the 300 million yuan contract, the connection staff stated that they were unable to respond to the above questions and needed to consult with their leaders and board secretary. They could follow up on the subsequent announcement and directly send an email to the board secretary or ask questions to executives at the performance briefing on September 28th.

According to the announcement of signing a major contract released by Yongyue Technology on August 27th, the sales contract involves 5000 drones, with a total contract amount of 300 million yuan.

After the above announcement was released, the topic of "State owned enterprises investing 300 million to buy drones" made it to the hot search, causing controversy and high public attention.

According to the manufacturer's promotional website, the X40C drone is mainly used for grain crop seeding, pesticide application, and fertilization. Yancheng Yongyue Official Website Image

On the evening of September 1st, a staff member of the Discipline Inspection Commission and Supervision Commission of Pingyu County, Henan Province, told Pengpai News that in response to Yongyue Technology's announcement that its wholly-owned subsidiary had signed a sales contract for 5000 drones with a subsidiary of Pingyu County Transportation Bureau for a price of 300 million yuan, the department has received a report letter and is proceeding according to the procedure. On September 2nd, a staff member of Yongyue Technology told Pengpai News that they were not aware of the situation and said, "You can wait for our company's announcement.".

Previously, Zhou Tao, the chairman of Changda Transportation Investment and Development Co., Ltd. in Pingyu County involved in the matter, told the media that buying a drone was a decision made by the county, and it was only an intention agreement, which has not been fully finalized yet. The staff of Pingyu County Transportation Bureau told the media that the purchase of drones is fully operated by Pingyu Changda Transportation and has nothing to do with the Transportation Bureau. In addition, some media have quoted the relevant person in charge of the Pingyu County government as saying that the financial, state-owned assets, transportation and other systems in Pingyu County have no large budget expenditures of 300 million yuan. Changda Company is suspected of engaging in non-standard or irregular behavior with suppliers and is currently under investigation.

On August 28th, Zhou Tao, the chairman of the company, said in an interview with Securities Times that Pingyu Changda Trading is the operation and management company of Pingyu General Airport, and the airport operation requires the use of the above-mentioned drones; Buying a drone was a decision made by the county, and it is only an intention agreement that has not been fully finalized yet.

In recent months, the stock price of Yongyue Technology has risen significantly, from less than 6 yuan on June 19th to the intraday high of 11.49 yuan on August 18th, and has since continued to decline. As of September 18th, Yongyue Technology has hit the limit down at 6.98 yuan per share.

In the first half of the year, the revenue of the drone sector was less than 3 million yuan

According to the official website, Yongyue Technology was established in 2011, focusing on the research and development, production, and sales of synthetic resins mainly composed of unsaturated polyester resins. The company currently develops dozens of different specifications and models of unsaturated polyester resins, which are widely used in fields such as artificial stone, handicrafts, fiberglass composite materials, and coatings.

The unsaturated resin business remains the main source of revenue for Yongyue Technology.

According to the 2023 semi annual report, Yongyue Technology achieved a revenue of 148 million yuan in the first half of the year, a year-on-year increase of 11.25%. The net loss attributable to the parent company in the first half of the year was 17.5247 million yuan, compared to 5.0542 million yuan in the same period last year, with a year-on-year increase of 246.74%. Among them, in the chemical sector, the unsaturated resin business achieved a revenue of 139 million yuan in the first half of the year, an increase of 5.24% compared to the same period last year, accounting for nearly 94% of the total revenue, and a net loss attributable to the parent company of 17.5247 million yuan. In terms of the drone sector, the company achieved a revenue of 2.9865 million yuan, a year-on-year increase of 5339.89%. At the same time, the company is gradually delivering sales contracts with Jiangsu Zhongchuan.

On the 18th, a representative operator of Yongyue Technology told a reporter from Pengpai News, "Our company invested in drones last year. Unlike finance or other industries, the manufacturing industry has a slightly higher net investment in the early stage, which takes some time."

According to the semi annual report, Yongyue Technology established Yancheng Yongyue Intelligent Equipment Co., Ltd. in early 2022 to carry out research and production of unmanned aerial vehicles, unmanned technology and other technologies, and to build a demonstration Yancheng Yongyue Unmanned Technology Intelligent Manufacturing Super Factory in Dafeng, Yancheng, Jiangsu. Yancheng Yongyue Intelligent has a registered capital of 25 million yuan and is a wholly-owned subsidiary of Yongyue Technology. Its main business is the production, research and development, and sales of drones, unmanned vehicles, and intelligent robots, with a net profit of 6.0852 million yuan.

In terms of the drone business of Yongyue Technology, according to the semi annual report, the current business model mainly includes sales of complete machine products, diversified application services, and advanced drone technology pre research. In terms of sales model, the company mainly sells a complete set of solutions to customers to meet their customized needs or application scenarios. In terms of sales channels, it mainly involves participating in customer bidding, agent sales, and enterprise direct sales. The company has established a sales department responsible for processing orders, signing contracts, implementing sales policies and credit policies, and other related tasks.