A person close to the regulatory authorities told the interface journalist that as the most authentic and effective means of verifying overseas sales revenue, the customs bill of lading data can’t be faked in any case. If the data of the customs bill of lading does not match the sales situation of the corresponding overseas customers, there is only one possibility that the overseas sales revenue is suspected of inflating or fabricating.
The Human: There is no matching bill of lading record for sales exceeding 200 million yuan.
As the largest customer of Jiechang Drive for three consecutive years since 2015, The Human from the United States achieved sales of 21,869,900 yuan, 47,664,600 yuan, 71,539,800 yuan, 97,714,800 yuan and 44,313,400 yuan respectively.
In the public transfer instruction of the share transfer system, a customer named "The Huma(JDP ENTERPRISE) in the United States" contributed 5,914,100 yuan in sales to Jiechang Drive in 2013-this customer probably refers to "The Human". However, the latest prospectus discloses that the customer is "The Human(Square Grove LLC)".
Interface journalists use "The Huma(JDP ENTERPRISE)" or "The Human(Square Grove LLC)" as buyers’ keywords. There is only one Pakistani buyer named "Huma Enterprises" in the import bill of lading data, and there is no information related to Jiechang Drive in its transaction records. Another American buyer of "Square Grove LLC" has only 25 transaction records. Most of the suppliers are from Taiwan Province, China, and all the goods have nothing to do with Jiechang Drive.
However, through the search engine survey, it is found that the customer name mentioned by Jiechang Driver should be "Humanic Solutions, Inc".
In the import bill of lading data, there are two search results of "The Human Solution" and "The Human Solution Uplift Desk" for the above customers. Among them, the latter is a subsidiary of The Human, which was established in 2011 to focus on vertical desks.
In the data of 109 bills of lading of The Human Solution, there are more than 60 transactions with Jiechang Drive, starting from April 19, 2013 at the earliest and ending on April 10, 2016 at the latest. The goods are mainly products such as handspike motor, control box and adjustable table parts.
In the bill of lading database of The Human Solution Uplift Desk, from September 28th, 2017 to the latest September 4th, 2018, a total of 14 transaction records have occurred, all of which are natural rubber wood desktops, all of which are from Vietnam and have nothing to do with Jiechang Drive.
That is to say, the import bill of lading data only records the transaction records of the customer’s purchase from Jiechang Drive from April 2013 to April 2016, but it cannot confirm the authenticity of the amount and unit price disclosed in the prospectus, and no matching bill of lading data can be found since April 2016.
It should be added that in the customs import bill of lading data of the above customers, there was no record of any goods transaction during the period from May 6, 2016 to August 26, 2018, and the latest transaction record was the purchase of hardware products with an amount of US$ 3,898 from China on August 27 this year.
Interface news confirms to several North American customs data query platforms that the customer’s bill of lading data is completely consistent, and there is no possibility of no update or data omission.
In response to this situation, the interface journalist learned from a number of foreign trade veterans that the company did not have any transactions with Jiechang Drive after April 2016.
Then, it is disclosed in the prospectus that The Human purchased 71,539,800 yuan, 97,714,800 yuan and 44,313,400 yuan from Jiechang Drive in 2016, 2017 and January-June 2018, respectively, and how to explain the accumulated sales of 213,568,000 yuan during this period?
HAT Contract: the sales volume and average price of products are 70% and 103.74% higher respectively.
As the second-largest core customer in terms of weight, Hat Contract of the United States contributed 38,899,000 yuan, 51,518,500 yuan, 77,477,800 yuan and 39,499,700 yuan to Jiechang Drive in 2015, 2016 and 2017, respectively.
According to HAT Contract’s official website, the company was established in January 2013. It is a start-up custom furniture manufacturer, focusing on lifting tables and developing cost-effective and innovative products. In June 2018, HAT Contract was acquired by American ergonomic office furniture giant Innovative Office Products.
According to the latest prospectus, the name of the above customer is "HAT Contract Inc". Interface journalists found through the US Customs Bill of Lading database that the customer and Jiechang Drive have accumulated more than 300 batches/times of goods transactions, and the goods are mainly products such as handspike motor (electric push rod), control box (controller) and adjustable table parts, and the time span is from December 18, 2014 to mid-September 2018.
According to further investigation by interface journalists, the export business of Jiechang Drive from the United States is all direct sales and FOB mode, that is, the transactions are conducted on FOB basis, the buyer is responsible for sending ships to pick up the goods, and the seller should load the goods on the ships designated by the buyer at the port of shipment stipulated in the contract and within the specified time limit, and notify the buyer in time. When the goods are loaded on the named ship at the port of shipment, the risk is transferred from the seller to the buyer. The income cycle of export customers is confirmed according to the customs declaration and freight bill of lading of each sale. The company confirms the income after the goods are shipped over the ship’s rail at the port of shipment. The specific evidence is the customs declaration and freight bill of lading of each sale.
The interface journalist checked the bill of lading data from January to June, 2018, and found that during the period from January 3, 2018 to June 29, 2018, the cumulative transaction amount between the customer and Jiechang Drive was more than 3.6 million US dollars, which was equivalent to about RMB 23.18 million according to the average exchange rate of 63,665 disclosed in the prospectus. The average product price is 94.73 USD/set, equivalent to 603.11 RMB/set.
However, according to the disclosure in the prospectus, the credit policy implemented by Jiechang Drive for HAT Contract from January to June in 2018 was "100% payment before discharge in Hong Kong", and the sales realized by HAT Contract was 39,499,700 yuan, and the average price of office products sold to North America in the same period was 1,228.75 yuan.
It is not difficult to find that from January to June 2018, the sales of HAT Contract disclosed in the prospectus were more than 70% higher than the data of customs bill of lading; The average price of products in the same period disclosed in the prospectus is 103.74% higher than that in the customs bill of lading.
Then, in the earlier sales of 167,895,300 yuan from 2015 to 2017, how much water is there?
Ergo Depot(Fully): The sales volume and average price of products are 10.7 times and 148.08% higher respectively.
As the third largest core customer, Ergo Depot(Fully), also from the United States, contributed sales of 7,608,000 yuan, 31,646,400 yuan, 44,732,600 yuan, 60,541,600 yuan and 48,592,700 yuan from January to June in 2014, respectively, and accumulated contributions in just four and a half years.
According to the prospectus, the name of the above-mentioned customer is "Ergo Depot Northwest Inc (later renamed Fully Inc)", and Jiechang Drive accounts for 100% of the procurement of similar products of this customer.
According to the investigation of interface journalists, the full name of Ergo Depot in its early days should be "Ergo Depot Design Studio in Ergo". After its founder David Kahl quit his job, he transformed his father’s barn into a warehouse and started the entrepreneurial process of the (furniture) design studio. Later, it developed from the studio into a company in 2014 and was renamed as "Fully inc" in early 2017.
According to its disclosure in official website, at present, the company is completely similar to other core customers driven by Jiechang, such as The Human Solution and HAT Contract, and they are all office furniture manufacturers selling vertical desks, chairs and related accessories based on ergonomic design.
In the bill of lading data of the US Customs, Ergo Depot and Jiechang Drive have recorded more than 50 batches of goods transactions, and the goods are mainly products such as handspike motor (electric push rod), control box (controller) and adjustable table parts (lifting column), and the time span is from June 10, 2014 to February 21, 2017.
Further investigation of the renamed bill of lading data shows that from March 6, 2017 to January 28, 2018, Fully inc almost all the goods are adjustable table parts.
Similarly, the data of customs import bills of lading from January to June 2018 were randomly selected, and it was found that the transaction record between the company and Jiechang Drive only stayed from January 8 to January 28, 2018, and the accumulated transaction amount was 651,200 US dollars, which was equivalent to RMB 4,146,100 according to the average exchange rate of 63,665; The average price of these office products is 77.80 USD/set, equivalent to 495.31 RMB/set.
However, the customer’s sales in the same period disclosed in the prospectus was as high as 48,592,700 yuan, which was 11.7 times of the data recorded in the customs bill of lading; The average price of office products sold to North America in the same period disclosed in the prospectus is 1,228.75 yuan, which is 148.08% higher than the data of customs bill of lading.
In fact, the customer’s accumulated sales of nearly 150 million yuan earlier are also quite different from the customs bill of lading data.
Interface journalists learned from a number of senior foreign traders that customs declarations may be forged through intermediaries, but customs bills of lading of buyers and sellers cannot be forged.
It is worth noting that after more than 8 years, Jiechang Drive will be listed and traded on the Shanghai Stock Exchange on September 21st. As the main operator of Jiechang Medical’s re-registration of the company at the end of April 2010 for shell replacement, Jiechang Drive quickly sought to land in the A-share market through IPO in 2016 after landing on the New Third Board in 2014. It suffered a series of changes such as suspension of audit, temporary cancellation of the meeting and temporary postponement of issuance, and finally met in June this year and subscribed for new shares on September 11.
Note: American bill of lading data (USBID), also known as North American bill of lading import data, or North American bill of lading import data. The English name is US Bills Import Data, abbreviated as USBID. Customs bill of lading data is all kinds of import and export statistics data generated by the customs in performing the import and export trade statistics function, which refers to the real customs transaction records of buyers and sellers in various countries. The data fields include detailed information such as commodity name, detailed commodity description, variety, quantity, amount, unit price, unit of measurement, port and mode of transportation.
Author: Zhang Dongqing