June is relying too heavily on big customers to avoid tax

Xu Yijian November 16, the Gem Board audit Committee to review the Beijing June Zheng Integrated Circuit Co., Ltd. (hereinafter referred to as "June Zheng Circuit") of the starting application.　　Since 2008, June is the rapid rise of the circuit, the company 2008 and 2009 net profit increased by 809.13% and 51.5% respectively, the growth rate far more than the same industry listed companies. But the reporter investigation found that June is the circuit performance behind the rapid growth, based on sales revenue heavily dependent on the risk of large customers.　　And the 2008-year performance boom is more than its largest distributor in Shenzhen, China Core Flying Technology Co., Ltd. (hereinafter referred to as "Hua-core fly") inseparable.　　In addition, the company 2007, 20,082 years seriously rely on foreign subsidiaries Beijing June Zheng Integrated Circuit (Hong Kong) Group Limited (hereinafter referred to as "June Hong Kong") sales revenue, and this company to avoid a large amount of tax charges.　　Relying on the disclosure of major customer information, June Zheng Circuit products are mainly used in mobile portable equipment, which is divided into portable consumer electronic CPU chip and portable education electronic CPU chip two types.　　From 2007 to the first half of 2010, the company's business rapidly rise, its main business income is 34.3603 million yuan, 144 million yuan, 192 million yuan and 112 million yuan, net profit is 5.0745 million yuan, 46.1336 million yuan, 69.8914 million yuan and 49.9221 million yuan.　　But the study of June Zheng Circuit over the years to sell revenue customer structure found that its continued rise in the high growth posture, is based on sales revenue heavily dependent on the risk of large customers.　　In the last 3.5, June is in the top five sales revenue for the current period is 95.15%, 91.18%, 85.15% and 91.87% respectively, and highly dependent on individual customers.　　Among them, one of the big customers Hua-core fly to the company's product purchase amount contributed enormously. 2007, June is the circuit to the core of the sales of 9.7314 million yuan, accounting for its operating income of 28.32%.　　But to 2008, June is flying to the core of sales suddenly rose to 61.399 million yuan, is its 6.3 times times the same period last year, the proportion of operating income also increased significantly to 42.39%. At the same time, the company's performance also showed an explosive growth in 2008, with its main business and net profit growth of 321.54% and 809.13% respectively over a year earlier.　　Obviously, June Zheng Circuit 2008 the performance of the surge and Hua-core fly to increase sales and procurement is closely related.　　However, in the cooperation between the two, 2009, Hua-core flying suddenly from the company's top five customer list disappeared.　　So why did the married, the White knight who doubled the circuit's performance, quickly leave the field after a surge in performance and no longer work with the company?　　The white knight leaves Shenzhen Industry and Commerce Bureau data show, Hua Core Fly was founded in April 2007, registered capital of 1 million yuan, is a natural person still Hui-owned limited liability company. Pre-disclosure shows that Hua-core flyIs the company's distributors, is one of the top five customers.　　But according to the reporter understand the situation, Hua-core fly more like the company's end customers. In the second half of 2007, June Zheng Circuit plan into the PMP (Portable media Player) CPU chip market. and the establishment of less than half a year of Hua-core fly is a research and development PMP, mobile hard disk and GPS and other consumer electronics systems integration and Chip agent company.　　2008, two companies to cooperate to launch the "June-Hua Core fly rmvb program", killing into the mainstream MP4 player market. At that time, June is the circuit has developed a core Xburst CPU chip. There are insiders told reporters that June is Xburst CPU multimedia processing capacity, low power consumption also supports large-resolution display, in addition to the price of the same industry, such as Adi One-third.　　From this, Hua-core fly technology selected June is the main control chip development Real Player. The reporter learned that, in the cooperation between the two sides, June is responsible for the development of the circuit hardware and Hua Core fly responsible for the overall design of the project, the final product by the Hua core sales to downstream MP4 category brand.　　But in the early market opened, two upstream developers "feelings" but there have been cracks, finally embarked on the road to break up. For the specific reasons for the breakup, Hua-core fly is not willing to mention.　　The company's marketing department told reporters, Hua-core fly later decided to self-developed PMP CPU chip, and June is the circuit parted. But obviously, June is the circuit and Hua core fly cooperation benefited a lot, not only the main business income and net profit to get explosive growth.　　The company's market share in the portable consumer electronics CPU chip industry has expanded rapidly (PMP CPU chips are one of the most convenient consumer electronics CPU chips), from 2.1% in 2007 to 9.1%. In addition, during the cooperation between the two sides, Hua-core fly also free of charge to the June is integrated circuit solutions and technical support.　　And 2009 after the withdrawal of cooperation, June is the integrated circuit to bear the cost of the technology to reach 5.7175 million yuan.　　And after leaving the core fly, although June is the circuit launched a new PMP CPU electronic chips, but the company's convenient consumption of electronic CPU chip sales share has been declining.　　2008 to the first half of 2010, the company's consumption of electronic CPU chip business income accounted for 73.41%, 70.51% and 2.97% respectively, showing a gradual decline in trend.　　Tax avoidance regulator In addition to the core fly technology, the company's overseas subsidiaries June Hong Kong also to the company's early profits played a huge role. Pre-disclosure shows that June Zheng Hong Kong Group was founded on August 14, 2006, is the company's real control Daiju Narita, Lijie in the name of individuals in Hong Kong set up overseas companies.　　At the beginning of its establishment, the company's statutory share capital was HK $10,000 and the Paid-in capital was HK $0, and Daiju Narita and Lijie each subscribed for 50% shares and served as directors. December 31, 2007, two controlling shareholders and June Zheng Circuit signed an Equity transfer agreement, Hong Kong June is the group's total equity stake to 0 to the holding company. On the same day, June is Hong KongChange the director of the company into a June Zheng Circuit (corporate director). According to the preliminary disclosure, Hong Kong June is making great contributions to the company's tax preferences. 2007, 20,082 years, the company's products are mainly sold to Hong Hong, its sales revenue accounted for 68.42% and 60.13% respectively. As a window company serving overseas clients, June is the net profit of the two years of Hong Kong is 3.9173 million yuan and 33.1331 million yuan respectively, which accounted for 77.19% and 71.81% of the net profit of the parent company at that time.　　According to the relevant policies, June is not in Hong Kong VAT tax liability.　　In 2009, the company's business concentrated in the domestic sales, Hong Kong June is the results of the merger of the company also reduced, its 2009, 2010 1-June to achieve a significant drop in external sales to 10.64% and 2.13%. Thus, the amount of VAT paid by the company also increased substantially by 15.5432 million yuan in 2008.