Quantum High: The first two major customers behind the hidden trap

"Investor" analyst Yechichu Quantum Hi-Tech Biological Co., Ltd. is located in Jiangmen, Guangdong, the company mainly produces and sales of oligosaccharides as the representative of the benefit of raw materials.　　Public data show that the benefit of the yuan is generally a food in a difficult to digest ingredients, can stimulate the digestive system probiotics growth. "Melamine" after the incident, "Yi Sheng Yuan" in many imported milk powder brand propaganda, the infant milk powder speculation hot spot.　　Dr Yukei of the Department of Biochemistry, Hong Kong Polytechnic University, said that the addition of the beneficial yuan in milk powder is generally low poly galactose, can improve intestinal balance to promote digestion, can obviously play the role of bowel function. We found that the main product of quantum high is not low poly (galactose) but low poly (fructose).　　Dr. Yukei said that oligosaccharides, which are synthesized by chemical enzymes, are generally used only for general food or feed additives.　　In addition to products, we are more concerned about the company's first two major customers may be hidden behind the various traps.　　The first major customer: affiliated transactions? Perfect (China) has always been the company's first major customer, the company's Perfect (China) sales rate of increase each year, longer than 40%. The company admits that there is a certain sales dependency on perfection (China).　　But the investor newspaper found that the company concealed its relationship with the perfect (China) existence. Company and Perfect (China) cooperation began in 2006, June 2006 Perfect (China) at 2 yuan Price from the general manager of Quantum Tech Zeng Xian handled by the company 70%, the Quantum high branch to 1 yuan price to obtain 30%.　　Quantum hi-Tech and Perfect (China) in Jiangshan Company's platform to cooperate, quantum high will produce the low poly fructose sales to Jiangshan company packaging production into oral liquid, the use of Perfect (China) channel external sales. Through the equity cooperation, Perfect (China) on the one hand, fast access to health food registration permits, on the other hand directly manage the Jiangshan to obtain sales revenue. As a perfect (China) commitment to the quantum limited exclusive sourcing of raw materials for reciprocal arrangements, Quantum Limited gave up the right to gain in Jiangshan company.　　The agreement was signed in May 2006. Since then, Quantum High has received a large number of advance payments from the perfect (China) and Jiangshan companies, totaling 7.63 million at the end of 2007, accounting for more than 94%. In the reporting period, the quantum hi-tech received from other companies in the millions of receivables, it can be said that the perfect (China) to the quantum hi-tech financial support.　　2008, the Quantum High branch to the Jiangshan company 30% Equity Transfer to the perfect (China), the company also denied the perfect (China) on behalf of the shares. Quantum Tech has made a real connection with the large sales of its equity firms by February 2008. Quantum High has not given up its 30% rights, but has transformed the equity benefits of affiliated transactions into the monopoly income of a perfect (China) exclusive supplier and the perfect financial support for the company, which is the reciprocal exchange of benefits between the two parties. If perfection (China) tries to transfer stakes in a Jiangshan company, or if it no longer accepts quantum tech as an exclusive supplier, it will be subject to quantum highBranch.　　Second largest customer: a leather company? Quantum Tech in the first half of 2010 the second largest sales customer for the proper creature, accounted for 17%. The 2009 sales of the proper creatures were 1.83 million, and the first half of 2010 exploded to 10.76 million.　　Quantum Tech's 2009 sales rose 3%, and in the first half of 2010, the company will again be mired in single-digit growth in sales, excluding sales of the right creatures. The quantum tech centers show that the proper biological main products foreign trade, in the country more than 15 provinces set up sales channels.　　According to the "investor" to Guangzhou Industrial and Commercial Registration Agency association to verify that its business registration main industry for biological, biochemical products manufacturing. We have found a proper organism in the list of January 2010 Guangzhou New Foreign Trade operators registered in the Guangzhou Foreign Trade Development Office.　　This means that the proper biological 2010 years before the acquisition of foreign trade qualifications, access to the qualification immediately with the quantum of the bulk of trading. Verified that the proper biological registration site is located in Guangzhou Yuexiu District Guang Liang Mansion. According to the legal representative's contact method provided by Guangzhou Industrial and Commercial Registration Agency Association, the investor newspaper tried to get in touch with the result, which was shown as an empty number, and we contacted the property management department of Kwong Liang Mansion and its management staff said that they could assist the registered company, who confirmed to the investor that the proper creature was his client,　　But declined to disclose details and contact information.　　Raw Material price drop: How does the gross margin rise? The material cost of the quantum High division production cost occupies 71%~77%, the main raw material sugar is the material cost 70%~75%, the proportion of production cost is over 50%. White sugar 2007-2010-year price is rising, the report period of the company's main product prices are a sharp decline in the situation.　　Raw materials continue to increase prices, products continue to reduce prices, but the company's overall gross profit margin in the abnormal upgrade, from 2007 to 43% to 2009 51%. The company's interpretation of this is that high-end products accounted for the upgrade, driving the company's comprehensive margin rise, the production process of loss reduction and conversion efficiency of the increase also brings cost savings. During the reporting period, the contribution of the company's high-end products increased from 45% to 85%.　　As a result, the company's high-end products margin contribution space only 15%. "Investor" found that the same as the production of probiotic raw materials manufacturers of Bowling Bao (002286.SZ) 2007 to 2010, the first half of the gross margin continued to decline from 26% to 21%.　　The optimization of enzymatic hydrolysis can indeed reduce the loss of raw materials in production, but it is difficult to determine whether molecular conservation in biochemical reactions can save up to 30% in a short period of time, Dr. Zhang said.　　According to the open market data, the 2009 quantum tech centers in the Low (G50L) and high-end (other than g50l products) two market share of the decline, the low-end from 55% to 43%, high-end from 50% to 48%. Low-poly (high purity) for high-end products during reporting period, pulp-like) accounted for the main business income from 2% to 48%, however, the average selling price fell from 34,100 yuan/ton to 15,400 yuan/ton, or 55%; low-end products oligosaccharides (low purity, paste) accounted for the main business income from 48% to 18%, the average price from 8328 yuan/　　Tons fell to 7022 yuan/ton, down only 16%. High margin of high-end products, prices fall fast, low-end products, low margins, prices slow down, high-end product price competition is far more intense than the low-end.　　The company's gross margin contribution is now 85% dependent on high-end products, which concludes that there is a lot of room for future consolidation. Bao-Bao in 2009 in the Shenzhen Stock exchange of small and medium-sized market, to raise funds to the low poly sugar high-end product projects, and the company formed a direct competition, its 10,000 tons of production capacity in the second half of 2010 release. Quantum high-tech total capacity of only 11,000 tons, this shows that the company's high-end product prices will be greatly impacted in the second half of this year.