National Shield Quantum Sprint, Science Board, Backed By "Sino University" Relationship Is Questioned.

In November 13th, the great power shield quantum technology Limited by Share Ltd (hereinafter referred to as the "national shield quantum") will receive the examination of the forty-fifth Review Conference of the CPC Committee on 2019.

On March 27 this year, GuoDun quantum became the first enterprise in Anhui Province to apply for the listing of science and technology innovation board and was accepted. On April 11, GuoDun quantum began to accept the inquiry of Shanghai Stock Exchange. On September 4, it briefly suspended the audit. After updating the financial statements of the first half of 2019, GuoDun quantum continues to be in the audit state. At present, it has experienced four rounds of inquiries.

The latest progress is that in November 4th, the national shield quantum and its sponsor replied to the Audit Center's letter of implementation.

As "the enterprise with the highest market share in the field of quantum communication in China", GuoDun quantum is behind the quantum communication team of China University of science and technology, which has participated in many major projects such as "Beijing Shanghai trunk line", "national wide area quantum secure communication backbone network", "Wuhe trunk line".

GuoDun quantum plans to issue 20 million shares and raise no less than 304 million yuan to invest in the quantum communication network equipment project and the R & D center construction project.

Then, as a pure "quantum communication concept stock", can the national shield quantum sprint the scientific creation board succeed?

Quantum communication industry leader

According to the prospectus, GuoDun quantum was founded on May 27, 2009, formerly known as Anhui Quantum Communication Technology Co., Ltd., with a registered capital of 60 million yuan. Its main products include core equipment of quantum secure communication network, quantum security application products, core components and management and control software.

An intuitive example is that the total length of the practical optical fiber quantum secure communication network (fiber cable sheath length) that has been built in China has reached more than 7000 kilometers, of which more than 6000 kilometers use GuoDun quantum products and are in online operation.

In the projects of quantum secure communication "Beijing Shanghai trunk line", "national wide area quantum secure communication backbone network", "Wuhe trunk line", "Xinjiang observatory satellite ground integrated quantum secure communication Wan" and "Beijing metropolitan area network", GuoDun quantum products are all represented.

For the second set of listing standards of the national shield quantum selection board, "the market value is not less than RMB 1 billion 500 million yuan. The operating income in the latest year is not less than RMB 200 million yuan, and the total R & D investment in the past three years accounted for no less than 15% of the total revenue of the recent three years". Shen Wanhong yuan research reported that "highlighting the characteristics of advanced technology and high R & D input."

As of the end of June 2019, the national shield quantum research and development staff of 227, nearly 50% of the total number of employees (48.5%).

In addition, during 2016-2018, GuoDun quantum invested 53.1803 million yuan in R & D, 73.4436 million yuan in R & D and 96.2095 million yuan in R & D, accounting for 23.41%, 25.89% and 36.35% respectively.

In 2019 1-6, the national shield quantum research and development investment was 40 million 604 thousand and 700 yuan, accounting for 169.84% of the revenue.

At present, GuoDun quantum has 194 patents, including 48 invention patents, 106 utility model patents, 29 design patents, 11 international patents, 195 computer software copyrights, and has successively undertaken 863 Program projects of the Ministry of science and technology, independent innovation projects of many provinces and cities, and junior college programs of science and technology of provinces and cities.

From its luxurious shareholder lineup, we can also see the pursuit of capital for the quantum industry.

On November 4, the prospectus disclosed that the largest shareholder of GuoDun quantum is China University of science and Technology Asset Management Co., Ltd. (namely, "Keda holding"), with a shareholding of 18%; the second is Pan Jianwei, executive vice president of China University of science and technology and chief scientist of "Mozi" quantum communication experimental satellite, with a shareholding of 11.01%; the third largest shareholder is China Academy of Sciences Holding Co., Ltd. (namely, "Guoke holding"), with a shareholding of 7.6%.

In addition, 5 of GuoDun quantum's 34 shareholders are private funds: Zhaofu investment, Junlian Linhai investment, Hongfu investment, Weiqian investment and Taisheng Jiapeng investment. After the breakthrough, shareholders include Lenovo's Union capital, China's new capital, and A shares listed companies, including 000555.SZ, Zhejiang 600120.SH (600120.SH), and 002126.SZ, etc., sponsored by the yuan yuan, a sponsor of the Yuan Yuan Securities Company, which shares 0.5% of the shares.

However, the performance of the national shield quantum also reflects that our quantum communication industry is still promoting.

In 2016 -2018 and 2019 1-6, the revenue of the national shield quantum main business was 210 million yuan, 272 million yuan, 257 million yuan and 25 million 558 thousand and 300 yuan respectively, but the net profit after deduction of non profit was fluctuating, which was 29 million 864 thousand and 100 yuan, 30 million 734 thousand yuan, 23 million 2 thousand and 300 yuan and -6447.33 million yuan respectively.

Related transactions into regulatory focus inquiries

In the IPO process of China shield quantum, its related transaction risks are focused.

In the implementation of the Audit Center's opinion, the regulatory authorities asked the national shield to answer the question. "Is it essential to get the related business to depend on the relationship with the Zhongke University and the national science and quantity network?" in the future, whether the issuer's business development still depends mainly on the orders of the affiliated companies such as Zhongke University and national science and quantity network, and the extent of the "time and scale of the purchase of the products by the digital China", to what extent, is influenced by the China National Science and Technology University and the national science and technology grid.

China University of science and technology, Guoke quantum communication network Co., Ltd. ("Guoke quantum network") and digital China System Integration Service Co., Ltd. ("Digital China integration") have all become "key gentlemen" of GuoDun quantum.

Among them, Guoke quantum, the related party of GuoDun quantum, has become one of the top five customers due to its construction project of national wide area quantum confidential communication backbone network.

From 2017 to 2018, and from January to June 2019, the sales amount of direct transactions between Guoke quantum and GuoDun quantum, as well as indirect transactions such as contracting to system integrators and then purchasing from them by system integrators, accounted for 17.37%, 60.02% and 0.16% of the revenue in each period respectively.

Another "key Mr." Digital China integration, is currently the main system integrator serving the Construction Party of quantum secure communication network. Due to the technical verification needs of "Beijing Shanghai trunk line" of quantum secure communication, it has become the largest customer of GuoDun quantum for three consecutive years.

In 2016-2018, revenue from sales of quantum confidential communication equipment and related technical services by Digital China integration to GuoDun quantum accounted for 34.21%, 21.14% and 57.9% of revenue in each period respectively.

In terms of ownership structure, there is a clear correlation between the integration of Digital China and the national shield quantum.

Shanghai Shenzhou Digital Information Technology Service Co., Ltd., a wholly-owned subsidiary of Shenzhou digital integration, is a limited partner of Junlian Linhai, a shareholder of GuoDun quantum, holding 25% of the partnership share. In addition, Shenzhou Digital Information Service Co., Ltd., a controlling shareholder of Shenzhou digital integration, and GuoDun quantum jointly funded the establishment of Shenzhou Guoxin, holding 69.1% and 4.9% of the shares respectively.

To this end, GuoDun quantum Securities said in response to the connected transactions, "the connected transactions between the company and the connected parties are actions in a specific period and under specific conditions. The transactions between the company and its related parties follow the principle of fairness and reasonableness, the transaction price is fair, the decision-making process is legal and effective, and there is no behavior damaging the interests of the shareholders of the company. "