Who’s lying? Golden hair technology’s 6.8 billion yuan mask orders evaporate, why the mysterious buyers in the United States never show up

Under the new epidemic situation of the world’s new crown, masks are a real good business, but there are many hidden reefs, and even billions of foreign orders may “capsize” at any time and disappear. < p > < p > on August 10, 2020, Guangdong golden hair Technology Co., Ltd., a subsidiary of golden hair Technology Co., Ltd., signed a large purchase order for kn95 masks with an American company three months ago, with an order amount of $975 million, which was declared a failure. < p > < p > the news of “signing a particularly significant contract” was announced for the first time on May 18. With the background of the popularity of mask business in the epidemic situation, golden hair technology immediately took a shot in the arm, and the daily limit was increased. Even though the stock price of Jinfa technology fell to 16.74 yuan on August 10, it was still higher than that of 12.04 yuan per share before the announcement of “particularly significant contract”. < p > < p > with regard to the US buyer’s order, a staff member of the Securities Department of golden development technology told the reporter that since the periodic report has not been disclosed, it is in the window period, so he can not be interviewed. < / P > < p > “it’s weird.” A relevant person in charge of a Chinese medical device company commented on this matter. For experienced manufacturers, facing such a large number of kn95 orders, they would be very cautious, “ordinary manufacturers dare not sell.”. < / P > < p > from the beginning, it was a vague order to the outside world, as if from the sky. On May 18, when golden hair first released the $975 million mask bill from an American company, it said that it had no relationship with the American company and had no business relations with the other party in the past three years. Jinfa technology said at that time that it was unable to disclose the specific name and financial data of the US company due to trade secrets and confidentiality provisions of the contract signed by both parties. In addition, according to golden hair technology, the US company intends to spend $975 million on kn95 masks, but the final destination of these masks may involve multiple countries or regions, and the specific quality, technology and certification standards must be determined in combination with the actual sales situation. < p > < p > < p > such an ambiguous order made Jinfa technology receive enthusiastic pursuit of investors on the day it announced the news, and went up the limit directly, but since then, the rise has not been sustained. Even so, today’s share price is still higher than that, and the company’s stock price has risen 131.68% since the beginning of the year, enjoying the epidemic dividend. < / P > < p > the reporter inquired that on Amazon, the shopping website, the kn95 mask of golden hair technology is being retailed in the United States, with the product name of “Kingfa kn95 face mask”. There are 50 masks in a box with a total of 108 US dollars, which are in stock. < p > < p > TBG Tech Co., a mask distributor with offices and warehouses in Florida, the United States, lists only two companies’ masks, namely BYD and golden hair. < p > < p > in April, after the California government announced the US $1 billion mask contract with BYD, BYD’s face mask was questioned by the National Institute of occupational safety and health of the United States, “the design, manufacture and quality inspection are worrying”. In the process, BYD’s face mask was once again not certified and had to return half of the deposit, or $247.5 million, to California. The good news is that BYD’s orders, after twists and turns, have finally been able to continue. After two extensions pushed by the California government, BYD was finally certified by the National Institute of occupational safety and health on June 8 to produce N95 masks for California. In addition, BYD’s orders continue. On July 22, California Governor John Newsom said he was actively purchasing 300 million surgical masks and 120 million N95 masks from BYD to protect medical staff and others. The contract is worth $315 million. According to the statement of Jinfa technology, the term of the large purchase order on May 16 is three months. It is stipulated in the purchase order that the U.S. buyer shall pay 40% of the order amount to Jinfa technology within 3 working days after receiving the proforma invoice provided by Jinfa technology. After the appropriate delay, the U.S. buyer has not yet paid as agreed in the order. < / P > < p > the person in charge of the above-mentioned medical device companies expressed doubts about this: during the epidemic period, mask factories were very competitive. When manufacturers did not receive the full payment of orders, they would not schedule the production of masks ordered. “Now, the operation mode of mask factories is basically: only when the money arrives, can they count.”. < / P > < p > the person in charge has encountered similar situations. “Before, we met with many foreign orders that required hundreds of millions of yuan of masks. Facing such large customers, various manufacturers would compete and push down prices one after another,” he said. After the other party found out the lowest price of this type of product, they would say that we were not a list of hundreds of millions of dollars, maybe only 10 million dollars of products, “so when we saw such a large list, it was basically very good Clearly, this may be a big swindle, is holding such a big mask order to find the bottom price. “. < / P > < p > as to whether the production can be carried out after paying the deposit, a golden hair technology salesman explained to the reporter that this had to be calculated according to the delivery rate, “for example, if you want 1 million masks today, you have to type the money for these 1 million masks today, and it’s not good to delay the payment”. < / P > < p > the person in charge of the above-mentioned medical device companies also told reporters: “during the epidemic period, many people asked us how much the mask price is and how long it can be delivered. We will answer, price can tell you, time can’t say. Orders are updated every day and are constantly changing. After the full payment is paid, we can tell you exactly when the mask will be produced. ” < p > < p > Jinfa technology stated that during the purchase of this huge order, the company communicated with the American buyer for many times, hoping that the other party would pay and perform the contract as soon as possible. Recently, the business department of the company tried to discuss with the buyer whether to perform the contract by telephone or other means. However, the American buyer did not respond effectively. < p > < p > on August 4, Kingfa sent a letter to the U.S. buyer asking whether it still intends to continue to fulfill the order and asked it to reply in writing before August 7. If it fails to reply within the time limit, it will be deemed that it will not perform the contract. < / P > < p > golden hair technology’s kn95 mask order failed. After reading the relevant announcement, the person in charge of the above-mentioned medical device company repeatedly said “too strange”. During the epidemic, the company where the person in charge worked responded to the call to produce masks in an emergency manner. Strictly speaking, kn95 is the standard of civil level masks. The person in charge of the above-mentioned medical device company told the reporter that the United States does not recognize China’s kn95 mask standard, so there are not many cases of sales to the United States, because the other party often feels that there is a problem with the quality of the mask, but it is not a problem of quality, but the problem of different standards. < p > < p > it happened in March. Half a month after China put the kn95 and kp95 production standards on the approved list, the food and Drug Administration of the United States deleted the above-mentioned production standards of masks from the approved list. < p > < p > N95 is a standard mask for medical staff, which has requirements for hemodialysis indicators. However, kn95 in China does not have such requirements and can be used for non professional health care population. < / P > < p > Goldilocks retails kn95 masks on Amazon. Com. At the bottom of the page, consumers also ask about the standard of masks, and the response is, “N95 is the American Standard, which is used in the medical field. Kn95 is a Chinese standard and cannot be used in the medical field in the United States. ” < p > < p > on February 23, Yuan Zhimin, chairman of Jinfa Technology Co., Ltd., as an enterprise representative, introduced at the news conference on epidemic prevention and control of Guangzhou municipal government information office that the company had successfully developed polymer medical anti epidemic materials within 10 days. Yuan Zhimin also introduced that in the face of the shortage of polypropylene materials for melt blown fabric used in the production of masks in China, Jinfa technology completed the technical scheme design, pilot test certificate, equipment transformation and mass production evaluation within 10 days, and successfully developed the overall solution of polymer medical anti epidemic materials, including polypropylene materials for melt blown fabrics and special materials for nose bridge strips. According to the securities times · e company, on the afternoon of August 9, the relevant person in charge of Jinfa technology said that the order was carried out in strict accordance with the contract, because the other party did not pay the down payment, the order has not yet started production. < p > < p > according to the sales personnel of golden hair technology, the factory now has the ability to produce 10 million kn95 masks a day. Based on this capacity, there should be at least 20 production lines. According to the official website of golden hair technology, the company has more than 300 mask production lines. According to the analysis of a person in the mask manufacturing industry, according to the previous peak capacity, this capacity belongs to a large factory. However, there are at most 20-30 million kn95 production capacity a day. Generally, the production capacity of medium-sized plants is about 5 million. “One production line mask.”. As soon as the incident happened, Shanghai stock exchange immediately sent a regulatory working letter, asking Jinfa technology to explain the specific situation of the early stage contract signing, including the negotiation, the process of signing the contract, and the main terms of the contract. At the same time, the Shanghai Stock Exchange asked the company whether it had conducted sufficient and necessary due diligence before signing the order, whether it had effectively verified the credit situation and performance ability of the contracting party, and had not disclosed the main considerations and reasons of the counterparties so far. < / P > < p > golden hair technology also needs to disclose the specific reasons for the other party’s failure to perform the contract, the time when it knows the relevant situation, and whether there is any information disclosure that is not timely. < p > < p > the Shanghai stock exchange directly proposed in this regulatory working letter that the company should conscientiously perform the corresponding information disclosure obligations on the termination of this major contract, fully protect the investors’ right to know, and do a good job in communication with investors. Zhou Yazhu, a lawyer from Yingke Law Firm, told reporters that since the disclosure of this order is good news, when the order is suddenly cancelled, relevant institutions will send a letter to inquire. For undisclosed counterparties only, it may not be considered as information disclosure violation. However, if the company in the whole transaction process, improper disclosure of information, or selective disclosure of some favorable information, etc., may touch the information disclosure violation. < p > < p > when Jinfa technology announced this huge order in May, it wrote that the total net profit generated by the smooth implementation of the goods sales contract accounted for more than 50% of the company’s audited net profit in 2019, which will have a positive impact on the company’s operating performance in 2020. < p > < p > it is precisely because of the great impact of this order on Jinfa technology that the Shanghai Stock Exchange repeatedly asked whether the information disclosure of each link was complete in the termination of the order. This is also one of the key points of securities market regulation and regulation. The new system, which came into effect on March 1 this year, sets up a special chapter to stipulate the information disclosure system, including expanding the scope of information disclosure obligors, and emphasizing that the information necessary for investors to make value judgments and investment decisions should be fully disclosed. < p > < p > for the illegal behavior of information disclosure of listed companies, the maximum fine of RMB 600000 will be increased to RMB 10 million. If the controlling shareholder or actual controller of the issuer organizes or instructs to engage in false statement, or conceals relevant matters, leading to false statement, the provisions shall be as follows: