1. Special announcement on the investment risk of Jilin Xidian Pharmaceutical Technology Development Co., Ltd. in its initial public offering and listing on the gem sponsor (lead underwriter): Haitong Securities Company Limited(600837) according to the industry classification guidelines for listed companies (revised in 2012) of China Securities Regulatory Commission, the industry of Xidian pharmaceutical is "Pharmaceutical manufacturing (C27)". As of February 8, 2022 (T-4), The average static P / E ratio of the industry released by China Securities Index Co., Ltd. in the latest month was 37.80 times. The issuance price of 22.55 yuan / share corresponds to the lower diluted P / E ratio of the issuer before and after deducting non recurring profits and losses in 2020, which is 42.95 times higher than the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on February 8 (T-4) 2022, with an excess range of 13.62%; It is 45.55 times lower than the average static P / E ratio of comparable companies after deducting non-profit in 2020. The issuer and the recommendation institution (lead underwriter) remind investors to pay full attention to the risk factors contained in the pricing marketization, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, avoid blind speculation, carefully study and judge the rationality of the issue pricing, and make rational investment decisions. The application of Jilin Xidian Pharmaceutical Technology Development Co., Ltd. (hereinafter referred to as "Xidian pharmaceutical" or "the issuer") for the initial public offering of RMB common shares (A shares) (hereinafter referred to as "this offering") has been examined and approved by the GEM Listing Committee of Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange"), It has been registered with the China Securities Regulatory Commission (hereinafter referred to as "CSRC") in zjxk [2022] No. 5 document. Haitong Securities Company Limited(600837) (hereinafter referred to as " Haitong Securities Company Limited(600837) " or "sponsor (lead underwriter)") serves as the sponsor (lead underwriter) of this offering. After negotiation between the issuer and the sponsor (lead underwriter), the number of shares issued this time is 2020.0986 million, all of which are new shares issued to the public, and the issuer's shareholders will not transfer their old shares. The shares issued this time are planned to be listed on the gem of Shenzhen Stock Exchange. The issuer and the recommendation institution (lead underwriter) specially draw investors' attention to the following contents: 1. After the preliminary inquiry, The issuer and the sponsor (lead underwriter) shall, in accordance with the exclusion rules stipulated in the announcement on initial public offering and listing on the gem of Jilin Xidian pharmaceutical 2 Industry Technology Development Co., Ltd. (hereinafter referred to as the "announcement on preliminary inquiry and recommendation"), after excluding the preliminary inquiry results that do not meet the quotation requirements of investors, Eliminate all placing objects whose proposed purchase price is higher than 31.05 yuan / share (excluding 31.05 yuan / share); The proposed subscription price is 31.05 yuan / share, and all placing objects whose subscription quantity is less than 7 million shares are eliminated; The proposed subscription price is 31.05 yuan / share, the number of subscription is equal to 7 million shares, and the subscription time is the same as 14:36:14:958 on February 8, 2022 (T-4). Among the placing objects, 67 placing objects are excluded from the back to the front according to the declaration order automatically generated by the offline issuance electronic platform of Shenzhen Stock Exchange. A total of 94 placing objects were eliminated in the above process, and the total number of shares to be purchased was 607.6 million, accounting for 1.0058% of the total number of shares to be purchased after excluding invalid quotations in this preliminary inquiry. The excluded part shall not participate in offline and online subscription. 2. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the effective subscription multiple, the issuer's industry, market conditions, the valuation level of Listed Companies in the same industry, the demand for raised funds and underwriting risks, and negotiate to determine that the price of this issuance is 22.55 yuan / share, and the offline issuance will not conduct cumulative bidding inquiry. Investors are requested to make online and offline subscription at this price on February 14, 2022 (t day), and there is no need to pay the subscription fund at the time of subscription. The offline issuance and Subscription Date and online subscription date are the same as February 14, 2022 (t day). Among them, the offline subscription time is 9:30-15:00, and the online subscription time is 9:15-11:30 and 13:00-15:00. 3. The issue price determined through negotiation between the issuer and the recommendation institution (lead underwriter) is 22.55 yuan / share, which does not exceed the median and weighted average of offline investors' quotation after excluding the highest quotation and the securities investment fund established through public offering after excluding the highest quotation (hereinafter referred to as "public fund") National Social Security Fund (hereinafter referred to as "social security fund"), basic endowment insurance fund (hereinafter referred to as "pension") The enterprise annuity fund (hereinafter referred to as "enterprise annuity fund") established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund (hereinafter referred to as "insurance fund") in accordance with the measures for the administration of the use of insurance funds, whichever is lower. 4. The offering price does not exceed the lower of the median and weighted average of offline investors' quotations after excluding the highest quotation and the median and weighted average of public funds, social security funds, pensions, enterprise annuity funds and insurance funds after excluding the highest quotation. Therefore, relevant subsidiaries of the recommendation institution do not need to participate in follow-up investment. 3. This issuance does not arrange strategic placement to other external investors. Finally, this issuance does not place targeted placement to strategic investors. The difference between the initial strategic placement and the final strategic placement of 1010049 shares will be transferred back to offline issuance. Finally, this issuance is finally carried out by a combination of offline inquiry and placement to qualified investors (hereinafter referred to as "offline issuance") and online pricing issuance to social public investors who hold the market value of non restricted A-Shares or non restricted depositary receipts in Shenzhen market (hereinafter referred to as "online issuance"). The initial inquiry and offline issuance of this issuance shall be conducted by the sponsor (lead underwriter) through the offline issuance electronic platform of Shenzhen Stock Exchange（ https://eipo.szse.cn. ）Organize and implement the online issuance through the trading system of Shenzhen Stock Exchange. 5. The price earnings ratio corresponding to the issue price of 22.55 yuan / share is: (1) 32.21 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by accounting firms in 2020 in accordance with Chinese accounting standards by the total share capital before the issue); (2) 27.47 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before this issuance); (3) 42.95 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance); (4) 36.63 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance). 6. The issue price is 22.55 yuan / share. Investors are requested to judge the rationality of the issue price according to the following conditions.
(1) According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of West Point pharmaceutical is pharmaceutical manufacturing (C27). As of February 8, 2022 (T-4), the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. was 37.80 times. 4. The issuance price of 22.55 yuan / share corresponds to the lower net profit diluted P / E ratio before and after deducting extraordinary profits and losses in 2020, which is 42.95 times higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on February 8 (T-4), 2022. The excess range is 13.62%, which is due to the following four reasons: first, The issuer has the advantages of core product differentiation, reasonable product line structure, and prominent market position of key API and preparation varieties. The differentiated layout improves the company's ability to resist market risks and policy risks. The products are market-oriented and have differentiated competitive advantages in dosage forms, specifications and production processes. A product system has been formed with anti anemia drugs, drugs for the treatment of mental disorders and raw materials as the core and cardio cerebrovascular disease drugs and anti-tumor drugs as the auxiliary; Second, the issuer has the advantages of API production base. Jilin chemical industry circular economy demonstration park has been approved as a national new industrialization industry demonstration base by the Ministry of industry and information technology. The company has the advantages of raw materials and industrial synergy. The supporting construction of public works in the park is sound, the carrying capacity of resources and environment is strong, and vigorously develops circular economy. With the continuous and upgrading of the national environmental protection rectification action, the entry threshold of the API industry will be greatly improved, and the location advantage of the company's API production base will become more and more obvious; Third, the issuer has the advantage of integration of APIs and preparations. The company has a mature API production system and produces the main API ferrous sulfate to meet the needs of prebiotics. The company has the exclusive production advantage of daphnetin API in China to ensure the supply of daphnetin capsule API. The company's API industry layout ensures the high standard and consistency of preparation quality from the source and the stability of API supply. At the same time, the company's API production and processing capacity provides an effective guarantee for preparation R & D innovation. The integrated business model of API and preparation enables the company to have more stable profitability. The company's preparation products have the advantage of raw material cost, so as to prepare for the expansion of business scale in the future and improve the company's sustainable profitability and comprehensive competitiveness; Fourth, the issuer has the advantages of technology and process improvement and innovation. The scientific research team of the company has made long-term technical reserves in product independent research and development, cooperative research and development, process and technology innovation and improvement, which provides a solid guarantee for the sustainable and healthy development of the company. Over the years, through the combination of introducing advanced technology and independent innovation, the company has continuously carried out new product R & D and technological innovation, achieved a number of technical achievements, and successfully applied them to the process of large-scale production, covering the development of all core products, production process optimization and quality assurance. The issuer and the recommendation institution (lead underwriter) remind investors to pay attention to investment risks, carefully study and judge the rationality of issuance pricing, and make investment decisions rationally. (2) As of February 8, 2022 (T-4), the valuation level of comparable listed companies is as follows: 5 securities code securities abbreviation: EPS before deduction in 2020 (yuan / share); EPS after deduction in 2020 (yuan / share); static P / E ratio corresponding to stock closing price (yuan / share) on T-4 day - static P / E ratio corresponding to deduction before (2020A) - 002923 after deduction after (2020A) SZ Zhuhai Rundu Pharmaceutical Co.Ltd(002923) 0.7316 0.6125 20.80 28.43 33.96300254. SZ Shanxi C&Y Pharmaceutical Group Co.Ltd(300254) -1.1509 -1.2603 7.76 -6.74 -6.16300436. SZ Fujian Cosunter Pharmaceutical Co.Ltd(300436) 0.0934 0.0093 34.48 369.3 3721.99300584. SZ Nanjing Hicin Pharmaceutical Co.Ltd(300584) 0.4603 0.4420 38.89 84.5 87.98600513. SH Jiangsu Lianhuan Pharmaceutical Co.Ltd(600513) 0.3577 0.3399 8.67 24.24 25.51688566. SH Jiangsu Jibeier Pharmaceutical Co.Ltd(688566) 0.6939 0.6103 21.20 30.55 34.73 mean value (excluding outliers - Shanxi C&Y Pharmaceutical Group Co.Ltd(300254) , Fujian Cosunter Pharmaceutical Co.Ltd(300436) ) 41.93 45.55 data source: wind information, data as of February 8, 2022. Note 1: if there is mantissa difference in the calculation of P / E ratio, it is caused by rounding; Note 2: EPS before / after deduction of non recurring profit and loss in 2020 = net profit attributable to the parent before / after deduction of non recurring profit and loss in 2020 / total share capital on T-4 day. The issuance price of 22.55 yuan / share corresponds to the lower diluted P / E ratio of the issuer before and after deducting non recurring profits and losses in 2020, which is 42.95 times higher than the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on February 8 (T-4) 2022, with an excess range of 13.62%; It is 45.55 times lower than the average static P / E ratio of comparable companies after deducting non-profit in 2020. There is a risk that the decline of the issuer's share price will bring losses to investors in the future. The issuer and the recommendation institution (lead underwriter) remind investors to pay attention to investment risks, carefully study and judge the rationality of issuance pricing, and make investment decisions rationally. (3) After the price of this offering is determined, 307 investors have submitted valid quotations for this offline offering, and 6926 placing objects have been managed, accounting for about 76.93% of the total number of placing objects after excluding invalid quotations; The total number of effective proposed subscriptions is 46021.8 million shares, accounting for about 76.19% of the total number of subscriptions after excluding invalid quotations, which is about 3186.23 times the initial offline issuance scale after strategic placement callback and before online and offline callback. (4) Investors are reminded to pay attention to the difference between the issuing price and the quotation of offline investors. For the quotation of offline investors, please refer to China Securities Journal, Shanghai Securities News, securities times, securities daily and cninfo (www.cn. Info. Com. CN) published on the same day Announcement on initial public offering and listing on gem of Jilin West Point Pharmaceutical Technology Development Co., Ltd. (hereinafter referred to as the "issuance announcement"). (5) The fund-raising demand amount disclosed in the letter of intent of Jilin West Point Pharmaceutical Technology Development Co., Ltd. for initial public offering and listing on GEM 6 (hereinafter referred to as the "letter of intent") is 341.459 million yuan, the offering price is 22.55 yuan / share, and the corresponding financing scale is 45553 yuan
