Stock abbreviation: kunhengshunwei Stock Code: 688283 Chengdu kunhengshunwei Technology Co., Ltd
Chengdu KSW Technologies Co.,Ltd.
(address: No. 4, floor 1, building 6, No. 22, Xinwen Road, Chengdu high tech Zone)
Initial public offering
Listing announcement of science and Technology Innovation Board
Sponsor (lead underwriter)
(No. 8, Puming Road, China (Shanghai) pilot Free Trade Zone)
February 14, 2022
hot tip
The shares of Chengdu kunhengshunwei Technology Co., Ltd. (hereinafter referred to as “kunhengshunwei”, “the company” or “the issuer”, “the company”) will be listed on the science and Innovation Board of Shanghai Stock Exchange on February 15, 2022. The company reminds investors to fully understand the risks of the stock market and the risk factors disclosed by the company, avoid blindly following the trend of “speculation” in the initial stage of IPO, and make prudent decision and rational investment.
Section I important statements and tips
1、 Important statement
The company and all directors, supervisors and senior managers guarantee that the information disclosed in the listing announcement is true, accurate and complete, promise that there are no false records, misleading statements or major omissions in the listing announcement, and bear legal liabilities according to law.
The opinions of Shanghai Stock Exchange and relevant government authorities on the listing of the company’s shares and related matters do not indicate any guarantee to the company.
The company reminds investors to carefully read and publish on the website of Shanghai Stock Exchange（ http://www.sse.com.cn. ）The contents of the “risk factors” chapter of the company’s prospectus should pay attention to risks, make prudent decisions and make rational investment.
The company reminds the majority of investors to pay attention to the relevant contents not involved in this listing announcement. Please refer to the full text of the company’s prospectus.
The company reminds investors to pay attention to the investment risks at the initial stage of IPO listing. Investors should fully understand the risks and rationally participate in the trading of new shares. 2、 Special tips on investment risks at the initial stage of IPO
The company will be listed on the Shanghai Kechuang Stock Exchange on February 15, 2022. The company reminds investors to fully understand the risks of the stock market and the risk factors disclosed by the company, avoid blindly following the trend of “speculation” in the initial stage of IPO, and make prudent decision and rational investment. The company’s special tips on relevant risks are as follows: (I) stock trading risk of Kechuang board
On the first day of listing, enterprises on the main board of Shanghai Stock Exchange and Shenzhen stock exchange were limited to 44%, 36% and 10% respectively.
A wide range of price limits shall be set for the competitive trading of stocks on the science and innovation board. For the stocks listed in the initial public offering, there shall be no price limit in the first five trading days after listing, and the price limit thereafter shall be 20%; The Kechuang board further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk.
(II) risk of less circulating shares
At the initial stage of listing, the lock-in period of the original shareholders’ shares is 12 to 36 months, the lock-in period of the sponsor’s follow-up shares is 24 months, the lock-in period of the issuer’s senior managers and core employees participating in this strategic placement is 12 months, the lock-in period of some online lower limit share sales is 6 months, and the number of shares with limited sale conditions is 66.468673 million, accounting for 79.1294% of the total shares after issuance, The number of tradable shares without restrictions was 17531327 shares, accounting for 20.8706% of the total number of shares after issuance. At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity. (III) risk that the P / E ratio is lower than that of the same industry
The issuer’s industry is instrument manufacturing (classification code C40). As of January 25, 2022 (T-3), the industry’s average static P / E ratio in the latest month released by China Securities Index Co., Ltd. was 38.98 times, and the corresponding static P / E ratio (after deduction) of Chuangyuan instrument, a comparable listed company whose main business is similar to that of the issuer (Stock Code: 831961), was 68.38. The issue price is 33.80 yuan / share, and the price earnings ratio of the company is as follows:
(1) 47.46 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);
(2) 48.62 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 before the issuance);
(3) 63.28 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);
(4) 64.83 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).
The company’s issuance price of 33.80 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 64.83 times higher than the average static P / E ratio of the issuer’s industry in the latest month published by China Securities Index Co., Ltd. and lower than the average static P / E ratio of comparable companies in the same industry before and after deducting non recurring profits and losses in 2020, There is a risk that the decline of the issuer’s share price will bring losses to investors in the future. (IV) abnormal stock fluctuation risk
On the first day of listing, the shares on the science and innovation board can be used as the subject of margin trading, which increases the risk of sharp decline in share price caused by increased leveraged margin trading in the early stage of listing, while the main board market of Shanghai stock exchange requires that they can be used as the subject of margin trading after more than three months. In addition, the stock verification system for temporary suspension and serious abnormal fluctuations in the stock trading session of the science and innovation board is different from that of the main board market of the Shanghai Stock Exchange. Draw investors’ attention to relevant risks.
After the IPO and listing, in addition to the operation and financial status, the stock price of the company will also be affected by many factors such as the macroeconomic situation outside China, industry conditions, capital market trends, market psychology and various major emergencies. When considering investing in the company’s shares, investors should anticipate the possible investment risks caused by the above factors and make prudent judgments.
Unless otherwise specified, the abbreviations or terms in this listing announcement have the same meanings as those in the prospectus of the company’s initial public offering of shares. The following “reporting period” refers to 2018, 2019, 2020 and January June 2021.
3、 Special risk tip (I) during the reporting period, the current market demand of the company’s main product wireless channel simulator is limited, and the company’s future performance will face the risk of growth bottleneck
During the reporting period, the sales revenue of the company’s wireless channel simulator products was 17.2161 million yuan, 71.3344 million yuan, 92.9438 million yuan and 23.5363 million yuan respectively, accounting for 29.93%, 67.78%, 71.40% and 62.66% of the company’s main business revenue respectively. It is the core product and main source of revenue of the company during the reporting period.
Wireless channel simulator is a high-end product in the field of radio test and simulation. In addition to the company, the products in this field have been monopolized by international instrument giants, such as Germany technology and sboren. Based on the demand of core customers in the Chinese market for the product and the sales of Shide technology and sibron in China, the company calculates that the current demand in China is about 200 million yuan. In 2020, the sales revenue of the company’s wireless channel simulator in the Chinese market has reached 93 million yuan, and the market share in China has been close to 50%.
With the increasing investment in the construction of 5g base stations in China and the popularization of 5g communication technology in various application fields, the market demand of wireless channel simulator in China will increase to a certain extent, but the market demand growth of wireless channel simulator is limited in the short term. If the sales scale of other products of the company fails to grow rapidly, the future performance of the company will face a growth bottleneck.
At the same time, compared with foreign instrument giants in the same industry, the company still has a certain gap in product types, income scale, R & D investment, technical reserves and overall technical level. Although the company has achieved a technological breakthrough in wireless channel simulator products and has a leading advantage in multi-user test and simulation, it is still possible to be caught up or surpassed by foreign competitors within a certain period of time. In the future, if the foreign instrument giant enterprises surpass in technology, there is a risk of sharp decline in the market demand and sales revenue of the company’s wireless channel simulator products. If the sales scale of other products fails to grow rapidly, the company will face the risk of sharp decline in the overall sales revenue caused by the single main supply products and sharp decline in revenue. (II) the company’s operating performance fluctuates seasonally
During the reporting period, the company’s main business income was distributed quarterly as follows:
Unit: 10000 yuan
Project: January to June 2021, 2020, 2019, 2018
Amount proportion amount proportion amount proportion amount proportion amount proportion amount proportion
690.09 18.37% —- degrees in the first quarter
Second quarter 3065.83 81.63% 2192.94 16.85% 2238.22 21.27% 1319.81 22.94% degrees
Third quarter — 3087.92 23.72% 1601.27 15.21% 150.83 2.62% degrees
Four seasons — 7737.20, 59.43%, 6685.60, 63.52%, 4281.87, 74.43%
Total 3755.92 100.00% 13018.06 100.00% 10525.09 100.00% 5752.51 100.00%
Affected by customer structure, business characteristics and other factors, the company’s operating revenue and profit level are characterized by seasonal uneven distribution. The proportion of operating revenue and profit level in the second half of the year is higher than that in the first half of the year. The company’s main customers include mobile communication operators and equipment manufacturers such as China Mobile, Huawei, ZTE, Ericsson and Datang, as well as communication research institutes subordinate to the group such as China Electronics Technology, aerospace science and industry and Aerospace Hi-Tech Holding Group Co.Ltd(000901) . These customers have strict annual budget management systems. Their purchase approval, bidding and other work arrangements are usually arranged in the first half of the year, including product delivery, system testing The acceptance is mainly concentrated in the second half of the year, resulting in obvious seasonal fluctuations in the company’s income. The company’s income fluctuates seasonally, but the company’s labor costs, expenses and other expenses occur relatively evenly throughout the year. Therefore, the company may have low profits or losses in the first quarter and half of the year, and the company’s operating performance has the risk of seasonal fluctuation. (III) during the reporting period, the company’s sales concentration to major customers was high
The company’s products are positioned in the field of high-end radio test and simulation. Its customers are mainly mobile communication operators and equipment manufacturers such as China Mobile, Huawei, ZTE, Ericsson and Datang, subordinate communication research institutes such as CETC, aerospace science and industry, Aerospace Hi-Tech Holding Group Co.Ltd(000901) group and relevant scientific research institutions such as the Chinese Academy of Sciences. The company obtains business independently through negotiation, bidding and other means, and has no relationship with the above group and its subordinate units.
During the reporting period, the company sold 39.5364 million yuan, 86.1571 million yuan, 80.0337 million yuan and 22.5858 million yuan to the top five customers of the consolidated caliber, accounting for 68.48%, 81.70%, 61.48% and 58.16% of the operating revenue of each period respectively. The sales customers were relatively concentrated.
In the future, if the issuer is unable to maintain its technical advantages among its main customers and maintain its cooperative relationship with its main customers, the operating performance of the company will be greatly affected. At the same time, if the customer’s demand for the company’s main products changes or the company’s competitor’s products are superior to the company in technical performance, it will have an adverse impact on the company’s operating performance. (IV) trade friction leads to the import risk of key core devices used by the company’s products
In 2018, 2019, 2020 and January June 2021, the amount of electronic components and other materials purchased by the company from overseas was 6.2772 million yuan, 18.639 million yuan, 38.3515 million yuan and 13.6297 million yuan respectively, accounting for 31.82%, 46.51%, 59.86% and 45.68% of the total procurement respectively. Some key core devices of the company’s equipment are dependent on foreign brands. Although the company has prepared chips and other key core devices in advance, it is still possible that the above key core devices may not be purchased in time on demand due to the influence of trade embargo, control and other factors of the exporting country, which may have an adverse impact on the production and operation of the company. (V) recovery risk of accounts receivable
At the end of each reporting period, the book balance of the company’s accounts receivable was 49.9765 million yuan, 74.6036 million yuan, 87.2632 million yuan and 77.7064 million yuan respectively, accounting for 56.47%, 54.06%, 43.18% and 40.43% of the total assets. The downstream customers of the company are mainly mobile communication operators and equipment manufacturers such as China Mobile, Huawei, ZTE, Ericsson and Datang, as well as China Electronics Technology and aerospace
