100000 shareholders, please pay attention! You need to pay for your shares. If you miss the allotment, you will lose 9%. There are only 4 days left in the time window (with strategy)

Another A-share listed company – Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) has entered the stage of allotment and payment. At present, there is only a 4-day allotment and payment period left.

According to the estimation, if the investors who still hold Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) fail to conduct the full allotment operation and pay in time, they will have a direct loss of nearly 9% after ex rights. Therefore, in order to avoid losses in vain, relevant investors must remember to participate in the allotment and pay in full.

Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) enter the allotment payment

forget to allot shares or lose nearly 9%!

According to the announcement of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) , the company has entered a five trading day allotment payment period (February 16, 2022 to February 22, 2022). After February 16, 2022, there are only four trading days left. Investors holding Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) A shares need to pay close attention to relevant matters.

According to the announcement of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) , the allotment price of the company is 4.50 yuan / share. Based on the total share capital of the company after the closing of Shenzhen Stock Exchange on the equity registration date (February 15, 2022), the allotment is made to all shareholders at the proportion of 1.5 shares per 10 shares, with a total number of 15978 million shares available. Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) the allotment code is “080970”, and the allotment is abbreviated as “Sanhuan A1 allotment”. If investors want to complete the allotment, they must declare the entrustment according to the allotment code and make payment.

It is worth noting that if investors forget to allocate shares or miss allocation, they will often cause certain losses. The principle here is that after the allotment is completed, the secondary market share price will take the ex right price as the reference benchmark, and the share price presented by the market software will generally decline after the ex right (because the allotment share price is generally lower than the closing price of the secondary market on the equity registration date).

As of the equity registration date, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) A shares were reported at 13.87 yuan. If calculated according to this price and the allotment price, the ex right price after the allotment is 12.65 yuan, which is nearly 9% lower than the closing price on the equity registration date. This means that if investors hold Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) and fail to allot and pay in time during the allotment period, they will have a direct loss of nearly 9% after ex rights.

Statistics show that the number of A-share shareholders of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) is about 100000.

Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) the controlling shareholder Beijing Sanhuan Holding Co., Ltd. promises to fully subscribe for the allotted shares in cash. In addition, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) is the general target of northbound land shares, which also involves Hong Kong investors to participate in the allotment. Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) announced that the issuer is the subject company of the interconnection between the mainland and Hong Kong stock markets and needs to arrange the allotment of shares to Hong Kong investors through the transaction interconnection mechanism between the mainland and Hong Kong stock markets.

Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) the total amount of funds raised in this allotment is expected to be no more than 720 million yuan. After deducting the issuance expenses, it is planned to be used for the new construction and technical transformation project of Ningbo keningda base and the new construction project of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) Ganzhou base.

For the purpose of the implementation of the investment project funded by the raised funds, Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) said in the allotment statement that in the current rare earth permanent magnet industry, the company is one of the largest production enterprises in China. In recent years, after market research and industrial research, the company has decided to establish a joint venture with southern rare earth group to establish Sanhuan (Ganzhou) new materials company in Ganzhou, The establishment of a production base of high-performance rare earth permanent magnet is intended to give full play to the respective advantages of both investors. At the same time, it is planned to upgrade and transform the existing factories in Ningbo production base and build the process supporting capacity. Therefore, it is planned to implement the new construction and technical transformation project of Ningbo keninda base. The construction of the new construction and technical transformation project of Ningbo keningda base and the new construction project of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) Ganzhou base will consolidate and develop the company’s leading position in the industry and optimize the strategic layout, and contribute to the improvement of the company’s production process and technical equipment level, the improvement of production capacity, the stability of quality, the self-improvement of supporting capacity, and the needs of enterprise development, It also meets the requirements of the development of China’s rare earth permanent magnet material industry.

Statistics show that Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) is one of the rare earth permanent magnet concept stocks in the A-share market. According to the Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) 2020 annual report, the company is mainly engaged in the research, development, production and sales of rare earth permanent magnet materials, new magnetic materials and their application products. The products are widely used in the fields of computer, household appliances, wind power, communication, medical treatment, automobile and so on. The company’s business model is to engage in the R & D, production and sales of Nd-Fe-B rare earth permanent magnet materials and new magnetic materials. The performance driven model is to explore the market and application fields of magnetic products. In the past 2021, rare earth permanent magnet concept stocks were sought after by the market, and the share price of Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) increased by 70% in 2021.

Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) the previously released performance forecast for 2021 shows that the company expects the net profit attributable to shareholders of Listed Companies in 2021 to be RMB 330 million-490 million, an increase of 155.18% – 278.90% over the same period of the previous year.

note: these A-share companies may allot shares

In addition to Beijing Zhong Ke San Huan High-Tech Co.Ltd(000970) , many companies have issued share allotment plans, which means that these A-share companies may also implement share allotment in the future. If calculated according to the progress, the companies accepted or approved by the CSRC are expected to be the first to enter the formal share allotment process in the future.

According to the reporter’s statistics, since 2021, many companies including Orient Securities Company Limited(600958) , Caitong Securities Co.Ltd(601108) , Norinco International Cooperation Ltd(000065) , China Industrial Securities Co.Ltd(601377) , Shannon Xinchuang, China Zheshang Bank Co.Ltd(601916) , Zhejiang Windey Co.Ltd(300772) , Shandong Lukang Pharmaceutical Co.Ltd(600789) , Cecep Wind-Power Corporation(601016) have issued share allotment plans.

Attached share allotment tips:

1. Is the general stock up or down after the allotment?

From the historical law, the stock trend after the allotment has risen and fell, and the allotment is not the decisive factor of the trend.

2. Do you want to participate in the allotment?

If you love deeply, please allot shares; If you don’t love it, sell it quickly.

Whether to participate in the allotment depends on the quality of the company and the purpose of funds. The allotment itself is neither good nor bad.

3. How to operate the allotment?

It’s simple. As long as you have this stock on the equity registration date, your trading software will display how many shares you can receive in total. Then, during the payment period of allotment, you can enter the allotment code and allotment price and buy it according to the maximum allotment.

4. Can I register multiple times?

You can buy in batches for many times and cancel the order without handling fee. Since there is no need to pay, there is only one option.

5. What if there is no money to allot shares?

If there is no money to participate in the allotment before the equity registration date, you can sell some positions to pay the allotment. For example, full warehouse 5000 shares can not participate in the allotment, sell 1000 shares at the market price, and then discount the allotment back.

6. Will I lose if I don’t participate in the allotment or sell shares?

Yes. The rights will be removed after the allotment. If you do not participate in the allotment, because the number of shares remains unchanged, you will directly suffer losses.

7. Can some parts be matched and some parts not?

Not recommended. If you decide to allot shares, you’d better allot enough. Otherwise, the reason is the same as above.

8. How to calculate the number of allotments?

If you hold 10000 shares and the allotment scheme is 10 with 3, you can get 3000 shares.

9. How to confirm whether the allotment is effective?

Due to the limited time for subscription of allotment shares, those who fail to make payment within the time limit will automatically give up the allotment shares, and there is no way to make up the payment later. Therefore, it is very important to confirm whether the subscription has been confirmed after the allotment. The allotment investors can verify it by checking the delivery order, dialing the telephone of securities companies and other ways to determine whether the subscription is effective.

It also reminds investors that it is best not to catch the last bus to participate in the allotment, so as not to have time to remedy in case of operational errors.

10. When will the allocated shares be listed?

The allotment did not arrive immediately. After the completion of the allotment payment, after the company publishes the share change announcement, the listing time shall be announced separately according to the arrangement of the stock exchange, and the trading can be carried out after listing, without the restriction period.

11. If there is money in the account, can it be deducted automatically?

No. Be sure to hang up the bill manually.

12. Do you need to pay the allotment fee?

No. Commission, transfer fee, stamp duty and issuance handling fee are all free.

13. How to know the information of allotment in time?

There are usually several trading days between the announcement of the news and the date of equity registration. Some investors “pretend to be dead” for a long time. If they don’t know that their shares will be allotted, they will suffer heavy losses if they neither pay nor sell them in time. What should I do?

For the allotment information, listed companies will continuously issue announcements to remind, and securities companies will generally prompt on the market software and official website. In addition, some securities companies will also notify investors by telephone, SMS and other means. Also remind you that the mobile phone should not block the service number of securities companies.

However, due to the change of investors’ contact information, there will still be cases where investors cannot be contacted. Therefore, securities companies often remind investors to update their contact information in time. If you don’t watch the market often, pick up the phone now and check with the securities company to update your contact information. This is not empty talk. It is really important!

14. What is the difference between share allotment and share offering and conversion?

Some people think that the allotment of shares is the same as sending shares and converting shares. Just ignore it and wait for your arrival. This is really a big mistake. Transfer and share transfer belong to the type of dividend, and share allotment is refinancing.

Share distribution: convert surplus reserve or undistributed profits into shares and distribute them to shareholders.

Share conversion: convert the capital reserve into shares and distribute them to shareholders.

Allotment of shares: allotment of shares is the act of a listed company to further issue new shares and raise funds to the original shareholders according to the needs of the company’s development.

It can be seen that the main difference between sending shares and converting shares lies in the different sources of shares. For individual investors, only the financial treatment is different, so there is no need to study deeply. For the shares to be sent or transferred, you can ignore it, and there is no need to make contributions, and allow the shares to be sent and transferred to the account.

But the allotment of shares is very different. It belongs to an option. You can allot shares or not. If you want to allot shares, you must choose by yourself manually. If you have money in your account, you will not allot shares by yourself. Once you hold the shares on the equity registration date and do not allot shares, it will be regarded as giving up and will suffer discount losses.

15. Is the calculation of the ex right price of share allotment, share offering and share conversion the same?

Different.

There may be only one thing in common between share allotment, share offering and share conversion: they all have to be ex rights. But the calculation of ex right price is different.

For example, for a stock of 10 yuan, 10 will be given / transferred / allocated 2, and the allotment price will be 8 yuan. The ex right price is:

Share offering and conversion: 10 / (1 + 0.2) = 8.33 yuan;

Allotment: (10 + 8 * 0.2) / (1 + 0.2) = 9.67 yuan.

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