Jiangsu newtage Technology Co., Ltd
（Jiang Su New Technology CO.，LTD.）
(No. 161, Songjiang Road, Huaiyin Economic Development Zone, Huai'an City, Jiangsu Province)
Listing announcement of initial public offering and listing on GEM
Sponsor (lead underwriter)
(401, building B7, Qianhai Shenzhen Hong Kong fund Town, 128 guiwan fifth road, Nanshan street, Qianhai Shenzhen Hong Kong cooperation zone, Shenzhen) February 2022
hot tip
Jiangsu newtage Technology Co., Ltd. (hereinafter referred to as "newtage", "issuer", "the company" or "the company") will list its shares on the gem of Shenzhen Stock Exchange on February 22, 2022, which has high investment risk. GEM companies have the characteristics of unstable performance, high operation risk and high delisting risk, and investors are facing greater market risk. Investors should fully understand the investment risks of the gem and the risk factors disclosed by the company, and make investment decisions prudently.
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.
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 and listing on the gem.
The "reporting period" of this listing announcement refers to 2018, 2019, 2020 and January June 2021.
The data listed in this listing announcement may be slightly different from the results calculated according to the relevant single data listed in the listing announcement due to rounding.
Section I important statements and tips
1、 Important statement
The company and all directors, supervisors and senior managers guarantee the authenticity, accuracy and completeness of the listing announcement, 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 Shenzhen 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 the information published on cninfo.com.cn China Securities Network (www.cs. Com. CN.) China Securities Network (www.cn. Stock. Com.) Securities Times (www.stcn. Com.) Securities Daily (www.zqrb. 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.
2、 Special tips on investment risks at the initial stage of IPO
The issuance price of 20.28 yuan / share corresponds to the issuer's audited diluted P / E ratio of net profit attributable to shareholders of the parent company before and after deducting non recurring profits and losses in 2020, which is 29.68 times, which is lower than the average static P / E ratio of C36 automobile manufacturing industry released by China Securities Index Co., Ltd. on February 8 (T-3) 2022, It is also 47.12 times lower than the arithmetic mean value of the static P / E ratio of comparable listed companies (as of February 8, 2022) in 2020 after deducting non earnings, but there is still a risk that the decline of the issuer's share price will bring losses to investors in the future. There is a risk that the net asset scale will increase significantly due to the acquisition of raised funds, which will have an important impact on the issuer's production and operation mode, operation management and risk control ability, financial status, profitability and long-term interests of shareholders. 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.
The company reminds investors to pay attention to the investment risks in the initial stage of IPO (hereinafter referred to as "new shares"), and investors should fully understand the risks and rationally participate in the trading of new shares.
Specifically, the risks at the initial stage of listing include but are not limited to the following:
(I) relaxation of price limit
The competitive trading of GEM stocks is subject to a wide range of rise and fall limits. For stocks that are IPO and listed on the gem, there is no rise and fall limit in the first five trading days after listing, and then the rise and fall limit is 20%. On the first day of the listing of new shares on the main board of Shenzhen Stock Exchange, the increase limit was 44%, the decrease limit ratio was 36%, and the increase and decrease limit was 10% from the next trading day. The gem further relaxed the limit on the rise and fall range at the initial stage of stock listing, improving the trading risk.
(II) a small number of tradable shares
After this issuance, the total share capital of the company is 80000000 shares, of which 20000000 shares are tradable without conditions of sale, accounting for 25% of the total share capital after issuance. The number of tradable shares in the initial stage of listing is small, and there is a risk of insufficient liquidity.
(III) risk of margin trading
The stock can be used as the subject matter of margin trading on the first day of listing, which may produce certain price fluctuation risk, market risk, margin increase risk and liquidity risk. Price fluctuation risk refers to that margin trading will aggravate the price fluctuation of the underlying stock; Market risk refers to that when investors use stocks as collateral for financing, they need to bear not only the risks caused by the change of the original stock price, but also the risks caused by the change of the stock price of new investment, and pay the corresponding interest; Margin call risk means that investors need to monitor the level of guarantee ratio in the whole process of trading to ensure that it is not lower than the maintenance margin ratio required by margin trading; Liquidity risk refers to that when the price of the underlying stock fluctuates violently, the financed purchase of securities or the repayment of securities, the sale of securities or the repayment of securities may be blocked, resulting in greater liquidity risk.
3、 Special risk tips
The company reminds investors to carefully read the "section IV Risk Factors" of the prospectus and pay special attention to the following matters: (I) the risk of concentration of main customers and significant dependence on a single customer
The company's main customers include BASF, Tennessee, Wandu, Yanfeng Piou and other well-known auto parts manufacturers at home and abroad. During the reporting period, the company's sales to the top five customers accounted for 97.11%, 91.16%, 84.53% and 82.96%, with high customer concentration. During the reporting period, the company's sales to BASF, the largest customer of the company, accounted for 66.25%, 57.05%, 45.19% and 46.98%. The company has a significant dependence on BASF. However, the issuer has a long cooperation time with BASF, a wide range of cooperation, stable and sustainable business, and the dependence of the customer has no significant adverse impact on the issuer's continuous operation. If the long-term cooperative relationship between the company and BASF and other important customers changes or terminates in the future, or the main customers reduce the purchase of the company's products due to their own business reasons or major adverse changes in the macroeconomic environment, or due to the company's product quality, technological innovation and product development Production and delivery cannot meet the needs of customers, resulting in adverse changes in the cooperative relationship with customers, and the company cannot expand other new customers in time, which will have an adverse impact on the company's operating performance.
(II) the development of the company's suspension damping support business depends on BASF's risk of developing end customers
During the reporting period, the suspension and damping support business provided by the company to BASF achieved revenue of 133.4618 million yuan, 202.3275 million yuan, 195.7652 million yuan and 109.1782 million yuan respectively, accounting for 46.85%, 49.38%, 40.46% and 42.41% of the main business revenue in the same period. BASF sells polyurethane suspension damping support, but at present, the elastomer for suspension damping support is still mainly rubber material. Polyurethane material is in the process of gradually replacing rubber material. The selection of elastic material for suspension damping support by vehicle manufacturers depends on their performance requirements for the product Cost budget and technical team's approval of polyurethane suspension damping support. At present, BASF is the main customer of the company's suspension damping support business, with a large amount of revenue and a high proportion in the main business revenue. The development of suspension damping support business mainly depends on BASF's development of end customers. If BASF's Polyurethane suspension damping support business is not developed well, The development of the suspension shock absorption support business provided by the company to BASF will be adversely affected. (III) risks of expanding customers other than BASF that are less than expected
In order to reduce the company's dependence on BASF, the company has continued to develop new customers in recent years. During the reporting period, the company has begun to supply a series of well-known auto parts suppliers at home and abroad, such as Yanfeng Piou, Toyo rubber and plastic, Huayu vision, Shanghai Carthane Co.Ltd(603037) , Anhui Zhongding and other new customers, as well as Geely Automobile, Mazda and other vehicle manufacturers. By the end of June 2021, the company has obtained the project fixed points of Yingzhi automobile, Schaeffler, Ningjiang Shanchuan and Wanxiang, but has not yet delivered in batch, and has passed the new supplier admission audit of new customers such as Borg Warner, Magna, Saic Motor Corporation Limited(600104) passenger car branch, Great Wall Motor Company Limited(601633) and Volvo cars.
The project development cycle of the automotive industry is long, so the time interval between the company obtaining the fixed point of the project and the realization of mass production of products is relatively long. Moreover, when the project is fixed, the customer's predicted mass production time and scale will usually be different from the actual situation in the future due to the influence of project development progress, market environment and other factors. In addition, customers generally select suppliers of specific products from their qualified suppliers by means of bidding. Therefore, the company's passing the new supplier access audit of the above new customers does not mean that the company has obtained or will immediately obtain project fixed points or orders. If the company's development of the above new customers and new projects is less than expected, the company will still rely on BASF, and there is a risk that the company's growth is lower than expected. (IV) price fluctuation risk of raw materials
The main raw materials used by the company for production are aluminum ingots and plastic particles. During the reporting period, the proportion of the company's direct materials in the current production cost was more than 50%, accounting for a relatively high proportion. Since 2021, due to the large-scale stimulus plan issued by the governments of major economies and the ultra loose monetary policy implemented by the central banks of major economies, the global liquidity environment has remained extremely loose. In addition, the overseas epidemic has rebounded significantly, there are still constraints on the supply side, and the global commodity prices have shown an upward trend. In the first half of 2021, the price of plastic particles purchased by the company increased slightly compared with the average purchase price in 2020, and the purchase price of aluminum ingots increased significantly compared with the average purchase price in 2020. If the price of the company's main raw materials rises sharply, and it is difficult for the company to absorb the above effects through cost control measures and product price adjustment, the gross profit margin of the company's products will decline, which will have an adverse impact on the company's operating performance. (V) risk of production capacity decline in the automotive industry due to chip supply interruption
Affected by the global chip shortage, major automobile manufacturers outside China have successively announced plans to stop production or reduce production. Affected by the reduction of automobile production of downstream customers, except chip suppliers, the auto parts industry is facing the pressure of downstream customers to reduce orders. The overall sales of the company in the first half of 2021 are less affected by the chip shortage, However, the order scale in July and August has been significantly reduced compared with the forecast scale at the end of last year. Due to the repeated global covid-19 epidemic, there is still great uncertainty about the time when the chip shortage problem will be completely alleviated. If the chip shortage continues, the company may face the cancellation or significant reduction of orders caused by downstream production reduction, This will adversely affect the company's short-term operating performance and draw investors' attention to relevant risks. (VI) business risks caused by "covid-19 epidemic"
The company adopts the production mode of setting production according to sales. The impact of covid-19 epidemic on the company is mainly reflected in the delay of resumption of work and the reduction of orders during the epidemic period. From February to may 2020, the operating rates of various businesses of the issuer were at a low level. With the control of the epidemic and the recovery of the automobile consumption market, the production and sales of the company have gradually returned to the normal level since June 2020. At present, China's "covid-19 epidemic" has been effectively controlled, and the company's procurement, production and sales have basically returned to normal. However, if the epidemic in China repeats in the future, it may have a significant adverse impact on the company's performance. (VII) risks of cyclical fluctuations in macro economy and automobile industry
The company's main products are used in the automotive industry, so the company's production and operation status is closely related to the macro-economy and the development status and development trend of the automotive industry. When the macro economy is in the boom cycle, the automobile consumption is active and the demand for automobile parts increases; On the contrary, when the macro economy is in recession, the automobile consumption is depressed and the demand for automobile parts is reduced. The company's main customers are well-known auto parts manufacturers outside China. If the operation of customers is adversely affected by the macroeconomic downturn, the company's orders may be reduced and the payment collection cycle may be longer. (VIII) innovation risk
The company is mainly engaged in the R & D, production and sales of aluminum cast parts and plastic parts in the fields of automobile suspension system, automobile interior and exterior decoration, etc. For a long time, the company has attached importance to the development and improvement of its own innovation ability, and continuously innovated and improved its production process and product R & D. It is one of the few enterprises in the industry that master the production process of aluminum die casting and blow injection molding at the same time, and can provide customers with one-stop solutions from mold development to product manufacturing. However, there are certain uncertainties in innovation and creation. If the company fails to meet expectations in its own innovation and improvement and new product development, it will have a significant adverse impact on the company's business performance, core competitiveness and future development. (IX) risk of uncollectible accounts receivable
At the end of each reporting period, the book value of accounts receivable was 81.0628 million yuan, 111.2582 million yuan, 166.388 million yuan and 141.4289 million yuan respectively, accounting for 22.37%, 22.39%, 29.22% and 24.91% of the total assets of the company respectively. The company's cooperation with major customers was good, and there was no case that large accounts receivable could not be recovered during the reporting period. However, if the company lacks effective management of accounts receivable in the future, or major adverse changes have taken place in the operation of the company's customers, the company may face the risk of untimely or even unrecoverable collection of accounts receivable. (x) risk of inventory impairment
At the end of each reporting period, the book value of the company's inventory was 31.5323 million yuan, 59.5784 million yuan, 82.8744 million yuan and 91.5667 million yuan respectively, accounting for 8.70%, 11.99%, 14.55% and 16.13% of the total assets respectively. With the increase of new auto parts projects undertaken by the company in recent years
