Chengdu Lihang Technology Co., Ltd
IPO announcement
Sponsor (lead underwriter): Huaxi Securities Co.Ltd(002926)
hot tip
According to the measures for the administration of securities issuance and underwriting (CSRC order [No. 144]) and the measures for the administration of initial public offering and listing (CSRC order [No. 173]) issued by the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”), The Shanghai Stock Exchange (hereinafter referred to as the “Shanghai Stock Exchange”) promulgated the detailed rules for the implementation of online issuance of initial public offerings in Shanghai market (SZF [2018] No. 40) (hereinafter referred to as the “detailed rules for the implementation of online issuance”) and the code for the underwriting business of initial public offerings (zjf [2018] No. 142) issued by the China Securities Association, Chengdu Lihang Technology Co., Ltd. (hereinafter referred to as “issuer” or “Lihang technology”) and Huaxi Securities Co.Ltd(002926) (hereinafter referred to as ” Huaxi Securities Co.Ltd(002926) ” or “sponsor (lead underwriter)”) organize and implement the initial public offering of shares.
1. Please pay attention to the key contents of the issuance process, subscription, payment and suspension of issuance:
(1) This offering adopts the direct pricing method, and all shares are issued online to the social public investors holding a certain market value of non restricted A-Shares and non restricted depositary receipts in Shanghai market, without offline inquiry and placement.
(2) The issue price is 19.70 yuan / share. According to the issuing price, investors will apply for the purchase through the trading system of Shanghai Stock Exchange on March 3, 2022 (t day, Subscription Date) and online subscription by market value. Investors do not need to pay the subscription fund when making online subscription, and the online subscription time is 9:30-11:30 and 13:00-15:00.
(3) Online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares on their behalf.
(4) After winning the lottery of new shares, online investors shall fulfill their payment obligations in accordance with the announcement of lottery results of online pricing issuance of initial public offering of Chengdu Lihang Technology Co., Ltd. (hereinafter referred to as “announcement of lottery results of online pricing issuance”) announced on March 7, 2022 (T + 2), Ensure that its capital account has sufficient subscription funds for new shares on March 7, 2022 (T + 2), and the insufficient part shall be deemed as abandoning the subscription. The resulting consequences and relevant legal liabilities shall be borne by the investors themselves. The transfer of investors’ funds shall comply with the relevant provisions of the securities company where the investors are located.
The shares that the winning investors give up to subscribe for shall be underwritten by the sponsor (lead underwriter).
(5) When the number of shares subscribed by online investors is less than 70% of the number of this public offering, the sponsor (lead underwriter) will suspend the issuance of new shares and disclose the reasons for the suspension and subsequent arrangements.
(6) If an online investor has won the lottery for 3 times but failed to pay in full within 12 consecutive months, it shall not participate in the online subscription of new shares, depositary receipts, convertible corporate bonds and exchangeable corporate bonds within 6 months (calculated as 180 natural days, including the next day) from the next day of the settlement participant’s latest declaration of abandonment of subscription.
2. The issuer and the recommendation institution (lead underwriter) solemnly remind the majority of investors to pay attention to investment risks and invest rationally. They should carefully read this announcement and publish it in China Securities Journal, Shanghai Securities News, securities times, securities daily and the website of Shanghai Stock Exchange on the same day（ http://www.sse.com.cn. ）Special announcement on investment risk of initial public offering of shares by Chengdu Lihang Technology Co., Ltd. (hereinafter referred to as “special announcement on investment risk”).
Valuation and risk tips
The investment of new shares has great market risks. Investors need to fully understand the investment risks of new shares, carefully study the risks disclosed in the issuer’s prospectus, fully consider the following risk factors, and prudently participate in the subscription of new shares:
1. According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of the issuer is “C37 railway, ship, aerospace and other transportation equipment manufacturing industry”. The issuance price of 19.70 yuan / share corresponds to the lower of the issuer’s net profit attributable to the shareholders of the parent company in 2020 after deducting non recurring profits and losses, and the diluted P / E ratio is 22.59 times, It is 40.37 times lower than the static average p / E ratio of “C37 railway, shipbuilding, aerospace and other transportation equipment manufacturing industry” released by China Securities Index Co., Ltd. (as of February 28, T-3, 2022). Please refer to it when making decisions.
2. The issuer plans to use the raised capital for this raised investment project, with an investment amount of 3347213 million yuan. Based on the 19.25 million new shares issued and the issue price of 19.70 yuan / share, the total amount of funds raised is expected to be 379225 million yuan. After deducting the issuance cost of 445037 million yuan (excluding value-added tax), the net amount of funds raised is expected to be 3347213 million yuan, which does not exceed the expected amount of funds raised by the issuer for the project.
3. If the issuer’s raised funds are not used properly or the business cannot grow synchronously in the short term, it will have an adverse impact on the issuer’s profitability or there is a risk of a significant decline in the issuer’s return on net assets, resulting in a decline in the issuer’s valuation level and stock price, resulting in a risk of loss to investors. 4. In 2020, the issuer achieved an operating income of 2930315 million yuan, a year-on-year increase of 23.37%; The net profit was 693298 million yuan, a year-on-year increase of 1.70%; After deducting non recurring profits and losses, the net profit attributable to the owner of the parent company was 671207 million yuan, a year-on-year increase of 1.79%.
From January to June 2021, the issuer realized an operating revenue of 872441 million yuan, a year-on-year increase of 24.74%; The net profit was 129161 million yuan, a year-on-year increase of 3.18%; After deducting non recurring profits and losses, the net profit attributable to the shareholders of the parent company was 128566 million yuan, a year-on-year increase of 3.25%.
According to the review report (xyzh / 2022bjag10016) issued by ShineWing Certified Public Accountants (special general partnership), the issuer achieved an operating revenue of 309817700 yuan in 2021, an increase of 5.73% year-on-year; The net profit attributable to the owners of the parent company was 738202 million yuan, a year-on-year increase of 6.48%; After deducting non recurring profits and losses, the net profit attributable to the owner of the parent company was 704688 million yuan, a year-on-year increase of 4.99%.
According to the actual operation of the company’s current business, the company expects the operating revenue in the first quarter of 2022 to be 301937 million yuan to 312637 million yuan, with a change range of 148.71% to 157.53% compared with the same period of the previous year; The net profit attributable to the owners of the parent company ranged from 2.3022 million yuan to 2.8292 million yuan, turning losses into profits year-on-year; After deducting non recurring profits and losses, the net profit attributable to the owners of the parent company was 2.3022 million yuan to 2.8292 million yuan, turning losses into profits year-on-year.
The relevant financial data in the above performance forecast for the first quarter of 2022 are the preliminary calculation results of the company, and the estimated number does not represent the final achievable operating revenue and net profit of the company, nor is it the profit forecast of the company.
Investors are hereby reminded to pay attention to the risk of performance fluctuation of the issuer and participate in decision-making rationally.
Important tips
1. The application of Lihang technology for the initial public offering of no more than 19.25 million RMB common shares (A shares) (hereinafter referred to as “this offering”) has been approved by the CSRC in the document of “CSRC license [2022] No. 380”. The sponsor (lead underwriter) of this offering is Huaxi Securities Co.Ltd(002926) . The issuer’s stock is abbreviated as “Lihang technology” and the stock code is “603261”.
2. This issuance is conducted by online subscription based on market value and direct pricing from public investors (hereinafter referred to as “online issuance”), without offline inquiry and placement. Online issuance is carried out through the trading system of Shanghai Stock Exchange. The subscription issued online is referred to as “Lihang subscription” for short, and the online subscription code is “732261”. 3. Before this offering, the total share capital of the issuer was 57711822 shares. The number of shares issued by the issuer this time is 19.25 million, accounting for 25.01% of the total share capital after issuance, and the total share capital after issuance is 76961822 million. All the shares issued this time are new shares, and the transfer of old shares is not arranged. Among them, 19.25 million shares were issued online, accounting for 100% of the total issued this time. Offline issuance is not allowed.
4. The issuer and the recommendation institution (lead underwriter) comprehensively consider the market environment, the operation of the issuer, the industry, the valuation level of comparable listed companies, the demand for funds to be raised and the underwriting risk, and negotiate to determine the issuance price of this issuance as 19.70 yuan / share. The price earnings ratio corresponding to this price is:
(1) 22.59 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company in 2020 before and after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards by the total share capital after this issuance);
(2) 16.94 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company in 2020 before and after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards by the total share capital before this issuance).
5. If the issuance is successful, the total amount of funds raised by the issuer is expected to be 3792250 million yuan. After deducting the issuance expenses of 445037 million yuan (excluding value-added tax), the net amount of funds raised is expected to be 3347213 million yuan, which does not exceed the amount of investment of 3347213 million yuan that the issuer intends to use in this raised investment project disclosed in the prospectus. The use plan of the issuer’s raised funds and other relevant information were disclosed in the prospectus for initial public offering of shares of Chengdu Lihang Technology Co., Ltd. on March 1, 2022 (T-2). The full text of the prospectus can be found on the website of Shanghai Stock Exchange（ http://www.sse.com.cn. ）Query.
6. Important issues of online distribution
(1) The online subscription time is: 9:30-11:30 and 13:00-15:00 on March 3, 2022 (t day). Online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares on their behalf. (2) Investors who hold the securities account card of China Securities Depository and Clearing Co., Ltd. Shanghai branch and hold non restricted A-share shares and non restricted depositary receipts in Shanghai market with an average daily market value of more than 10000 yuan (including 10000 yuan) 20 trading days (including T-2) before March 1, 2022 can participate in Online issuance. The market value of non restricted A-Shares and non restricted depositary receipts in Shenzhen market is not included in the calculation.
(3) Investors shall determine their online subscription quota according to the daily average market value of non restricted A-Shares and non restricted depositary receipts in Shanghai market (hereinafter referred to as “market value”), and the market value shall not be calculated for unqualified, dormant and cancelled securities accounts. The market value of non restricted A-Shares and non restricted depositary receipts in Shenzhen market is not included in the calculation. According to the daily average holding market value of investors in the 20 trading days (including T-2 days) before March 1, 2022 (T-2 days), if the opening time of securities account is less than 20 trading days, the daily average holding market value shall be calculated according to 20 trading days. Investors with a market value of more than 10000 yuan (including 10000 yuan) can participate in the subscription of new shares. One subscription unit can be purchased for every 10000 yuan market value, and the part less than 10000 yuan is not included in the subscription amount. Each subscription unit is 1000 shares, and the subscription amount shall be 1000 shares or an integral multiple thereof, but the maximum subscription amount shall not exceed one thousandth of the online issuance, that is, 19000 shares. If it exceeds, the subscription shall be invalid. At the same time, the investor’s subscription amount shall not exceed the upper limit of the online subscription amount calculated according to the market value. If the subscription amount does not exceed 19000 shares, but exceeds the upper limit of the online subscription amount corresponding to the market value, the part exceeding the upper limit is invalid.
(4) Investors do not need to pay the subscription fund when they apply for the purchase on March 3, 2022 (t day).
(5) During the subscription period, the investor shall fill in the entrustment form at the issue price by means of entrustment to buy shares. Once declared, the order shall not be cancelled. Investors who participate in online issuance and subscription can only use one securities account. If the same investor uses multiple securities accounts to participate in the subscription of the same new share, or if the investor uses the same securities account to participate in the subscription of the same new share for many times, the first subscription of the investor shall be valid, and the other subscriptions shall be invalid. If an investor holds multiple securities accounts, the market value of multiple securities accounts shall be calculated jointly. The principle of confirming that multiple securities accounts are held by the same investor is that the “account holder name” and “valid identity document number” in the securities account registration data are the same. The registration data of securities account shall be subject to the end of March 1 (T-2) 2022.
The market value of the credit securities account of the margin trading customer is calculated into the market value held by the investor, and the market value of the refinancing guarantee securities detailed account of the securities company is calculated into the market value held by the securities company.
(6) If the “account holder’s name” and “valid ID number” in the registration data of the securities account are the same, the market value shall be calculated separately according to the securities account and participate in the subscription.
7. The online subscription of this offering will be closed at 15:00 on March 3, 2022 (t day, subscription day).
After 15:00 on the t day, the Shanghai Stock Exchange confirmed the total amount of online effective subscription, and each effective subscription unit was assigned a number. All effective subscriptions were continuously assigned numbers in chronological order until the last effective subscription, and new shares were allotted according to the following principles:
(1) If the online effective subscription quantity is less than or equal to the online issuance quantity, no lottery is required. All allotment numbers are winning numbers, and investors subscribe for new shares according to their effective subscription quantity.
(2) If the number of effective online subscription is greater than the number of online issuance, the Shanghai Stock Exchange shall determine each 1000 shares as a subscription allotment number, arrange the numbers in sequence, determine the effective subscription winning number by lottery, and subscribe 1000 shares for each winning application number.
On March 4, 2022 (T + 1), the issuer and the recommendation institution (lead underwriter) announced the winning rate in the designated media. If the effective subscription amount is greater than the online issuance amount, the issuer and the recommendation institution (lead underwriter) shall be responsible for the issuance on T + 1 day under the supervision of the notary department
