After this stock issue, it is planned to be listed on the gem, which has high investment risk. GEM companies have the characteristics of large investment in innovation, uncertainty about the success of the integration of new and old industries, still in the growth stage, high operation risk, unstable performance and high delisting risk. Investors are facing greater market risks. Investors should fully understand the investment risks of the gem and the risk factors disclosed by the company, and make investment decisions prudently.
Hangzhou Heshun Technology Co., Ltd
Hangzhou Heshun Technology Co., Ltd.
(room 512, floor 5, building 1, No. 11, Liangzhan Road, Renhe street, Yuhang District, Hangzhou, Zhejiang Province)
Initial public offering and listing on GEM
Letter of intent
Sponsor (lead underwriter)
(floor 12 and 15, block B, Xinsheng building, No. 5, Financial Street, Xicheng District, Beijing)
Important tips
Any decision or opinion made by the CSRC and the exchange on this issuance does not indicate that they guarantee the authenticity, accuracy and completeness of the registration application documents and the information disclosed, nor do they indicate that they make substantive judgment or guarantee on the profitability, investment value of the issuer or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, the issuer shall be responsible for the changes in the operation and income of the issuer after the shares are issued according to law; Investors independently judge the investment value of the issuer, make investment decisions independently, and bear the investment risks caused by the changes in the operation and income of the issuer or the changes in the stock price after the shares are issued according to law.
Statement
The issuer and all directors, supervisors and senior managers promise that the prospectus and other information disclosure materials are free from false records, misleading statements or major omissions, and bear corresponding legal liabilities.
The controlling shareholder and actual controller of the issuer promise that there are no false records, misleading statements or major omissions in this prospectus, and bear corresponding legal liabilities.
The person in charge of the company, the person in charge of accounting and the person in charge of the accounting institution shall ensure that the financial and accounting materials in the prospectus are true and complete.
The issuer and all directors, supervisors, senior managers, controlling shareholders, actual controllers, sponsors and underwriting securities companies promise to compensate investors for losses in securities issuance and trading due to false records, misleading statements or major omissions in the issuer’s prospectus and other information disclosure materials.
The sponsor and the securities service institution promise to compensate the investors for the losses caused to the investors due to the false records, misleading statements or major omissions in the documents prepared and issued for the issuer’s public offering.
Overview of this offering
Type of shares issued: RMB ordinary shares (A shares)
The number of shares issued in this public offering shall not exceed 20 million, and the number of shares issued in this public offering and the proportion of circulating shares in the total number of shares after issuance to the total number of shares of the company shall not be less than 25%. The proportion and quantity of the final issued share capital shall be subject to the examination and registration results of the competent regulatory authorities such as China Securities Regulatory Commission and Shenzhen Stock Exchange. This offering does not involve the public offering of shares by shareholders.
The par value of each share is RMB 1.00
The issue price per share is [] yuan
Expected issue date: March 14, 2022
The stock exchange to be listed and the gem of Shenzhen Stock Exchange
Total share capital after issuance of 80 million shares
Sponsor (lead underwriter) Dongxing Securities Corporation Limited(601198)
Signing date of the prospectus: March 4, 2022
Tips on major issues
The company specially reminds investors that before making investment decisions, they must carefully read the text of this prospectus and pay special attention to the following important matters. 1、 Special risk tips
(I) risk of price fluctuation of raw materials
During the reporting period, the main business cost of the company’s self-produced products and the cost of raw materials accounted for 78.03%, 77.52%, 72.17% and 75.55% respectively. According to the proportion of direct materials, direct labor and manufacturing expenses in the operating costs of various products of the company, the sensitivity coefficient of gross profit margin of various products to the price of raw materials in each period of the reporting period is as follows:
Product category January June 20212020 20192018
Colored photoelectric base film -0.97 -1.03 -1.45 -1.73
Transparent film -1.57 -2.10 -9.12 -6.90
Other functional films -1.55 -1.13 -1.30 -1.51
The sensitivity coefficient of the gross profit margin of various products of the company to the price of raw materials is greater than or close to 1. The price of raw materials has a great impact on the gross profit margin of products, of which the gross profit margin of transparent film has the greatest impact, mainly because the technical content of transparent film is relatively low, the gross profit margin is relatively low, and the impact of the purchase price change of polyester chips, the main raw material, on the cost and gross profit margin is higher than that of other products. Polyester chip, the main raw material of the company’s products, belongs to petrochemical products, and its price fluctuates to varying degrees due to the influence of crude oil price and market supply and demand. In each period of the reporting period, the average purchase price of polyester chips of the company was 7.66 yuan / kg, 6.41 yuan / kg, 4.28 yuan / kg and 5.23 yuan / kg respectively. By the end of June 2021, the ccfei price index of polyester chips had increased from 4.80 yuan / kg at the end of 2020 to 6.30 yuan / kg, an increase of 31.25%. If the price of raw materials rises sharply and the company cannot effectively transfer the pressure of rising raw material prices, the gross profit margin of the company’s products will decline sharply, which will have an adverse impact on the company’s sustainable profitability.
(II) the risk of gross profit rate decline due to intensified market competition
At present, in the polyester film industry where the company is located, foreign manufacturers are in an advantageous position in the industry competition by virtue of their technical advantages, especially in the high-end field, while Chinese polyester film manufacturers, including the company, are generally facing a more severe market competition situation due to their relatively weak technology accumulation.
In the future, if Chinese and foreign manufacturers in the industry use the advantages of capital and talents to successfully develop and mass produce colored photoelectric base films, implement malicious competition or adverse changes in the downstream electronic industry, there will be a risk of decline in the market price and gross profit margin of colored photoelectric base films due to changes in supply and demand.
In 2020, the revenue share of transparent film increased from 15.60% in 2019 to 38.36%, and the gross profit margin of transparent film increased from 7.60% in 2019 to 24.76%. From January to June 2021, the revenue share of transparent film further increased to 44.90% and the gross profit margin reached 32.21%, mainly due to the growth of market demand for transparent film and the low price of raw materials. With the release of new production capacity in the industry, the market supply and demand of transparent film will tend to balance, the market competition will be more intense, and the high gross profit margin of transparent film is difficult to sustain. If the transparent film products of the company cannot be digested by the downstream market, the comprehensive gross profit margin of the issuer’s products is at risk of sharp decline.
(III) the risk that changes in the market environment in the field of end consumption may lead to the decline of the issuer’s gross profit margin
The technology development trend of the consumer electronics industry is diversification, thinness, flexibility, high integration and high precision. The market environment will change accordingly due to the rapid development of technology in the consumer electronics industry. In the future, if the technical reserve or new technology development direction of the company’s non-ferrous photoelectric base film does not conform to the technical development trend of the consumer electronics industry and cannot meet the changes of customer demand, the company will face the risk of decline in the price and gross profit margin of its main products. (IV) digestion risk of new capacity
After the raised investment project is put into operation, the company’s polyester film production capacity will increase from 42000 tons / year to 80000 tons / year, an increase of 90.48% compared with that before the raised investment project is put into operation. The expansion of production capacity will put forward higher requirements for the company’s future market expansion ability. According to the statistics of BOPET Professional Committee of China Plastics Association, the demand of China’s polyester film industry in 2019 was 2.4 million tons / year, and the above-mentioned new production capacity accounted for 1.58% of the annual demand. The market digestion pressure is great. If there are major adverse changes in national policies, market environment, industry technology and other factors in the future, the market development progress of the company will be lower than expected, It may cause the new production capacity of the raised investment project to be unable to be fully digested in time, which will have an adverse impact on the company’s production and operation.
(V) risk of high concentration of raw material procurement
During the reporting period, the company’s polyester chips were mainly purchased from wankai new materials and Sanjiang Chemical fiber. The procurement amount of the above two suppliers accounted for 62.59%, 57.94%, 59.54% and 46.18% of the company’s total procurement respectively, with high procurement concentration. As a petrochemical product, polyester chip has a relatively high industrial concentration in China, and there are relatively few polyester chip suppliers who can provide the company’s product technology and quality. Therefore, there is a concentration of polyester chip suppliers.
In the future, if the cooperation relationship between the company and the main suppliers changes, or the products of the company’s main suppliers have major quality problems, it may lead to the failure of timely, sufficient and quality-guaranteed supply of polyester chips, which will have a certain impact on the company’s production and operation activities. 2、 Important commitments related to this offering
The company reminds investors to carefully read the company, controlling shareholders, actual controllers, directors, supervisors, senior managers Important commitments made by the core technical personnel and the sponsors and securities service institutions of this offering (including commitment to share locking, commitment to shareholding and reduction intention, commitment to stabilizing share price, commitment to share repurchase of fraudulent issuance and listing, measures and commitments to fill diluted immediate return, commitment to profit distribution policy, etc.), For specific commitments, see “v. important commitments of relevant institutions or personnel of this offering and binding measures for failure to fulfill commitments” in “section 10 investor protection” of this prospectus. 3、 Profit distribution
For the distribution of accumulated profits before the issuance and the dividend distribution policy after the issuance, please refer to “II. Dividend distribution policy” and “III. distribution arrangement and decision-making procedure of accumulated profits before the completion of this issuance” in “section 10 investor protection” of this prospectus. 4、 Main financial information and operating conditions of the issuer after the audit deadline of the financial report
(I) main financial information and operating conditions of the whole year and the second half of 2021
The deadline for the audit of the issuer’s financial report is June 30, 2021. After the audit deadline, Tianjian certified public accountants reviewed the company’s consolidated and parent company’s balance sheet on September 30, 2021, the consolidated and parent company’s income statement from July to September, 2021 and January to September, 2021, and the consolidated and parent company’s cash flow statement from July to September, 2021 and January to September, 2021, and issued the “review report [2021] No. 10074”. Tianjian certified public accountants reviewed the company’s consolidated and parent company’s balance sheet on December 31, 2021, the consolidated and parent company’s income statement from October to December and 2021, and the consolidated and parent company’s cash flow statement from October to December and 2021, and issued the review report of “Tianjian Shen [2022] No. 27”. According to the review report issued by Tianjian certified public accountants, the main financial information and operation of the company in 2021 and July December 2021 are as follows:
1. Main financial information and operating conditions in 2021
The main financial data of the company’s consolidated financial statements in 2021 (Unaudited but reviewed by Tianjian accountant) and the comparison with the same period (or the end of the period) of the previous year are as follows:
Unit: 10000 yuan
Change rate of the project on December 31, 2021 and 2020
Total assets 66201395335530 24.08%
Total liabilities 18962341848578 2.58%
Owner’s equity 47239053486951 35.47%
Total owner’s equity attributable to the parent company 47239053486951 35.47%
Change rate of the project from 2021 to 2020
Operating income 6396238
