Stock abbreviation: Zhejiang HENGWEI Stock Code: 301222 Zhejiang HENGWEI Battery Co., Ltd
Zhejiang Hengwei Battery Co., Ltd.
(No. 77, Zhengyang West Road, Youche port, Xiuzhou District, Jiaxing City, Zhejiang Province)
Initial public offering and listing on GEM
of
Listing announcement
Sponsor (lead underwriter)
No. 111, Fuhua 1st Road, Futian street, Futian District, Shenzhen
March, 2002
hot tip
The shares of Zhejiang HENGWEI Battery Co., Ltd. (hereinafter referred to as "Zhejiang HENGWEI", "the company", "the issuer" or "the company") will be listed on the gem of Shenzhen Stock Exchange on March 9, 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.
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.
Section I important statements and tips
1、 Important statements and tips
The company and all directors, supervisors and senior managers guarantee the authenticity, accuracy and completeness of the information disclosed in 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 risk at the initial stage of gem IPO
The issue price of this offering is 33.98 yuan / share, which does not exceed the median and weighted average of offline investors' quotation after excluding the highest quotation, as well as the securities investment fund, national social security fund, basic endowment insurance fund, and the securities investment fund established through public offering after excluding the highest quotation The enterprise annuity fund established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund quotation median and weighted average in accordance with the measures for the administration of the use of insurance funds, whichever is lower, is 341534 yuan / share; According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of the issuer is "electrical machinery and equipment manufacturing industry (C38)". As of February 23, 2022 (T-3), the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. is 44.47 times, and the diluted average p / E ratio of parent net profit after deducting non recurring profits and losses of comparable companies in the same industry in 2020 is 43.27 times, The diluted P / E ratio of the net profit attributable to the parent company after deducting non recurring profits and losses in 2020 corresponding to this issuance is 38.20 times, which is lower than the average static P / E ratio of the industry in the latest month published by China Securities Index Co., Ltd. and the average static P / E ratio of comparable companies after deducting non recurring profits and losses in 2020. However, 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 in this issuance that the net asset scale will increase significantly due to the acquisition of the raised funds, resulting in the decline of the return on net assets, and 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 listing, the main board of Shenzhen Stock Exchange was limited to 44%, 36% and 10% respectively. Gem further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk.
(II) a small number of tradable shares
After the issuance, the company's tradable shares without restrictions were 24026013 shares, accounting for 23.71% of the total share capital after the issuance. At the initial stage of listing, the number of tradable shares was small and there was a risk of insufficient liquidity.
(III) there may be a risk of falling below the issue price after listing
Investors should pay full attention to the risk factors contained in the pricing marketization, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, and avoid blind speculation. Regulators, issuers and recommendation institutions (lead underwriters) can not guarantee that the stock will not fall below the issue price after listing.
(IV) the shares can be used as the subject matter of margin trading on the first day of listing
GEM stocks can be used as the subject of margin trading on the first day of listing, which may produce certain price fluctuation risk, market risk, margin call 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 the sale of securities, the sale of financed securities or the repayment of the purchase of securities may be blocked, resulting in greater liquidity risk. 3、 Special risk tips
The company specially reminds investors that before making investment decisions, they must carefully read all the contents of "section IV Risk Factors" in the prospectus of the company, and pay special attention to the following risk factors:
(I) trade protection policy risk
In each period of the reporting period, the company's export sales amount was 290563500 yuan, 290656700 yuan, 451015300 yuan and 217664700 yuan respectively, accounting for 92.44%, 91.04%, 93.24% and 90.40% of the current main business income respectively.
If the company's export destination country imposes high import tariffs, additional anti-dumping duties and other trade protection measures on the company's products, it will have an adverse impact on the company's export.
On September 24, 2018, the US government imposed a 10% tariff on US $200 billion Chinese goods including zinc manganese batteries; On May 10, 2019, the U.S. government raised the tariff rate from 10% to 25%; As of the signing date of this listing announcement, the tariff rate of zinc manganese battery in China is still 25%. In each period of the reporting period, the sales revenue of the company's products exported to the United States was 438178 million yuan, 48.795 million yuan, 1482904 million yuan and 691037 million yuan respectively, accounting for 13.94%, 15.28%, 30.66% and 28.70% of the current main business revenue. The sales proportion showed an upward trend. As of the signing date of this listing announcement, the Sino US trade friction has not had a significant adverse impact on the company's production and operation. However, if the Sino US trade friction further escalates, the company's U.S. customers may reduce orders, require the company's products to reduce prices or bear corresponding tariffs, resulting in the decline of the company's export sales revenue and profitability in the U.S. market, Adversely affect the production and operation of the company.
(II) risk of price fluctuation of raw materials
The raw materials of the company are mainly zinc powder, alkaline electrolytic manganese dioxide, steel shell required for the production of alkaline batteries and carbon electrolytic manganese dioxide and zinc cylinder required for the production of carbon batteries. The company chooses the opportunity to purchase raw materials from the market according to the product sales and the market price changes of raw materials. In each period of the reporting period, the raw materials of the company's alkaline batteries accounted for 86.83%, 87.07%, 85.79% and 86.56% of the main business costs of alkaline batteries respectively, and the raw materials of the company's carbon batteries accounted for 88.38%, 88.80%, 87.94% and 88.37% of the main business costs of carbon batteries respectively. The price of raw materials fluctuates under the influence of market supply and demand, and the price fluctuation of raw materials will have a certain impact on operating costs and gross profit margin.
Based on the weight of zinc powder, alkaline electrolytic manganese dioxide, carbon electrolytic manganese dioxide and zinc cylinder in the production cost from January to June 2021, it is assumed that in addition to the price changes of the above main materials, other factors including sales volume, selling price, labor cost, period expenses and other factors that may affect the changes of operating profit will not change, Then the sensitivity analysis of the impact of raw material price changes on the company's operating profit from January to June 2021 is as follows:
Project unit price change rate operating cost change rate operating profit change rate sensitivity coefficient
Zinc powder (yuan / kg): 10.00% - 1.36% - 5.00% - 0.50
Alkaline electrolytic manganese dioxide (yuan / kg) 10.00% 1.38% - 5.07% - 0.51
Carbon electrolytic manganese dioxide (yuan / kg) 10.00% - 0.98% - 3.59% - 0.36
Zinc cylinder (yuan / 10000 pieces) 10.00% - 0.26% - 0.96% - 0.10
Affected by future market supply and demand, economic cycle and other factors, the company has the risk of raw material price fluctuation. If the price of raw materials fluctuates greatly, it will have an adverse impact on the profitability of the company.
(III) risk of rising shipping costs
After being impacted by the epidemic of "covid-19 pneumonia" in 2020, the growth of global shipping capacity is extremely limited; There is a "labor shortage" in many ports such as the United States and Europe, and the operation efficiency has decreased significantly; At the same time, the epidemic situation in India and the Philippines, with more than one-third of the global supply of seafarers, rebounded sharply, resulting in many countries refusing ships carrying Indian and Philippine seafarers to enter the port, further exacerbating the rise of shipping costs.
Since 2021, the epidemic prevention and control capacity of major economies such as the United States and Europe has been continuously improved, economic activities have gradually returned to normal, import demand has stopped falling and rebounded, and the demand of the shipping market has been growing. The rapid recovery of demand and insufficient supply have led to the continuous rise of global shipping costs. Since 2018, the trend of China's export container freight index (CCFI) is as follows: 35 Jinzai Food Group Co.Ltd(003000) 25002000 15001000
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201801 201807 201901 201907 202001 202007 202101 202107
CCFI: Composite Index
In each period of the reporting period, the proportion of the issuer's export sales revenue in the operating revenue was 91.85%, 90.26%, 92.85% and 90.19% respectively. The issuer mainly carries out export sales in FOB mode, and the product transportation is mainly by sea. Although the issuer does not bear the rising shipping cost, some customers require to slow down the delivery speed based on the consideration of transportation cost.
Although large customers including dollar tree began to reduce the impact of rising shipping costs on procurement through long-term contracting. However, if the global shipping cost continues to remain high or rise further, and the issuer's customers are unable to transfer the freight cost to the downstream, it will lead to the reduction of customer procurement, which will affect the profitability of the issuer.
(IV) digestion risk of new capacity of carbon battery
The company's capacity of carbon batteries in 2020 will be 465 million; The existing production capacity is 620.4 million; After the completion of the raised investment project, the annual production capacity of the company's carbon batteries reached 1063.8 million, with a large increase in production capacity. The increase of production capacity will put forward higher requirements for the company's market development ability.
The new carbon battery capacity is a prudent decision made by the company on the basis of feasibility analysis and demonstration based on reasonable analysis and prediction of industrial policy, industry development trend, market space outside China, customer demand, technical level and marketing ability of the company. The project invested by the raised funds needs a certain construction cycle. During the implementation of the project and after the completion of the project, if there are major adverse changes in China's foreign economy, industrial policy, market environment, industry technology and competition in the future, or the company's market development is weak and marketing promotion does not meet expectations, there may be a risk that the company's new capacity of carbon batteries cannot be fully digested in time, Then it will have an adverse impact on the production and operation of the company. (V) industry overcapacity risk
According to public information inquiry, comparable companies in the same industry
