Gem investment risk warning: after this stock issuance, it is planned to be listed on the GEM market, which has high risk
Investment risk. GEM companies have large investment in innovation and there is uncertainty about the success of the integration of new and old industries
Sex, still in the growth stage, high operation risk, unstable performance and high delisting risk, investors face
Facing greater market risks. Investors should fully understand the investment risks of the gem and the information disclosed by the company
Risk factors and make investment decisions prudently.
Wankai New Material Co., Ltd
Wankai New Materials Co., Ltd
(No. 15, Wenlan Road, Jianshan new area, Haining City, Jiaxing City, Zhejiang Province)
Initial public offering and listing on GEM
Letter of intent
Sponsor (lead underwriter)
(27th and 28th floors, building 2, international trade building, No. 1 Jianguomenwai street, Chaoyang District, Beijing)
Issuer statement
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.
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)
Number of shares issued: 85.85 million shares, accounting for no less than 25.00% of the total share capital after issuance.
This issuance of the company does not involve the public offering of shares by shareholders
Par value per share: RMB 1.00
Issue price per share: RMB []
Estimated issue date: March 17, 2022
Stock exchanges and sectors to be listed: Shenzhen Stock Exchange gem
Total share capital after issuance: 343395400 shares
Sponsor and lead underwriter: China International Capital Corporation Limited(601995)
Signing date of the prospectus: March 9, 2022
Tips on major issues
The company specially draws the attention of investors to the following major matters, and specially reminds investors to carefully read the text of this prospectus before making investment decisions. 1、 Special risk tips
The company specially reminds investors to carefully read all the contents of "section IV Risk Factors" in this prospectus, and reminds investors to pay special attention to the following risk factors: (I) fluctuation risk of operating performance
In 2018, 2019, 2020 and January June 2021, the net profits attributable to the owners of the parent company realized by the company were 195971600 yuan, 367151500 yuan, 202567100 yuan and 18819100 yuan respectively. The decline in performance in 2020 was mainly caused by the loss of raw materials trade in other businesses. The specific reason was the sharp decline in international oil prices in early 2020, The prices of raw materials PTA and MEG fluctuated sharply, and the company purchased more raw materials to control costs; Subsequently, the company sold some surplus raw materials based on factors such as storage cost, delivery time, covid-19 epidemic and shutdown of boiler transformation production line; Due to the large decline in raw material prices in 2020, the company's raw material trade has formed a large loss, resulting in a decline in performance in 2020.
The company has established a stable cooperative relationship with its main customers, but the changes in the demand of downstream industries, raw material prices, product prices and other factors have an important impact on the company's operating performance. If the future macroeconomic fluctuations lead to increased price fluctuations of main raw materials, the company cannot respond to extreme emergencies in a timely and effective manner, or the relationship between product supply and demand and product sales price are affected, there is a risk of decline in the company's operating performance and shortage of short-term funds. (II) risk of price fluctuation of raw materials
The main raw materials of the company are PTA, Meg, etc. during the reporting period, the direct material cost of the company accounted for more than 90%. The price of main raw materials of the company is affected by the price of basic raw materials such as crude oil and the relationship between market supply and demand, and the fluctuation is obvious. Since 2020, the international crude oil price has continued to fluctuate sharply, and the impact of the international covid-19 epidemic is not clear, resulting in great uncertainty in the company's raw material purchase price.
On the premise that other factors remain unchanged, if the issuer's raw material price increases or decreases by 20 percentage points during the reporting period, the impact on the company's gross profit margin will be 16-17 percentage points. Therefore, although the sales price of the company's pet products is linked to the purchase price of raw materials, due to the high proportion of raw materials in the operating cost of the issuer, if the price of PTA, MEG and other raw materials rises sharply in the future, and the company cannot take timely measures to transfer the pressure of rising raw materials, or fails to do a good job in inventory management in the downward trend of raw material prices, The company's operating performance will be adversely affected.
(III) risk of being subject to anti-dumping measures
In recent years, the international trade friction of polyester industry has shown a rapid growth trend. Especially since the financial crisis, many countries and regions have significantly increased trade protection under the pressure of China's economic downturn. Japan, India, South Africa and other countries and regions have implemented anti-dumping against China, increasing the export cost of Chinese bottle grade PET manufacturers. During the reporting period, the company's income from countries implementing anti-dumping measures accounted for a relatively small proportion. In the future, if more countries / regions take anti-dumping investigations or measures against the relevant products sold by the company, the company's overseas sales business may be adversely affected. (IV) risk of low gross profit margin
During the reporting period, the company's comprehensive gross profit margin was 6.05%, 7.76%, 4.95% and 7.59% respectively. The gross profit margin is generally at a low level, which is mainly caused by the characteristics of the company's industry and product structure. If the gross profit margin decreases due to the fluctuation of product price and raw material price in the future, the company's economic performance will be affected to some extent. (V) loss risk of raw material Trade
In 2018, 2019, 2020 and January June 2021, the profits and losses of the company's raw material trade were -278514 million yuan, 325673 million yuan, - 293771 million yuan and -129354 million yuan respectively, with large overall fluctuations. During the reporting period, on the premise of meeting its own production needs, the company sold some raw materials to meet the needs of inventory management. Although the raw material trade can effectively avoid the overstock of raw material inventory, alleviate the capital pressure, and control the price risk and storage cost of raw materials, due to many special factors, the profit and loss of raw material trade is closely related to the fluctuation of purchase price and PTA and MEG market price at the time of sales, and because PTA and MEG are bulk commodities, the price fluctuation is large, It may cause the trade of raw materials to fail to achieve stable profits and even produce large losses, which may have an adverse impact on the company's performance. 2、 Accumulated profit distribution plan before the issuance and dividend distribution policy of the company after the issuance
According to the resolution of the general meeting of shareholders, the accumulated undistributed profits before the issuance of the company shall be enjoyed by the new and old shareholders after the issuance according to their respective equity ratio.
For the dividend distribution policy after this offering and listing, see "section 10 investor protection" / "II. Dividend distribution policy" in this prospectus. 3、 Important commitments made by relevant entities of this issuance
In accordance with the requirements of China Securities Regulatory Commission, Shenzhen Stock Exchange and other regulatory bodies, the company and relevant responsible subjects have issued relevant commitments, including commitments on share locking and reduction intention, measures and commitments to stabilize stock price, commitments on information disclosure of prospectus intention, commitment on share repurchase of fraudulent issuance and listing Measures and commitments on filling the diluted immediate return of the issued shares, commitments on profit distribution policies, binding measures on commitments of relevant commitment subjects, etc. For details of these commitments, please refer to "annex to section 13" / "III. important commitments made by relevant subjects of this offering" in this prospectus. 4、 Main financial information and operating conditions after the audit deadline (I) operating performance of the company in 2021
The audit deadline of the latest audit report of the company is June 30, 2021. The company reminds investors to pay attention to the main financial information and operating conditions of the company after the audit deadline of the financial report disclosed in this prospectus. Zhonghui reviewed the company's consolidated and parent company's balance sheet as of December 31, 2021, consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in shareholders' equity and notes to financial statements in 2021, and issued the review report (Zhonghui kuaiy [2022] No. 0141).
1. Key financial data
The main financial data of the company's 2021 financial report (Unaudited, reviewed by Zhonghui) are as follows:
Unit: 10000 yuan
Change proportion of the project from December 31, 2021 to December 31, 2020
Total assets 6981243048393248 44.26%
Total liabilities 5188111834916741 48.59%
Total shareholders' equity attributable to the parent company 1793131213476508 33.06%
Change proportion of the project from 2021 to 2020
Operating income 9586769792975222 3.11%
Operating cost 8874421188369747 0.42%
Operating profit 52030862677077 94.36%
Total profit 52875552455214 115.36%
Net profit attributable to shareholders of the parent company 44478892025671 119.58%
Net profit attributable to shareholders of parent company 37646061796319 109.57% after deducting non recurring profit and loss
Net cash flow from operating activities -5770664411395-
Continued:
Unit: 10000 yuan
Change proportion of the project from October to December 2021 to October to December 2020
Operating income 29989198 Anhui Hyea Aromas Co.Ltd(300886) 95
