Yidong Electronic Technology Co., Ltd
Initial public offering and listing on GEM
Preliminary inquiry and promotion announcement
Sponsor (lead underwriter): China Merchants Securities Co.Ltd(600999)
hot tip
Yidong Electronic Technology Co., Ltd. (hereinafter referred to as “Yidong Electronics”, “issuer” or “company”) in accordance with the measures for the administration of securities issuance and underwriting (CSRC order [No. 144]) (hereinafter referred to as the “administrative measures”) of China Securities Regulatory Commission (hereinafter referred to as “CSRC”) Measures for the administration of the registration of initial public offerings on the gem (for Trial Implementation) (CSRC order [No. 167]), special provisions on the issuance and underwriting of initial public offerings on the gem (CSRC announcement [2021] No. 21) (hereinafter referred to as “special provisions”), Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”) promulgated the detailed rules for the implementation of Shenzhen Stock Exchange’s gem IPO and underwriting business (revised in 2021) (SZS [2021] No. 919) (hereinafter referred to as “detailed rules for the implementation”) The proposal of the gem stock issuance Regulation Committee on promoting the game equilibrium of new shares and ensuring the stable and orderly issuance, the detailed rules for the implementation of offline issuance of initial public offerings in Shenzhen market (revised in 2020) (SZS [2020] No. 483) (hereinafter referred to as the “detailed rules for the implementation of online issuance”) Detailed rules for the implementation of online issuance of initial public offerings in Shenzhen market (SZS [2018] No. 279) (hereinafter referred to as “detailed rules for the implementation of online issuance”), code for underwriting of initial public offerings under the registration system (zsxf [2021] No. 213), detailed rules for the Administration of offline investors of initial public offerings (zsxf [2018] No. 142) Rules for the administration of offline investors in initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 212) (hereinafter referred to as “rules for the administration of offline investors under the registration system”) and other relevant provisions, As well as the relevant provisions of Shenzhen Stock Exchange and China Securities Association on stock issuance and listing rules and the latest operation guidelines, organize the implementation of IPO and listing on GEM.
China Merchants Securities Co.Ltd(600999) (hereinafter referred to as ” China Merchants Securities Co.Ltd(600999) ” or “sponsor (lead underwriter)”) serves as the sponsor (lead underwriter) of this offering.
The preliminary inquiry and offline issuance of the issued shares are conducted through the offline issuance electronic platform of Shenzhen Stock Exchange and the registration and settlement platform of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as “China Securities Depository and Clearing Co., Ltd. Shenzhen Branch”). Investors are invited to carefully read this announcement. For details of preliminary inquiry and offline issuance, please refer to the website of Shenzhen Stock Exchange (www.szse. CN.) The published rules for the implementation of offline issuance and other relevant provisions.
Investors should pay attention to the issuance method, callback mechanism, online and offline subscription, payment and suspension of issuance. The specific contents are as follows:
1. The issuance adopts directional placement to strategic investors (hereinafter referred to as “strategic placement”) Offline inquiry placement to qualified investors (hereinafter referred to as “offline issuance”) and online pricing issuance to social public investors holding non restricted A-Shares and non restricted depositary receipts in Shenzhen market (hereinafter referred to as “online issuance”).
The strategic placement, preliminary inquiry and online and offline issuance of this offering shall be organized and implemented by the sponsor (lead underwriter). The preliminary inquiry and offline issuance shall be conducted through the offline issuance electronic platform of Shenzhen Stock Exchange（ https://eipo.szse.cn. ）And the registration and settlement platform of CSDCC Shenzhen Branch. Online issuance is implemented through the trading system of Shenzhen Stock Exchange. Online investors are requested to carefully read this announcement and the detailed rules for the implementation of online issuance published by Shenzhen Stock Exchange.
The strategic placement of this issuance consists of the special asset management plan established by the issuer’s senior management and core employees participating in this strategic placement, and the follow-up investment (contingent) of relevant subsidiaries of the sponsor. If the determined issue price exceeds the median and weighted average of offline investors’ quotations after excluding the highest quotation, as well as the Securities Investment Fund (hereinafter referred to as “public fund”), the National Social Security Fund (hereinafter referred to as “social security fund”) and the basic old-age insurance fund (hereinafter referred to as “pension”) established through public offering after excluding the highest quotation The enterprise annuity fund (hereinafter referred to as “enterprise annuity fund”) established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund (hereinafter referred to as “insurance fund”) in accordance with the measures for the administration of the use of insurance funds, whichever is lower, The relevant subsidiaries of the sponsor (lead underwriter) will participate in the strategic placement of this offering in accordance with relevant regulations. The follow-up investor is China Merchants Securities Co.Ltd(600999) Investment Co., Ltd. (hereinafter referred to as “investment promotion and investment”). See “II. Strategic placement” in this announcement for relevant information of strategic placement.
2. The offline issuance and Subscription Date and the online subscription date are the same as January 12, 2022 (t day), in which the offline subscription time is 9:30-15:00, and the online subscription time is 9:15-11:30 and 13:00-15:00. Investors do not need to pay subscription funds when making online and offline subscription on January 12, 2022 (t day).
3. All offline investors who intend to participate in this preliminary inquiry and meet the conditions of relevant investors must register and submit verification materials before 12:00 on January 6 (T-4) 2022 according to relevant requirements. When registering and submitting verification materials, please log in to the offline Investor Service System of China Merchants Securities Co.Ltd(600999) IPO and selected layer project（ https://issue.cmschina.com./ipos ）。
Before the inquiry, offline investors shall submit the pricing basis and the suggested price or price range given in the internal research report through the offline issuance electronic platform of Shenzhen Stock Exchange. Offline investors who fail to submit the pricing basis and suggested price or price range before the inquiry shall not participate in the inquiry.
Offline investors shall quote according to the recommended price or price range given in the internal research report. In principle, they shall not exceed the recommended price range in the research report.
4. The issuer and the recommendation institution (lead underwriter) will directly determine the issuance price through offline preliminary inquiry, and offline cumulative bidding inquiry will not be conducted.
5. Preliminary inquiry: the preliminary inquiry time for this issuance is 9:30-15:00 on January 7, 2022 (T-3). Within the above time, qualified offline investors can fill in and submit the proposed purchase price and quantity through the offline issuance electronic platform of Shenzhen Stock Exchange.
6. Offline issuance objects: the offline issuance objects are securities companies, fund management companies, trust companies, finance companies, insurance companies, qualified overseas institutional investors and qualified private fund managers and other professional institutional investors registered with the China Securities Association.
7. Multi file quotation of the same Investor: This preliminary inquiry is conducted by reporting the proposed purchase price and the proposed purchase quantity at the same time. The offline investor quotation shall include the price per share and the proposed purchase quantity corresponding to the price. Investors participating in the offline inquiry of gem can fill in different quotations for multiple placing objects under their management. Each offline investor can fill in up to 3 quotations, and the highest quotation shall not be higher than 120% of the lowest quotation. The quotation of offline investors and their managed placing objects shall include the price per share and the number of shares to be purchased corresponding to the price. There can only be one quotation for the same placing object. Once the relevant declaration is submitted, it shall not be revoked in full. If the quotation needs to be adjusted due to special reasons, the quotation decision-making procedure shall be performed again. The logical calculation basis of the price change reason and the price change range shall be filled in on the offline issuance electronic platform, as well as whether the previous quotation has insufficient pricing basis and incomplete quotation decision-making procedure, and the relevant materials shall be archived for future reference.
The minimum change unit of the declared price of offline investors is 0.01 yuan. In the preliminary inquiry stage, the minimum number of offline placement objects to be purchased is set as 1 million shares, and the minimum change unit of the number of offline placement objects to be purchased is set as 100000 shares, that is, the part where the number of offline placement objects designated by offline investors exceeds 1 million shares must be an integral multiple of 100000 shares, The proposed subscription amount of each placing object shall not exceed 18 million shares.
The maximum number of shares subscribed by each placing object in this offline issuance is 18 million shares, accounting for about 51.80% of the initial offline issuance. Offline investors and their managed placing objects shall strictly comply with the regulatory requirements of the industry, strengthen risk control and compliance management, and prudently and reasonably determine the proposed purchase price and quantity. When participating in the preliminary inquiry, please pay special attention to whether the proposed subscription amount corresponding to the declared price and the proposed subscription quantity exceeds the asset scale or capital scale of the five trading days (December 30, 2021) (T-8) before the preliminary inquiry filled in by the sponsor (lead underwriter) and the offline Issuance electronic platform of Shenzhen Stock Exchange. If the recommendation institution (lead underwriter) finds that the placing object does not comply with the industrial regulatory requirements and applies for purchase beyond the corresponding asset scale or capital scale in the asset certification materials submitted to the recommendation institution (lead underwriter), the subscription of the placing object is invalid.
Investors participating in the offline inquiry of Yidong electronic should pass the offline Investor Service System of China Merchants Securities IPO and selected layer project before 12:00 on January 6 (T-4) 2022（ https://issue.cmschina.com./ipos ））Input information and submit relevant verification materials. If the investor refuses to cooperate in the verification, fails to submit relevant materials completely, or the materials submitted are not enough to exclude its participation in the offline issuance prohibited by laws, regulations and normative documents, the issuer and the recommendation institution (lead underwriter) will refuse its participation in the offline issuance, treat its quotation as an invalid quotation, or refuse the placement, It is also disclosed in the announcement of Yidong Electronic Technology Co., Ltd. on initial public offering and listing on the gem (hereinafter referred to as the “issuance announcement”). If offline investors participate in the offline issuance of new shares in violation of regulations, they shall bear all the responsibilities arising therefrom.
Special tip 1: in order to promote the prudent quotation of offline investors, Shenzhen Stock Exchange has added the pricing basis verification function on the offline issuance electronic platform. Offline investors are required to operate according to the following requirements:
Offline investors need to display “the preliminary inquiry of Yidong electronics has been started (to be started)” on the offline issuance electronic platform page of Shenzhen Stock Exchange and before 9:30 a.m. on the day of preliminary inquiry (January 7, 2022) (T-3)（ https://eipo.szse.cn. ）Submit the pricing basis and fill in the suggested price or price range. Offline investors who fail to submit the pricing basis and suggested price or price range before the inquiry shall not participate in the inquiry.
Offline investors shall quote according to the recommended price or price range given in the internal research report
Special tip 2: offline investors must truthfully submit the proof materials of asset scale or capital scale, and strictly comply with the industrial regulatory requirements. The subscription amount shall not exceed the proof materials of asset scale of the placement object submitted to the sponsor (lead underwriter) and the corresponding asset scale or capital scale in the summary of asset scale of the placement object, Ensure that the amount of asset scale filled in the summary of asset scale of placing object is consistent with the amount in the asset scale certification materials submitted. The data of asset scale or capital scale shall be subject to the five trading days (December 30, 2021) (T-8) before the preliminary inquiry.
Once an offline investor makes a quotation, it shall be deemed as a commitment that the asset scale certification materials uploaded by it in the offline Investor Service System of China Merchants Securities Co.Ltd(600999) IPO and selected layer project and the corresponding asset scale or capital scale in the summary of asset scale of placing object filled in are consistent with the data submitted on the offline issuance electronic platform of Shenzhen Stock Exchange; In case of inconsistency, the consequences shall be borne by offline investors.
Special tip 3: in order to promote the prudent quotation of offline investors and facilitate the verification of the asset scale of offline investors on the gem. Offline investors are required to operate according to the following requirements:
During the preliminary inquiry period, the investor’s quotation shall be issued on the electronic platform offline of Shenzhen Stock Exchange（ https://eipo.szse.cn. ）Truthfully fill in the asset scale or capital scale as of the five trading days (December 30, 2021) (T-8) before the preliminary inquiry. The asset scale or capital scale filled in by the investor shall be consistent with the amount in the asset scale or capital scale certification materials submitted to the sponsor (lead underwriter).
Investors shall strictly comply with the regulatory requirements of the industry, reasonably determine the purchase scale, and the purchase amount shall not exceed the corresponding asset scale or capital scale in the asset certification materials submitted to the sponsor (lead underwriter). 8. Provisions on offline rejection ratio: according to the preliminary inquiry results after excluding invalid quotations, the issuer and the recommendation institution (lead underwriter) shall quote all qualified placing objects from high to low according to the proposed purchase price, from small to large according to the proposed purchase quantity of placing objects at the same proposed purchase price, from last to first according to the application time at the same proposed purchase price and the same proposed purchase quantity For the same proposed purchase price, the same proposed purchase quantity, and the same purchase time, it shall be sorted from bottom to top according to the order of the entrustment serial number automatically generated by the offline issuance electronic platform of Shenzhen Stock Exchange, excluding the quotation of the placing object with the highest quotation. The total amount of proposed purchase excluding the quotation is 1% of the total amount of proposed purchase after excluding the invalid quotation. When the lowest price in the highest declared price to be excluded is the same as the determined issue price, the Declaration on the price will not be excluded. The excluded part shall not participate in offline subscription.
After excluding the highest part of the quotation, the issuer and the recommendation institution (lead underwriter) consider the remaining quotation and the number of proposed subscriptions, effective subscription multiples, the issuer’s industry, market conditions, the valuation level of Listed Companies in the same industry, the demand for raised funds and underwriting risks, and focus on public funds, social security funds, pensions, enterprise annuity funds The lower of the median quotation and weighted average of the placement objects such as insurance funds and qualified foreign institutional investor funds, carefully and reasonably determine the issuance price, final issuance quantity, effective quotation investors and effective planned subscription quantity. The number of effective offline investors determined by the issuer and the recommendation institution (lead underwriter) in accordance with the above principles shall not be less than 10.
Effective quotation means that the price declared by offline investors is not low
