Xinghui environmental protection material Co., Ltd
Announcement on initial public offering and listing on GEM
Sponsor (lead underwriter): Shengang Securities Co., Ltd
hot tip
According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of Xinghui environmental protection materials Co., Ltd. is "chemical raw materials and chemical products manufacturing (C26)". As of December 28, 2021 (T-4), the average static P / E ratio of "chemical raw materials and chemical products manufacturing (C26)" released by China Securities Index Co., Ltd. in the latest month was 44.79 times. The issuance price of 55.57 yuan / share corresponds to the issuer's diluted P / E ratio of the net profit attributable to the shareholders of the parent company before and after deducting non recurring profits and losses in 2020, which is 49.48 times, which is higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on December 28 (T-4) 2021, with an excess range of 10.47%; Higher than the average p / E ratio of comparable A-share listed companies with similar main business and business model to the issuer in 2020, exceeding 26.55%.
The issuer and the recommendation institution (lead underwriter) remind investors to pay full attention to the risk factors contained in the marketization of pricing, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, avoid blind speculation, carefully study and judge the rationality of issue pricing, and make rational investment decisions.
Xinghui environmental protection materials Co., Ltd. (hereinafter referred to as "Xinghui environmental materials" or the "issuer") in accordance with the measures for the administration of securities issuance and underwriting (CSRC order [No. 144]) (hereinafter referred to as the "administrative measures") promulgated by the China Securities Regulatory Commission (hereinafter referred to as the "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"), The Shenzhen Stock Exchange (hereinafter referred to as the "Shenzhen Stock Exchange") promulgated the detailed rules for the implementation of the issuance and underwriting business of initial public offerings on the gem of Shenzhen Stock Exchange (2021) (SZS [2021] No. 919) (hereinafter referred to as the "detailed rules") Detailed rules for the implementation of online IPO in Shenzhen market (SZS [2018] No. 279) (hereinafter referred to as "detailed rules for the implementation of online IPO") and detailed rules for the implementation of offline IPO in Shenzhen market (revised in 2020) (SZS [2020] No. 483) (hereinafter referred to as "detailed rules for the implementation of offline IPO"), The rules for the administration of offline investors in initial public offerings under the registration system (zxsf [2021] No. 212) (hereinafter referred to as the "rules for the administration of offline investors under the registration system") and the underwriting specifications for initial public offerings under the registration system (zxsf [2021] No. 213) issued by the China Securities Association Relevant laws and regulations, regulatory provisions, self-discipline rules and other documents such as the detailed rules for placement of initial public offering shares (zsxf [2018] No. 142), as well as the relevant provisions of Shenzhen Stock Exchange on stock issuance and listing rules and the latest operation guidelines, organize the implementation of initial public offering.
Shengang Securities Co., Ltd. (hereinafter referred to as "Shengang securities" or "sponsor (lead underwriter)") serves as the sponsor (lead underwriter) of this offering.
This issuance is finally carried out by a combination of offline inquiry and placement to qualified investors (hereinafter referred to as "offline issuance") and online pricing issuance to social public investors holding non restricted A-Shares or non restricted depositary receipts in Shenzhen market (hereinafter referred to as "online issuance").
This offline issuance is conducted through the offline issuance electronic platform of Shenzhen Stock Exchange (hereinafter referred to as the "offline issuance electronic platform"). Offline investors are requested to carefully read this announcement and the detailed rules for the implementation of offline issuance and other relevant provisions. The online issuance is carried out through the trading system of Shenzhen Stock Exchange by means of subscription pricing according to market value. Online investors are requested to carefully read this announcement and the implementation rules for online issuance issued by Shenzhen Stock Exchange.
This offering is applicable to the special provisions on the issuance and underwriting of initial public offerings on GEM (CSRC announcement [2021] No. 21) issued by China Securities Regulatory Commission on September 18, 2021, and the practical implementation rules for the issuance and underwriting of initial public offerings on gem of Shenzhen Stock Exchange (revised in 2021) (SZS [2021] No. 919) issued by Shenzhen Stock Exchange The code for underwriting initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 213) and the management rules for offline investors of initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 212) issued by the China Securities Association invite investors to pay attention to the changes of relevant regulations, pay attention to investment risks, and carefully study and judge the rationality of issue pricing, Make rational investment decisions.
Investors are kindly requested to focus on the issuance process, online and offline subscription and payment, disposal of share abandonment, etc., as follows:
1. After the preliminary inquiry, the issuer and the recommendation institution (lead underwriter) shall, in accordance with the exclusion rules stipulated in the announcement on preliminary inquiry and promotion of initial public offering of shares by Xinghui environmental protection materials Co., Ltd. and listing on the gem (hereinafter referred to as the "announcement on preliminary inquiry and promotion"), after excluding the preliminary inquiry results that do not meet the quotation requirements of investors, All 176 placing objects whose proposed subscription price is higher than 72.00 yuan / share (including 72.00 yuan / share) are excluded, and the total amount of proposed subscription excluded is 1009.4 million shares, accounting for 1.0125% of the total number of 99687.3 million shares after excluding invalid quotation in this preliminary inquiry. The excluded part shall not participate in offline and online subscription. Please refer to the part marked "high price rejection" in the attached table "preliminary inquiry and quotation".
2. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the issuer's industry, market conditions, valuation level of Listed Companies in the same industry, demand for raised funds, underwriting risk and other factors, and negotiate to determine the issuance price of 55.57 yuan / share. The offline issuance will not conduct cumulative bidding inquiry.
Investors are requested to make online and offline subscription at this price on January 4, 2022 (t day), and there is no need to pay the subscription fund. The offline issuance and Subscription Date and the online subscription date are the same as January 4, 2022 (t day), of 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.
3. The issuing price of this offering shall not exceed the median and weighted average of the quotations of offline investors 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"), 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.
This offering does not arrange strategic placement to other external investors. According to the issue price, the relevant subsidiaries of the sponsor will not participate in the strategic placement. Finally, this offering will not be placed to strategic investors. The difference between the initial strategic placement and the final strategic placement of 2421405 shares will be transferred back to offline issuance.
4. Restriction period arrangement: among the stocks issued this time, the stocks issued online have no circulation restrictions and restriction period arrangement, and can be circulated from the date of listing of the stocks issued this time on the Shenzhen Stock Exchange.
The offline issuance part adopts the proportional sales restriction method, and the offline investors shall promise that the sales restriction period of 10% (rounded up) of the number of shares allocated to them is 6 months from the date of the issuer's initial public offering and listing. That is, among the shares allocated to each placing object, 90% of the shares are sold indefinitely and can be circulated from the date when the issued shares are listed and traded on the Shenzhen Stock Exchange; The sales restriction period of 10% of the shares is 6 months, which shall be calculated from the date of listing and trading of the issued shares on the Shenzhen Stock Exchange.
When offline investors participate in the preliminary inquiry and quotation and offline subscription, they do not need to fill in the arrangement of the sales restriction period for the placing objects under their management. Once the quotation is made, it is deemed to accept the arrangement of the online sales restriction period disclosed in this announcement.
5. Online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares.
6. After the completion of online and offline subscription, the issuer and the sponsor (lead underwriter) will decide whether to start the callback mechanism on January 4, 2022 (t day) according to the online subscription, so as to adjust the scale of offline and online issuance. The launch of the call back mechanism will be determined according to the initial effective subscription multiple of online investors. 7. Offline investors shall, in accordance with the announcement on offline preliminary placement results of initial public offering of shares by Xinghui environmental protection materials Co., Ltd. and listing on the gem (hereinafter referred to as the announcement on offline preliminary placement results), timely and fully pay the subscription funds for new shares according to the finally determined issuance price and allocated quantity before 16:00 on January 6 (T + 2) 2022.
The subscription funds shall be paid in full within the specified time. If the subscription funds are not paid in full within the specified time or as required, all the new shares allocated to the placing object shall be invalid. If the above circumstances occur when multiple new shares are issued on the same day, all the placing objects are invalid. If different placing objects share bank accounts, if the subscription funds are insufficient, the new shares allocated to the placing objects sharing bank accounts will be invalid. Offline investors are allocated multiple new shares on the same day. Please pay for each new share separately.
After winning the lot in the subscription of new shares, online investors shall fulfill their payment obligations in accordance with the announcement on the results of online lottery of Xinghui environmental protection materials Co., Ltd. in the initial public offering of shares and listing on the gem (hereinafter referred to as the announcement on the results of online lottery), so as to ensure that their capital account will have sufficient new share subscription funds on January 6 (T + 2) 2022, The insufficient part shall be deemed as abandoning the subscription, and the resulting consequences and relevant legal liabilities shall be borne by the investors themselves. The investor's fund transfer shall comply with the relevant provisions of the securities company where the investor is located.
The shares that offline and online investors give up to subscribe for shall be underwritten by the sponsor (lead underwriter).
8. When the total number of shares subscribed by offline and online investors is less than 70% of the number of public offerings, the issuer and the sponsor (lead underwriter) will suspend the issuance of new shares and disclose the reasons for the suspension and subsequent arrangements.
9. If the offline investors with valid quotation fail to participate in the subscription or obtain the preliminary placement, and the offline investors fail to pay the subscription amount in time and in full, it will be deemed as a breach of contract and shall bear the liability for breach of contract. The recommendation institution (lead underwriter) shall report the breach of contract to the China Securities Association for the record. The number of violations of placing objects in gem, sci-tech innovation board, main board and other plates shall be calculated together. During the period of being included in the restricted list, the relevant placing objects shall not participate in the offline inquiry and subscription of projects related to gem, science and innovation board, main board and other plates.
If an online investor fails to pay in full after winning the lottery three times in a row within 12 months, it shall not participate in the 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. The issuer and the recommendation institution (lead underwriter) solemnly remind the majority of investors to pay attention to investment risks and invest rationally, and carefully read the articles published in China Securities Journal and Shanghai Securities News on December 31, 2021 (t-1) The special announcement on the investment risk of Xinghui environmental protection materials Co., Ltd. in its initial public offering and listing on the gem (hereinafter referred to as the "special announcement on investment risk") published in the securities times and the Securities Daily fully understands the market risk and prudently participates in the IPO.
Valuation and investment risk tips
New share investment has great market risks. Investors need to fully understand the risks of new share investment and gem market, carefully study the risks disclosed in the issuer's prospectus, fully consider the following risk factors, and prudently participate in this new share issuance.
1. The issue price is 55.57 yuan / share. Investors are requested to judge the rationality of the issue price according to the following conditions.
(1) According to the industry classification guidelines for listed companies (revised in 2012) formulated by the CSRC, the issuer's industry is "chemical raw materials and chemical products manufacturing" (classification code "C26") in "manufacturing (c)". The static average p / E ratio of the industry in the latest month published by China Securities Index Co., Ltd. is 44.79 times (as of December 28, 2021, T-4), which can be referred to by investors when making decisions.
The issuance price of 55.57 yuan / share corresponds to the issuer's diluted P / E ratio of the net profit attributable to the shareholders of the parent company before and after deducting non recurring profits and losses in 2020, which is 49.48 times, which is higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on December 28 (T-4) 2021, with an excess range of 10.47%; Higher than the average p / E ratio of comparable A-share listed companies with similar main business and business model to the issuer in 2020, exceeding 26.55%. There are three reasons as follows: first, the company is an enterprise that entered the polystyrene industry earlier in China. Since its establishment, it has been deeply engaged in the R & D, production and sales of polystyrene for many years, and has formed a strong core competitiveness under the market competition: it has established a stable R & D and management team and accumulated rich process technology and production experience, Master the core technology of polystyrene production with independent intellectual property rights; The company has good product performance indicators, stable quality and timely supply, and has established a high brand awareness and good market reputation in the industry; Relying on its superior geographical location, the company responds quickly to market demand, deeply integrates into the development of downstream electronic and electrical appliances, toys, daily plastic products and other industrial chains, and has formed long-term and stable cooperative relations with a large number of customers. Second, the polystyrene industry where the company is located has turned to China under the background of stricter national environmental protection policies and upgraded consumption
