Hangzhou Heshun Technology Co., Ltd
Announcement on IPO and listing on GEM
Sponsor (lead underwriter): Dongxing Securities Corporation Limited(601198)
hot tip
Hangzhou Heshun Technology Co., Ltd. (hereinafter referred to as “Heshun technology”, “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”) issued by the China Securities Regulatory Commission (hereinafter referred to as “CSRC”) Regulations such as the measures for the administration of the registration of initial public offerings on the gem (for Trial Implementation) (CSRC order [No. 167]), the special provisions on the issuance and underwriting of initial public offerings on the gem (CSRC announcement [2021] No. 21), etc, The China Securities Association (hereinafter referred to as the “association”), the code for underwriting initial public offerings under the registration system (zxsf [2021] No. 213), the rules for the administration of offline investors of initial public offerings under the registration system (zxsf [2021] No. 212) and the rules for the placement of initial public offerings (zxsf [2018] No. 142) and other relevant provisions, As well as the Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”), the detailed rules for the implementation of the issuance and underwriting business of initial public offerings on the gem of Shenzhen Stock Exchange (revised in 2021) (SZS [2021] No. 919, hereinafter referred to as “the detailed rules”), the proposal on promoting the game balance of new shares and ensuring the stable and orderly issuance of new shares issued by the gem stock issuance regulation committee 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”), 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 “detailed rules for the implementation of offline issuance”) The measures for the implementation of the appropriateness management of investors on the growth enterprise market of Shenzhen Stock Exchange (revised in 2020) (hereinafter referred to as the “measures for the management of investor appropriateness”) and the relevant provisions of the Shenzhen Stock Exchange, such as the rules on stock issuance and listing and the latest operation guidelines, organize the implementation of Heshun science and technology’s initial public offering of shares and listing on the growth enterprise market.
Dongxing Securities Corporation Limited(601198) (hereinafter referred to as ” Dongxing Securities Corporation Limited(601198) ” or “sponsor (lead underwriter)”) serves as the sponsor (lead underwriter) of this offering.
This offline issuance is conducted through the offline issuance electronic platform of Shenzhen Stock Exchange (hereinafter referred to as “offline issuance electronic platform”) and the registration and settlement platform of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as “China Clearing Shenzhen Branch”). Offline investors are requested to carefully read this announcement and the implementation rules 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 and 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 subject 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 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 China Securities Association issued the code for underwriting initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 213) and the detailed rules for the administration of offline investors of initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 212), asking 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 investment decisions rationally.
Investors are kindly requested to focus on the issuance process, online and offline subscription and payment, disposal of share abandonment, etc. the specific contents are as follows:
1. The offering price is 56.69 yuan / share, and the corresponding diluted P / E ratio of the issuer before and after deducting non recurring profits and losses in 2020 is 62.39 times, which is higher than the average static P / E ratio of the industry in the latest month published by China Securities Index Co., Ltd. and higher than the average static P / E ratio of comparable companies before and after deducting non recurring profits and losses in 2020, There is a risk that the issuer’s future share price decline will bring losses to investors. 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.
2. 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 Hangzhou Heshun Technology 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, Eliminate all placing objects whose proposed purchase price is higher than 71.00 yuan / share (excluding 71.00 yuan / share); The proposed subscription price is 71.00 yuan / share, and all placing objects whose subscription quantity is less than 6 million shares are eliminated; The proposed subscription price is 71.00 yuan / share, and the subscription amount is equal to 6 million shares. Among the placing objects whose subscription time is 14:50:40:210 on March 9, 2022, they are sorted from the back to the front according to the order of placing objects automatically generated by the offline issuance electronic platform of Shenzhen Stock Exchange, Remove all the placing objects before “YONGYING growth pilot hybrid securities investment fund” (excluding). A total of 119 placing objects were excluded in the above process, and the total number of shares to be purchased was 488.8 million, accounting for 1.0063% of the total number of shares to be purchased after excluding invalid quotations 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”.
3. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the industry of the issuer, the valuation level of comparable listed companies, market conditions, the demand for raised funds, underwriting risks and other factors, and negotiate to determine the issuance price of 56.69 yuan / share. The offline issuing bank will not conduct cumulative bidding inquiry.
Investors are requested to make online and offline subscription at this price on March 14, 2022 (t day), and there is no need to pay the subscription fund at the time of subscription. The offline issuance and Subscription Date and online subscription date are the same as March 14, 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.
4. 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 issuing price, the relevant subsidiaries of the sponsor will not participate in the strategic placement. Finally, this issuance will not be targeted to strategic investors. The difference between the initial strategic placement and the final strategic placement of 1 million shares will be transferred back to offline issuance.
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-share shares or non restricted depositary receipts in Shenzhen market (hereinafter referred to as “online issuance”).
5. Restricted period arrangement: among the stocks issued this time, the stocks issued online have no circulation restrictions and restricted 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, and the sales restriction period starts from the date when the issued shares are listed and traded on the Shenzhen Stock Exchange.
When offline investors participate in the preliminary inquiry and quotation and offline purchase, they do not need to fill in the arrangement of the restricted sale period for the placing objects under their management. Once the quotation is made, it is deemed to accept the arrangement of the online restricted sale period disclosed in this announcement.
6. Online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares on their behalf.
7. After determining the issuing price and the completion of online and offline subscription, the issuer and the recommendation institution (lead underwriter) will decide whether to start the callback mechanism on March 14, 2022 (t day) according to the online subscription, so as to adjust the scale of offline and online issuance. The launch of the callback mechanism will be determined according to the initial effective subscription multiple of online investors.
8. Offline investors shall, in accordance with the announcement on offline preliminary placement results of initial public offering of shares by Hangzhou Heshun Technology Co., Ltd. and listing on GEM (hereinafter referred to as the announcement on offline preliminary placement results), according to the finally determined issuance price and preliminary placement quantity before 16:00 on March 16 (T + 2) 2022, Pay the subscription funds for new shares in full and on time.
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 new shares allocated to the placing object shall be invalid. If different placing objects share bank accounts, if the subscription funds are insufficient, all 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 subscription of new shares, online investors shall fulfill the obligation of capital settlement in accordance with the announcement on the results of online lottery of initial public offering and listing on gem of Hangzhou Heshun Technology Co., Ltd. (hereinafter referred to as the announcement on the results of online lottery), so as to ensure that their capital account has sufficient capital for subscription of new shares on March 16 (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 transfer of investors’ funds shall comply with the relevant provisions of the securities company where the investors are located.
When the total number of shares paid and subscribed by offline and online investors is not less than 70% of the number of shares in this public offering, the shares abandoned in this offering due to the insufficient payment of subscription funds by offline and online investors shall be underwritten by the sponsor (lead underwriter).
9. When the total number of shares paid and 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.
10. If the offline investors with valid quotation fail to participate in the subscription or fail to subscribe in full, or the offline investors who obtain the preliminary placement fail to pay in full and in time, 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 Securities Industry Association for the record. The association will, in accordance with relevant regulations, include the placement objects managed by investors in the above circumstances in the restricted list.
If online investors fail to pay in full after winning the lottery for three times in a row within 12 months, they shall not participate in the online 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 number of times of giving up subscription shall be calculated according to the number of times of investors actually giving up subscription of new shares, depositary receipts, convertible bonds and deliverable bonds.
11. The issuer and the recommendation institution (lead underwriter) solemnly remind investors to pay attention to investment risks and invest rationally, Please carefully read the special announcement on investment risks of initial public offering and listing on gem of Hangzhou Heshun Technology Co., Ltd. published in China Securities Journal, Shanghai Securities News, securities times and Securities Daily on March 11, 2022 (t-1), fully understand the market risks and prudently participate in this new share offering.
Valuation and investment risk tips
1. The issue price is 56.69 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) issued by China Securities Regulatory Commission, the industry of Heshun technology is “rubber and plastic products industry (C29)”. The static average p / E ratio of “rubber and plastic products industry (C29)” released by China Securities Index Co., Ltd. in the latest month is 25.20 times (as of March 9, 2022). Please refer to it when investors make decisions. The issuance price of 56.69 yuan / share corresponds to the issuer’s audited net profit diluted P / E ratio of 62.39 times before and after deducting non recurring profits and losses in 2020, which is higher than the latest one of “rubber and plastic products industry (C29)” issued by China Securities Index Co., Ltd. on March 9, 2022
Monthly static average p / E ratio. There are mainly the following reasons: first, the business of Companies in the industry is different
Reduced comparability. According to the industry classification guidelines of listed companies issued by China Securities Regulatory Commission and the China Securities Index Co., Ltd
According to the classified statistics of the P / E ratio of Listed Companies in the industry, there are 105 listed companies in C29 industry, and each company has its own owner
There are great differences in business. According to statistical analysis, the higher the degree of product differentiation in the industry, the higher the average market
The higher the profitability. Second, the comprehensive gross profit margin of the issuer in 2020 is 35.34%, with 105 in the C29 industry
The average gross profit margin of the company in 2020 is 27.40%, and the profitability of the issuer is significantly higher than that of Listed Companies in the same industry
Division. The issuer is mainly engaged in the R & D, production and sales of differentiated and functional biaxially stretched polyester film (BOPET film). The company’s products have strong market competitiveness and are subdivided in electronic and electrical colored polyester film
The market share of the field is in a leading position in the Chinese market. After years of industry accumulation, the company has mastered the double
Manufacturing technology of oriented colored film
