ISoftStone information technology (Group) Co., Ltd
(502, 5 / F, building 16, yard 10, xibeiwangdong Road, Haidian District, Beijing)
Initial public offering and listing on GEM
Listing announcement
Sponsor (co lead underwriter)
(Building 4, No. 66 Anli Road, Chaoyang District, Beijing)
Co lead underwriter
(No. 8, Puming Road, China (Shanghai) pilot Free Trade Zone)
March, 2002
hot tip
The shares of softcom power information technology (Group) Co., Ltd. (hereinafter referred to as the "company", "issuer" or "softcom power") will be listed on Shenzhen Stock Exchange on March 15, 2022.
GEM companies have the characteristics of unstable performance, high operation risk and high delisting risk, and investors are facing greater market risk. Investors should fully understand the investment risks of the gem and the risk factors disclosed by the company, and make investment decisions prudently.
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 statement
The company and all directors, supervisors and senior managers guarantee the authenticity, accuracy and completeness of 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 (website: www.cn. Info. Com. CN.) The contents of the "risk factors" section of the company's prospectus on the website 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 offering price is 72.88 yuan / share, which does not exceed 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") and the National Social Security Fund (hereinafter referred to as "social security fund") established through public offering after excluding the highest quotation The lower of the median and weighted average of the quoted prices of the basic endowment insurance fund (hereinafter referred to as "pension"), the enterprise annuity fund established in accordance with the measures for the administration of enterprise annuity fund (hereinafter referred to as "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.
According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission (hereinafter referred to as "CSRC"), softcom power belongs to the software and information technology service industry (I65). As of February 28, 2022 (T-4), the average static P / E ratio of software and information technology service industry released by China Securities Index Co., Ltd. in the latest month is 56.53 times. Please refer to it when making decisions.
As of February 28, 2022 (T-4), the valuation levels of comparable listed companies are as follows:
In 2020, after deducting the static securities corresponding to the static market corresponding to the stocks deducting T-4 days in 2020, the securities code is short for non front EPS and non rear EPS closing price (yuan earnings ratio - price earnings ratio before deducting non front EPS - deducting non (yuan / share) (yuan / share) / share) (2020) (2020)
Neusoft Corporation(600718) Neusoft Corporation(600718) . SH 0.1056 -0.1206 12.89 122.07 -
Beyondsoft Corporation(002649) Beyondsoft Corporation(002649) . SZ 0.5592 0.4967 13.43 24.02 27.04
Northking Information Technology Co.Ltd(002987) Northking Information Technology Co.Ltd(002987) . SZ 1.2274 1.1466 37.79 30.79 32.96
Shanghai Newtouch Software Co.Ltd(688590) Shanghai Newtouch Software Co.Ltd(688590) . SH 0.4484 0.3550 19.84 44.25 55.89
Shenzhen Farben Information Technology Co.Ltd(300925) Shenzhen Farben Information Technology Co.Ltd(300925) . SZ 0.5522 0.5058 23.83 43.15 47.11
China National Software And Service Company Limited(600536) 0354. HK 0.3086 0.3162 7.10 23.00 22.45
international
Average 47.88 37.09
Data source: wind information, data as of February 28, 2022 (T-4).
Note 1: if there is mantissa difference in the calculation of P / E ratio, it is caused by rounding;
Note 2: EPS before / after deduction of non recurring profit and loss in 2020 = net profit attributable to the parent before / after deduction of non recurring profit and loss in 2020 / total share capital on T-4 day;
Note 3: the extreme value is excluded when calculating the average value of P / E ratio.
The issuance price of 72.88 yuan / share corresponds to the lower diluted P / E ratio of the issuer before and after deducting non recurring profits and losses in 2020, which is 27.90 times, lower than the average static P / E ratio of the industry in the latest month published by China Securities Index Co., Ltd. and lower than 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 that the net asset scale will increase significantly due to the acquisition of raised funds, which 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 co 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 IPO of the company 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 the listing of new shares on the main board of Shenzhen Stock Exchange, the increase limit was 44%, the decrease limit was 36%, and the increase and decrease limit was 10% from the next trading day. The gem further relaxed the restrictions on the rise and fall range at the initial stage of stock listing, improving the trading risk.
(II) a small number of tradable shares
After this issuance, the total share capital of the company is 423529412 shares, of which 51294460 shares are tradable without restrictions, accounting for 12.11% of the total share capital after issuance. At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity.
(III) the shares can be used as the subject matter of margin trading on the first day of listing
The stock can be used as the subject matter of margin trading on the first day of listing, which may produce certain price fluctuation risk, market risk, margin increase 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 securities, the sale of securities or the repayment of securities may be blocked, resulting in greater liquidity risk.
(IV) 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 joint lead underwriters cannot guarantee that the stock will not fall below the issue price after listing. 3、 Special risk tips
The company reminds investors to carefully read the chapter "section IV Risk Factors" of the company's prospectus, and especially reminds investors to pay attention to the following risks in the "risk factors": (I) customer concentration risk
One of the main characteristics of the software and information technology service industry is that the revenue of major customers accounts for a large proportion and business stickiness. The company's main customers include Huawei, Alibaba, Tencent, Baidu, Bank Of China Limited(601988) and other large well-known enterprises, with good business stability and sustainability. During the reporting period, the company's total sales revenue to the top five customers accounted for 67.04%, 68.55%, 69.88% and 65.46% of the company's operating revenue respectively, of which the sales revenue to Huawei accounted for 53.38%, 55.45%, 55.53% and 49.70% of the operating revenue respectively. After the implementation of the new construction and expansion project of the delivery center in the raised investment project, the company's service capacity to Huawei will be further improved, which may lead to the further increase of the company's sales revenue to Huawei and the increase of customer concentration. Customer concentration may bring certain risks to the company's operation. If the main customers' demand for the company's business decreases due to changes in the macro environment outside China or their own business conditions, or turn to other suppliers, it will have a certain negative impact on the company's production and operation. (II) risk of large amount of accounts receivable
At the end of each reporting period, the book value of the company's accounts receivable was 31935541 million yuan, 30952961 million yuan, 33072392 million yuan and 44946914 million yuan respectively; At the end of 2019, 2020 and June 2021, the book value of accounts receivable reclassified to accounts receivable financing was 388394300 yuan, 509791500 yuan and 403625500 yuan respectively.
At the end of each reporting period, the total book value of the company's accounts receivable and the book value of accounts receivable reclassified to the accounts receivable financing account accounted for 39.24%, 32.85%, 29.36% and 64.21% of the current operating revenue respectively.
The accounts receivable customers of the company are mainly large enterprises with high credit level of foreign capital in China, and the historical collection situation is good. However, if the company cannot continue to maintain the efficient management of accounts receivable, with the rapid and continuous growth of the company's business scale, it may face a certain risk of bad debt of accounts receivable. (III) management risks caused by continuous expansion of scale
During the reporting period, the company's business scale, personnel scale and asset scale continued to expand. The company and its subsidiaries have 78 holding subsidiaries, 11 joint-stock companies and 33 branches, mainly domestic subsidiaries, scattered in provinces and cities across the country. At the end of each reporting period, the total number of registered employees of the company was 53973, 60979, 75406 and 82682 respectively, and the total assets of the company were 74870686 million yuan, 80751878 million yuan, 90412619 million yuan and 92894937 million yuan respectively. After this issuance, the asset scale and business scale of the company will be further improved.
The continuous expansion of the company's scale will put forward higher and updated requirements for the company's management in terms of resource integration, technology research and development, market development, internal control, employee management and the work coordination and continuity of various departments. If the company's management system and management system cannot meet the needs of business scale expansion, it will have an adverse impact on the company's operating efficiency and make the company face certain management risks.
(IV) risk of rising labor costs
The software and information technology service industry is an industry with intensive human resources and relatively high human costs. Based on China's sufficient information technology human resources and continuously improving human resource competitiveness, the software and information technology service industry has an adequate human resource base. During the reporting period, the employee compensation in the company's main business costs and period expenses (excluding financial expenses) was 6422887600 yuan, 8461444200 yuan, 10449871500 yuan and 6406577300 yuan respectively, accounting for 86.38%, 87.97%, 89.50% and 90.41% of the main business costs and period expenses (excluding financial expenses) respectively, showing an upward trend year by year.
Employee compensation is the main expenditure of the issuer's operating costs and period expenses, which has a significant impact on the company's operation. Although the added value of the issuer's services is high, if the supply of human resources in the market is insufficient or the labor cost rises too fast, and the company fails to take effective countermeasures, the business scale and profitability of the issuer may be affected. (V) risk of changes in tax preference and government subsidy policies
1. Risk of changes in preferential policies for value-added tax
According to the value-added tax policies of the Ministry of Finance and the State Administration of Taxation, the company and its eligible subsidiaries enjoy the deductible input tax plus 10% to offset the tax payable and the value-added tax on sales of software products
