Wankai New Material Co., Ltd
Initial public offering and listing on GEM
Special announcement on investment risk
Sponsor (lead underwriter): China International Capital Corporation Limited(601995)
The application of wankai New Material Co., Ltd. (hereinafter referred to as "wankai new material", "issuer" or "company") for initial public offering of RMB common shares (A shares) (hereinafter referred to as "this offering") and listing on the gem has been examined and approved by the members of the GEM Listing Committee of Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange"), It has been approved to register by the China Securities Regulatory Commission (hereinafter referred to as "CSRC") (zjxk [2022] No. 4).
China International Capital Corporation Limited(601995) (hereinafter referred to as " China International Capital Corporation Limited(601995) " or "sponsor (lead underwriter)") serves as the sponsor (lead underwriter) of this offering.
The number of shares issued this time is 85.85 million, accounting for 25.00% of the total share capital after issuance, all of which are new shares issued to the public. The online and offline issuance will be implemented through the trading system of Shenzhen Stock Exchange, 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") on March 17, 2022 (t day).
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 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 (zxsf [2021] No. 213) and the management rules for offline investors of initial public offerings under the registration system (zxsf [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 investment decisions rationally.
The issuer and the recommendation institution (lead underwriter) specially draw investors' attention to the following contents:
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 initial public offering and listing on the gem of wankai new materials Co., Ltd. (hereinafter referred to as the "announcement on preliminary inquiry and recommendation"), after excluding the quotation of investors who do not meet the requirements, Through consultation, all the placing objects whose proposed purchase price is higher than 45.01 yuan / share (excluding 45.01 yuan / share) will be sold
Part elimination; Eliminate all placing objects with the proposed purchase price of 45.01 yuan / share and the proposed purchase quantity of less than 4.4 million shares (excluding 4.4 million shares); Eliminate all placing objects with the proposed subscription price of 45.01 yuan / share, the proposed subscription quantity is equal to 4.4 million shares, and the subscription time is later than 14:53:05:201 on March 14, 2022 (excluding 14:53:05:201 on March 14, 2022); Among the placing objects with the proposed purchase price of 45.01 yuan / share, the proposed purchase quantity is equal to 4.4 million shares, and the purchase time is 14:53:05:201 on March 14, 2022, one placing object will be eliminated from the back to the front according to the order of placing objects automatically generated by the offline issuance electronic platform. The total number of shares to be purchased excluded in the above process is 1268.9 million, accounting for about 1.00% 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.
2. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the issuer's fundamentals, market conditions, the valuation level of Listed Companies in the same industry, the demand for raised funds, underwriting risks and other factors, and negotiate to determine the issuance price of 35.68 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 17, 2022 (t day), and there is no need to pay the subscription fund at the time of subscription. Among them, 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 determined through negotiation between the issuer and the recommendation institution (lead underwriter) is 35.68 yuan / share. The issuing price of this issuance shall not exceed the median and weighted average of offline investors' quotation after excluding the highest quotation and the securities investment fund established through public offering after excluding the highest quotation (hereinafter referred to as "public offering fund") National Social Security Fund (hereinafter referred to as "social security fund"), basic endowment insurance fund (hereinafter referred to as "pension") 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. According to item (IV) of Article 39 of the rules for the implementation of initial public offering, the relevant subsidiaries of the sponsor need not participate in this strategic placement.
The initial strategic placement amount of this issuance is 17.17 million shares, accounting for 20.00% of this issuance. The strategic placement of this offering is composed of other strategic investors. All subscription funds of strategic investors have been remitted to the bank account designated by the sponsor (lead underwriter) within the specified time.
The initial number of strategic allotments issued in this offering was 17.17 million shares, accounting for 20.00% of this offering. The final strategic placement number of this issuance is 10369953 shares, accounting for 12.08% of this issuance. The difference between the initial strategic placement and the final strategic placement of 6800047 shares will be transferred back to offline issuance.
4. This issuance is finally carried out by a combination of directional placement to strategic investors, offline inquiry placement to qualified investors (hereinafter referred to as "offline issuance") and online pricing issuance to social public investors holding non restricted A-share shares and non restricted depositary receipts market value 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 distribution are conducted through the offline distribution electronic platform（ https://eipo.szse.cn. ）And the implementation of the registration and settlement platform of China Clearing Shenzhen Branch; Online issuance is implemented through the trading system of Shenzhen Stock Exchange. 5. The issue price is 35.68 yuan / share, and the corresponding P / E ratio is:
(1) 51.16 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 after deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares before this issuance); (2) 45.36 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 before deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares before this issuance); (3) 68.21 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 after deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares after this issuance); (4) 60.49 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 before deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares after this issuance).
6. The issue price is 35.68 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 the company is "chemical raw materials and chemical products manufacturing industry" (C26). As of March 14, 2022 (T-3), the average static P / E ratio of chemical raw materials and chemical products manufacturing industry (C26) released by China Securities Index Co., Ltd. in the latest month was 41.46 times.
The issuance price of 35.68 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 68.21 times higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on March 14, 2022, with an excess range of 64.52%. There are three reasons:
1. The issuer's performance growth rate in 2021 was high, mainly due to the good operation of existing production capacity. With the continuous growth of domestic demand in the post epidemic era, the fulfillment of on-hand orders was good and the demand for new orders was gradually released. According to the review report "Zhong Hui Hui Hui Yue [2022] No. 0141" issued by Zhonghui certified public accountants, the growth rate of the company's operating revenue in 2021 was 3.11%, and the growth rate of net profit attributable to the shareholders of the parent company was 119.58%. Based on the company's current business situation, orders in hand, delivery and market environment, the company's management preliminarily estimates that the operating revenue from January to March 2022 is expected to be 350 million yuan to 400 million yuan, with a year-on-year increase of 41.33% to 61.52%; The net profit attributable to shareholders of the parent company ranged from 170 million yuan to 215 million yuan, with a year-on-year increase of 19.53% to 49.88%. With the gradual putting into operation of the company's raised investment project, the company's production capacity will be increased from 1.8 million tons / year to 2.4 million tons / year, ranking among the top in the world, and its profitability will be further improved.
2. The company's bottle grade pet products are close to the consumer market and directly face the well-known enterprises at home and abroad in the downstream consumer industry. It has established good cooperative relations with global well-known food and beverage manufacturers such as nongnongshanquan, Coca Cola, Yibao and Wahaha, which provides a strong guarantee for product sales in the future.
3. Bottle grade PET is one of the most widely used packaging materials in the world. The downstream demand has increased steadily and the industry has a good development prospect. With the development of bottle grade PET technology and the decline of the cost of main raw materials, many new application directions have been promoted. At present, it has been extended to the fields of sheet materials, film materials, engineering plastics and so on. As of March 14, 2022 (T-3), the P / E ratio of listed companies whose main business is similar to that of the issuer is as follows:
Static corresponding to T-3 in 2020
Securities code securities abbreviation before and after deduction stock P / E ratio - state p / E ratio - EPS EPS closing price before and after deduction
(yuan / share) (yuan / share) (yuan / share) (2020) (2020)
China Resources Chemical Innovative Materials Co.Ltd(301090) .SZ China Resources Chemical Innovative Materials Co.Ltd(301090) 0.4252 0.3922 11.06 26.01 28.20
Jiangsu Sanfame Polyester Material Co.Ltd(600370) .SH Jiangsu Sanfame Polyester Material Co.Ltd(600370) 0.1435 0.0708 2.78 19.37 39.28
Average 22.69 33.74
Data source: wind information, data as of March 14, 2022.
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-3 day.
The issuance price of 35.68 yuan / share corresponds to the issuer's audited diluted P / E ratio of net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 68.21 times higher than the average static P / E ratio of comparable companies in the same industry in 2020, with an excess range of 102.16%. There are three reasons:
1. The issuer's phase I Shanghai Pudong Development Bank Co.Ltd(600000) ton production project in Chongqing is located in Western China, which is more economical than that in East China in terms of energy, raw material supply and taxation. The company's raised investment project will put another Shanghai Pudong Development Bank Co.Ltd(600000) tons of production units into operation in Chongqing, which will further amplify the cost and location advantages of the Western layout.
2. There are some differences between the issuer and Jiangsu Sanfame Polyester Material Co.Ltd(600370) in their main businesses, resulting in lower comparability Jiangsu Sanfame Polyester Material Co.Ltd(600370) in addition to the production and sales of polyester bottle chips and PTA, it is also engaged in the production and sales of textile, printing and dyeing, PBT engineering plastics, thermoelectric and other businesses, while the issuer focuses on the R & D, production and sales of new polyester materials such as bottle grade PET. 3. The company attaches importance to the technology accumulation in daily operation. It has been recognized as a provincial enterprise technology center by five departments including Zhejiang Provincial Commission of economy and information technology. It has successively participated in the formulation and revision of a number of national standards and group standards, and has been successfully developed
A variety of new polyester materials with different properties, and continuously increase the R & D investment in new multifunctional green and environment-friendly polymer materials with high added value, such as PETG, modified PET and PTT.
The issuance price of 35.68 yuan / share corresponds to the issuer's audited diluted P / E ratio of net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 68.21 times, which is 41.46 times higher than the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on March 14, 2022 (T-3), and higher than the average static P / E ratio of comparable companies in the same industry in 2020, There is a risk that the decline of the issuer's share price will bring losses to investors in the future. 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.
Investment in new shares has great market risks. Investors should pay full attention to the risk factors contained in the pricing marketization and be aware of them
