Ganzhou Tengyuan cobalt industry new material Co., Ltd
Ganzhou Teng yuan cobalt New Material Co., Ltd. (No. 9, Xijin Avenue, Ganzhou high tech Industrial Development Zone, Ganxian District, Ganzhou City, Jiangxi Province) IPO and listing on the gem
Listing announcement
Sponsor (lead underwriter)
(address: floor 12 and 15, Xinsheng building, No. 5, Financial Street, Xicheng District, Beijing)
March, 2002
hot tip
The shares of Ganzhou Tengyuan cobalt industry new materials Co., Ltd. (hereinafter referred to as “Tengyuan cobalt industry”, “the company” or “the issuer”) will be listed on the gem of Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”) on March 17, 2022. 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 and listing on the gem.
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.com.cn China Securities Network (www.cs. Com. CN.) China Securities Network (www.cn. Stock. Com.) Securities Times (www.stcn. Com.) Securities Daily (www.zqrb. CN.) The contents of the “risk factors” chapter of the company’s prospectus 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 173.98 yuan / share, which does not exceed the median and weighted average of offline investors’ quotation after excluding the highest quotation, as well as the securities investment fund, national social security fund, basic old-age insurance fund established through public offering after excluding the highest quotation The enterprise annuity fund established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund quotation median and weighted average in accordance with the measures for the administration of the use of insurance funds, etc., whichever is lower, so the relevant subsidiaries of the recommendation institution do not participate in the strategic placement.
According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission, the industry of the company belongs to the category of “C32 nonferrous metal smelting and rolling processing industry”; As of March 3, 2022 (T-3), the average static P / E ratio of “C32 nonferrous metal smelting and rolling processing industry” released by China Securities Index Co., Ltd. in the latest month was 54.07 times.
As of March 3, 2022 (T-3), the valuation levels of comparable listed companies are as follows:
In 2020, deduct the static market corresponding to the stock of T-4 day in 2020. The securities in the static market corresponding to the stock are referred to as the stock code. The closing price of non front EPS and non rear EPS (yuan earnings ratio (Times) – deduction earnings ratio (Times)-
(yuan / share) (yuan / share / share) not before (2020 not after deduction) (2020)
Zhejiang Huayou Cobalt Co.Ltd(603799) Zhejiang Huayou Cobalt Co.Ltd(603799) . SH 0.95 0.92 115.45 121.05 125.46
Nanjing Hanrui Cobalt Co.Ltd(300618) Nanjing Hanrui Cobalt Co.Ltd(300618) . SZ 1.08 0.61 77.45 71.69 127.53
Average 96.37 126.50
Data source: wind information, data as of March 3, 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 173.98 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 63.05 times higher 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 before and after deducting non recurring profits and losses in 2020, However, there is still a risk that the issuer’s future share price decline will bring losses to investors.
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 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.
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
A wide range of price limits shall be set for the competitive trading of stocks on the gem. For the stocks that are initially issued and listed on the gem, there shall be no limit on the price of stocks within the first five trading days after listing; Five trading days after listing, the price limit ratio is 20%. The first day increase limit ratio of new shares on the main board of Shenzhen stock exchange is 44%, the first day decrease limit ratio is 36%, and the first trading day increase and decrease limit ratio is 10%. The gem further relaxed the increase and decrease limit on the initial stage of stock listing and improved the trading risk.
(II) a small number of tradable shares
After this issuance, the total share capital of the company is 125947514 shares, of which the number of tradable shares with unlimited sales conditions is small, and there is a risk of insufficient liquidity.
(III) risk of margin trading
GEM stocks can be used as the subject of margin trading on the first day of listing, which may produce certain price fluctuation risk, market risk, margin call 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 new investment stock price, 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 the sale of securities, the sale of financed securities or the repayment of the purchase 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 recommendation institutions (lead underwriters) can not guarantee that the stock will not fall below the issue price after listing. 3、 Special risk tips
The company specially reminds investors that before making investment decisions, they must carefully read all the contents of “section IV Risk Factors” in the prospectus of the company, and pay special attention to the following risk factors:
(I) shutdown caused by factory relocation and failure of production in the new plant to meet the expected risk
The company’s plant area in Hongjin Industrial Park of Ganzhou high tech Zone is included in the relocation scope of phase I enterprises of Hongjin Industrial Park of Ganzhou high tech Zone by Ganxian district government of Ganzhou City. It needs to be relocated to Yangtang Industrial Park and build a new plant area.
On April 26, 2019, after public bidding, auction and listing, the company transferred the use rights of two transferred state-owned construction land located in Yangtang Industrial Park, Ganxian District, both for industrial purposes. On the same day, the company signed the agreement on Expropriation and relocation compensation with the headquarters for the relocation and renovation of phase I enterprises in Hongjin Industrial Park, Ganzhou high tech Zone, and agreed with the government on the manner and amount of expropriation and relocation compensation, the time and manner of payment of relocation compensation, and the relocation period. Affected by covid-19 pneumonia, the two sides signed the supplementary agreement on Expropriation and relocation compensation on May 28, 2020,
The original agreed relocation period will be extended to September 30, 2020.
The relocation of the issuer’s old plant was completed in September 2020, and the completion acceptance procedures of the new plant have been completed and the real estate ownership certificate has been obtained. In December 2020, 465.53 metal tons of qualified cobalt salt products were produced in the company’s new plant. In the first half of 2021, 312986 metal tons of cobalt products were produced in the new plant, which basically met the normal production conditions and stable output. In June 2021, the issuer has completed the approval, filing, licensing and other procedures related to the formal operation of the new plant and officially put into operation. As the production line in the new plant area of the company has made many improvements and upgrades to the original production process, improved the intelligent level, and used a large number of new equipment, although the company has officially put into operation and stable output, there is still a risk that the new plant area is affected by various factors and cannot fully reach the production capacity.
(II) risks of overseas operation
The company has set up two Hong Kong subsidiaries and one Congo (DRC) subsidiary abroad, and preliminarily constructed the global layout of the company’s cross-border operation. Congo (DRC) and neighboring Zambia belong to the world’s important copper cobalt ore belt, with rich copper cobalt ore reserves. Among them, the cobalt ore reserves owned by Congo (DRC) account for about 50% of the world’s proven cobalt ore reserves. It is of great significance to the company to establish a subsidiary in Congo (DRC) and gradually carry out raw material procurement and processing business locally, which is related to the stability of raw material supply and operation of the company. However, the local political and social situation in the Democratic Republic of the Congo (DRC) is not very stable, and the economic and social development is relatively backward. The company is facing the following overseas business risks: 1. Although the Democratic Republic of the Congo (DRC) has many advantages in attracting foreign investment, there are local fluctuations in its national and regional political situation and economic situation, the business environment ranks low in the world, economic development Many problems of social stability have not been effectively solved, and unsafe and unstable factors affecting Chinese enterprises’ investment in DRC still exist. In the Democratic Republic of the Congo (DRC), there is a risk that the production of enterprises will be interrupted or the normal business activities of enterprises will be affected due to large fluctuations in the macroeconomic situation, political turmoil, strikes, epidemics, power and other energy supply interruptions; 2. Underdeveloped infrastructure such as transportation and communication, and lack of capital construction materials and living materials restrict the production and development of enterprises; 3. Adverse changes in investment, taxation, finance, foreign exchange, labor, import and export and other relevant laws and regulations; 4. Although the DRC and the Chinese government have signed a series of trade and cooperation agreements to protect the investment and cooperation of Chinese enterprises, the DRC government risks adverse changes in China’s foreign policy; 5. The breach of contract by the government or local cooperative enterprises leads to the loss of the company’s assets or business activities; 6. The business environment, legal system and language customs of Congo (DRC) are quite different from those of China, which may make the Chinese personnel of the company fail to implement the local laws, regulations, policies and business rules, and increase the difficulty of the company’s management; 7. In the future, if the environmental protection policy of the Democratic Republic of the Congo changes, the subsidiary of the Democratic Republic of the Congo may face the risk of local environmental protection policy changes and rising environmental protection costs.
(III) risk of performance fluctuation caused by price fluctuation of cobalt and copper
The company is mainly engaged in the R & D, production and sales of cobalt and copper products. It is one of the most competitive cobalt salt manufacturers in China. The core products of the company are cobalt chloride, cobalt sulfate and other cobalt salts and electrodeposited copper. During the reporting period, the sales of cobalt products of the company were equivalent to 478710 tons of metal, 620261 tons, 466954 tons and 364354 tons respectively, and the sales of copper products were 537870 tons, 1432948 tons, 1814147 tons and 1020007 tons respectively, maintaining a high sales level. However, due to the price fluctuation of products and raw materials, the profit also fluctuated to a large extent. During the reporting period, the net profits attributable to the shareholders of the parent company after deducting non profits were 1821274 million yuan, 1137694 million yuan, 3475339 million yuan and 4957119 million yuan respectively, with large fluctuations. In the future, the company’s net profit may still fluctuate significantly, and the issuer may have the risk that the operating profit in the year of listing may decline by more than 50% or even lose money compared with the previous year. Investors are reminded of the risk of significant fluctuations in the issuer’s net profit in the future. (IV) risk of product demand change of the company
The company’s main business is the R & D, production and sales of cobalt and copper products. Cobalt products are mainly used in downstream industries such as battery materials, alloys and magnetic materials. According to the quarterly data of China cobalt industry, in 2020, battery materials accounted for 68.8% of the consumption demand of the world cobalt industry, 84.4% of the consumption demand of China’s Cobalt industry, and 3C lithium battery and power lithium battery materials are the main consumption fields of the cobalt industry. 3C lithium batteries are mainly used in personal consumer goods such as notebook computers, mobile phones and tablet computers; Power lithium batteries are mainly used in new energy vehicles. Driven by global energy conservation and environmental protection, vehicle electrification and intelligence, clean energy continues to replace traditional fossil energy and other factors, the global new energy vehicle industry has developed rapidly
