Stock abbreviation: Wright optoelectronics Stock Code: 688150 Shaanxi Wright Optoelectronic Materials Co., Ltd
SHAANXI LIGHTE OPTOELECTRONICS
MATERIALCO., LTD.
(Building 3, building 3, building 3, No. 99, Longfeng Road, high tech Zone, Xi'an, Shaanxi)
Sponsor (lead underwriter) of IPO listing announcement on science and Innovation Board
(North block of excellence Times Square (phase II), No. 8, Zhongxin Third Road, Futian District, Shenzhen, Guangdong)
March 17, 2002
hot tip
The shares of Shaanxi Laite photoelectric materials Co., Ltd. (hereinafter referred to as "Laite photoelectric", "the company", "the issuer" or "the company") will be listed on the science and Innovation Board of Shanghai Stock Exchange on March 18, 2022. The company reminds investors to fully understand the stock market risks 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.
The value of this listing announcement is usually reserved to two decimal places. If the total number is inconsistent with the mantissa of the sum of the values of each sub item, it is caused by rounding.
Section I important statements and tips
1、 Important statement
The company and all directors, supervisors and senior managers guarantee that the information disclosed in the listing announcement is true, accurate and complete, 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 Shanghai 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 and publish on the website of Shanghai Stock Exchange（ http://www.sse.com.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.
Unless otherwise specified, the definitions of abbreviations or terms in this listing announcement are the same as those in the IPO prospectus of the company.
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. 2、 Special tips on investment risks at the initial stage of IPO
The company's shares will be listed on the science and Innovation Board of Shanghai Stock Exchange on March 18, 2022. The company reminds investors to fully understand the stock market risks 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. The company's special tips on relevant risks are as follows: (I) stock trading risk of Kechuang board
The main board of Shanghai Stock Exchange and the main board of Shenzhen Stock Exchange are limited to 44% increase and 36% decrease on the first day of listing, and then 10% increase and decrease.
There is no price limit within the first five trading days after the listing of the shares listed in the initial public offering of the science and innovation board; Five trading days after listing, the exchange imposed a price limit of 20% on the competitive trading of shares on the science and innovation board. The Kechuang board further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk. (II) abnormal stock fluctuation risk
On the first day of listing, the shares on the science and innovation board can be used as the subject of margin trading, which increases the risk of sharp decline in share price caused by increased leveraged margin trading in the early stage of listing, while the main board market of Shanghai stock exchange requires that they can be used as the subject of margin trading after more than three months. In addition, the stock verification system for temporary suspension and serious abnormal fluctuations in the stock trading session of the science and innovation board is different from that of the main board market of the Shanghai Stock Exchange. Draw investors' attention to relevant risks.
After the IPO and listing, in addition to the operation and financial status, the stock price of the company will also be affected by many factors such as the macroeconomic situation outside China, industry conditions, capital market trends, market psychology and various major emergencies. When considering investing in the company's shares, investors should anticipate the possible investment risks caused by the above factors and make prudent judgments. (III) less circulating shares
After this issuance, the total share capital of the company is 402437585 shares, of which 32695739 shares are tradable shares with no sale conditions at the initial stage of listing, accounting for 8.12% of the total share capital after this issuance. At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity. (IV) the shares can be used as the subject matter of margin trading on the first day of listing
On the first day of listing, the shares on the science and innovation board can be used as the subject of margin trading, 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. In addition, the stock verification system for temporary suspension and serious abnormal fluctuations in the stock trading session of the science and innovation board is different from that of the main board market of the Shanghai Stock Exchange. Draw investors' attention to relevant risks. (V) the risk that the price earnings ratio of the company's issuance is higher than the average level of the same industry
The issue price is 22.05 yuan / share, and the price earnings ratio corresponding to this price is:
1. 120.34 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before the issuance); 2. 113.00 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before this issuance); 3. 133.71 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance); 4. 125.55 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance). According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission, the industry of the company is "C39 computer, communication and other electronic equipment manufacturing industry". As of March 3, 2022 (T-3), the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. was 44.27 times.
The price earnings ratio of the issuer corresponding to the issue price is 133.71 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after the issue), which is higher than the average static price earnings ratio of the industry in the latest month issued by China Securities Index Co., Ltd, There is a risk that future stock price falls will bring losses to investors. 3、 Special risk tips
When evaluating the company's shares issued this time, investors should carefully read the risk factors in "section IV Risk Factors" of the company's prospectus, and pay special attention to the following major risk factors. Ranking does not mean that the risk factors occur in turn. (I) special risk tips
1. There is a greater risk of relying on BOE's major customers
During the reporting period, the company's sales revenue to BOE accounted for 75.81%, 86.16%, 74.22% and 62.88% of its main business revenue respectively. BOE was the company's largest customer.
The company's main products are OLED terminal materials. During the reporting period, the company's sales revenue of OLED terminal materials to BOE accounted for 100%, 99.85%, 94.66% and 77.62% of the sales revenue of OLED terminal materials respectively, accounting for a relatively high proportion. During the reporting period, the OLED terminal materials sold by the company to BOE were mainly redprime materials, with a relatively single variety. In the future, if the company cannot continue to maintain its advantages among BOE's material suppliers, the supply of redprime products, or the cooperative relationship with BOE, resulting in a decline in the company's sales revenue to BOE, the company's operating performance will be greatly affected.
BOE is currently the second panel manufacturer in the world and the first in China in the field of OLED small-size display panel. According to the statistics of omdia, in 2020, BOE AMOLED display panel production capacity accounted for 46.12% in the Chinese market, ranking first in China. At present, the company's OLED terminal materials mainly face the Chinese market. In the case of BOE's high market share, if the company cannot maintain the cooperative relationship with BOE and expand other customers to make up for the impact of BOE's decline in sales revenue, the company's operating performance will be greatly affected.
2. Risk of product price decline
During the reporting period, the framework agreement signed between the company and BOE agreed that the price of the same contract product of the company should be reduced by a certain range every year. During the reporting period, after the initial pricing of the same product sold by the company to BOE, the sales price decreased year by year, but the pricing of new products still maintained a high level. The company introduced new products through continuous iteration to reduce the impact of the decline in the price of old products. However, in the future, if the company cannot reduce the impact of the decline in the price of old products through the continuous introduction of new products, or the pricing of new products decreases significantly, the company may face the risk of decline in gross profit margin caused by product price reduction, which will have an adverse impact on the company's gross profit margin and operating performance. The OLED display material industry where the company is located is in rapid development. In order to gain an advantage in international competition, Chinese manufacturers continue to optimize costs through continuous process improvement and large-scale production. At the same time, the reduction of production cost is the only way for OLED display panel to gradually improve its penetration in downstream application fields and continuously expand its market share. Therefore, "volume rise and price fall" is a common sales situation in the industry. In addition to BOE, the products of other customers may also have the possibility of price decline, which will have an adverse impact on the company's gross profit margin and operating performance.
3. Risk of product or technology iteration
During the reporting period, the company's OLED organic material revenue accounted for 100%, 99.19%, 95.31% and 100% of its main business revenue respectively, accounting for a relatively high proportion.
At present, the OLED display industry is still in the stage of rapid development. All kinds of display panel products of BOE and other customers need to be updated and upgraded every other period. In addition to using the original materials, new materials will also be tested in new products, and the requirements for material performance are constantly updated and iterated. If the R & D and innovation of the company's products can not keep up with the needs of customers or the continuous innovation is insufficient, and the company is unable to follow up the technical upgrading iteration of the industry, it may be impacted by competitive alternative technologies and competitive products, so that the company's products may be replaced, upgraded or eliminated by other suppliers of similar products, so that the company's business performance faces the risk of decline. In addition, in the future development of the industry, it is not ruled out that major technological innovation may lead to significant changes in the process flow of OLED panel; Nor does it rule out the possibility that new products or materials with more advantages in cost or performance may realize significant substitution for existing products. If the above situation occurs, it will have a significant adverse impact on the operation of the company.
4. Inventory falling price risk
At the end of each reporting period, the book value of the company's inventory was 25.329 million yuan, 33.538 million yuan, 468651 million yuan and 507214 million yuan respectively, accounting for 4.84%, 5.19%, 5.79% and 5.63% of the total assets respectively. At the end of each reporting period, the company's inventory falling price reserves were 7.1439 million yuan, 15.516 million yuan, 168654 million yuan and 220421 million yuan respectively, accounting for 22.00%, 31.63%, 26.46% and 30.29% of the inventory book balance respectively.
The OLED organic material industry where the issuer is located is characterized by rapid product technology update. In this industry context, the issuer may face the possibility of increased inventory impairment in the future due to product technology update, changes in market demand environment, customer delivery delay or even default.
5. Risks of digestion of new production capacity after the implementation of the project invested by raised funds
During the reporting period, the company's OLED terminal material capacity was 1.86 tons, and the capacity utilization rates were 15.92%, 54.31%, 73.23% and 117.35% respectively. The fund-raising investment project of the company is intended to increase the production capacity of 15 tons of OLED terminal materials to meet the needs of the company's business growth.
At present, the OLED industry is developing rapidly. The production capacity of Chinese OLED panel manufacturers such as BOE and Huaxing optoelectronics continues to grow. At the same time, it has also attracted a number of manufacturers to enter the field of OLED materials, including Jilin Oled Material Tech Co.Ltd(688378) and other emerging material enterprises in China, as well as well-known foreign companies such as Merck, DuPont and UDC. Therefore, after the implementation of this raised investment project, the company needs to continuously digest the new production capacity through customer maintenance and development, product development and marketing. If the subsequent industry demand is less than expected, adverse changes occur in the market environment, or the company's subsequent product marketing and market development efforts fail to meet the expectations, it may lead to the risk that the new production capacity of the raised capital investment project cannot be digested in time and can not reach the expected income, which will have an adverse impact on the improvement of the company's income and operating performance. (II) mass produced products of the company
OLED terminal materials mainly include electron injection layer materials, electron transport layer materials, hole barrier layer materials, light-emitting layer materials, hole transport layer materials, hole injection layer materials, etc.
The company's current mass production
