Gem risk tips
After this stock issue, it is planned to be listed on the gem, which has high investment risk. GEM companies have the characteristics of large investment in innovation, uncertainty about the success of the integration of new and old industries, still in the growth stage, high operation risk, unstable performance and high delisting risk. Investors are facing greater market risks. Investors should fully understand the investment risks of the gem and the risk factors disclosed by the company, and make investment decisions prudently.
Guangdong Ruide Intelligent Technology Co., Ltd
Guangdong real design Intelligent Technology Co., Ltd
Letter of intent for initial public offering and listing on GEM
Sponsor (lead underwriter)
(No. 18, Meishan Road, Hefei, Anhui)
Statement and commitment
Any decision or opinion made by the CSRC and the exchange on this issuance does not indicate that they guarantee the authenticity, accuracy and completeness of the registration application documents and the information disclosed, nor do they indicate that they make substantive judgment or guarantee on the profitability, investment value of the issuer or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, the issuer shall be responsible for the changes in the operation and income of the issuer after the shares are issued according to law; Investors independently judge the investment value of the issuer, make investment decisions independently, and bear the investment risks caused by the changes in the operation and income of the issuer or the changes in the stock price after the shares are issued according to law. The issuer and all directors, supervisors and senior managers promise that the prospectus and other information disclosure materials are free from false records, misleading statements or major omissions, and bear corresponding legal liabilities.
The controlling shareholder and actual controller of the issuer promise that there are no false records, misleading statements or major omissions in this prospectus, and bear corresponding legal liabilities.
The person in charge of the company, the person in charge of accounting and the person in charge of the accounting institution shall ensure that the financial and accounting materials in the prospectus are true and complete.
The issuer and all directors, supervisors, senior managers, controlling shareholders, actual controllers, sponsors and underwriting securities companies promise to compensate investors for losses in securities issuance and trading due to false records, misleading statements or major omissions in the issuer's prospectus and other information disclosure materials.
The sponsor and the securities service institution promise to compensate the investors for the losses caused to the investors due to the false records, misleading statements or major omissions in the documents prepared and issued for the issuer's public offering.
Issue overview
Type of shares issued: RMB ordinary shares (A shares)
This public offering of new shares shall not exceed 25.488 million shares, accounting for no less than 25% of the total number of shares issued after the issuance. The final issuance quantity shall be determined by the issuer and the recommendation institution through negotiation according to the inquiry and in combination with the capital demand of the investment project funded by the raised funds in this issuance. This offering does not involve the public offering of old shares by shareholders to investors.
The par value of each share is RMB 1.00
The issue price per share is [] yuan
Expected issue date: March 30, 2022
Stock exchanges and sectors to be listed Shenzhen Stock Exchange gem
The total share capital after issuance shall not exceed 101952 million shares
Sponsor and lead underwriter Guoyuan Securities Company Limited(000728)
Signing date of the prospectus: March 21, 2022
Tips on major issues
The company specially reminds investors to pay full attention to the following major matters and carefully read all contents of this prospectus. 1、 Important commitments made by relevant entities of this issuance
The company reminds investors to carefully read the important commitments made by the company, shareholders, actual controllers, directors, supervisors, senior managers, other core personnel, as well as the sponsors and securities service institutions of this offering and the binding measures for failure to fulfill the commitments. For specific commitments, see "I. list of documents for future reference" in the "annex to section 13" of this prospectus. 2、 Profit distribution policy and commitment
The specific contents of the post issuance profit distribution policy are detailed in the relevant contents of "(II) the company's specific profit distribution plan for the next three years" and "(III) the decision-making procedure of dividend distribution" of "II. Dividend distribution policy after this listing" in "section 10 investor protection" of this prospectus. 3、 Major risk tips
In addition to the above important matters, the company reminds investors to carefully read the "section IV Risk Factors" of this prospectus and pay special attention to the following risks:
(I) macroeconomic environment and fluctuation risk of downstream white appliance industry
The company's main products are intelligent controllers for small household appliances and intelligent controllers for large household appliances, which are mainly used for white household appliances. During the reporting period, the sales revenue of these two types of products accounted for 97.39%, 96.86%, 97.91% and 96.83% of the company's main business revenue respectively. Therefore, the company's business development is closely related to the consumer demand and macroeconomic trend of the downstream white household appliance industry. When the macro-economy is in the rising stage, the market demand for white appliances develops rapidly; On the contrary, when the macro-economy is in the decline stage, the development of white appliance market slows down. As an intelligent controller supplier, the company's macroeconomic environment and fluctuations in the downstream white appliance industry have a great impact on the company's business growth and profitability.
(II) risk of continuous innovation
The company's downstream white appliance industry has a fast product upgrading speed, the demand for the functions and uses of products is becoming more and more complex, and customers have higher and higher requirements for intelligent controller suppliers. At the same time, the popularization of smart home brings opportunities and challenges to the traditional white appliance industry, which will urge the company to keep up with the development trend of the industry and continue to innovate in products, technologies and processes. As of the signing date of this offering intention, the issuer has obtained a total of 240 patents, including 33 invention patents. If the company has insufficient innovation ability in technology and product research and development in the future and fails to meet the changes of market demand, it may face the risk of backward technology and declining competitiveness.
(III) risk of relative concentration of customers
During the reporting period, the sales of the company's top five customers accounted for 57.69%, 53.26%, 47.22% and 45.47% of the current operating revenue respectively. Among them, the sales of the company's largest customer Zhejiang Supor Co.Ltd(002032) accounted for 32.44%, 32.83%, 26.54% and 21.04% respectively, with relatively high customer concentration.
The company has long-term strategic cooperation with the top five Chinese household appliance manufacturers. In the future, if such customers' demand for intelligent controllers decreases, or the company's cooperation with them changes adversely, it will have an adverse impact on the company's operating performance.
(IV) risk of shortage of raw material supply and price fluctuation
The main raw materials of the company's products are IC chips, PCBs, display screens, diodes and triodes, resistors, capacitors, relays, inductors and other electronic components. During the reporting period, the direct material cost of the company accounted for nearly 80% of the operating cost. Affected by the rising market price of raw materials, the gross profit margin of the company's main business from January to June 2021 decreased by 1.49 percentage points compared with 2020. If the supply of raw materials is in short supply or the price continues to rise due to the influence of market supply and demand, transportation costs, energy prices and other factors in the future, and the company cannot purchase the raw materials required for production in time, or transmit the price rise of raw materials to the downstream or effectively reduce the production cost, it will have an adverse impact on the production, delivery and profitability of the company.
(V) risk of bad debts of accounts receivable
With the expansion of the company's business scale and the growth of operating revenue, the company's accounts receivable balance increased accordingly. During the reporting period, the company's accounts receivable balance was 285549000 yuan, 282001700 yuan, 307006700 yuan and 3303719 million yuan respectively, accounting for 34.35%, 29.91%, 28.16% and 52.65% of the current operating revenue respectively. Most of the company's customers are well-known enterprises in China's household appliance industry, with good sales and credit conditions and low bad debt risk. However, with the further growth of sales, the accounts receivable will further increase. If the accounts receivable cannot be recovered on schedule or cannot be recovered, it will have an adverse impact on the company's operating performance, cash flow, capital turnover and other normal production and operation.
(VI) risk of failing to pay social security and housing provident fund for some employees
During the reporting period, the company and its subsidiaries failed to pay social insurance and housing provident fund for some employees due to their low willingness to pay, strong mobility and the failure of new employees to complete the procedures of social security and housing provident fund in the current month. At the end of each reporting period, the proportion of the company not paying social insurance for some employees was 45.05%, 53.60%, 19.54% and 6.80% respectively, and the proportion of unpaid housing provident fund was 79.67%, 82.47%, 20.72% and 7.08% respectively. It is estimated that during the reporting period, the amount of social insurance and housing accumulation fund not paid by the company and its subsidiaries for some employees were 8.7073 million yuan, 115203 million yuan, 2.9136 million yuan and 791600 yuan respectively, accounting for 23.03%, 17.28%, 3.68% and 1.74% of the total profits respectively. For the company's failure to pay social security and housing provident fund for some employees, there is a risk of being required to make up or punished by the regulatory authorities. 4、 Main operating conditions after the audit deadline of the company's financial report
(I) main financial information and operation in 2021
The audit base date of the company's financial report is June 30, 2021. Zhonghua Certified Public Accountants (special general partnership) reviewed the company's consolidated and parent company's balance sheet as of December 31, 2021, consolidated and parent company's income statement, consolidated and parent company's cash flow statement and notes to relevant financial statements in 2021, and issued the review report (Zhong Hui Zi (2022) No. 01853). According to the review report (Zhong Hui Zi (2022) No. 01853), in 2021, the company realized an operating revenue of 1324061100 yuan, an increase of 21.45% year-on-year; In 2021, the net profit attributable to the shareholders of the parent company after deducting non recurring profits and losses was 733941 million yuan, a year-on-year increase of 12.05%. As of December 31, 2021, the total assets of the company were 12149628 million yuan, an increase of 620939 million yuan or 5.39% over the end of 2020; The owner's equity attributable to the parent company was 545422 million yuan, an increase of 606057 million yuan or 12.50% over the end of 2020. For detailed information, please refer to "XV. Main financial information and operating conditions between the audit base date of financial report and the signing date of offering intention" in "Section VIII Financial Accounting Information and management analysis" of this prospectus.
(II) performance forecast for the first quarter of 2022
Based on the current business situation, orders in hand and market environment, the company's management preliminarily calculated that the business performance in the first quarter of 2022 is expected to be as follows:
Unit: 10000 yuan
The first quarter of 2022 is expected to be the first quarter of 2021
Amount increase amount
Operating income 2773268 0.14% 2769468
The net profit attributable to the shareholders of the parent company was 954.69 - 25.04% and 127355%
After deducting non recurring profits and losses, 687.78% - 28.06% and 956.03% of the net profit attributable to the shareholders of the parent company
It can be seen from the above that the company expects the operating revenue in the first quarter of 2022 to be basically the same as that in the same period of the previous year. After deducting non recurring profits and losses, the net profit attributable to the shareholders of the parent company decreased by 28.06% compared with the same period of the previous year, mainly due to the rise in the price of raw materials, but the price transmission has a certain lag.
The above estimate for the first quarter of 2022 is the preliminary calculation result of the company, which has not been audited or reviewed by accountants, and does not constitute the company's profit forecast or performance commitment.
catalogue
Statement and commitment 1 issue Overview 2. Tips on major issues three
1、 Important commitments made by relevant entities of this issuance three
2、 Profit distribution policy and commitment three
3、 Significant risk tips three
4、 Main operating conditions after the audit deadline of the company's financial report 5 catalog Section 1 interpretation twelve
1、 General interpretation twelve
2、 Interpretation of professional terms
