Hit Welding Industry Co., Ltd
(Yaoguan Town, Wujin District, Changzhou City)
Initial public offering and listing on GEM
Listing announcement
Sponsor (lead underwriter)
(Building 4, No. 66 Anli Road, Chaoyang District, Beijing)
March, 2002
hot tip
The shares of Harbin Welding Institute Huatong (Changzhou) welding industry Co., Ltd. (hereinafter referred to as the "company", "issuer" or "Harbin Welding Huatong") will be listed on Shenzhen Stock Exchange on March 22, 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 15.37 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"), the National Social Security Fund (hereinafter referred to as "social security fund"), the basic old-age insurance fund (hereinafter referred to as "pension") established through public offering after excluding the highest quotation 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 the industry classification guidelines for listed companies (revised in 2012) issued by the China Securities Regulatory Commission, the industry of the company belongs to the metal products industry (industry code C33). As of March 4, 2022 (T-4), the average static P / E ratio of the industry released by China Securities Index Co., Ltd. in the latest month was 28.96 times.
As of March 4, 2022 (T-4), the valuation levels of comparable listed companies are as follows:
Securities code securities abbreviation 2020 static market corresponding to T-4 day shares in 2020 static closing earnings ratio before and after deduction closing earnings ratio before deduction non price earnings ratio before deduction non deduction
EPS (yuan EPS (yuan / price (yuan / (2020) (2020) / share) (share)
Atlantic China Welding Consumables Inc(600558) .SH Atlantic China Welding Consumables Inc(600558) 0.1180 0.1133 3.61 30.60 31.85
Hangzhou Huaguang Advanced Welding Materials Co.Ltd(688379) .SH Hangzhou Huaguang Advanced Welding Materials Co.Ltd(688379) 0.7350 0.6544 19.92 27.10 30.44
Average 28.85 31.15
Data source: wind information, data as of March 4, 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-4 day. The issuance price of 15.37 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 40.69 times higher than the average static P / E ratio of the issuer's industry in the latest month released by China Securities Index Co., Ltd., with an excess range of 40.50%; It is 31.15 times higher than the average static P / E ratio of comparable A-share companies in the same industry before and after deducting non recurring profits and losses in 2020, with an excess range of 30.63%. There are the following reasons:
First, the shareholder background of central enterprises in the positioning of basic scientific research provides strong support for the long-term development of the company. The actual controller of the company is the General Machinery Institute Group, which is the only central enterprise engaged in the research of basic common technologies in equipment manufacturing industry; Harbin Welding Institute, the controlling shareholder, is a national scientific research institution with comprehensive scientific and technological strength in welding technology research. It is the affiliated unit of the Secretariat of China Welding Association, the Secretariat of Welding Society of China Mechanical Engineering Society and the Secretariat of national welding Standardization Technical Committee. It has a national welding material quality supervision and inspection center. Second, the company is an enterprise that entered the welding materials industry earlier in China. Since its establishment, the company has been deeply engaged in the R & D, production and sales of fusion welding materials for many years, forming a strong core competitiveness in the market; It has established a stable R & D and operation team, accumulated rich process technology and production experience, and mastered the core production technology with independent intellectual property rights; The company has good product performance indicators, stable quality and timely supply, and has established a long-term and stable cooperative relationship with leading enterprises in downstream industries. Third, the company has the international leading and advanced technical level in product development and production technology. The developed nickel base alloy, high-end aluminum alloy welding wire and other products fill the gap in China and have been applied in many national key projects. With the rapid development of lightweight, high-end and localization of fusion welding materials, the company's products comply with the future trend and have broad market prospects.
The issuance price of 15.37 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 40.69 times higher than the average static P / E ratio of the issuer's industry in the latest month of 28.96 Times published by China Securities Index Co., Ltd., and 31.15 times higher than the average static P / E ratio of A-share comparable companies in the same industry before and after deducting non recurring profits and losses 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.
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 the company's IPO include but are not limited to the following: (I) the restrictions on rise and fall are relaxed
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 ratio was 36%, and the increase and decrease limit was 10% from the next trading day. The gem further relaxed the limit 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 181813400 shares, of which 43109453 shares are tradable without restrictions, accounting for 23.71% 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 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 to pay attention to the following risk summary tips. For details, please read all the contents of "section IV Risk Factors" in the prospectus. (I) risk of scientific and technological innovation failing to meet expectations
In the face of fierce market competition, the company must continue to develop products with high added value for welding in different environments, connection of different new materials, but a new product often takes a long time from formula research, trial production, preparation process design to final customer recognition and large-scale production and sales, and may face the risk of product or technology development failure. In this process, the technology R & D risks faced by the company are also mainly reflected in: whether the company can correctly grasp the development trend of new technology and realize the products developed by the company at the advanced technical level; Whether we can implement effective management, grasp the development cycle and reduce the development cost in the process of technology development. If the company fails to correctly judge the trend of future technology and product development, and the R & D direction, resource investment and R & D personnel allocation can not meet the needs of the market for technology renewal, it may cause the company's technology to lag behind the technical level of the industry, thus adversely affecting the development of the company. (II) market competition risk
The company is mainly engaged in the R & D, production and sales of fusion welding materials. The fusion welding material industry has the characteristics of multiple varieties and specifications. After years of development, the fusion welding materials industry is currently in a fully competitive situation. It cannot be ruled out that new competitors will enter the market in the future, or the original competitors will increase production capacity and intensify the market competition in the industry, resulting in a decline in the sales price and quantity of the issuer's products, resulting in a decline in the gross profit margin of the products and an adverse impact on the profitability of the issuer. In addition, if the issuer fails to maintain its advantages in technology, management, scale, brand, product upgrading and process optimization, it will face greater market competition pressure in the future. (III) price fluctuation risk of raw materials
During the reporting period, the raw materials of the company's main products accounted for more than 80% of the cost. Due to the high proportion of raw material cost in the company's cost and frequent price fluctuations, it had a great impact on operating costs and profits. During the reporting period, the main raw materials purchased by the company have the attribute of bulk commodities, and there are open market prices. The company and suppliers form the final purchase price based on the spot transaction price of relevant bulk commodities and considering factors such as processing and transportation. From January 1, 2018 to June 30, 2021, the market price fluctuation of bulk commodity wire rod is as follows: data source: wind
If the prices of main raw materials such as wire rods are greatly affected by factors such as changes in commodity prices in the future, it will have a certain impact on the gross profit margin of the company's products, so the company faces the risk of price fluctuation of raw materials. (IV) risk of high concentration of suppliers
The raw material suppliers of the issuer are relatively concentrated, and the purchase amount of the top five suppliers accounted for more than 45% of the total purchase amount during the reporting period. The raw materials of the company are mainly wire rods produced by steel manufacturers such as Minmetals Yingkou, Citic Pacific Special Steel Group Co.Ltd(000708) , Jiangsu Shagang and so on. During the reporting period, the purchase proportion of major suppliers is relatively stable. However, if the existing suppliers of the issuer cannot guarantee the supply of raw materials to the issuer for various reasons, the issuer will face problems such as tight supply of raw materials in the short term, increased procurement costs and re establishment of procurement channels, which will have an adverse impact on the raw material procurement, production and operation and financial status of the issuer. (V) recovery risk of accounts receivable
At the end of each reporting period, the book value of the company's accounts receivable was 196816100 yuan, 169218300 yuan, 2205127 million yuan and 275913 million yuan respectively, accounting for 20.82%, 16.05%, 16.17% and 20.18% of the total assets respectively. If the downstream customers fail to collect the payment on time, it may bring certain losses to the company. If the balance of the company's accounts receivable increases significantly in the future, it will bring certain pressure to the company's working capital. (VI) risks of macroeconomic changes and cyclical fluctuations in downstream industries
Since its establishment for more than 20 years, the company has been focusing on the R & D, production and sales of fusion welding materials. The fusion welding materials produced by the company are widely used in rail transit, petrochemical industry, nuclear power and hydropower, engineering machinery, container, ship and automobile manufacturing. However, due to the differences between the company and the above downstream markets
