On April 7, Hanwang Technology Co.Ltd(002362) ( Hanwang Technology Co.Ltd(002362) . SZ) closed at 14.31 yuan / share, down 4.60%, approaching the lowest share price of 13.81 yuan / share in recent years set on March 9. At the beginning of 2021, Hanwang Technology Co.Ltd(002362) ‘s share price was about 25 yuan / share, and the current share price has fallen by more than 40%.
In July 2021, Hanwang Technology Co.Ltd(002362) issued 27.47 million new shares at 20.73 yuan / share. Based on the issuance price, the initial market value of these new shares was 569 million yuan, which had fallen to 393 million yuan at the closing on April 7, with a floating loss of 176 million yuan.
Source: China stock market news
Hanwang Technology Co.Ltd(002362) 2021 annual report shows that the annual operating revenue was 1.613 billion yuan, with a year-on-year increase of 3.74%. However, the net profit attributable to shareholders of the parent company was 54 million yuan, a decrease of 47.98% compared with 104 million yuan in the previous year; After deduction, the net profit attributable to shareholders of the parent company was 45 million yuan, a year-on-year decrease of 54.81%. The net cash flow from operating activities was – 69 million yuan, showing a net outflow, which changed from positive to negative compared with 19 million yuan in the previous year.
According to the specific composition of the market and the main products, the revenue has declined. Among them, the revenue of the main product “pen Intelligent Interaction” was 1.098 billion yuan, down 1.22% from 1.112 billion yuan last year, and the proportion of revenue shrank to 68.06% from 71.47% last year; The revenue of “text big data and services” and “Ai terminal” ranked second and third with 246 million yuan and 162 million yuan respectively, and the proportion of revenue increased compared with the previous year.
Hanwang Technology Co.Ltd(002362) has more than half of its operating revenue from overseas. In 2021, the overseas revenue was 906 million yuan, a year-on-year decrease of 6.52%, and its proportion in operating revenue also decreased to 56.14% from 62.30% in the previous year. It is worth noting that the income from North China and East China increased rapidly year-on-year, by 32.67% and 26.03% respectively.
Picture source: Hanwang Technology Co.Ltd(002362) announcement
Shortly after the disclosure of the 2021 annual report, on April 7, Hanwang Technology Co.Ltd(002362) disclosed the pre disclosure announcement on the reduction of shares held by senior managers. Due to the need of personal funds, Xu Dongjian, deputy general manager of the company, plans to reduce the company’s shares by no more than 180000 shares within 6 months after 15 trading days from the date of announcement disclosure. The source of shares is the shares before the company’s initial public offering. Before the reduction, Xu Dongjian held 756400 shares of the company (accounting for 0.31% of the total share capital of the company).
However, on the same day, Hanwang Technology Co.Ltd(002362) also disclosed the announcement on the implementation progress of the employee stock ownership plan (special) in 2022, which showed that “the actual amount of contributions received from the participants in this employee stock ownership plan is RMB 5685959 million”; “In 2022, the company’s ESOP securities account has purchased 115500 shares of the company’s shares through the secondary market, accounting for about 0.05% of the company’s total share capital. The average transaction price is about 15.816 yuan / share, and the total transaction amount is 182671687 yuan (including stamp tax).”
According to the total contributions of the participants and the amount of transactions, the ESOP has purchased 32.13% of the “positions” in 2022. The average transaction price has a certain “cost advantage” compared with the issuance price of the batch of additional new shares listed and traded in January 2021. However, as of the closing on April 7, compared with the closing price of 14.31 yuan / share, the share in the employee stock ownership plan account has fallen by 1.5 yuan per share.
According to the announcement of Hanwang Technology Co.Ltd(002362) , the net capital raised from the additional issuance of new shares by the end of 2020 and the beginning of 2021 was 561 million yuan. It was originally planned to invest in the construction of three projects such as “new generation natural language cognitive technology and text big data open platform and application system” and supplement working capital. As of December 31, 2021, the cumulative investment amount (including supplementary working capital) is 198 million yuan.
However, on January 21, 2022, Hanwang Technology Co.Ltd(002362) held the 9th (Interim) meeting of the 6th board of directors, deliberated and approved the proposal on the extension of fund-raising investment projects, and agreed to extend the date when the “new generation of natural language cognitive technology and text big data open platform and application system” reach the expected usable state to December 31, 2025 for two years; The “new generation neural network image, video and human behavior analysis platform and enterprise application project” and “upgrading the core chip of pen touch technology and pen interactive intelligent digital product solution” have been extended to December 31, 2024 for one year.
Picture source: Hanwang Technology Co.Ltd(002362) announcement
Hanwang Technology Co.Ltd(002362) said in the announcement, “due to the global covid-19 pneumonia epidemic and other factors, the implementation of the company’s fund-raising investment project has been delayed compared with the original plan”, “it only involves the change of project implementation progress, does not change the direction of the use of raised funds, and will not have a substantive impact on the implementation of the fund-raising investment project. The delay of the fund-raising investment project has no new risks or uncertainties for the company, and the risks are controllable.”
Nevertheless, it can be seen from the 2021 annual report that there have been some changes in the operating income structure of Hanwang Technology Co.Ltd(002362) in recent two years. The decline of stock price has caused large floating losses in the newly issued shares and employee stock ownership plan accounts. In addition, the reduction of senior executives’ holdings and the postponement of raised investment projects, how will Hanwang Technology Co.Ltd(002362) break the situation in the face of the impact of the continuous covid-19 pneumonia epidemic outside China?
