Shanghai Guanlong valve energy saving equipment Co., Ltd
Shanghai Karon eco Valve Manufacturing Co., Ltd. (No. 815, Deyuan Road, Nanxiang Town, Jiading District, Shanghai)
Initial public offering and listing on GEM
of
Listing announcement
Sponsor (lead underwriter)
(28th floor, No. 1198, Century Avenue, China (Shanghai) pilot Free Trade Zone)
April, 2002
hot tip
The shares of Shanghai Guanlong valve energy saving equipment Co., Ltd. (hereinafter referred to as "Guanlong energy saving", "the company", "the company" or "the issuer") will be listed on the gem of Shenzhen Stock Exchange on April 11, 2022. 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 in the text, the meaning of the words used in this listing announcement is consistent with the prospectus of Shanghai Guanlong valve energy saving equipment Co., Ltd. for initial public offering and listing on GEM (hereinafter referred to as the "prospectus").
Section I important statements and tips
1、 Important statements and tips
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、 Investment risk tips
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 listing include but are not limited to the following:
(I) relaxation of price limit
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 listing, the main board of Shenzhen Stock Exchange was limited to 44%, 36% and 10% respectively. Gem further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk.
(II) a small number of tradable shares
At the initial stage of listing, the lock up period of the original shareholders was 36 months or 12 months, and the lock up period of the online lower limit was 6 months. After this issuance, the total share capital of the company was 167674290 shares, of which the number of tradable shares with unlimited conditions was 39834607, accounting for 23.76% 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.
(III) the issuing P / E ratio is higher than the average level of the same industry
According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission, the industry of Guanlong energy conservation is "general equipment manufacturing industry (C34)". As of March 22, 2022 (T-4), the average static P / E ratio of "general equipment manufacturing industry (C34)" released by China Securities Index Co., Ltd. in the latest month was 33.64 times. As of March 22, 2022 (T-4), the P / E ratio of listed companies whose main business is similar to that of the issuer is as follows:
T-4 closing price 2020 deduction 2020 deduction 20202020 securities code securities abbreviation (March 2022, non front EPS, non rear EPS, non front deduction, non rear deduction, 22 days after deduction, yuan / (yuan / share) (yuan / share) P / E ratio (P / E ratio) (Times) (times)
Neway Valve (Suzhou) Co.Ltd(603699) .SH Neway Valve (Suzhou) Co.Ltd(603699) 8.95 0.7035 0.6603 12.72 13.55
Jiangsu Shentong Valve Co.Ltd(002438) .SZ Jiangsu Shentong Valve Co.Ltd(002438) 16.34 0.4257 0.3786 38.38 43.16
Sufa Technology Industry Co.Ltd.Cnnc(000777) .SZ Sufa Technology Industry Co.Ltd.Cnnc(000777) 12.38 0.2706 0.2236 45.75 55.37
Qingdao Weflo Valve Co.Ltd(002871) .SZ Qingdao Weflo Valve Co.Ltd(002871) 10.43 0.3429 0.2510 30.42 41.55
Average 31.82 38.41
Source: wind data, as of March 22, 2022 (T-4)
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 30.82 yuan / share corresponds to the issuer's diluted P / E ratio of net profit attributable to the parent company in 2020, which is 46.52 times before and after deducting non recurring profits and losses, which is higher than the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on March 22, 2022 (T-4), and 38.41 times higher than the average static P / E ratio of comparable companies in the same industry in 2020, There is a risk that the decline of the issuer's share price will bring losses to investors in the future.
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.
(IV) the shares can be used as the subject matter of margin trading on the first day of listing
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 means that when financing and securities lending, we need to bear not only the risk caused by the change of the original stock price, but also the risk 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.
(V) risk of dilution of immediate return
With the funds raised by the company's initial public offering and listing on the gem in place, especially the situation of over raised funds in this offering, the scale of the company's net assets will increase significantly. After the completion of this offering, the company's return on net assets and other indicators have a certain degree of risk of decline in the short term. 3、 Special risk tips
The company reminds investors to carefully read the "risk factors" part of the prospectus and pay special attention to the following matters:
(I) risk of changes in laws and regulations on investment or technology transfer to China in the region where the actual controller is located
China's Chinese mainland China's natural control is the natural control of the company. The regulations on the relations between the people in Taiwan and the mainland, the Licensing Measures for investment and technical cooperation in the mainland and the principles of investment and technical cooperation in the mainland are stipulated in the regulations of the competent authorities of China's Taiwan region, and the scope of investment in natural persons and legal persons in the Taiwan area of China to the mainland of China is restricted by the regulations of the Taiwan region. It is divided into prohibited category and general category. Products or business items that do not belong to the prohibited category belong to the general category. The industry of the company belongs to general projects and is not limited by the investment scope of the above regulations. Although the current cross-strait economic and trade cooperation is relatively stable, the changes in the cross-strait economic and political environment are uncertain. During the reporting period, the sales amount to the customers in China's Taiwan region was 21 million 706 thousand and 600 yuan, 28 million 731 thousand and 300 yuan, 33 million 138 thousand and 600 yuan and 8 million 143 thousand and 700 yuan respectively, accounting for 2.62%, 3.04%, 3.26% and 1.81% of the company's operating income respectively. The amount of procurement to suppliers in China's Taiwan region was 5 million 307 thousand and 500 yuan, 3 million 222 thousand and 400 yuan, 5 million 637 thousand and 400 yuan and 3 million 461 thousand and 700 yuan respectively, accounting for 1.40%, 0.77%, 1.16% and 1.45% of total purchases respectively. If the regulations on investment in the mainland of China change in China's Taiwan region, strict restrictions on investment in the mainland will have adverse effects on the actual controller's increase in capital investment to the company, the sale of the company to the customers in Taiwan and the procurement of suppliers, and thus adversely affect the production and operation of the company.
(II) increased risk of accounts receivable
At the end of 2018, 2019, 2020 and June 2021, the book value of the company's accounts receivable was 404230800 yuan, 443612500 yuan, 474188900 yuan and 421592900 yuan respectively, accounting for 40.94%, 40.36%, 46.08% and 38.34% of the current assets at the end of each period. During the reporting period, the scale of the company's accounts receivable increased with the increase of income scale. If there are significant adverse changes in the macroeconomic situation and industry development prospects outside China or the business situation of the company's customers deteriorates, the company may not be able to recover the payment on time and in full, which will have an adverse impact on the company's business performance.
(III) increased risk of inventory impairment
The company's inventory mainly includes raw materials, goods in stock and goods issued. At the end of 2018, 2019, 2020 and June 2021, the book value of the company's inventory was 275732600 yuan, 262 Zhejiang Huatie Emergency Equipment Science & Technology Co.Ltd(603300) yuan, 276930700 yuan and 322896000 yuan respectively, accounting for 27.93%, 23.89%, 26.91% and 29.37% of the current assets at the end of the period respectively, which is generally stable.
With the increase of customer orders and the expansion of production scale, the company's raw material reserves and finished product production will increase rapidly. If macroeconomic fluctuations, intensified market competition, difficulties in individual customers and other factors lead to the decline of product sales and price, there is a risk of impairment of the company's inventory.
(IV) risk of intensified market competition
The concentration of the valve industry is low, there are many Chinese production enterprises, and the competition is fierce. On the one hand, the competition of existing large enterprises for the market has intensified, which is embodied in seizing the market and increasing the market share by continuously improving product quality and performance, expanding sales and service areas, etc; On the other hand, small and medium-sized enterprises continue to pour into the market in order to obtain a certain market share and compete mainly in product prices, resulting in a decline in the profit space of the industry. From 2018 to 2020, the company's market share of valves in the field of water supply and drainage was about 2.97%, 3.43% and 3.78% respectively, and the market share was generally low. In the future, the company may be in a disadvantageous competitive position due to intensified market competition or low market share, which will have an adverse impact on the company's operating performance. (V) risk of concentration of business scope
Global head valve manufacturers, mainly European and American enterprises, have a wide range of business. Their products are widely used in many fields such as oil and gas, chemical industry, water conservancy and hydropower, metallurgy, pharmacy, urban water supply and drainage, and some enterprises have related businesses such as instruments, actuators or regulators, with strong comprehensive business competitiveness. In contrast, the issuer's main products are water-saving valves, which are mainly used in downstream fields such as urban water supply and drainage, water conservancy and industry. The product application field is relatively single, and there is a risk of concentration of business scope.
Among comparable companies in the same industry, Sufa Technology Industry Co.Ltd.Cnnc(000777) and Qingdao Weflo Valve Co.Ltd(002871) have entered the issuer's product application field, Neway Valve (Suzhou) Co.Ltd(603699) and Jiangsu Shentong Valve Co.Ltd(002438) and other enterprises have the possibility to enter the water supply and drainage subdivision field through technology R & D, business transformation, cooperative operation or intra industry M & A, so as to compete directly with the company. If other enterprises in the industry enter the application field of the issuer's products, it may lead to more fierce competition in the industry and adversely affect the company's operating performance.
Section 2 stock listing
1、 Review of the company's stock registration and listing
(I) legal basis for preparing the listing announcement
This listing announcement is in accordance with the company law of the people's Republic of China (hereinafter referred to as the "company law"), the securities law of the people's Republic of China (hereinafter referred to as the "Securities Law"), the measures for the administration of the registration of initial public offerings on the gem (for Trial Implementation), the rules for the listing of shares on the gem of Shenzhen Stock Exchange (revised in December 2020), and other relevant laws and regulations
