Hubei Zhongyi Technology Co., Ltd
Initial public offering and listing on GEM
Special announcement on investment risk
Sponsor (lead underwriter): China International Capital Corporation Limited(601995)
The application of Hubei Zhongyi Technology Co., Ltd. (hereinafter referred to as “Zhongyi technology”, “issuer” or “company”) for initial public offering of RMB common shares (A shares) (hereinafter referred to as “this offering”) and listing on the gem has been examined and approved by the members of the GEM Listing Committee of Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”), It has been approved to register by the China Securities Regulatory Commission (hereinafter referred to as “CSRC”) (zjxk [2022] No. 428).
China International Capital Corporation Limited(601995) (hereinafter referred to as ” China International Capital Corporation Limited(601995) ” or “sponsor (lead underwriter)”) serves as the sponsor (lead underwriter) of this offering.
The number of shares issued this time is 16837000, accounting for about 25.00% of the total share capital after issuance, all of which are new shares issued to the public. The online and offline issuance will be implemented through the trading system of Shenzhen Stock Exchange, the offline issuance electronic platform of Shenzhen Stock Exchange (hereinafter referred to as “offline issuance electronic platform”) and the registration and settlement platform of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as “China Clearing Shenzhen branch”) on April 12, 2022 (t day).
This offering is applicable to the special provisions on the issuance and underwriting of initial public offerings on GEM (CSRC announcement [2021] No. 21) issued by China Securities Regulatory Commission on September 18, 2021, and the implementation rules for the issuance and underwriting of initial public offerings on gem of Shenzhen Stock Exchange (revised in 2021) (SZS [2021] No. 919) issued by Shenzhen Stock Exchange The code for underwriting initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 213) and the management rules for offline investors of initial public offerings under the registration system (Zhong Zheng Xie Fa [2021] No. 212) issued by the China Securities Association invite investors to pay attention to the changes of relevant regulations. The issuance price of 163.56 yuan / share corresponds to the issuer’s audited diluted P / E ratio of net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 91.57 times, which is higher than the industry’s average static P / E ratio in the latest month released by China Securities Index Co., Ltd. on April 7, 2022 (T-3), with an excess range of 130.65%, which is lower 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. 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 issuer and the recommendation institution (lead underwriter) specially draw investors’ attention to the following contents:
1. After the preliminary inquiry, the issuer and the recommendation institution (lead underwriter) shall, in accordance with the exclusion rules stipulated in the announcement on preliminary inquiry and promotion of initial public offering of shares by Hubei Zhongyi Technology Co., Ltd. and listing on the gem (hereinafter referred to as the “announcement on preliminary inquiry and promotion”), after excluding the quotation of investors who do not meet the requirements, By consensus, all placing objects whose proposed purchase price is higher than 225.00 yuan / share (excluding 225.00 yuan / share) will be eliminated; Eliminate all placing objects with the proposed purchase price of 225.00 yuan / share and the proposed purchase quantity of less than 4.7 million shares (excluding 4.7 million shares); Among the placing objects with the proposed purchase price of 225.00 yuan / share, the proposed purchase quantity is equal to 4.7 million shares, and the purchase time is 13:18:13:385 on April 7, 2022, 29 placing objects will be eliminated from the back to the front according to the order of placing objects automatically generated by the offline issuance electronic platform. The total number of shares to be purchased excluded in the above process is 216 Shanghai Pudong Development Bank Co.Ltd(600000) , accounting for about 1.02% of the total number of 21232900000 shares to be purchased after excluding invalid quotations in this preliminary inquiry. The excluded part shall not participate in offline and online subscription. 2. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the issuer’s fundamentals, market conditions, the valuation level of Listed Companies in the same industry, the demand for raised funds, underwriting risks and other factors, and negotiate to determine that the price of this issuance is 163.56 yuan / share, and the offline issuance will not conduct cumulative bidding inquiry.
Investors are requested to make online and offline subscription at this price on April 12, 2022 (t day), and there is no need to pay the subscription fund at the time of subscription. Among them, the offline subscription time is 9:30-15:00, and the online subscription time is 9:15-11:30 and 13:00-15:00.
3. The issuing price determined through negotiation between the issuer and the recommendation institution (lead underwriter) is 163.56 yuan / share. The issuing price of this issuance shall not exceed the median and weighted average of offline investors’ quotation after excluding the highest quotation, as well as the Securities Investment Fund (hereinafter referred to as “public fund”) and the National Social Security Fund (hereinafter referred to as “social security fund”) established through public offering after excluding the highest quotation The lower of the median and weighted average of the quoted prices of the basic endowment insurance fund (hereinafter referred to as “pension”), the enterprise annuity fund established in accordance with the measures for the administration of enterprise annuity fund (hereinafter referred to as “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. According to item (IV) of Article 39 of the rules for the implementation of initial public offering, the relevant subsidiaries of the sponsor need not participate in this strategic placement.
The initial strategic placement number of this issuance is 3367400 shares, accounting for 20.00% of this issuance. According to the final price, the strategic placement of this issuance is composed of the special asset management plan of the issuer’s senior managers and core employees and other strategic investors. All subscription funds of strategic investors have been remitted to the bank account designated by the sponsor (lead underwriter) within the specified time.
The special asset management plan set up by the issuer’s senior managers and core employees participating in this strategic placement is the collective asset management plan for the strategic placement of Zhongjin Zhongyi technology No. 1 employee participating in the gem (hereinafter referred to as “Zhongjin Zhongyi technology No. 1 asset management plan”). According to the final determined price, the number of strategic placement shares of Zhongjin Zhongyi technology No. 1 asset management plan is 624602, accounting for about 3.71% of the number of shares issued this time.
The types of other strategic investors are large-scale enterprises or their subordinate enterprises with strategic cooperative relationship or long-term cooperative vision with the issuer. According to the final price, the number of shares placed by other strategic investors is 1834188, accounting for about 10.89% of the number of shares issued this time.
The initial number of strategic placement shares issued in this issuance is 3367400, accounting for 20.00% of this issuance.
The final strategic placement number of this issuance is 2458790 shares, accounting for about 14.60% of this issuance. The difference between the initial strategic placement and the final strategic placement of 908610 shares will be transferred back to offline issuance.
4. This issuance is finally carried out by a combination of directional placement to strategic investors, offline inquiry placement to qualified investors (hereinafter referred to as “offline issuance”) and online pricing issuance to social public investors holding non restricted A-share shares and non restricted depositary receipts market value in Shenzhen market (hereinafter referred to as “online issuance”).
The strategic placement, preliminary inquiry and online and offline issuance of this offering shall be organized and implemented by the sponsor (lead underwriter). The preliminary inquiry and offline distribution are conducted through the offline distribution electronic platform（ https://eipo.szse.cn. ）And the implementation of the registration and settlement platform of China Clearing Shenzhen Branch; Online issuance is implemented through the trading system of Shenzhen Stock Exchange. 5. The issue price is 163.56 yuan / share, and the corresponding P / E ratio is:
(1) 68.68 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 after deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares before this issuance); (2) 66.64 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 before deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares before this issuance); (3) 91.57 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 after deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares after this issuance); (4) 88.85 times (earnings per share is calculated by dividing the net profit attributable to the parent company in 2020 before deducting non recurring profits and losses audited by the accounting firm in accordance with Chinese accounting standards by the total number of shares after this issuance). 6. The issue price is 163.56 yuan / share. Investors are requested to judge the rationality of the issue price according to the following conditions.
(1) According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission, the industry of the company is “computer, communication and other electronic equipment manufacturing industry” (C39). As of April 7, 2022 (T-3), the average static P / E ratio of computer, communication and other electronic equipment manufacturing industry (C39) released by China Securities Index Co., Ltd. in the latest month was 39.70 times.
The issuance price of 163.56 yuan / share corresponds to the issuer’s diluted P / E ratio of the net profit attributable to the shareholders of the parent company before and after deducting the non recurring profit and loss in 2020, which is 91.57 times, which is higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on April 7, 2022. The excess range is 130.65%. There are two reasons:
① The issuer’s performance growth in 2021 is relatively high. According to the review report issued by Ernst & Young Huaming Certified Public Accountants (special general partnership) (Ernst & Young Huaming (2022) zhuanzi No. 61378651c01), in 2021, the company’s operating revenue was 2196582200 yuan, an increase of 87.80% year-on-year compared with 2020, and the net profit attributable to the owner of the parent company was 381395000 yuan, an increase of 207.64% year-on-year compared with 2020, After deducting non recurring profits and losses, the net profit attributable to the owners of the parent company was 375131300 yuan, an increase of 2548438 million yuan compared with the same period in 2020. The significant improvement of the issuer’s performance in 2021 is mainly due to the overall improvement of the new energy industry chain, the production line of phase IV electrolytic copper foil of Zhongke was put into operation in the second half of 2021, the annual capacity of electrolytic copper foil of the company increased from 19500 tons to 24500 tons, and the volume and price increased rapidly.
② After years of industry practice and continuous research and development, the company’s products have been continuously upgraded. The sales revenue of lithium battery copper foil and standard copper foil products has continued to grow, which has been recognized by many downstream customers including head power battery enterprises. The products are widely used and have established a comprehensive competitive advantage in the copper foil industry. Under the condition that the downstream demand increases significantly and the supply-demand gap in the copper foil industry continues in the short term, the company’s performance growth is sustainable to a certain extent.
As of April 7, 2022 (T-3), the P / E ratio of listed companies whose main business is similar to that of the issuer is as follows:
Static corresponding to T-3 in 2020
Securities code securities abbreviation before and after deduction stock P / E ratio – state p / E ratio – EPS EPS closing price before and after deduction
(yuan / share) (yuan / share) (yuan / share) (2020) (2020)
Nuode Investment Co.Ltd(600110) .SH Nuode Investment Co.Ltd(600110) 0.0031 -0.0291 10.91 351945 –
Guangdong Chaohua Technology Co.Ltd(002288) .SZ Guangdong Chaohua Technology Co.Ltd(002288) 0.0230 0.0382 5.46 236.94 143.07
Guangdong Jiayuan Technology Co.Ltd(688388) .SH Guangdong Jiayuan Technology Co.Ltd(688388) 0.7960 0.6994 86.21 108.31 123.26
301217.sz Copper Crown copper foil 0.0865 0.069315.75 182.07 227.11
Average 175.77 164.48
Data source: wind information, data as of April 7, 2022.
Note 1: if there is mantissa difference in the calculation of P / E ratio, it is caused by rounding; Negative and abnormal values are eliminated in the calculation of the mean value of static P / E ratio.
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-3 day; When the average value of the net profit attributable to the shareholders of the company is negative, it is excluded from the average value of the net profit attributable to the parent company.
The issuance price of 163.56 yuan / share corresponds to the issuer’s audited diluted P / E ratio of net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 91.57 times, higher than the industry’s average static P / E ratio in the latest month released by China Securities Index Co., Ltd. on April 7, 2022 (T-3), and lower 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. 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.
New share investment has great market risks. Investors should pay full attention to the risk factors contained in the marketization of pricing, know that the stock may fall below the issue price after listing, effectively improve risk awareness, strengthen the concept of value investment and avoid blind speculation. supervise
