Guoneng Rixin Technology Co., Ltd
Initial public offering and listing on GEM
Special announcement on investment risk
Sponsor (lead underwriter): Changjiang Securities Company Limited(000783) underwriting sponsor Co., Ltd
The application of Guoneng Rixin Technology Co., Ltd. (hereinafter referred to as “Guoneng Rixin”, “issuer” or “company”) for the initial public offering of 17.73 million RMB common shares (A shares) (hereinafter referred to as “this offering”) 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 China Securities Regulatory Commission (hereinafter referred to as “CSRC”) (zjxk [2022] No. 458).
Changjiang Securities Company Limited(000783) underwriting sponsor Co., Ltd. (hereinafter referred to as “Changjiang sponsor” or “sponsor (lead underwriter)”) serves as the sponsor (lead underwriter) of this offering.
After negotiation between the issuer and the sponsor (lead underwriter), it is determined that the number of shares issued this time is 17.73 million, all of which are new shares issued to the public, and the issuer’s shareholders will not transfer their old shares. The shares issued this time are planned to be listed on the gem of Shenzhen Stock Exchange.
The issuer and the recommendation institution (lead underwriter) specially draw the attention of investors to the following contents:
1. After the preliminary inquiry, the issuer and the sponsor (lead underwriter) shall, in accordance with the elimination rules stipulated in the announcement on preliminary inquiry and promotion of initial public offering of shares by Guoneng Rixin Technology Co., Ltd. and listing on the gem, and after excluding the initial inquiry results that do not meet the requirements of investors’ quotation, eliminate all placing objects whose proposed subscription price is higher than 62.99 yuan / share (excluding 62.99 yuan / share); The proposed subscription price is 62.99 yuan / share, and the placing objects whose subscription quantity is less than or equal to 5.3 million shares are eliminated. A total of 101 placing objects were excluded in the above process, and the total number of shares to be purchased was 374.9 million, accounting for 1.0029% of the total number of 373802 million 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 fundamentals of the issuer, the industry in which the issuer is located, market conditions, the valuation level of Listed Companies in the same industry, effective subscription multiples, demand for raised funds, underwriting risks and other factors, and negotiate to determine that the price of this issuance is 45.13 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 15, 2022 (t day), and there is no need to pay the subscription fund at the time of subscription. The offline issuance and Subscription Date and online subscription date are the same as April 15, 2022 (t day). 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 45.13 yuan / share, which does 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, Therefore, the alternative investment subsidiary established by the parent company of the sponsor (lead underwriter) does not need to participate in the strategic placement of this offering.
This offering does not arrange the strategic placement to the senior management and core employees of the issuer, asset management plans and other external investors. The initial strategic allotment of this issuance was 886500 shares, accounting for 5.00% of this issuance. Finally, this issuance will not be targeted to strategic investors. The difference between the initial strategic placement and the final strategic placement was 886500 shares, which were transferred back to offline issuance.
4. This issuance is finally carried out by a combination of offline inquiry and placement to qualified offline investors (hereinafter referred to as “offline issuance”) and online pricing issuance to social public investors holding non restricted A-Shares and non restricted depositary receipts market value in Shenzhen market (hereinafter referred to as “online issuance”).
This offline issuance is conducted through the offline issuance electronic platform of Shenzhen Stock Exchange; The online issuance is carried out through the trading system of Shenzhen Stock Exchange by means of subscription and pricing according to market value.
5. The issue price is 45.13 yuan / share, and the corresponding P / E ratio is:
(1) 45.97 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before the issuance);
(2) 44.26 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in 2020 in accordance with Chinese accounting standards by the total share capital before this issuance);
(3) 61.30 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance);
(4) 59.02 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital after this issuance).
6. The issue price is 45.13 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 the CSRC, the industry of Guoneng Rixin is “software and information technology service industry (I65)”. As of April 11, 2022 (T-4), the average static P / E ratio of “software and information technology service industry (I65)” released by China Securities Index Co., Ltd. in the latest month is 49.69 times. Please refer to it when making decisions.
The issuance price of 45.13 yuan / share corresponds to the lower diluted P / E ratio of the issuer’s net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 61.30 times higher than the industry’s average static P / E ratio in the latest month released by China Securities Index Co., Ltd. on April 11, 2022 (T-4), with an excess range of 23.36%. 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. (2) As of April 11, 2022 (T-4), the valuation levels of comparable listed companies are as follows:
T-4 closing price 2020 deduction 2020 deduction 20202020 securities code securities abbreviation (April 2022, non front EPS, non rear EPS, non front deduction, non back deduction, non 11 days, yuan / (yuan / share) (yuan / share) P / E ratio (P / E ratio) (Times) (Times)
Ygsoft Inc(002063) .SZ Ygsoft Inc(002063) 6.75 0.1987 0.1808 33.97 37.33
Beijing Forever Technology Co.Ltd(300365) .SZ Beijing Forever Technology Co.Ltd(300365) 7.50 0.1375 0.1355 54.55 55.35
831083.nq Dongrun Huanneng 8.88 1.0198 1.0172 8.71 8.73
Average 44.26 46.34
Source: wind data, as of April 11, 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;
Note 3: Dongrun Huanneng, a company listed on the innovation layer of the new third board, is excluded from the calculation of the average p / E ratio.
The issuance price of 45.13 yuan / share corresponds to the lower diluted P / E ratio of the issuer’s net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 61.30 times higher than the average static P / E ratio of comparable listed companies after deducting non recurring profits and losses in 2020, with an excess range of 32.28%. 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 pricing rationality of this offering is explained as follows:
① The new energy industry has developed rapidly and the issuer has broad growth space
The issuer’s products and services are mainly used in the power prediction and power generation prediction of new energy power stations, power control of new energy power stations, intelligent monitoring of new energy power stations, etc. they belong to the key products and services in the national strategic emerging industries, and are the integrated application of software and information technology services in the field of new energy. In September 2020, China announced at the 75th UN General Assembly that it would strive to achieve “carbon peak” by 2030 and “carbon neutrality” by 2060. At the climate summit in December 2020, China further announced that by 2030, China’s non fossil energy will account for about 25% of primary energy consumption, and the total installed capacity of wind power and Cecep Solar Energy Co.Ltd(000591) power generation will reach more than 1.2 billion kw. With the steady increase of the installed capacity of wind and photovoltaic power generation, the application scale of the issuer’s new energy information products and services will continue to expand and the penetration rate will continue to deepen. During the reporting period, the company’s revenue scale and net profit increased rapidly year by year, and the average annual compound growth rate from 2018 to 2020 was as high as 28.14% and 62.25% respectively.
② The generation power forecasting service has the characteristics of long-term and continuous service. The issuer has strong sustainable profitability. Unlike the traditional software and information technology service providers in the power industry, the issuer obtains income and profits by selling products and providing solutions. The issuer’s new energy power forecasting business obtains income and profits through the sales system and subsequent continuous provision of generation power forecasting services, And the profit mainly comes from power prediction service. The generation power prediction service mainly provided by the issuer is a long-term service to continuously provide power prediction data for customers. Generally, the service period of 1-3 years is agreed upon when obtaining customers for the first time, and the service contract is generally renewed every 1-3 years in the follow-up; The company is a professional power forecasting service provider with high service quality, and the proportion of power forecasting service cost in the operation cost of the power station is very low. The benefits obtained by customers from high-quality service are far greater than the costs paid. There is little possibility of changing suppliers and high customer stickiness. With the continuous accumulation and growth of the installed capacity of the downstream new energy power generation industry and the continuous increase of the number of existing power stations, the market scale of new energy power generation power prediction service will also continue to expand. The continuous charging feature of generation power forecasting service provides a strong support for the profitability of the company.
③ The issuer’s power prediction products have high accuracy, strong product follow-up service and operation and maintenance ability, and actively carry out forward-looking product layout in accordance with the development needs of the industry, with strong product and service advantages
The issuer has nearly 10 years of R & D experience in power forecasting products and strong R & D strength. Through continuous technical R & D and algorithm optimization, the new energy generation power forecasting products have high prediction accuracy and effectively reduce the losses caused by the assessment of “double rules”; At the same time, the issuer has established a technical service team and 400 customer service hotlines distributed all over the country, forming an operation and maintenance service system with wide coverage and timely response, which can arrive at the site in time to respond to customers’ needs in case of product failure or customers’ needs for upgrading and transformation, avoid losses such as shutdown of the power station, and improve the operation efficiency of the power station; In addition, in combination with the development trend of new energy, the issuer has actively carried out forward-looking product layout such as power trading, virtual power plant and intelligent energy storage around the new power system. Among them, the auxiliary decision support system for power trading has been innovatively applied in Gansu and Shanxi, the first batch of spot pilot provinces in the country. The intelligent operation management system of virtual power plant has successfully carried out this business with the State Grid and several power generation groups, All kinds of new products have gradually realized market-oriented application.
④ The issuer is a leader in the field of new energy generation power prediction, with strong technical R & D strength
According to Sullivan’s Research Report on China Shanxi Guoxin Energy Corporation Limited(600617) software and data service industry, the issuer’s market share in photovoltaic power generation power prediction market and wind power generation power prediction market in 2019 was 22.10% and 18.80% respectively, both of which were in the forefront of the industry. The issuer is one of the first batch of “specialized and special new” small giant enterprises to be supported by the state. It has a research and development team composed of dozens of masters and doctors in meteorology, atmospheric physics, computer science and technology, electronic information science and technology. After years of in-depth research, it has formed an intelligent control system with new energy generation power prediction, new energy grid connection It has mastered a number of core technologies and algorithms related to intelligent operation of new energy power stations and new energy management of power grid, covering many fields such as meteorological prediction, power prediction modeling, data processing, software development and so on. As of June 30, 2021, the issuer has 28 invention patents and 73 software copyrights, and has successively won many honors, such as the third prize of 2018 China Electric Power Science and technology progress award, the third prize of 2018 Beijing Science and technology award, the second prize of 2021 Hebei Science and technology award, the first prize of 2018 and 2019 electric power innovation, the second prize of 2020 technological innovation award, and so on.
⑤ The issuer has worked deeply in the industry for many years and has accumulated good brands and rich customer resources
The issuer has operated in the new energy industry for many years, relying on products and technology
