About Huatai United Securities Co., Ltd
Recommendation letter for listing of Jiangsu Tamus Knitting Technology Co., Ltd. Shenzhen Stock Exchange:
Approved by the China Securities Regulatory Commission (hereinafter referred to as “CSRC”) in the document of “zjxk [2021] No. 3765”, Jiangsu temus Knitting Technology Co., Ltd. (hereinafter referred to as “the issuer” or “temus” or “the company”) issued 26.6667 million public shares (hereinafter referred to as “the offering”) and published the prospectus on November 30, 2021. The issuer has promised to go through the industrial and commercial change registration procedures as soon as possible after the issuance. As the sponsor of Timothy’s initial public offering and listing, Huatai United Securities Co., Ltd. (hereinafter referred to as “sponsor” or “Huatai United Securities”) believes that Timothy’s application for listing of its shares complies with the relevant provisions of the company law of the people’s Republic of China, the securities law of the people’s Republic of China and the stock listing rules of Shenzhen Stock Exchange, It is recommended that its shares be listed and traded on your exchange. The relevant information is reported as follows:
1、 Issuer profile
(I) basic information of the issuer
Jiangsu temushi Knitting Technology Co., Ltd
English Name: Jiangsu times Textile Technology Co., Ltd
Address: No. 666, Yishou Road, Renshou Road, Chengbei street, Rugao City
Registered capital: 80 million yuan
Legal representative: Lu Biao
Date of establishment: August 26, 1992 (changed into a joint-stock company on November 26, 2019). Business scope: design, production and sales of clothing; Printing and embroidery production, processing and sales; R & D, production and sales of high-grade fabrics; Self operated and acting as an agent for the import and export of various commodities and technologies (except for the commodities and technologies restricted or prohibited by the state.) (for projects subject to approval according to law, business activities can only be carried out after being approved by relevant departments) licensed projects: Road cargo transportation (excluding dangerous goods) (for projects subject to approval according to law, business activities can only be carried out after being approved by relevant departments, and the specific business projects shall be subject to the approval results)
(II) main business
The company’s main business is the R & D, production and sales of knitted fabrics and knitted clothing. It mainly provides OEM processing services for decathlon, Zhejiang Semir Garment Co.Ltd(002563) , Quiksilver, kappa, Giordano, cotton era and other well-known clothing brands. The company’s main products can be divided into sports clothing, leisure clothing and children’s clothing. The company has a vertically integrated knitted garment industry chain with leading advantages in the industry, covering many production links such as knitted fabric development, weaving, dyeing and finishing, knitted garment cutting, printing, embroidery and sewing. By building a whole process information control system and automatic storage system, relying on professional equipment automation, modular core processes and standardized management of employee operation, A flexible production chain that can meet customers\’ procurement needs of multi variety, small batch and multi batch has been established. The company is a high-tech enterprise jointly recognized by Jiangsu Provincial Department of science and technology, Jiangsu Provincial Department of finance, State Administration of Taxation and Jiangsu Provincial Bureau of taxation. As of June 30, 2021, the company has 46 patents, including 35 invention patents. As a national intellectual property advantage enterprise, the company has established Jiangsu graduate workstation, Jiangsu enterprise technology center and Jiangsu knitting high-grade fabric engineering technology research center. A variety of fabric products independently developed have been rated as high-tech products in Jiangsu Province, The key technology for the development of high wear resistance, color fastness, heat and moisture comfort knitted products developed jointly won the first prize of scientific progress of China Textile Industry Federation. The company has also won the titles of “top 100 enterprises in China’s garment industry”, “top 50 enterprises in Jiangsu garment industry”, “Jiangsu demonstration intelligent manufacturing workshop”, etc.
With its leading fabric development capability, stable product quality and large-scale production capacity, the company has established strategic cooperative relations with decathlon and Zhejiang Semir Garment Co.Ltd(002563) barabara brands, and has established long-term cooperative relations with Quiksilver, kappa, cotton era, okaidi, Fujian Septwolves Industry Co.Ltd(002029) , mark Huafei and other brands. During the reporting period, the company realized operating revenue of 754.7472 million yuan, 791.387 million yuan, 693.5385 million yuan and 422.2085 million yuan respectively, and the net profit attributable to shareholders of the parent company was 98.5711 million yuan, 93.1043 million yuan, 82.089 million yuan and 46.8729 million yuan respectively. In the future, the company will further improve the automation and information level, enhance the fabric development capacity and flexible manufacturing capacity, and expand the company’s market influence.
(III) main financial data and financial indicators
1. Brief consolidated balance sheet
Unit: 10000 yuan
Project 2021 2020 2019 2018
June 30 December 31 December 31 December 31
Total assets 58483.47 53910.74 50060.09 49556.02
Current assets 40163.33 37070.50 34219.21 36721.15
Fixed assets 13328.83 13296.95 10576.10 10730.85
Total liabilities 15915.34 16029.90 20380.14 23186.50
Current liabilities 15460.60 15691.11 20380.14 23186.50
Shares attributable to the parent company 42568.13 37880.84 29679.95 26369.52 East Equity
2. Brief consolidated income statement
Unit: 10000 yuan
Project: January to June 2021, 2020, 2019, 2018
Operating income 42220.85 69353.85 79138.70 75474.72
Operating profit 5300.75 9519.99 10619.94 10977.23
Total profit 5294.30 9448.15 10610.58 11376.32
Net profit 4687.29 8200.89 9310.43 9857.11
4687.29 8200.89 9310.43 9857.11 net profit attributable to shareholders of the parent company net of non recurring profits and losses
Net profit attributable to 4274.36 7668.65 9043.89 9196.62 East shares of the parent company
3. Brief consolidated cash flow statement
Unit: 10000 yuan
Project: January to June 2021, 2020, 2019, 2018
Net cash flow from operating activities: 5346.42 10923.47 10445.67 8537.02
Net cash flow from investment activities -2405.05, 1926.74 -7400.97 -606.29
Net cash flow from financing activities -2269.66 -6405.27 -9315.96 -7277.45
Effect of exchange rate changes on cash and -15.25 -109.01 -52.08 65.70 cash equivalents
Net increase in cash and cash equivalents 656.46 6335.94 -6323.34 718.98
4. Main financial indicators
Project 2021 2020 2019 June 30 December 31 December 31 December 31 2018
Current ratio 2.60 2.36 1.68 1.58
Quick ratio 1.72 1.49 1.03 1.00
Asset liability ratio (parent company) 25.24%, 28.24%, 39.56%, 45.51%
Asset liability ratio (consolidated basis) 27.21%, 29.73%, 40.71%, 46.79%
5.32 4.74 3.71 per share attributable to shareholders of the parent company – net assets (yuan)
Proportion of intangible assets in net assets: 0.11%, 0.16%, 0.28%, 0.59% (deducting land use right)
Project: January to June 2021, 2020, 2019, 2018
Inventory turnover rate (Times) 2.28 3.73 4.28 4.41
Accounts receivable turnover rate (Times) 2.73 4.70 5.03 5.38
EBITDA (RMB 622785, 11420.96, 12798.99, 13570.74)
Interest cover ratio 101.04 39.76 26.80 30.57
Net profit attributable to shareholders of the issuer 4687.29 8200.89 9310.43 9857.11 profit (RMB 10000)
Attributable after deducting non recurring profits and losses
Net profit to shareholders of the issuer 4274.36 7668.65 9043.89 919662 (ten thousand yuan)
Net cash flow per share (yuan) 0.08 -0.79-
Cash generated from operating activities per share 0.67 1.37 1.31 – net flow (yuan)
5. Main financial information and operating conditions after the audit deadline of the financial report
The audit deadline of the company’s audited financial statements is June 30, 2021.
Lixin Certified Public Accountants (special general partnership) reviewed the company’s consolidated and parent company’s balance sheet on September 30, 2021, consolidated and parent company’s income statement, consolidated and parent company’s cash flow statement, consolidated and parent company’s statement of changes in owner’s equity and notes to financial statements from January to September 2021, And issued the review report (Xin Hui Shi Bao Zi [2021] No. za15761). Main operations of the company from January to September 2021
