After this stock issuance, it is planned to be listed on the science and innovation board market, which has high investment risk. Kechuang board company has the characteristics of large R & D investment, high operation risk, unstable performance and high delisting risk, and investors are facing great market risk. Investors should fully understand the investment risks of the science and innovation board market and the risk factors disclosed by the company, and make investment decisions prudently.
Guangdong Weide Information Technology Co., Ltd
(Room 401, building C1, No. 182, Kexue Avenue, Huangpu District, Guangzhou)
Initial public offering of shares and on the science and Innovation Board
Letter of intent for listing and offering
Sponsor (lead underwriter)
(North block, excellence Times Plaza (phase II), No. 8, Zhongxin Third Road, Futian District, Shenzhen, Guangdong)
Issuer statement
The issuer and all directors, supervisors and senior managers promise that the prospectus and other information disclosure materials are free from false records, misleading statements or major omissions, and bear individual and joint legal liabilities for their authenticity, accuracy and completeness.
The controlling shareholder and actual controller of the issuer promise that there are no false records, misleading statements or major omissions in this prospectus, and bear individual and joint legal liabilities for its authenticity, accuracy and completeness. The person in charge of the company, the person in charge of accounting and the person in charge of accounting institutions shall ensure that the financial and accounting materials in the prospectus are true and complete.
The issuer and all directors, supervisors, senior managers, controlling shareholders, actual controllers, sponsors and underwriting securities companies promise to compensate investors for losses in securities issuance and trading due to false records, misleading statements or major omissions in the issuer's prospectus and other information disclosure materials.
The sponsor promises to compensate investors for losses caused to investors due to false records, misleading statements or major omissions in the documents prepared and issued for the issuer's public offering.
Any decision or opinion made by the CSRC and the exchange on this issuance does not indicate that they guarantee the authenticity, accuracy and integrity of the registration application documents and the information disclosed, nor do they indicate that they make substantive judgment or guarantee on the profitability, investment value of the issuer or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, the issuer shall be responsible for the changes in the operation and income of the issuer after the shares are issued according to law; Investors independently judge the investment value of the issuer, make investment decisions independently, and bear the investment risks caused by changes in the operation and income of the issuer or changes in the stock price after the shares are issued according to law.
Issue overview
Type of shares issued: RMB ordinary shares (A shares)
The number of shares issued this time is 20943400 shares, accounting for% of the total share capital after issuance
25.00%。 This issuance is all new shares and does not involve the public offering of shares by shareholders
25.00% of total share capital after issuance
The par value of each share is RMB 1.00
The issue price per share is RMB []
Expected issue date: January 18, 2022
Stock exchanges and plates to be listed Shanghai Stock Exchange science and Innovation Board
The total share capital after issuance is 83.7734 million shares
Sponsor (lead underwriter) Citic Securities Company Limited(600030)
Signing date of the prospectus: January 10, 2022
Tips on major events
The company specially reminds investors to pay attention to the following important matters and carefully read the text of this prospectus. 1、 With the entry of new competitors in the market, the company's high growth rate of operating revenue and the risk of unsustainable gross profit margin
At present, the distribution network information security industry mainly focused by the company is an emerging industry with a short development time. The industry gradually took shape and began to grow rapidly in the second half of 2017. In each period of the reporting period, the company's operating revenue was 82.3296 million yuan, 122.3887 million yuan, 135.8989 million yuan and 51.5189 million yuan respectively, with a compound annual growth rate of 28.48% in 2018-2020. Relying on the first mover advantage of entering this field earlier, the company carries out software iterative update for specific problems found in the process of product application to meet the product needs of customers. In each period of the reporting period, the gross profit margin of the company was 73.17%, 72.86%, 64.27% and 62.52% respectively. The gross profit margin level of the company was high. The gross profit margin level of the company was mainly affected by market competition, product sales price, customer structure, product structure, raw material price and other factors. On the whole, the development time of the company is still short. At present, the income and business scale are small, the cumulative R & D investment is not high, and a stable product "moat" and high technical threshold have not been formed. Head safety manufacturers such as Venustech Group Inc(002439) , Westone Information Industry Inc(002268) have large income scale and long development process, and obtain strong technology and R & D advantages through long-term R & D accumulation. In the future, if the head security manufacturer continues to consolidate its existing business and expand to the distribution network information security subdivision industry, or continuously increases its investment and attention to the distribution network information security subdivision industry, it will further obtain relevant business orders from customers in the distribution network field by virtue of its competitive advantages in scale and R & D strength, which may lead to the company's inability to operate in China Southern Power Grid If the State Grid and other companies continue to obtain orders in bidding procurement, or lead to significant adverse changes in product sales price, the company's operating revenue, gross profit margin and profitability will be adversely affected. At the same time, if the market competition environment, customer structure, product structure, policy environment and other factors change significantly, the company has the risk of unsustainable growth of operating revenue and high gross profit margin. 2、 Risks with small scale and weak anti risk ability of the company
Distribution network information security industry is an emerging industry with a short development time, and the market demand is greatly affected by industrial policies. In each period of the reporting period, the company's operating revenue is 82.3296 million yuan, 122.3887 million yuan, 135.8989 million yuan and 51.5189 million yuan respectively, and the net profit is 27.0971 million yuan, 63.5329 million yuan, 63.6669 million yuan and 21.6154 million yuan respectively. The scale of revenue and profit is small, Compared with listed companies in the same industry, especially head safety manufacturers, the issuer's anti risk ability is weak. In the future, if there are major adverse changes in China's macroeconomic situation, industrial policies, market competition environment, the company's own production and operation or downstream market demand fluctuations, resulting in a decrease in orders, it may have a great adverse impact on the company's operating performance.
3、 Information security multi business field operation and non power field expansion risk
The information security industry involves many sub sectors. During the reporting period, the company mainly focused on the information security industry of power distribution network. The company needs certain resource investment and practice to enter the non power field. Due to the lack of industry experience and technology accumulation in other non power fields, the verification cycle of new industry fields is long, and the company is small and in the growth stage, it is difficult to continuously improve the market share in new fields. At present, the company has carried out business expansion in water conservancy, communication and other fields and carried out corresponding product testing, but the company's business income has not been formed. It is uncertain to form income in non power fields in the future. If the company fails to develop its information security business in the non electric power field and is unable to effectively expand new customers and obtain orders in other industries, it may cause adverse risks in the future expansion in the non electric power field. At the same time, if the company cannot maintain business cooperation with customers in various industries and continue to operate in multiple business areas after business expansion in the future, it may affect the company's focused operation in the distribution network information security industry and adversely affect the company's business performance. 4、 Large balance of accounts receivable and risk of bad debts
At the end of each reporting period, the book value of the company's accounts receivable was 41.075 million yuan, 53.9284 million yuan, 90.6924 million yuan and 90.6082 million yuan respectively, accounting for 41.46%, 30.11%, 32.75% and 31.95% of the total assets at the end of each reporting period, and the turnover rate of accounts receivable was 2.24 times, 2.44 times, 1.78 times and 0.54 times respectively. At the end of each reporting period, the company has a certain scale of accounts receivable balance. On the one hand, power grid companies and power equipment providers have strict capital payment approval process, and the internal process takes a long time; On the other hand, the company gives customers with good credit and long-term cooperation a certain credit period. With the continuous expansion of the company's business scale, the balance of accounts receivable may continue to maintain a high level.
At the end of each reporting period, the aging of the company's accounts receivable is mainly within 1 year. The company has withdrawn bad debt reserves at the end of each reporting period according to the bad debt provision policy of accounts receivable. However, if the company's accounts receivable continue to rise, when the customer's financial situation deteriorates or fails to pay on schedule, or the market environment for the company to obtain external funds becomes tighter, the company will face greater pressure on working capital, which will have an adverse impact on the company's production, operation and financial situation.
5、 The company's business income comes from the power field, which is highly dependent on the power grid company, especially China Southern Power Grid, and the business is greatly affected by the national power policy and investment arrangement
During the reporting period, the company's revenue came from the power field, and its customers were mainly state grid, China Southern Power Grid and power equipment providers. During the reporting period, the company's revenue from selling products to power grid companies and power equipment suppliers accounted for 93.88%, 95.69%, 84.87% and 71.41% respectively, which is highly dependent on the power grid market. The company's business is highly dependent on power grid companies, especially China Southern Power Grid, and is greatly affected by national power policies and investment arrangements. In the future, if the investment scale of State Grid and China Southern Power Grid in the upgrading and transformation of distribution network is less than expected, or there are adverse changes in the policy system of power industry and relevant policies of China Grid Corporation, or the market competition is becoming increasingly fierce, it will have an adverse impact on the performance stability and sustainable profitability of the company. 6、 The development of distribution network information security industry and the risk of changes in industrial policies
Distribution network information security industry is an emerging industry with rapid development in recent years. With the support of policies, the industry has gradually developed rapidly. Since 2015, major policies related to distribution network encryption and transformation have been promulgated one after another. In 2015, the national development and Reform Commission issued the guiding opinions on accelerating the construction and transformation of distribution network; In 2016, the national development and Reform Commission and the National Energy Administration issued the 13th five year plan for power development and the management measures for orderly liberalization of distribution network business; In 2017, the State Grid issued the work plan for the construction of distribution network in world-class cities; In 2019, the national development and Reform Commission and the National Energy Administration issued the notice on further promoting the reform of incremental distribution business. The action plan for distribution network construction and transformation (2015-2020) issued by the National Energy Administration in 2015 proposes to effectively increase the capital investment in distribution network by implementing the action plan for distribution network construction and transformation. During 2015-2020, the investment in distribution network construction and transformation will not be less than 2 trillion yuan, and the automation coverage of distribution network will reach 90% in 2020. The company's subdivided industry has a short development time and is greatly affected by industry policies, and the relevant support policies are issued after 2015. There is some uncertainty about the introduction time of relevant new policies and the support to the industry in the future.
In the future, if the continuity of the national policy on the distribution network information security industry is insufficient, the support of the new policy or the implementation of the power grid company is less than expected, or the policy and relevant technical specifications of the power grid industry change too quickly, resulting in the change that the company's product R & D is not responsive to the market, the market demand of the company's products will not maintain rapid growth, As a result, the demand of downstream customers for relevant products will be gradually reduced, which will have an adverse impact on the company's operating conditions and profitability.
7、 Main financial information and operating conditions after the audit base date of the financial report
The audit base date of the company's financial report is June 30, 2021. The company's balance sheet as of September 30, 2021, the income statement, cash flow statement and notes to the financial statements from January to September 2021 have not been audited, but have been reviewed by Tianjian, and the review report "Tianjian Shen [2021] No. 7-743" has been issued.
The main financial information and operating conditions reviewed after the audit base date of the company's financial report are as follows:
As of September 30, 2021, the total assets of the company were 294.9173 million yuan, the total liabilities were 26.3372 million yuan, and the total shareholders' equity was 268.5801 million yuan. From January to September 2021, the company realized an operating revenue of 82.6203 million yuan, a year-on-year increase of 7.66%, mainly due to the rapid growth of information security cloud platform revenue due to the large number of information security cloud platform projects that passed the acceptance in the current period. From January to September 2021, the company realized a net profit of 36.3632 million yuan, a year-on-year decrease of 9.35%, mainly due to the company's increase in marketing and R & D investment. The sales expenses and R & D expenses increased rapidly year-on-year, with a growth rate greater than that of operating revenue. After deducting non recurring profits and losses, the net profit attributable to shareholders of the parent company was 33.6966 million yuan, a year-on-year decrease of 1.31%, The decrease is lower than the net profit before deduction, which is mainly due to the strong government subsidies to enterprises due to the epidemic in 2020. The company obtained more government subsidies in the same period last year, while the relevant subsidy projects in this period decreased. From January to September 2021, the net increase in cash and cash equivalents of the company was 7.7569 million yuan.
Combined with the upstream and downstream development trend of the industry and the actual operation of the company, the company expects to achieve an operating revenue of about 177 million yuan to 200 million yuan in 2021, with a year-on-year increase of 30.24% to 47.17%; The net profit attributable to shareholders of the parent company was about 55 million yuan to 65 million yuan, a year-on-year increase of - 13.61% to 2.09%; After deducting non recurring profits and losses, the net profit attributable to shareholders of the parent company was about 51 million yuan to 61 million yuan, with a year-on-year increase of - 3.38% to 15.57%. Above year 2021
