Yidong Electronic Technology Co., Ltd
Initial public offering and listing on GEM
Special announcement on investment risk
Sponsor (lead underwriter): China Merchants Securities Co.Ltd(600999)
The application of Yidong Electronic Technology Co., Ltd. (hereinafter referred to as "Yidong Electronics", "issuer" or "company") for initial public offering of no more than 58.4 million common shares (A shares) and listing on the gem (hereinafter referred to as "this offering") has been examined and approved by the GEM Listing Committee of Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange"), It has been registered by China Securities Regulatory Commission (zjxk [2021] No. 3938). After negotiation between the issuer and the sponsor (lead underwriter) China Merchants Securities Co.Ltd(600999) (hereinafter referred to as " China Merchants Securities Co.Ltd(600999) " or "sponsor (lead underwriter)") of this issuance, the number of shares issued this time is 58.4 million, all of which are new shares issued to the public. The issuer's shareholders shall not transfer old shares. The issuance will be implemented through the trading system of Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange") and the offline issuance electronic platform on January 12, 2022 (T). 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 investors' attention to the following contents:
1. The issuance adopts directional placement to strategic investors (hereinafter referred to as "strategic placement") Offline inquiry and placement to qualified investors (hereinafter referred to as "offline issuance") and online pricing issuance to social public investors holding non restricted A-Shares in Shenzhen market and the market value of non restricted Depositary Receipts (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 pricing according to market value.
2. After the preliminary inquiry, the issuer and the recommendation institution (lead underwriter) shall, in accordance with the exclusion rules agreed in the announcement on preliminary inquiry and promotion of initial public offering of shares by Yidong Electronic Technology Co., Ltd. and listing on the gem (hereinafter referred to as the "announcement on preliminary inquiry and promotion"), after excluding the preliminary inquiry results of investors who do not meet the requirements, By consensus, all placing objects whose proposed subscription price is higher than 45.32 yuan / share (excluding) will be eliminated; The proposed subscription price is 45.32 yuan / share, and all placing objects with a proposed subscription quantity of less than 18 million shares (excluding) are eliminated; The proposed subscription price is 45.32 yuan / share, and the proposed subscription quantity is 18 million shares
Among the placing objects whose subscription time is 14:46:43:742 on January 7, 2022, 38 placing objects are eliminated from the back to the front according to the entrustment serial number automatically generated by the offline issuance electronic platform. In the above process, a total of 104 placing objects are excluded, and the total number of shares to be purchased is 1268 million, accounting for 1.005% of the total number of shares to be purchased after excluding invalid quotations in this preliminary inquiry. The excluded part shall not participate in offline and online subscription.
3. Based on the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) have negotiated and determined the offering price of 37.23 yuan / share by comprehensively considering the issuer's fundamentals, the number of shares in this public offering, the issuer's industry, the valuation level of comparable listed companies, market conditions, the demand for raised funds and underwriting risks, Cumulative bid inquiry will not be conducted for offline issuance.
Investors are requested to make online and offline subscription at this price on January 12, 2022 (t day), and there is no need to pay the subscription fund. The offline issuance and Subscription Date and the online subscription date are the same as January 12, 2022 (t day), in which the offline subscription time is 9:30-15:00, and the online subscription time is 9:15-11:30 and 13:00-15:00.
4. The issuing price of this offering shall not exceed the median and weighted average of the quotations of offline investors after excluding the highest quotation, as well as the Securities Investment Fund (hereinafter referred to as "public fund"), the National Social Security Fund (hereinafter referred to as "social security fund"), the basic old-age insurance fund (hereinafter referred to as "pension") established through public offering after excluding the highest quotation The enterprise annuity fund (hereinafter referred to as "enterprise annuity fund") established in accordance with the measures for the administration of 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, whichever is lower, so the relevant subsidiaries of the sponsor need not participate in the follow-up investment.
The special asset management plan for the senior management and core employees of the issuer is the collective asset management plan for the employees of China Merchants asset management Yidong electronics to participate in the strategic placement on the gem (hereinafter referred to as "Yidong electronics employee war asset management plan"). According to the final price, the final strategic placement shares of Yidong electronic employee war asset allocation management plan are 429492300 shares, accounting for 7.35% of the number of shares issued this time.
The initial strategic placement number of this issuance is 8.76 million shares, accounting for 15.00% of this issuance. The final number of strategic placement was 4294923 shares, accounting for 7.35% of the number of shares issued this time. The difference between the initial strategic placement and the final strategic placement of 446507700 shares will be transferred back to offline issuance.
5. The issue price is 37.23 yuan / share, and the price earnings ratio corresponding to this price is:
(1) 35.41 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 before this issuance);
(2) 38.06 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);
(3) 47.21 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 after the issuance);
(4) 50.74 times (earnings per share shall be 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).
6. The issue price is 37.23 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 computer, communication and other electronic equipment manufacturing industry (C39) to which the company belongs, as of January 7, 2022 (T-3), the computer The average static P / E ratio of communication and other electronic equipment manufacturing industry (C39) in the last month was 49.88 times.
(2) The valuation level of comparable listed companies disclosed in the letter of intent for IPO of Yidong Electronic Technology Co., Ltd. and listing on GEM (hereinafter referred to as the "letter of intent") is as follows:
Deduction in 2020 non deduction in 2020 static City corresponding to T-3 day shares static City securities code securities abbreviation pre EPS (yuan / post EPS (yuan / ticket closing price earnings ratio - deduction of non pre earnings ratio - deduction of non post shares) shares) (yuan / share) (2020) (2020)
Shenzhen Kinwong Electronic Co.Ltd(603228) 603228. SH 1.0814 0.9613 33.02 30.53 34.35
Agilent industrial 1639 HK 0.0653 0.0467 1.61 24.66 34.48
Guangdong Champion Asia Electronics Co.Ltd(603386) 603386. SH 0.5124 0.4747 20.07 39.17 42.28
Xiamen Hongxin Electronics Technology Group Inc(300657) 300657. SZ 0.2033 -0.0775 16.57 81.51 -213.81
Shenglan Technology Co.Ltd(300843) 300843. SZ 0.6717 0.6505 30.29 45.09 46.56
Dongguan Dingtong Precision Metal Co.Ltd(688668) 688668. SH 0.8543 0.7812 67.20 78.66 86.02
Shanghai Laimu Electronics Co.Ltd(603633) 603633. SH 0.1627 0.1542 15.59 95.82 101.10
Shenzhen Everwin Precision Technology Co.Ltd(300115) 300115. SZ 0.4997 0.3989 18.11 36.24 45.40
Deduction in 2020 non deduction in 2020 static City corresponding to T-3 day shares static City securities code securities abbreviation pre EPS (yuan / post EPS (yuan / ticket closing price earnings ratio - deduction of non pre earnings ratio - deduction of non post shares) shares) (yuan / share) (2020) (2020)
Weizhi holdings 1305 HK 0.1202 0.0492 1.30 10.82 26.42
Jianxi Lianchuang Opto-Electronic Science&Technology Co.Ltd(600363) 600363. SH 0.5931 0.4688 31.09 52.42 66.32
Shenzhen Longli Technology Co.Ltd(300752) 300752. SZ 0.2070 0.0593 29.73 143.62 501.35
Shen Zhen Australis Electronic Technology Co.Ltd(300940) 300940. SZ 0.5883 0.5308 40.36 68.60 76.04
Arithmetic mean 50.10 56.71
Data source: wind, as of January 7, 2022 (T-3).
Note 1: there may be mantissa difference in the calculation of P / E ratio, which 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-3 day.
Note 3: negative value, abnormal value and PE value of Hong Kong listed companies are excluded from the calculation of static P / E ratio, i.e. Xiamen Hongxin Electronics Technology Group Inc(300657) , Shanghai Laimu Electronics Co.Ltd(603633) , Shenzhen Longli Technology Co.Ltd(300752) , Weizhi holdings and Agilent industries.
The issuance price of 37.23 yuan / share corresponds to the lower diluted P / E ratio of the issuer before and after deducting non recurring profits and losses in 2020, which is 50.74 times higher than the industry's average static P / E ratio of 49.88 times in the latest month released by China Securities Index Co., Ltd. on January 7 (T-3) 2022, and the excess range is 1.72%. There are three reasons: first, The company has the advantages of technological innovation. Now the company has formed an experienced scientific research team composed of masters from well-known universities at home and abroad, and has been rated as "national high-tech enterprise" for 14 consecutive years. The company has fully mastered the core technologies of precision mold design and development, precision stamping, precision injection molding, automatic assembly, testing and other links. As of September 30, 2021, the company has obtained 133 patents, including 13 invention patents, 119 utility models and 1 design patent. Second, the company has the advantages of scale and customers. With a large number of advanced high-end precision production and testing equipment and automatic production mode, the company has outstanding large-scale production organization ability, which can not only greatly improve product quality and capacity scale, but also further improve production efficiency and reduce production cost. At present, the company has built six professional manufacturing and service bases in Dongguan, Guangdong, Changshu, Jiangsu, Xianning, Hubei, Suining, Sichuan, Huizhou, Guangdong and Delhi, India, covering a total area of about 120000 square meters. The six major manufacturing and service bases are based in South China, radiate across the country and serve customers in many regions around the world. They can provide localized personal services and quickly respond to customers\' needs. The company's technology and products mostly serve the world's top 500 or well-known enterprises in the industry, covering Asia, America, Europe and other countries and regions. Third, the company has the advantages of comprehensive supporting production and management of the whole process. In view of the high customization and large-scale needs of downstream customers, the company has formed a comprehensive supporting production mode of the whole process, that is, from customer development, product design, process scheme, raw material procurement, large-scale production organization From quality control to delivery and after-sales service, it has formed a set of mature management system and operation mode. This model can ensure the balanced and high-quality development of the company's overall business, enable the company to continue to go deep into the downstream industrial chain of product manufacturing, accurately grasp customer needs and market trends, effectively improve the company's overall manufacturing level and service capacity, and consolidate the company's industry leading position and competitiveness
