Yidong Electronic Technology Co., Ltd
Initial public offering and listing on GEM
Issuance announcement
Sponsor (lead underwriter): China Merchants Securities Co.Ltd(600999)
hot tip
Yidong Electronic Technology Co., Ltd. (hereinafter referred to as “Yidong Electronics”, “issuer” or “company”) in accordance with the measures for the administration of securities issuance and underwriting (CSRC order [No. 144]) (hereinafter referred to as the “administrative measures”), the measures for the administration of the registration of shares in the initial public offering of gem (for Trial Implementation) (CSRC order [No. 167]) The special provisions on the issuance and underwriting of initial public offerings on the gem ([2021] No. 21) (hereinafter referred to as the “special provisions”), the implementation rules for the issuance and underwriting of initial public offerings on the gem of Shenzhen Stock Exchange (revised in 2021) (SZS [2021] No. 919) (hereinafter referred to as the “implementation rules”) Detailed rules for the implementation of offline IPO in Shenzhen market (revised in 2020) (SZS [2020] No. 483) (hereinafter referred to as “detailed rules for the implementation of offline IPO”), detailed rules for the implementation of online IPO in Shenzhen market (SZS [2018] No. 279) (hereinafter referred to as “detailed rules for the implementation of online IPO”) Code for underwriting of initial public offerings under the registration system (zxsf [2021] No. 213), detailed rules for the administration of offline investors in initial public offerings (zxsf [2018] No. 142), rules for the administration of offline investors in initial public offerings under the registration system (zxsf [2021] No. 212) Relevant laws and regulations, regulatory provisions, self-discipline rules and other documents such as the rules for placement of initial public offering shares (Zhong Zheng Xie Fa [2018] No. 142) organized the implementation of initial public offering shares and listed on the gem.
China Merchants Securities Co.Ltd(600999) (hereinafter referred to as ” China Merchants Securities Co.Ltd(600999) ” or “sponsor (lead underwriter)”) serves as the sponsor (lead underwriter) of this offering.
The strategic placement (hereinafter referred to as the “strategic placement”) is adopted Offline inquiry placement to qualified investors (hereinafter referred to as “offline issuance”) and online pricing issuance to social public investors holding non restricted A-Shares or non restricted depositary receipts in Shenzhen market (hereinafter referred to as “online issuance”).
The strategic placement of this offering is conducted at the sponsor (lead underwriter); The preliminary inquiry and offline subscription of the issued shares are conducted through the offline issuance electronic platform of Shenzhen Stock Exchange (hereinafter referred to as “Shenzhen Stock Exchange”). Investors are requested to carefully read this announcement and the detailed rules for the implementation of offline issuance and other relevant provisions. This online issuance is carried out through the trading system of Shenzhen Stock Exchange and is carried out by means of subscription pricing according to market value. Online investors are requested to carefully read this announcement and the detailed rules for the implementation of online issuance published by Shenzhen Stock Exchange.
This offering is applicable to the special provisions on the issuance and underwriting of Securities for initial public offerings on the gem (CSRC announcement [2021] No. 21) issued by the CSRC on September 18, 2021 Detailed rules for the implementation of IPO and underwriting business of Shenzhen Stock Exchange gem (revised in 2021) (SZS [2021] No. 919) issued by Shenzhen Stock Exchange, specifications for IPO underwriting under the registration system issued by China Securities Association (zsxf [2021] No. 213) The management rules for offline investors of initial public offering under the registration system (Zhong Zheng Xie Fa [2021] No. 212) requires investors to pay attention to the changes of relevant regulations, pay attention to investment risks, carefully study and judge the rationality of issuance pricing and make investment decisions rationally.
Investors are kindly requested to pay attention to the pricing, issuing process, online and offline subscription and payment, and the setting of sales restriction period. The details are as follows:
1. 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; Among the placing objects with the proposed subscription price of 45.32 yuan / share, the proposed subscription quantity of 18 million shares and the subscription time of 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. See the part marked “high price rejection” in the “attached table: statistical table of investor quotation information” for the specific rejection.
2. 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.
3. The issue price determined through negotiation between the issuer and the recommendation institution (lead underwriter) is 37.23 yuan / share, which does not exceed the median and weighted average of offline investors\’ quotation after excluding the highest quotation and the securities investment fund established through public offering after excluding the highest quotation (hereinafter referred to as “public fund”) National Social Security Fund (hereinafter referred to as “social security fund”), basic endowment insurance fund (hereinafter referred to as “pension”) 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. Relevant subsidiaries of the sponsor need not participate in this strategic placement.
The issue price does not exceed the lower of the four values, and the relevant subsidiaries of the sponsor do not need to participate in the strategic placement.
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 subscription funds of strategic investors have been fully remitted to the bank account designated by the lead underwriter within the specified time. 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.
4. Restriction period arrangement: among the stocks issued this time, the stocks issued online have no circulation restrictions and restriction period arrangement, and can be circulated from the date of listing of the stocks issued this time on the Shenzhen Stock Exchange.
The offline issuance part adopts the proportional sales restriction method, and the offline investors shall promise that the sales restriction period of 10% (rounded up) of the number of shares allocated to them is 6 months from the date of the issuer’s initial public offering and listing. That is, among the shares allocated to each placing object, 90% of the shares are sold indefinitely and can be circulated from the date when the issued shares are listed and traded on the Shenzhen Stock Exchange; The sales restriction period of 10% of the shares is 6 months, which shall be calculated from the date of listing and trading of the issued shares on the Shenzhen Stock Exchange.
When offline investors participate in the preliminary inquiry and quotation and offline subscription, they do not need to fill in the arrangement of the sales restriction period for the placing objects under their management. Once the quotation is made, it is deemed to accept the arrangement of the online sales restriction period disclosed in this announcement.
In terms of strategic placement, Yidong electronic staff war asset allocation management plan promises that the restricted sale period of the allocated shares is 12 months. The restricted sale period shall be calculated from the date when the shares issued to the public are listed on the Shenzhen Stock Exchange. After the expiration of the sales restriction period, the reduction of the allocated shares by the strategic investors shall be subject to the relevant provisions of the CSRC and the Shenzhen Stock Exchange on share reduction.
5. Independent expression of purchase intention: online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares on their behalf.
6. Callback mechanism of this issuance: after the online and offline subscription, the issuer and the sponsor (lead underwriter) will determine whether to enable the callback mechanism on January 12, 2022 (t day) according to the online subscription, and adjust the number of online and offline issuance. The launch of the call back mechanism will be determined according to the initial effective subscription multiple of online investors.
7. Offline allocated investors shall, in accordance with the announcement on initial public offering of shares by Yidong Electronic Technology Co., Ltd. and initial placement results of offline issuance listed on GEM (hereinafter referred to as the announcement on initial placement results of offline issuance), Before 16:00 on January 14, 2022 (T + 2), the subscription fund for new shares shall be paid in full and on time according to the finally determined issuance price and allocated quantity.
The subscription funds shall be paid in full within the specified time. If the subscription funds are not paid in full within the specified time or as required, all the new shares allocated to the placing object shall be invalid. If the above circumstances occur when multiple new shares are issued on the same day, all the placing objects are invalid. If different placing objects share bank accounts, if the subscription funds are insufficient, the new shares allocated to the placing objects sharing bank accounts will be invalid. Offline investors are allocated multiple new shares on the same day. Please pay for each new share separately.
After winning the subscription of new shares, online investors shall fulfill the obligation of capital settlement in accordance with the announcement on the results of online lottery of Yidong Electronic Technology Co., Ltd. in its initial public offering and listing on the gem (hereinafter referred to as the announcement on the results of online lottery), so as to ensure that their capital account will eventually have sufficient new share subscription funds on January 14 (T + 2) 2022, The insufficient part shall be deemed as abandoning the subscription, and the resulting consequences and relevant legal liabilities shall be borne by the investors themselves. The investor’s fund transfer shall comply with the relevant provisions of the securities company where the investor is located.
The shares that offline and online investors give up subscription shall be underwritten by the sponsor (lead underwriter).
8. Suspension of issuance: when the total number of shares paid and subscribed by offline and online investors is less than 70% of the number of public offerings after deducting the final strategic placement, the issuer and the sponsor (lead underwriter) will suspend the issuance of new shares and disclose the reasons for the suspension and subsequent arrangements. 9. All effective quotation placing objects announced in this announcement must participate in offline subscription. If the effective quotation offline investor fails to participate in offline subscription or fails to fully subscribe or fails to pay the subscription funds in time and in full according to the finally determined issuance price and allocated quantity, it will be deemed as a breach of contract and shall bear the liability for breach of contract, The recommendation institution (lead underwriter) shall report the breach of contract to the China Securities Association for the record. The number of violations of placing objects in various sectors of the stock market of Beijing stock exchange (hereinafter referred to as “Beijing stock exchange”), Shanghai Stock Exchange (hereinafter referred to as “Shanghai Stock Exchange”) and Shenzhen Stock Exchange shall be calculated together. During the period of being included in the restricted list, the relevant placing objects shall not participate in the offline inquiry and subscription of relevant projects in all sectors of the stock market of Beijing stock exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange.
If the online investor fails to make full payment after winning the lottery for 3 times in a row within 12 months, it shall not participate in the online subscription of new shares, depositary receipts, convertible corporate bonds and exchangeable corporate bonds within 6 months (calculated as 180 natural days, including the next day) from the next day of the settlement participant’s latest declaration of abandonment of subscription. 10. Investors, underwriters and underwriters should pay attention to the risks, Carefully read this announcement and the special announcement on investment risk of Yidong Electronic Technology Co., Ltd. in initial public offering and listing on GEM (hereinafter referred to as the “special announcement on investment risk”) published in Shanghai Securities Journal, China Securities Journal, securities times, Securities Daily, economic reference daily and financial times on January 11, 2022 (t-1) ”）, fully understand the market risks and prudently participate in this IPO.
Valuation and investment risk tips
1. 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 industry of the company is computer, communication and other electronic equipment manufacturing (C39). As of January 7, 2022 (T-3), the computer, communication and other electronic equipment issued by China Securities Index Co., Ltd The average static P / E ratio of communication and other electronic equipment manufacturing industry (C39) in the last month was 49.88 times.
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, with an excess range of 1.72%. There are three reasons: first, the company has the advantage of technological innovation, 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,
