Stock abbreviation: Jiarong Technology Stock Code: 301148
Xiamen Jiarong Technology Co., Ltd. (registered address: floor 6, No. 1670-2, Butang Middle Road, industrial base, Xiamen Torch High tech Zone (Tongxiang)) made an initial public offering and was listed on the gem
of
Listing announcement
Sponsor (lead underwriter)
(unit A02, 35 / F and 28 / F, Allianz building, 4018 Jintian Road, Futian District, Shenzhen) April 2002
hot tip
The shares of Xiamen Jiarong Technology Co., Ltd. (hereinafter referred to as “Jiarong technology”, “the company”, “the company” or “the issuer”) will be listed on the gem of Shenzhen Stock Exchange on April 21, 2022. This market has high investment risk. GEM companies have the characteristics of unstable performance, high operation risk and high delisting risk, and investors are facing greater market risk. Investors should fully understand the investment risks of the gem and the risk factors disclosed by the company, and make investment decisions prudently.
The company reminds investors to fully understand the risks of the stock market and the risk factors disclosed by the company, avoid blindly following the trend of “speculation” in the initial stage of IPO, and make prudent decision and rational investment.
Unless otherwise specified in the text, the meaning of the words used in this listing announcement is consistent with the prospectus of Xiamen Jiarong Technology Co., Ltd. for initial public offering and listing on the gem (hereinafter referred to as the “prospectus”).
Section I important statements and tips
1、 Important statement
The company and all directors, supervisors and senior managers guarantee the authenticity, accuracy and completeness of the information disclosed in the listing announcement, promise that there are no false records, misleading statements or major omissions in the listing announcement, and bear legal liabilities according to law.
The opinions of Shenzhen Stock Exchange and relevant government authorities on the listing of the company’s shares and related matters do not indicate any guarantee to the company.
The company reminds investors to carefully read the information published on cninfo.com.cn China Securities Network (www.cs. Com. CN.) China Securities Network (www.cn. Stock. Com.) Securities Times (www.stcn. Com.) Securities Daily (www.zqrb. CN.) The contents of the “risk factors” chapter of the company’s prospectus should pay attention to risks, make prudent decisions and make rational investment.
The company reminds the majority of investors that for any relevant content not involved in this listing announcement, please refer to the full text of the company’s prospectus.
The value of this listing announcement is usually reserved to two decimal places. If the total number is inconsistent with the mantissa of the sum of the values of each sub item, it is caused by rounding. 2、 Special tips on investment risk at the initial stage of gem IPO
According to the industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission, the industry of the company is “n77 ecological protection and environmental governance industry”. The static average p / E ratio of “n77 ecological protection and environmental governance industry” published by China Securities Index Co., Ltd. in the latest month is 22.40 times (as of April 6, T-4, 2022).
As of April 6, 2022 (T-4), the valuation levels of comparable listed companies disclosed in the letter of intent for initial public offering and listing on the gem of Xiamen Jiarong Technology Co., Ltd. (hereinafter referred to as the “letter of intent”) are as follows:
T-4 day shares in 2020 deduct non corresponding static securities in 2020, corresponding static securities code securities abbreviation, closing price of non front EPS post EPS P / E ratio (deduct P / E ratio (deduct (yuan / share) (yuan / share) (non front) non rear)
Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) .SZ Jiangsu Jiuwu Hi-Tech Co.Ltd(300631) 32.65 0.6746 0.5155 48.40 63.34
Suntar Environmental Technology Co.Ltd(688101) .SH Suntar Environmental Technology Co.Ltd(688101) 15.84 0.6643 0.5514 23.84 28.73
Jiangxi Jdl Environmental Protection Co.Ltd(688057) .SH Jiangxi Jdl Environmental Protection Co.Ltd(688057) 18.45 1.4010 1.3456 13.17 13.71
Welle Environmental Group Co.Ltd(300190) .SZ Welle Environmental Group Co.Ltd(300190) 5.34 0.4572 0.3861 11.68 13.83
Nanjing Wondux Environmental Protection Technology Corp.Ltd(688178) .SH Nanjing Wondux Environmental Protection Technology Corp.Ltd(688178) 21.39 1.4870 0.9542 14.38 22.42
Arithmetic mean 22.30 28.41
Source: wind data, as of April 6, 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.
The issuance price of 38.39 yuan / share corresponds to the lower diluted P / E ratio before and after deducting non recurring profits and losses in 2020, which is 34.88 times higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on April 6, 2022 (T-4), with an excess range of 55.71%, which is 28.41 times higher than the average static P / E ratio of comparable companies in the same industry in 2020, with an excess range of 22.77%, There is a risk that the decline of the issuer’s share price will bring losses to investors in the future.
There is a risk that the net asset scale will increase significantly due to the acquisition of raised funds, which will have an important impact on the issuer’s production and operation mode, operation management and risk control ability, financial status, profitability and long-term interests of shareholders. 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 company reminds investors to pay attention to the investment risk of initial public offering (hereinafter referred to as “new shares”), and investors should fully understand the risk and rationally participate in the trading of new shares. Specifically, the risks associated with investing in the company’s shares include but are not limited to the following:
(I) relaxation of price limit
The competitive trading of GEM stocks is subject to a wide range of rise and fall limits. For stocks that are IPO and listed on the gem, there is no rise and fall limit in the first five trading days after listing, and then the rise and fall limit is 20%. On the first day of listing, the main board of Shenzhen Stock Exchange was limited to 44%, 36% and 10% respectively. Gem further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk.
At the initial stage of listing, the share lock period of the original shareholders is 36 months or 12 months; Offline investors promise that the sales restriction period of 10% of the shares allocated to them is 6 months, and the other 90% of the shares are sold indefinitely; Among the strategic investors, the restricted period of the shares allocated to the senior managers and core employees of the issuer participating in the special asset management plan established by this strategic placement is no less than 12 months, and the restricted period of the shares allocated to the military civilian integrated development industry investment fund (limited partnership) (hereinafter referred to as the “development fund”) of other strategic investors is 12 months. In addition, the development fund promises that within one year after the end of the sales restriction period, the total number of shares it reduces will not exceed 30% of the number allocated this time. The restricted sale period shall be calculated from the date when the shares of this public offering are listed on the Shenzhen Stock Exchange. After the issuance, the total share capital of the company is 116497080 shares, of which 23717730 shares are tradable without restrictions, accounting for 20.36% of the total share capital after the issuance. At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity.
(III) the shares can be used as the subject matter of margin trading on the first day of listing
GEM stocks can be used as the subject of margin trading on the first day of listing, which may produce certain price fluctuation risk, market risk, margin call risk and liquidity risk. Price fluctuation risk refers to that margin trading will aggravate the price fluctuation of the underlying stock; Market risk refers to that when investors use stocks as collateral for financing, they need to bear not only the risks caused by the change of the original stock price, but also the risks caused by the change of the stock price of new investment, and pay the corresponding interest; Margin call risk means that investors need to monitor the level of guarantee ratio in the whole process of trading to ensure that it is not lower than the maintenance margin ratio required by margin trading; Liquidity risk refers to that when the price of the underlying stock fluctuates violently, the financed purchase of securities or the repayment of securities, the sale of securities or the repayment of securities may be blocked, resulting in greater liquidity risk.
(IV) risk that the P / E ratio is higher than the average level of the same industry
The average p / E ratio of non issuers in the same industry before and after 2020 is higher than the average p / E ratio of 28.88 times that of non issuers in the same industry. After deducting the diluted P / E ratio of non issuers in 2020, the average p / E ratio of non issuers in the same industry before and after 2020 is 40.88 times higher than that of the last year. There is a risk that the net asset scale will increase significantly due to the acquisition of raised funds, which will have an important impact on the issuer’s production and operation mode, operation management and risk control ability, financial status, profitability and long-term interests of shareholders. 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.
(V) risk of decline in return on net assets caused by raised funds
After the raised funds are in place, the net assets of the company will increase significantly in the short term. Although the company has fully demonstrated the project invested with raised funds and the expected benefits are good, the project invested with raised funds has a certain construction cycle and production period, and it is difficult to fully generate benefits in the short term. The growth of the company’s profits may not keep pace with the growth of net assets in the short term. After this issuance, the company has the risk of declining return on net assets in the short term.
(VI) there may be a risk of falling below the issue price after listing
Investors should pay full attention to the risk factors contained in the pricing marketization, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, and avoid blind speculation. Regulators, issuers and recommendation institutions (lead underwriters) can not guarantee that the stock will not fall below the issue price after listing. 3、 Special risk tips
The company reminds investors to carefully read the “risk factors” part of the prospectus and pay special attention to the following matters:
(I) technology upgrading iteration and R & D risk
The application of membrane technology is a multi-disciplinary and cross industry, involving multi-disciplinary and multi fields such as materials science, automation and environmental science, as well as multiple links of the industrial chain such as membrane materials, membrane components and membrane equipment. The products applied by membrane technology are technology intensive products. In order to meet the requirements of diversified application fields, diversified process conditions, professional operation services and ensure the stable operation of the overall solution, the requirements for technological innovation ability and product R & D ability such as membrane module and complete equipment development, membrane technology application process design are increasing. At the same time, the company’s technology and product R & D has the characteristics of long cycle, high difficulty and large investment. It is necessary to accurately grasp the development trend of the industry and the needs of customers. If the company cannot accurately grasp the market development trend and continuously maintain the leading R & D ability and innovation ability in the application field of membrane technology, it may not be able to develop products that meet the market demand and weaken the competitive advantage of the company’s existing technologies and products, which will have an adverse impact on the company’s business development.
(II) operational risk
1. Customers are more concentrated risk
During the reporting period, the total sales revenue of the company’s top five customers accounted for 59.90%, 44.96%, 39.16% and 44.44% of the current operating revenue respectively. With the gradual growth of the company’s scale and the improvement of market popularity, the company has established long-term cooperative relations with many customers. The stable customer group provides the company with a stable source of income. At the same time, the company’s sales amount to this part of customers accounts for a high proportion of the company’s total revenue. In the future, if the company’s main customers reduce the demand for the company’s products due to their own sudden reasons or major adverse factors in market changes, the company’s operating performance will also be adversely affected.
2. Business risks of high concentration wastewater treatment service projects
During the reporting period, the company’s high concentration wastewater treatment service revenue was 563523 million yuan, 1664066 million yuan, 1972487 million yuan and 1327529 million yuan respectively, accounting for 18.93%, 29.11%, 34.06% and 47.22% of the main business revenue respectively. High concentration wastewater treatment service business has grown rapidly and become an important source of revenue and profit for the company. As there is a certain treatment period for the high concentration sewage and wastewater treatment service project, if the company cannot renew the existing project as scheduled or continue to develop new projects in the future, the company’s business performance will face a certain risk of fluctuation.
3. The single customer of high concentration wastewater business accounts for a relatively high proportion and the risk of developing new customers
During the reporting period, the company’s revenue from high concentration wastewater treatment services from Everbright International accounted for 98.58%, 57.14%, 36.66% and 15.17% of the total revenue of this kind of business respectively, with a relatively high proportion of single customers. However, due to the periodicity of high concentration wastewater treatment projects, with the completion of large-scale cooperation projects such as Shenyang Daxin landfill leachate treatment project, the amount of orders on hand of the company’s high concentration wastewater business from Everbright International has decreased, up to 20
