Stock abbreviation: Dayu Water-Saving Group Co.Ltd(300021) Stock Code: 300021 Dayu Water-Saving Group Co.Ltd(300021)
Dayu Water-saving Group Co.,Ltd
(No. 290, Jiefang Road, Jiuquan City, Gansu Province)
Demonstration and analysis report on the scheme of issuing shares to specific objects through simple procedures in 2021
(Revised Version)
January 2002
Dayu Water-Saving Group Co.Ltd(300021) (hereinafter referred to as "company" and " Dayu Water-Saving Group Co.Ltd(300021) ") is a company listed on the gem of Shenzhen Stock Exchange. In order to meet the capital requirements for the implementation of the company's business strategy and business development, further enhance the company's capital strength, optimize the capital structure and improve profitability, according to the company law of the people's Republic of China, the securities law of the people's Republic of China, the articles of Association, the measures for the administration of securities issuance and registration of companies listed on GEM (for Trial Implementation) and other relevant laws According to the regulations and normative documents, the company plans to issue shares to specific objects in 2021 through simple procedures (hereinafter referred to as "this issuance"). The number of shares to be issued this time is 58593750 (including), and the raised funds shall not exceed 300 million yuan (including). After deducting the issuance expenses, the net amount of raised funds after deducting the issuance expenses shall be used for the following items:
Unit: 10000 yuan
Serial no. Name of project to be invested
1 regional operation center and comprehensive service capacity improvement project 14606.43 12755.00
2 intelligent rural sewage treatment equipment, membrane separation device 13528.33 8245.00 and supporting double wall corrugated pipe production project
3. Replenish working capital and repay bank loans 9000.00 9000.00
Total 37134.76 30000.00
Before the funds raised in this offering are in place, the company can invest with self raised funds according to the actual progress of the project, and replace the self raised funds with the raised funds after the raised funds are in place. After the raised funds are in place, if the net amount of the actual raised funds after deducting the issuance expenses is less than the total amount of the proposed raised funds, within the scope of the investment projects of the raised funds in this issuance, the company will adjust and finally determine the specific investment projects, sequence and specific investment amount of each project according to the actual amount of the raised funds and the priorities of the projects, The insufficient funds raised shall be raised by the company itself.
(unless otherwise specified in this report, relevant terms have the same meanings as those in the plan for issuing shares to specific objects through summary procedures in Dayu Water-Saving Group Co.Ltd(300021) 2021)
1、 Background and purpose of this issuance of shares to specific objects
(I) background of this offering
1. The national strategy for Rural Revitalization has given birth to the strong demand for comprehensive service solutions for rural water conservancy projects. Rural water conservancy is directly related to the development level of agricultural production and farmers\' life. Realizing the modernization of rural water conservancy is an essential part of the national strategy for Rural Revitalization and the key to realizing the overall goal of strengthening agriculture, rural beauty and farmers\' wealth, Driven by the Rural Revitalization Strategy, the government has always focused on promoting the modernization of rural water conservancy industry, inclined to the field of rural water conservancy from the aspects of policy, capital and technology, and the rural water conservancy market ushered in a big outbreak. Under the guidance and promotion of various national plans and objectives, China's rural water conservancy market will usher in broader development space during the "14th five year plan". The market scale of rural water conservancy business fields such as efficient water-saving irrigation, modernization of irrigation areas, improvement of rural living environment and rural safe water supply is expected to exceed trillion.
With the release of rural water conservancy market demand, there is a strong demand for integrated solutions such as design, planning, manufacturing, construction, operation and informatization in business fields such as agricultural efficient water saving, rural sewage treatment and farmers' safety, which puts forward higher requirements for the ability of employed enterprises to provide comprehensive service solutions. Whether the whole industrial chain layout can be formed and the integrated solution of agricultural and water projects can be exported, and whether the informatization and intelligence level of agricultural and water projects can be improved will become the key to whether rural water conservancy enterprises can better meet the market demand and further obtain competitive advantage.
2. The demand for water resources is tight and urgent, and the development of water-saving irrigation industry is stable
China is one of the 13 water poor countries in the world, and the per capita water resources are extremely scarce. Agricultural irrigation is the "largest water user" of the national economy and has always been the "largest waste" of water resources. At present, the agricultural irrigation method of "earth canal water delivery and flood irrigation" is still widely used, and the irrigation water is seriously lost in the water delivery process. In recent years, the main content of agricultural high-efficiency water-saving is to develop water-saving irrigation. Water saving irrigation refers to an irrigation method that obtains better production and economic benefits with less irrigation water. According to different water-saving irrigation technologies, water-saving irrigation technologies can be classified into drip irrigation, sprinkler irrigation, Canal Anti-seepage, pipeline water delivery and other types. Among various mature water-saving irrigation technologies, micro irrigation technology represented by drip irrigation system is one of the irrigation technologies with low cost, good water-saving effect, fertilizer saving and yield increasing effect. Water saving irrigation is not only the best way to alleviate the shortage of water resources in China, but also an important means to build an energy-saving society and establish a water ecological civilization system.
The state regards water conservancy as a key area of public financial investment, has established a stable growth mechanism of water conservancy investment and improved the informatization level of water conservancy management. With the acceleration of water conservancy infrastructure construction and the strengthening of water resources management, a comprehensive system of water resources management informatization composed of infrastructure, business application and environmental protection has been preliminarily formed, Therefore, the water-saving irrigation industry will maintain a stable development trend.
3. The governance of rural human settlements has been gradually promoted, and the market space is huge
Rural domestic sewage is the primary factor causing rural water environment pollution and one of the important contents of rural residential environment treatment. It mainly comes from kitchen sewage, domestic washing sewage and toilet sewage. With the acceleration of the large-scale and intensive development of agriculture, the rural population is gradually concentrated. At the same time, the increase of rural residents' income is also accompanied by the popularization of sanitary toilets, washing machines and shower facilities, resulting in the increase of rural residents' water consumption and sewage discharge year by year. According to the main data of the third national agricultural census, by the end of 2016, 47.7% of farmers in the national census had used purified tap water, 36.2% of farmers had used water flushing sanitary toilets, and the per capita domestic water consumption and sewage discharge in rural areas had increased year by year.
In order to popularize sewage treatment facilities in rural areas and gradually alleviate the pressure on rural living environment.
According to the data of the statistical yearbook of urban and rural construction of the Ministry of housing and urban rural development, by 2019, the proportion of township domestic sewage treatment nationwide was 33.30%. According to the main data of the third national agricultural census, at the end of 2016, only 17.4% of the villages would have centralized or partially centralized treatment of domestic sewage. It can be seen that under the dual promotion of the current low penetration rate of sewage treatment in rural areas and the national rural living environment governance policy, there is still a lot of room for growth in the market to improve the rural environment.
4. The reliability of rural drinking water is not high, and the quality of safe drinking water still needs to be improved
Safe drinking water for farmers means that rural residents can timely and conveniently obtain sufficient, clean and affordable drinking water, including four evaluation indexes: water quality, water quantity, water convenience and water supply guarantee rate. From the founding of new China to the end of 2015, China's rural water supply has gone through four stages: natural development, starting drinking water, solving difficulties with drinking water and drinking water safety. After decades of efforts, China has established a relatively complete rural water supply system, which can serve 510 million rural people. By 2019, the penetration rate of tap water has reached 90.15%, basically realizing full rural coverage, The per capita water supply is increasing year by year.
However, there are still some problems in the rural water supply industry, such as small-scale water supply projects, poor sustainability, poor water source reliability, lack of protection, incomplete water purification and disinfection facilities, non-standard use, relatively low qualified rate of water quality, imperfect village water supply laws and regulations, management system and mechanism, etc. In the future, with the continuous acceleration of China's urbanization, the rural population will also show the phenomenon of centralized development. It is necessary to continuously increase the investment scale of safe drinking water projects in rural areas and strengthen the standardized construction of the operation and management of rural water supply projects, so as to improve the quality of farmers' safe drinking water.
(II) purpose of this issuance
1. Improve the company's comprehensive service capability and enhance the company's brand and product influence
Dayu Water-Saving Group Co.Ltd(300021) as one of the largest integrated suppliers of water-saving irrigation products in the world, it is a modern agricultural science and technology service company that exports comprehensive solutions for agricultural water projects integrating planning, design, investment and financing, construction, intelligent manufacturing, informatization and operation. It has been deeply engaged in the agricultural water industry for more than 20 years, with high-efficiency water saving in rural areas, rural sewage treatment Farmers' safe drinking water, agriculture, rural areas and three water industry chains are all over the country, and international business is also carried out in more than 50 countries / regions such as South Korea, Thailand and Australia. The business model of the company in various regions of the country is mainly project-based, covering the planning, design and manufacturing in the early stage, the implementation of project construction in the medium term and the maintenance and operation in the later stage. It has the characteristics of long project cycle and large scale. Therefore, it is very necessary to build an office in the project location and output comprehensive service solutions nearby. At present, the scale of the company's outlets is generally small, serving a single project. There is less communication and cooperation between the businesses of various sectors, and the management is difficult. The construction of regional operation center and comprehensive service capability improvement project can further improve the company's comprehensive service level. On the one hand, it is conducive to the efficient completion of project construction, operation and maintenance. At the same time, it can also be close to customers, respond to customers' needs in time and provide customers with comprehensive services, so as to improve customer experience, It helps to establish a long-term, stable and healthy cooperative relationship with customers.
As a leading enterprise in the industry, the company always adheres to the historical mission of "making agriculture smarter, rural areas better and farmers happier", resolutely implements the strategic decision of "three networks for agriculture, rural areas, three rivers and three networks, with both hands working together", and is committed to solving the problem of unbalanced and insufficient development of agriculture, rural areas and water resources, Therefore, brand building is of great significance to the implementation of the enterprise's overall strategy and the improvement of market share. The China water saving forum initiated and co sponsored by the company has become an industry event with the largest number of participants, the highest specification and the greatest influence in China's water saving field, which has greatly improved the company's image, promoted the brand publicity and new upgrading of the company's marketing model, and created a loud business card for China's water saving industry. At the same time, The company plans to build an exhibition center in the regional operation center of the raised investment project to show the company's local classic service cases to customers, so as to help customers deeply understand the potential value of the services provided by the company, answer questions and solve doubts according to the actual problems of rural groups, and summarize the service experience of local geographical factors and river basin conditions, Further comprehensively improve the company's brand image.
2. Meet the needs of rural residential environment governance business growth and improve the profitability of the company
Since the "Rural Revitalization" strategy was put forward at the 19th National Congress of the Communist Party of China, the state has issued a series of guidance, support and normative policies around the governance of rural human settlements. As a key component of rural human settlements, the improvement of rural environment has become a key livelihood project of local governments, and all localities are seeking reliable and mature market solutions, The demand for corresponding engineering orders and operation and maintenance is growing rapidly.
The integrated rural sewage treatment equipment of Dayu Water-Saving Group Co.Ltd(300021) integrates chemical treatment, a / O biodegradation process, MBR membrane separation process, disinfection process and intelligent control system. The sewage treatment effect is good and stable. The effluent quality can also be adjusted flexibly according to the budget and local environmental protection requirements. Through some demonstration projects in Wuqing, Tianjin and other places, The company's rural environmental business has won extensive market praise and further undertook a new round of rural domestic sewage treatment project in Wuqing District, Tianjin. In recent two years, with the gradual development of rural environmental business in Gansu, Beijing, Tianjin, Jiangsu and other places, the order demand for related rural environmental equipment is also growing rapidly, Dayu Water-Saving Group Co.Ltd(300021) it is necessary to further improve the production capacity of rural environmental equipment to meet the needs of business growth.
Due to the limited hardware supporting capacity of Dayu environmental protection, a large part of the equipment in the orders undertaken by the company needs to be purchased from external suppliers, thus transferring a large part of the profit space of equipment production, intelligent rural sewage treatment equipment The successful production of membrane separation device and supporting double wall corrugated pipe production project will greatly reduce the outsourcing proportion of relevant sewage treatment equipment during the implementation and operation of rural environmental projects, improve the overall revenue and profit level of the company, and accelerate the promotion and layout of business throughout the country.
2、 The necessity of this issuance of securities and its variety selection
(I) types and issuing methods of securities to be issued this time
The type of shares issued this time is RMB ordinary shares (A shares), with a par value of RMB 1.00 per share. The issuance method is to issue shares to specific objects through summary procedures.
(II) necessity of selection of securities issued this time
1. This issuance meets the needs of the company's operation and development
The use of the funds raised by issuing shares to specific objects is in line with the relevant national agricultural and water conservancy policies and the company's strategic development direction, has good market development prospects and economic benefits, and can improve the company's technical level, so as to maintain the company's leading position in the industry. In addition, after the funds raised by issuing shares to specific objects are in place, it will help to enhance the company's capital strength, alleviate the pressure of the company's working capital, enhance the company's risk prevention ability and overall competitiveness, and provide a strong guarantee for the company's future operation and development. Therefore, the issuance of shares to specific objects is of positive significance to the operation and management of the company, will lay a foundation for the sustainable development of the company, and is in line with the interests of the company and all shareholders.
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