Weihai Baihe Biotechnology Co., Ltd
IPO announcement
Sponsor (lead underwriter): Gf Securities Co.Ltd(000776)
hot tip
Weihai Baihe Biotechnology Co., Ltd. (hereinafter referred to as “Baihe shares”, “issuer” or “company”) in accordance with the measures for the administration of securities issuance and underwriting (CSRC order [No. 144]) and the measures for the administration of initial public offering and listing (CSRC order [No. 173]) Organize the implementation of IPO in accordance with the relevant provisions of the code for underwriting business of initial public offering (zsxf [2018] No. 142) and the detailed rules for the implementation of online IPO in Shanghai market (revised in 2018) (SZF [2018] No. 40, hereinafter referred to as the detailed rules for the implementation of online IPO).
This online issuance is conducted through the trading system of Shanghai Stock Exchange (hereinafter referred to as “Shanghai Stock Exchange”), and investors are requested to carefully read this announcement and the detailed rules for the implementation of online issuance and other relevant provisions.
1. Please pay attention to the key contents of the issuance process, subscription, payment and other links of this issuance:
(1) This issuance adopts the direct pricing method, and all shares are issued online to social public investors holding a certain market value of non restricted A-Shares and non restricted depositary receipts in Shanghai market, without offline inquiry and placement.
(2) The issue price is 42.14 yuan / share. Based on this price, investors will make online purchase on January 14, 2022 (t day). The online purchase time is 9:30-11:30 and 13:00-15:00. There is no need to pay the subscription fund at the time of subscription.
(3) Online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares on their behalf.
(4) After winning the lottery in the subscription of new shares, the investor shall fulfill the payment obligation in accordance with the announcement on the lottery results of online pricing issuance of initial public offering of Weihai Lily Biotechnology Co., Ltd. (hereinafter referred to as the announcement on the lottery results of online pricing issuance), Ensure that its capital account has sufficient subscription funds for new shares on January 18 (T + 2) 2022, and the insufficient part shall be deemed as abandoning the subscription. 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 the winning investor waives to subscribe for shall be underwritten by Gf Securities Co.Ltd(000776) (hereinafter referred to as “sponsor (lead underwriter)” or ” Gf Securities Co.Ltd(000776) “).
(5) When the number of shares subscribed by online investors is less than 70% of the number of public offerings, the issuer and the sponsor (lead underwriter) will suspend the issuance of new shares and disclose the reasons for the suspension and subsequent arrangements.
(6) If an online investor has won the lottery for 3 times but failed to pay in full within 12 consecutive 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. 2. The issuer and the recommendation institution (lead underwriter) solemnly remind the majority of investors to pay attention to investment risks and invest rationally. They should carefully read this announcement and its publications published on China Securities Journal, securities times, Shanghai Securities News, securities daily and the website of Shanghai Stock Exchange on the same day（ http://www.sse.com.cn. ）Special announcement on investment risk of initial public offering of Weihai Lily Biotechnology Co., Ltd.
Valuation and investment risk tips
Investment in new shares has great market risks. Investors need to fully understand the investment risks of new shares, carefully study the risks disclosed in the issuer’s prospectus, fully consider the following risk factors, and prudently participate in the subscription of new shares:
1. According to the guidelines for Industry Classification of listed companies (revised in 2012) issued by China Securities Regulatory Commission (hereinafter referred to as “CSRC”), the issuer’s industry is food manufacturing (C14), and the industry’s static average p / E ratio in the latest month issued by China Securities Index Co., Ltd. is 44.20 times (as of January 11, T-3, 2022). The issuance price of 42.14 yuan / share corresponds to the lower of the issuer’s net profit attributable to the owner of the parent company before and after deducting non recurring profits and losses in 2020. The diluted P / E ratio is 22.99 times, which is lower than the static average p / E ratio of the industry for the latest month as of January 11, 2022 (T-3) issued by China Securities Index Co., Ltd. please refer to it when making decisions.
2. The issuer plans to use the raised capital for the project of raising investment this time, with an investment amount of 602431100 yuan. Based on the issuance of 16 million new shares and the issuance price of 42.14 yuan / share, the total amount of funds raised is expected to be 674.24 million yuan. After deducting the issuance cost of 71.8089 million yuan, the net amount of funds raised is expected to be 602.4311 million yuan, which does not exceed the amount of funds raised expected to be used by the issuer for the project.
3. If the issuer’s raised funds are not used properly or its business cannot grow synchronously in the short term, it will have an adverse impact on the issuer’s profitability or there is a risk of a significant decline in the issuer’s return on net assets, resulting in a decline in the issuer’s valuation level and stock price, resulting in the risk of investment loss to investors.
4. In 2020, the company realized an operating revenue of 578287200 yuan, an increase of 15.74% over 2019; In 2020, the company realized a net profit attributable to the owners of the parent company of 127.1159 million yuan, an increase of 71.00% over 2019; In 2020, the company realized a net profit attributable to the owner of the parent company of RMB 117.2914 million after deducting non recurring profits and losses, an increase of 55.11% over 2019.
From January to June 2021, the company realized an operating revenue of 306262500 yuan, an increase of 24.21% over the same period last year; The net profit attributable to the owners of the parent company was 68.887 million yuan, an increase of 36.65% over the same period last year; After deducting non recurring profits and losses, the net profit attributable to the owners of the parent company was 61.6245 million yuan, an increase of 37.63% over the same period last year.
From January to September 2021, the reviewed operating revenue of the company was 470021200 yuan, an increase of 12.45% over the same period last year; The net profit attributable to the owners of the parent company was 117.9558 million yuan, an increase of 28.09% over the same period last year; After deducting non recurring profits and losses, the net profit attributable to the owners of the parent company was 104.1158 million yuan, an increase of 21.58% over the same period last year.
Investors are hereby reminded to pay attention to the risk of performance fluctuation of the issuer and participate in decision-making rationally.
Important tips
1. The application for the initial public offering of 16 million RMB common shares (A shares) (hereinafter referred to as “this offering”) of Baihe shares has been approved by the CSRC’s CSRC permit (2022) No. 36.
The sponsor (lead underwriter) of this offering is Gf Securities Co.Ltd(000776) . The issuer’s shares are abbreviated as “Baihe shares” and the stock code is “603102”. The subscription issued online is referred to as “lily subscription” for short, and the online subscription code is “732102”. 2. This offering adopts the method of online direct pricing issuance (hereinafter referred to as “online issuance”) to social public investors holding non restricted A-Shares and non restricted depositary receipts in Shanghai market with a certain market value, without offline inquiry and placement. Online issuance is carried out through the trading system of Shanghai Stock Exchange.
3. The total number of shares issued to the public is 16 million, accounting for 25% of the total share capital after issuance. 16 million shares were issued online, accounting for 100% of the total issued this time. All the shares issued this time are new shares, and the transfer of old shares is not arranged.
4. The issuer and the recommendation institution (lead underwriter) comprehensively consider the issuer’s fundamentals, industry, valuation level of comparable listed companies, market conditions, demand for raised funds, underwriting risk and other factors, and negotiate to determine the issuance price of this online offering as 42.14 yuan / share. The price earnings ratio corresponding to this price is:
(1) 22.99 times (earnings per share shall be calculated by dividing the 2020 net profit attributable to the owner of the parent company before and after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards by the total share capital after this issuance);
(2) 17.25 times (earnings per share shall be calculated by dividing the 2020 net profit attributable to the owner of the parent company before and after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards by the total share capital before this issuance).
5. If the issuance is successful, the total amount of funds raised by the issuer is 674.24 million yuan. After deducting the issuance expenses of 71.8089 million yuan, the net amount of funds raised is expected to be 602.4311 million yuan, which does not exceed the investment amount of the raised funds to be used by the issuer for the project disclosed in the prospectus. The use plan of the issuer’s raised funds and other relevant information have been disclosed in the prospectus for initial public offering of Weihai Lily Biotechnology Co., Ltd. on January 12, 2022 (T-2). The full text of the prospectus can be found on the website of Shanghai Stock Exchange（ http://www.sse.com.cn. ）Query.
6. Important issues of online issuance:
(1) The online subscription time is: 09:30-11:30 and 13:00-15:00 on January 14, 2022 (t day). Online investors shall independently express their purchase intention and shall not fully entrust securities companies to purchase new shares on their behalf. (2) Open a securities account at China Securities Depository and Clearing Co., Ltd. Shanghai Branch (hereinafter referred to as “CSDCC Shanghai Branch”) before January 14, 2022 In addition, investors holding a certain market value of non restricted A-Shares and non restricted depositary receipts in Shanghai market 20 trading days (including T-2) before January 12, 2022 (except those prohibited by national laws and regulations and other regulatory requirements to be observed by the issuer) can apply for the shares issued online through the trading system of Shanghai Stock Exchange.
(3) Investors shall determine their online subscription quota according to the total market value of non restricted A-Shares and non restricted depositary receipts in Shanghai market (hereinafter referred to as “market value”). The market value of unqualified, dormant and cancelled securities accounts shall not be calculated. The market value of non restricted A-Shares and non restricted depositary receipts in Shenzhen market is not included in the calculation. The market value held by investors is calculated by the average daily market value of investors in the 20 trading days (including T-2) before January 12, 2022 (T-2). If the opening time of securities account is less than 20 trading days, the average daily market value is calculated by 20 trading days. Investors with a market value of more than 10000 yuan (including 10000 yuan) can participate in new shares. A subscription unit is 1000 shares, The subscription amount shall be 1000 shares or an integral multiple thereof, but the maximum subscription amount shall not exceed one thousandth of the number of shares issued online, that is, 16000 shares. If it exceeds, the subscription shall be invalid. At the same time, the investor’s subscription amount shall not exceed the upper limit of its online subscription amount calculated according to the market value. If the subscription amount does not exceed 16000 shares, but exceeds the upper limit of its online subscription amount corresponding to the market value, the part exceeding the upper limit is invalid. The investor’s proposed subscription amount shall not exceed the total assets or capital scale of the placing object, and ensure that the subscription amount and future shareholding comply with the provisions of relevant laws and regulatory authorities.
(4) Investors do not need to pay the subscription fund when they make subscription on January 14, 2022 (t day). (5) During the subscription period, the investor shall fill in the entrustment form at the issue price by means of entrustment to buy shares. Once declared, the order shall not be cancelled. Investors who participate in online issuance and subscription can only use one securities account. If the same investor uses multiple securities accounts to participate in the subscription of the same new share, or if the investor uses the same securities account to participate in the subscription of the same new share for many times, the first subscription of the investor shall be valid, and the other subscriptions shall be invalid. If an investor holds multiple securities accounts, the market value of multiple securities accounts shall be calculated jointly. The principle of confirming that multiple securities accounts are held by the same investor is that the “account holder name” and “valid identity document number” in the securities account registration data are the same. The registration data of securities account shall be subject to the end of T-2 day. The market value of the credit securities account of the margin trading customer is calculated into the market value held by the investor, and the market value of the refinancing guarantee securities detailed account of the securities company is calculated into the market value held by the securities company.
(6) For the special account for directional asset management and enterprise annuity account of customers of securities companies, if the “account holder’s name” and “valid identity document number” in the securities account registration data are the same, statistics shall be made according to different investors.
7. After winning the lottery in the subscription of new shares, investors shall fulfill their payment obligations in accordance with the announcement of lottery results of online pricing issuance announced on January 18, 2022 (T + 2). Online investors shall abide by the relevant provisions of the securities company where the investor is located when making payment. At the end of T + 2 day, the successful investor shall ensure that his capital account has sufficient funds for the subscription of new shares, and the insufficient part shall be deemed as abandoning the subscription. The resulting consequences and relevant legal liabilities shall be borne by the investor. The shares abandoned by investors are underwritten by the sponsor (lead underwriter). When the number of shares subscribed by online investors is less than 70% of the number of public offerings, the sponsor (lead underwriter) will suspend the issuance of new shares and disclose the reasons for the suspension and subsequent arrangements. 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.
8. See “(13) suspension of issuance” of “II. Online issuance” for possible suspension of this issuance.
9. This announcement only briefly describes the issue of shares and does not constitute investment suggestions. Investors are requested to carefully read the summary of the prospectus of this offering published in China Securities Journal, securities times, Shanghai Securities News and Securities Daily on January 12, 2022 (T-2). The full text of the prospectus and documents for future reference can be found on the website of the Shanghai Stock Exchange（ http://www.sse.com.cn. ）Query.
10. The listing of the shares will be announced separately. Other matters related to this offering will be reported in China Securities Journal, securities times and Shanghai Securities
