Stock abbreviation: Yuxin Electronics Stock Code: 301107 Chongqing Yuxin Pingrui Electronics Co., Ltd
Chongqing Yuxin Pingrui Electronic Co.,Ltd.
Initial public offering and listing on GEM
Listing announcement
Sponsor (lead underwriter)
No. 358, Beijing South Road, high tech Zone (new urban area), Urumqi, Xinjiang
Room 2004, 20th floor, Dacheng International Building
May, 2002
hot tip
The shares of Chongqing Yuxin Pingrui Electronics Co., Ltd. (hereinafter referred to as “Yuxin Electronics”, “issuer”, “the company” or “the company”) will be listed on the gem of Shenzhen Stock Exchange on May 24, 2022. 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, the abbreviation in this listing announcement is consistent with the prospectus of Chongqing Yuxin Pingrui Electronics Co., Ltd. for initial public offering and listing on GEM.
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 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 (website: www.cn. Info. Com. 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 to pay attention to the relevant contents not involved in this listing announcement. Please refer to the full text of the company’s prospectus. 2、 Special tips on investment risks at the initial stage of IPO
The company reminds investors to pay attention to the investment risks in the initial stage of IPO (hereinafter referred to as “new shares”), and investors should fully understand the transaction risks and rationally participate in the trading of new shares. The company’s special tips on relevant risks are as follows:
(I) risk of relaxation of rise and fall restrictions on GEM
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 of new shares on the main board of Shenzhen Stock Exchange, the increase limit proportion is 44%, the decrease limit proportion is 36%, and then the increase and decrease limit proportion is 10%.
The gem has further relaxed the restrictions on the rise and fall of stocks in the initial stage of listing, and increased the trading risk. Investors should pay attention to the possible risk of stock price fluctuation and rationally participate in the stock trading on the gem.
(II) the risk of a small number of circulating shares at the initial stage of listing
After this issuance, the total share capital of the company is 73.4 million shares, of which the number of tradable shares with unlimited sales conditions is 18.37 million shares, accounting for 25.03% of the total shares. At the initial stage of listing, the number of circulating shares is small, and there is a risk of insufficient liquidity.
(III) risks that can be regarded as the subject matter of margin trading on the first day of listing of GEM stocks
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 increase 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 is that when the index stock fluctuates violently, the financing purchase of securities or the repayment of securities sale, the sale of securities lending or the repayment of securities purchase may be blocked, resulting in greater liquidity risk.
(IV) the price earnings ratio is different from the average level of the same industry
According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of the issuer is “C34 general equipment manufacturing industry”. As of May 10, 2022 (T-3), the average static P / E ratio of the same industry in the latest month released by China Securities Index Co., Ltd. is 26.95 times, and the average rolling P / E ratio of the same industry in the latest month released by China Securities Index Co., Ltd. is 23.78 times.
As of May 10, 2022 (T-3), the price earnings ratio of comparable listed companies is as follows:
May 2022
October 10
The top 20 securities are deducted in 2021, not in 2021, not in 2021, not in 2021
Abbreviated as EPS before trading day (yuan) / EPS after trading day (yuan / price earnings ratio before trading day / price earnings ratio after trading day)
Price (including pawn shares)
(day) (yuan)
/Shares)
Zhejiang Fenglong Electric Co.Ltd(002931) 9.53 0.3978 0.3661 23.95 26.02
Senci Electric Machinery Co.Ltd(603109) 22.29 1.2960 0.7338 17.20 30.37
Ningbo Daye Garden Machinery Co.Ltd(300879) 18.30 0.3470 0.1969 52.74 92.96
Zhejiang Zhongjian Technology Co.Ltd(002779) 21.75 0.0947 0.0308 229.73 707.27
Average value (excluding Zhejiang Zhongjian Technology Co.Ltd(002779) after) 31.30 49.79
Yuxin electronics 25.64 1.1188 1.025622.92 25.00
Note: 1. Data source: Hithink Royalflush Information Network Co.Ltd(300033) Ifind, audited annual report of 2021 published by each company; If there is mantissa difference in the calculation of P / E ratio, it is caused by rounding;
2. EPS of comparable listed companies before / after deduction of non recurring profit and loss in 2021 = net profit attributable to parent company before / after deduction of non recurring profit and loss in 2021 ÷ latest share capital; The EPS of Yuxin electronics before / after deduction in 2021 is calculated according to the issuance price of 25.64 yuan and the share capital of 73.4 million shares after issuance;
3. Price earnings ratio of comparable listed companies before / after deduction in 2021 = average price of the first 20 trading days / (audited earnings per share before / after deduction in January December 2021); The price earnings ratio of Yuxin electronics before and after deduction in 2021 is calculated according to the issuance price of 25.64 yuan and the share capital of 73.4 million shares after issuance;
4. Zhejiang Zhongjian Technology Co.Ltd(002779) in 2021, the P / E ratio before and after deduction exceeds 100 times, which is significantly higher than that of other comparable companies. Therefore, the extreme value of Zhejiang Zhongjian Technology Co.Ltd(002779) is excluded when calculating the average value of P / E ratio.
The issuance price of 25.64 yuan / share corresponds to the issuer’s diluted P / E ratio of the net profit attributable to the parent in 2021, whichever is lower before and after deducting non recurring profits and losses, which is 25.00 times lower than the industry’s static average p / E ratio of 26.95 times in the latest month (as of May 10, 2022, T-3) published by China Securities Index Co., Ltd. and 49.79 times lower than the arithmetic average value of the corresponding static P / E ratio (after deducting non recurring profits and losses) of comparable companies in 2021 (after excluding extreme values). 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 rationally. 3、 Special risk tips
The company specially reminds investors to pay attention to the following risk factors and carefully read “section IV Risk Factors” of the prospectus: (I) the general machinery industry faces trade barriers and restrictions
China’s exports of general gasoline engines and end products account for a high proportion, accounting for about 80% of the output, and are exported to the United States, Europe and most of the world’s developed countries and regions. With the increasingly tense international trade situation, the target exporting countries adopt various regulations and certification conditions to raise the threshold and form barriers in terms of safety, energy conservation, emission, noise, EMC, hazardous substances and energy efficiency requirements.
In terms of intellectual property rights: on February 5, 2020, upon the application submitted by the alliance of vertical engine manufacturers of the United States, the U.S. Department of Commerce decided to officially launch an anti-dumping and countervailing investigation on vertical engines and parts with a displacement of 225cc to 999cc originating from China. The products under investigation are mainly used for riding lawn mowers and zero turning radius lawn mowers; On April 8, 2020, upon the application submitted by Briggs & Stratton, the US Department of Commerce officially launched anti-dumping and anti-dumping measures against small displacement vertical engines and parts with a displacement of 99cc to 225cc originating in China
Countervailing investigation; On June 16, 2020, at the request of MTD, an American manufacturer, the US Department of Commerce launched an anti-dumping and countervailing investigation on walking mowers originating in China.
In terms of tariffs: in June 2018, the United States proposed to impose 25% tariffs on $50 billion of industrial components, machinery, semiconductors and other non consumer goods from China in two batches: 25% tariffs on $34 billion of products from July 6, 2018 and 25% tariffs on $16 billion of products from August 23, 2018; On September 24, 2018, the United States decided to impose a 10% tariff on US $200 billion goods imported from China, which will be increased to 25% from May 10, 2019.
Emission standards: in June 2020, carb put forward the draft of emission regulations and requirements for future general gasoline engines and end products: by 2023, the standards in terms of annual emission limit, durability cycle, evaporative emission and particulate matter test will be greatly improved, and zero emission will be achieved by 2025; The requirements of ul2201 standard for low-carbon portable generator (Second Edition) in terms of carbon monoxide emission rate and closed space shutdown test of the unit have been greatly improved.
If the export country’s trade policy continues to tighten (the continuous improvement of technical barriers puts forward higher requirements for the R & D capacity and quality control of Chinese enterprises. Tariff barriers directly weaken the long-term price advantage of Sinocom’s export products. The continued imposition of tariffs will lead to the issuer’s price reduction of export products in accordance with the price adjustment mechanism agreed in the agreement, which will exceed the actual price adjustment range in the reporting period. The extension of the double anti investigation to complete machine products other than vertical axis power products will increase the issuance The impact of major customers) will have a great adverse impact on the operating performance of the issuer. (II) risk of intensified market competition
Zhongguotong machine parts industry has many operating enterprises and a high degree of marketization. With the continuous expansion of the market scale of the downstream machine manufacturing industry, it will attract more competitors to enter. At the same time, production bases with cost advantages in Southeast Asia and South America will gradually attract the transfer of purchase orders from global complete machine manufacturers, and the market competition will be more intense. Fierce market competition may lead to the decline of product prices and profit margins in the industry. If the business development speed of the issuer cannot keep up with the development level of the industry, the competitive advantage of the issuer in the industry will be gradually weakened and the market share may decline. (III) risk of relative concentration of customers
In 2019, 2020 and 2021, the total sales of the company’s top five customers, including Loncin Motor Co.Ltd(603766) , Briggs Stratton, Honda, Yamaha, Kohler and JAC power, accounted for 61.32%, 58.51% and 59.88% of the current operating revenue respectively, with high customer concentration. If the company’s major customers change their import and export trade policies (in June 2020, the U.S. Department of Commerce listed Loncin Motor Co.Ltd(603766) as a lawn mower double anti compulsory respondent enterprise), or the customer’s own development strategy changes (the relevant business of Briggs & Stratton in Japan is transferred to Briggs & Stratton’s U.S. factory in 2019; Briggs & Stratton starts the restructuring process in July 2020), or the customer’s shareholders are in poor business conditions (the controlling shareholder of Loncin Motor Co.Ltd(603766) has a debt crisis in 2018), Will bring uncertainty to the issuer’s sales, production and operation. In addition, if the company fails to continuously meet the requirements and standards of the core general machine manufacturers in terms of product price, reliability, timeliness of delivery and technical update, it may lead to the loss of the company’s main customers and face the risk of large fluctuations in the company’s operating performance. (IV) market fluctuation risk of main raw materials
The main raw materials of the issuer’s products are electronic components (integrated circuits, triodes, diodes, capacitors, etc.), metal materials (steel, aluminum, sand casting materials, etc.), enamelled wires, stamping parts, spark caps, chemical materials, magnetic steel, harness sheath connectors, printed boards, agricultural machinery electromechanical processing accessories, sand castings, etc. In 2019, 2020 and 2021, the company’s raw materials accounted for 80.11%, 83.63% and 86.44% of its main business costs, respectively. The price fluctuation of raw materials will have a great impact on the company’s operating performance, especially the frequent price changes of bulk commodities such as steel, aluminum, copper (enamelled wire and high-voltage wire) will directly affect the stability of the company’s procurement cost. If the price of main raw materials fluctuates sharply in the short term
