Stock abbreviation: Yike food stock code: 301116 Jiangsu Yike Food Group Co., Ltd
Jiangsu Yike Food Group Co.,Ltd
(No. 1, Taihangshan Road, Suyu Economic Development Zone, Suqian City)
Initial public offering and listing on GEM
of
Listing announcement
Sponsor (lead underwriter)
(North block, excellence Times Plaza (phase II), No. 8, Zhongxin Third Road, Futian District, Shenzhen, Guangdong Province) January 2002
hot tip
The shares of Jiangsu Yike Food Group Co., Ltd. (hereinafter referred to as "Yike food", "the company", "the company" or "the issuer") will be listed on the gem of Shenzhen Stock Exchange on January 18, 2022. The company reminds investors to fully understand the stock market risks 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.
Section I important statements and tips
1、 Important statements and tips
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 http://www.cn.info.com.cn 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, pay attention to risks, make prudent decisions and make rational investment.
The company reminds the majority of investors that investors are invited to refer to the full text of the company's prospectus for relevant contents not involved in this listing announcement.
Unless otherwise specified, the abbreviations or terms in this listing announcement shall have the same meanings as those in the prospectus of the company. 2、 Investment risk tips
The issuer's audited diluted P / E ratio of net profit attributable to shareholders of the parent company in 2020 corresponding to the issuance price of 11.40 yuan / share is 41.01 times, which is higher than the average monthly static P / E ratio of "C13 agricultural and sideline food processing industry" released on December 30, 2021 (T-4), It is 36.27 times higher than the arithmetic mean value of the static P / E ratio of comparable companies in the same industry after deducting non-profit in 2020, and there is a risk that the decline of the issuer's share price will bring losses to investors in the future. The issuer and the sponsor (lead underwriter) remind investors to pay full attention to the risk factors contained in the marketization of pricing, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, avoid blind speculation, carefully study and judge the rationality of issue pricing and make investment decisions rationally.
The company reminds investors to pay attention to the investment risk at the initial stage of IPO (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 at the initial stage of listing include but are not limited to the following: (I) the restrictions on rise and fall are relaxed
The competitive trading of GEM stocks is subject to a wide range of rise and fall restrictions. For stocks that are IPO and listed on the gem, there are no rise and fall restrictions in the first five trading days after listing, and then the rise and fall restrictions are 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 early stage of listing, and increased the trading risk. (II) risk of less circulating shares
At the initial stage of listing, because the share lock up period of the original shareholders was 36 months or 12 months, after this issuance, the total share capital of the company was 448979593 shares, of which 40452955 shares were tradable without sale conditions, accounting for 9.01% of the total share capital after this 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 means that margin trading will aggravate the price fluctuation of the underlying stock; Market risk means that when investors use stocks as collateral for financing, they need to bear not only the risks caused by the changes in the original stock price, but also the risks caused by the changes in the stock price of new investment, and pay corresponding interest; Margin increase risk means that investors need to monitor the guarantee ratio level throughout the transaction process 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. 3、 Special risk tips
The company reminds investors to carefully read the "section IV Risk Factors" of the prospectus and pay special attention to the following matters:
(I) animal epidemic and other natural disaster risks
The company's main business scope covers many links of the meat and poultry industry chain. The epidemic situation of poultry is one of the main risks faced by the company in its production and operation. The impact of animal epidemics such as avian influenza on the company is mainly reflected in: (1) if a more serious animal epidemic occurs around the company or nationwide in the future, the poultry in the epidemic area will be destroyed, the supply of raw materials will be insufficient or the quality of raw materials will be damaged, and the price of raw materials will fluctuate greatly; (2) The emergence of a large-scale epidemic will reduce the desire of end consumers to buy poultry meat and reduce the market demand for the company's products; (3) In case of animal epidemic in the company's own subordinate farms, the company's self bred breeding birds will be destroyed and the company will suffer asset losses.
In addition, if major natural disasters such as severe climate change and insect disaster cause a large reduction in agricultural production, the cost of feed production and poultry breeding will increase significantly, and the company's procurement cost will increase; Severe weather such as rainstorm, Blizzard and hail will bring inconvenience to road transportation and increase the transportation cost of materials and products. (II) food safety risk
Food safety has always been the top priority of meat processing enterprises. In recent years, the state has promulgated a series of laws and regulations such as the food safety law, the food safety implementation regulations and the Shenzhen Agricultural Products Group Co.Ltd(000061) quality safety law, so as to further strengthen the social responsibility, risk control and restraint measures of food producers and strengthen the punishment of violators.
Although the company has established strict quality control systems and standards, if food safety accidents or quality problems occur due to poor quality control and management, it may have an adverse impact on the company's reputation and operation.
(III) environmental protection risk
The pollutants produced in the production of the company mainly include wastewater, waste gas, feces, sludge and other small amounts of solid wastes produced in the production process. In addition to the company's own production and operation activities, the company's daily business relies on farmers as the main source of raw material supply for the slaughtering sector. If the environmental protection policies of the national and local governments are adjusted and the environmental protection requirements for the breeding and slaughtering industries are further improved, the production costs of the company and farmers in the purchase and construction of environmental protection facilities, payment of sewage charges and other operating expenses will be increased, which will have an impact on the profitability of the company.
In 2013, the State Council promulgated the regulations on pollution prevention and control of large-scale livestock and poultry breeding, which clearly defined the prohibited breeding areas, and the farms in the prohibited breeding areas were relocated or closed within a time limit. If the local government further adjusts the land planning and redefines the no breeding area in the future, the company's farmers' farms will face the risk of relocation or closure within a time limit, which may have an adverse impact on the company's production and operation.
(IV) risk of price fluctuation of products and raw materials
The company's main products are duck products, chicken products, feed, duck seedlings, chicken seedlings, cooked food and conditioning products. The main raw materials include hairy duck, hairy chicken, etc. the company's products and raw materials cover multiple links of the poultry breeding industry chain, and its market price changes with the supply and demand of each link of the industrial chain, showing a certain volatility.
The degree of large-scale breeding in China's poultry breeding industry is relatively low. Under the background of the market structure in which small-scale farmers account for the main part of the breeding group and the degree of large-scale breeding still needs to be improved, it is easy to cause large fluctuations in the market supply level. Therefore, the prices of duck products, chicken products, duck seedlings, chicken seedlings and other products may change greatly in a certain period of time. At the same time, due to different links in the industrial chain, the prices of the company's main raw materials wool duck and wool chicken also change with the relationship between supply and demand. Although the prices of the company's products and raw materials have a certain linkage effect, there are certain uncertainties in the price transmission time and change range, which will have a certain impact on the company's profitability.
(V) risk of operating performance fluctuation
Affected by the change of supply and demand, feed price, epidemic situation and other factors, the prosperity of the poultry industry presents certain fluctuation characteristics. In recent years, although the company's business scale has been expanding, the company's business performance has also fluctuated due to the impact of industry fluctuations. Especially in the process of industry rotation from rising cycle to falling cycle, the company's business performance will decline significantly and be at a low level during the relatively low period. Taking 2018-2020 as an example, 2018 and 2019 are upward cycles. Especially in 2019, there is a large demand in the industry. The high gross profit has mobilized the enthusiasm of farmers and stimulated the increase of industrial production capacity in the short term. In 2020, due to the rotation of the industry cycle, the net profit attributable to the shareholders of the parent company after deducting non recurring profits and losses decreased by 65.59% compared with 2019. In each period of the reporting period, the company's operating revenue was RMB 9.905 billion, RMB 15.554 billion, RMB 14.392 billion and RMB 7.724 billion respectively, and the net profits attributable to the parent company after deducting non recurring profits and losses were RMB 143 million, RMB 363 million, RMB 125 million and RMB 23 million respectively; From the perspective of periodic changes in the industry cycle, 2019 is an upward cycle. The overall business performance of the industry is good. The high gross profit has mobilized the enthusiasm of farmers and stimulated the increase of industry capacity in the short term. In 2020, due to the rotation of the industry cycle, it belongs to the parent company after deducting non recurring profits and losses
The net profit of shareholders decreased by 65.59% compared with 2019. From January to June 2021, the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses decreased by 67.08% year-on-year. As the supply-demand relationship of the company's industry changes periodically, the company's performance decreases greatly in the downward cycle.
(VI) risk of not paying social insurance for all employees
As of the signing date of this offering intention, the company has paid basic social insurance, new rural insurance and new rural cooperative medical insurance for most employees, but some employees with rural accounts have not paid new rural cooperative medical insurance or new rural insurance, and some employees with urban accounts have not paid social insurance. The staff structure of the company is mainly registered residence workers in rural areas. The registered residence workers in rural areas are mainly front-line workers, who are highly mobile and sensitive to current income, so they have little willingness to participate in social insurance. The company has the risk that employees may trace the failure to fulfill the company's legal obligations in the later stage.
(VII) impact of "covid-19 pneumonia" epidemic on the company's production and operation
Since 2020, "covid-19 pneumonia" epidemic has led to limited transportation and closure of catering and other centralized places, which has had a certain impact on the company's raw material supply, operating rate, sales scale and product market price. However, with the introduction and implementation of a number of policies to ensure people's livelihood and supply and support enterprise resumption of work, the company's procurement and production have basically returned to the normal level by the end of the first quarter of 2020. Although the prevention and control situation of "covid-19 pneumonia" epidemic in China continues to improve, if the epidemic continues to spread in some regions or other countries and the epidemic can not be effectively controlled globally, it will still have an adverse impact on the macroeconomic situation and consumer demand, resulting in some uncertainty on the company's business performance in the next few years.
(VIII) risk of performance decline
In 2020, due to the impact of the epidemic of "covid-19 pneumonia" on Residents\' daily consumption and market prices in all links of the poultry industry chain, and the cyclical fluctuation of the poultry seedling market, the company's operating performance in 2020 decreased compared with that in 2019, After deducting non recurring profits and losses, the net profit attributable to shareholders of the parent company decreased from 363 million yuan in 2019 to 125 million yuan in 2020, a decrease of 65.59%. From January to June 2021, affected by the decline of profitability of chicken products, the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses decreased by 67.08% compared with the same period in 2020.
Affected by the change of supply-demand relationship in various links, the market prices in different links of the poultry industry chain still fluctuate periodically. The company's products and raw materials cover many links of the industrial chain of poultry breeding industry. The change of market price still poses the risk of fluctuation or decline in the company's performance.
(IX) profit forecast risk
The company has prepared the 2021 annual profit forecast report, and Grant Thornton issued the "Grant Thornton special Zi (2021) No. 371a017021" audit report on the 2021 annual profit forecast of Jiangsu Yike Food Group Co., Ltd. The company predicts that the operating revenue will reach 15946237000 yuan in 2021, an increase of 10.80% over 2020, and the net profit attributable to the company's common shareholders is 105.8562 million yuan, a decrease of 26.58% over 2020. Although the preparation of the company's 2021 profit forecast follows the principle of prudence, due to: (1) various assumptions on which the profit forecast is based are uncertain; (2) The national macro-economy, industry situation and market situation are uncertain; (3) The relevant national industries and industrial policies are uncertain; (4) Due to other force majeure factors, the actual operating results of the company in 2021 may be different from the profit forecast.
The company draws the attention of investors: the profit forecast report is prepared by the management on the basis of the best estimation assumptions, but it is based on various factors
