Tips on investment risk of the science and Innovation Board: the company’s shares are planned to be transferred to the science and innovation board market for listing, which has high investment risk. Kechuang board company has the characteristics of large R & D investment, high operation risk, unstable performance and high delisting risk. Investors are facing greater market risk. Investors should fully understand the investment risks of the science and innovation board market and the risk factors disclosed by the company, and make investment decisions prudently.
Guandian Defense Technology Co., Ltd.
(301306, floor 3, main building, No. 22, Baiqiao street, Dongcheng District, Beijing)
To the scientific innovation board of Shanghai Stock Exchange
Report on board transfer listing
Sponsor
Financial consultant, North block, Zhuoyue Times Square (phase II), No. 8, Zhongxin Third Road, Futian District, Shenzhen, Guangdong Province
No. 86, Shizhong District, Jinan City, Shandong Province
Statement and commitment
Any decision or opinion made by Shanghai Stock Exchange on this board transfer listing does not indicate that it guarantees the authenticity, accuracy and integrity of the application documents and the information disclosed, nor does it indicate that it makes a substantive judgment or guarantee on the profitability, investment value of the company or the income of investors. Any statement to the contrary is a false statement.
According to the provisions of the securities law, after the company’s shares are listed, the company shall be responsible for the changes in the company’s operation and income; Investors independently judge the investment value of the company, make investment decisions independently, and bear the investment risk caused by the change of the company’s operation and income or the change of stock price after the listing of shares.
The board transfer company and all directors, supervisors and senior managers promise that there are no false records, misleading statements or major omissions in the board transfer listing report and other information disclosure materials, and bear individual and joint legal liabilities for its authenticity, accuracy and completeness.
The controlling shareholder and actual controller of the board transfer company promise that there are no false records, misleading statements or major omissions in this board transfer listing report, and bear individual and joint legal liabilities for its authenticity, accuracy and completeness.
The person in charge of the company, the person in charge of accounting work and the person in charge of accounting institutions shall ensure that the financial and accounting materials in the report on board transfer listing are true and complete.
The board transfer company and all directors, supervisors, senior managers, controlling shareholders, actual controllers and sponsors of the board transfer company promise to compensate investors for losses in securities trading due to false records, misleading statements or major omissions in the board transfer listing report and other information disclosure materials.
The sponsor and the securities service institution promise to compensate the investors for the losses caused to the investors due to the false records, misleading statements or major omissions in the documents made and issued by them for the board transfer listing of the board transfer company.
Overview of board transfer listing
The par value of each share is RMB 1.00
The reference opening price on the first day of listing on the transfer board is RMB 21.88
The expected listing date of the board transfer is May 25, 2022
Stock exchanges and sectors to be listed Shanghai Stock Exchange science and Innovation Board
The total share capital of the board transfer company is 237.51 million shares
Sponsor Citic Securities Company Limited(600030)
Signing date of the report on listing on the board: May 24, 2022
Tips on major issues
The company specially reminds investors that before making investment decisions, they must carefully read the full text of “section III Risk Factors” and other text contents of this board transfer listing report, and pay special attention to the following important matters: first, UAV drug control service revenue accounts for a relatively high proportion, which largely depends on the financial investment of government departments in the field of drug control
During the reporting period, the company’s UAV drug control service revenue was 543127 million yuan, 622529 million yuan and 644658 million yuan respectively, accounting for a high proportion of UAV flight service and data processing business revenue, 73.31%, 67.86% and 57.97% respectively. The market space of UAV anti drug industry depends on the government’s financial budget in the field of anti drug. If the government’s financial budget in the field of anti drug is reduced in the future, or the strength of policy support is reduced, the growth rate of the company’s future anti drug service revenue may slow down and the growth space may be limited, which will have an adverse impact on the overall development of the company. 2、 Compared with the leading enterprises in the same industry, the UAV system and intelligent defense equipment business has a small scale, the technical level needs to be further improved, the gross profit margin fluctuates, and the related products face great competitive pressure
During the reporting period, the company’s sales revenue of UAV system and intelligent defense equipment was 718284 million yuan, 880282 million yuan and 1186518 million yuan respectively. During the reporting period, the comparable company Chengdu Jouav Automation Tech Co.Ltd(688070) achieved revenue of 2107603 million yuan, 2718088 million yuan and 2503411 million yuan, while the comparable company 3009 achieved revenue of 268474 million yuan, 31.47 million yuan and 237366 million yuan. Compared with the above comparable companies, the company’s UAV system and intelligent defense equipment business scale is small; Since its establishment, the company has mainly taken UAV anti drug service as its core business. In recent years, through continuous R & D investment, the company has realized the business of independent production and sales of UAV products. However, compared with the leading enterprises in the same industry, the technical level still needs to be improved. During the reporting period, the gross profit margin of UAV system and intelligent defense equipment business was 42.94%, 33.09% and 38.17% respectively. The gross profit margin fluctuated to some extent, mainly due to the company’s provision of customized products.
At the same time, by the end of 2021, the company had 13 invention patents and 60 utility model patents in UAV system and intelligent defense equipment. Compared with leading enterprises in the same industry, the technical level needs to be further improved, and the related products are facing great competitive pressure.
3、 UAV technology and products have the characteristics of rapid upgrading, and the company’s R & D team has few personnel. The R & D capacity and continuous investment need to be further improved
As a knowledge intensive enterprise, the R & D of technology and new products largely depends on professional and technical talents, and the iteration speed of technology and products is fast. During the reporting period, the R & D investment of the company was 175801 million yuan, 201059 million yuan and 246132 million yuan respectively, accounting for 12.05%, 11.18% and 10.71% of the operating revenue respectively. At the end of each reporting period, the company’s R & D personnel were 28, 27 and 33 respectively, and the number of separations in each period were 0, 7 and 2 respectively. Except for resignation, they were all job transfer changes. As of December 31, 2021, the number of R & D personnel of the company has increased to 33, accounting for 23.91% of the total number of the company. The R & D capacity and continuous investment of the company still need to be further improved.
If the company fails to attract high-end talents required in various fields, the loss of core technical personnel or the failure of R & D projects in business expansion, it may have an adverse impact on the company’s business development. 4、 Risks of market development of other service businesses
During the reporting period, the company’s UAV service business was mainly used in the field of drug control. In addition to the field of drug control, the company’s other services include resource investigation, environmental monitoring and other businesses. In the future, based on the stable growth of drug control business, the company will gradually expand in other UAV service fields, including power patrol inspection, forest fire prevention, security patrol inspection, etc. In each period of the reporting period, the company’s service revenue in the field of non drug control was RMB 197728 million, RMB 294871 million and RMB 467457 million respectively, accounting for 26.69%, 32.14% and 42.03% of the company’s service revenue respectively. However, the technical requirements in the above fields are slightly different from those in the field of drug control, and the market competition is fierce and there are many competitors. The company may have the risk of market development when entering new business fields. 5、 Risk of long collection cycle of accounts receivable
At the end of each reporting period, the balance of accounts receivable of the company was 695712 million yuan, 663372 million yuan and 954886 million yuan respectively, accounting for 18.52%, 7.28% and 10.00% of the total assets at the end of each reporting period, which is an important part of the assets of the company.
The main customers of the company’s UAV service business are drug control departments at all levels, and the main customers of UAV product business are aerospace enterprises. The above customers belong to government departments or state-owned enterprises, and their payment approval process is long, which may prolong the recovery cycle of accounts receivable. On average, the extension time is usually about 6 months, which may have an adverse impact on the company’s sustainable profitability. 6、 Data use compliance risk
With the continuous improvement of relevant laws and regulations such as the network security law of the people’s Republic of China and the data security law of the people’s Republic of China, higher requirements are put forward for the data compliance work of enterprises. In the future, the company’s business development cannot completely avoid the potential risks of data compliance caused by the development and changes of legislation or regulatory policies. If future customers restrict or prohibit the use of data obtained by the company during flight, it may have an adverse impact on the accumulation of flight data of the company.
In addition, during the reporting period, the company established and continuously optimized information security related systems to ensure compliance with relevant national laws and regulations and the latest regulatory policies. Although the company is constantly strengthening the security construction of information system, it may still be attacked by malware, viruses, large-scale hackers, or improper management and disposal of employees, resulting in information leakage and loss, which will have an adverse impact on the company’s reputation and performance. 7、 Main financial information and operating conditions after the audit deadline of financial report
The audit deadline of the company’s financial report is December 31, 2021. After the audit benchmark date of the financial report, the company’s businesses operate normally, there are no major adverse factors leading to abnormal fluctuations in the company’s performance, and there are no significant changes in the company’s production and operation, main procurement and sales modes, tax policies, industrial policies and other internal and external environments, There are no other major events that may affect the normal operation of the company or the judgment of investors.
As of March 31, 2022, the company’s assets and liabilities are in good condition, with total assets of 946021500 yuan, total liabilities of 1 Zhejiang China Light & Textile Industrial City Group Co.Ltd(600790) 0 yuan, owner’s equity of 9 Shenzhen Sunway Communication Co.Ltd(300136) 00 yuan and owner’s equity attributable to the parent company of 9 Shenzhen Sunway Communication Co.Ltd(300136) 00 yuan. From January to March 2022, the company realized an operating revenue of 369809 million yuan, an increase of 12.85% over the same period last year; The net profit attributable to the shareholders of the parent company was 6.1336 million yuan, an increase of 6.71% over the same period last year; After deducting non recurring profits and losses, the net profit attributable to the shareholders of the parent company was 5.9748 million yuan, an increase of 3.95% over the same period last year.
From January to March 2022, the company’s operating revenue and net profit increased compared with the same period last year. The main reasons are as follows: ① the company’s capital strength, number of employees and business scale achieved rapid growth, which provided impetus for the growth of the company’s operating performance in 2022; ② With the continuous improvement of the company’s technical strength and the continuous expansion of product application fields, markets and customers, the revenue of UAV flight service and data processing, UAV system and intelligent defense equipment sales business has increased, and the increase of revenue has also driven the growth of profits.
The board transfer company has disclosed the main financial information and operating conditions reviewed by the accounting firm after the audit deadline of the financial report. For details, please refer to “(V) main financial information and operating conditions after the audit deadline of the financial report” in “XIV. Events, contingencies and other important events after the balance sheet date” of “Section VII financial accounting information and management analysis”.
catalogue
Statement and commitment 1. Tips on major issues 3 catalog Section 1 interpretation eleven
1、 Common terms eleven
2、 Terminology 12 section II Overview fifteen
1、 The basic information of this board transfer listing fifteen
2、 Main financial data and financial indicators of the company sixteen
3、 The main business operation of the board transfer company IV. technology innovation attribute, technology progressiveness, model innovation, R & D technology industrialization and future development strategy of the board transfer company seventeen
5、 The specific listing criteria selected by the board transfer company twenty-two
6、 Important matters such as special arrangements for corporate governance twenty-two
7、 Other important matters 22 section III risk factors twenty-three
1、 Technical risks twenty-three
2、 Market risk twenty-four
3、 Operational risks twenty-five
4、 Financial risks twenty-seven
5、 Unique risks of military industry twenty-eight
6、 Legal risks twenty-eight
7、 Other risks Section IV basic information of the board transfer company thirty
1、 Basic information of the company thirty
2、 The establishment of the board transfer company thirty
3、 Basic information during the listing period of the national share transfer system thirty-one
4、 Major asset restructuring of the company during the reporting period thirty-four
5、 Subsidiaries of the board transfer company thirty-four
6、 Basic information of major shareholders, actual controllers and promoters
