Securities code: Suzhou Medicalsystem Technology Co.Ltd(603990) securities abbreviation: Suzhou Medicalsystem Technology Co.Ltd(603990) Suzhou Medicalsystem Technology Co.Ltd(603990)
Non public offering of A-Shares in 2022
Feasibility analysis report on the use of raised funds
May, 2002
1、 Use plan of the raised funds
The total amount of funds raised from this non-public offering of shares does not exceed 238929300 yuan (including), which will be used to supplement working capital and repay interest bearing liabilities after deducting the issuance expenses.
2、 Feasibility analysis of the project invested by the raised funds
(I) basic information
The company plans to use the raised fund of 238929300 yuan to supplement working capital and repay interest bearing liabilities. This time, the raised funds are used to supplement working capital and repay interest bearing liabilities, so as to meet the demand for working capital for the company's future business development, improve the company's sustainable profitability, optimize the company's capital structure and improve the company's industrial competitiveness.
(II) necessity of replenishing working capital
1. The company's existing business model determines that liquidity support is needed to improve profitability
The company belongs to the software and information technology service industry. The subdivided industry of the company is the application software industry in the medical and health field, that is, the medical information industry. The software industry generally has the characteristics of "light assets and heavy capital", that is, the business development of medical information service enterprises has less requirements on the scale of fixed assets, but a high degree of dependence on working capital. The downstream customers of the company are mainly public hospitals and other institutions in China. These customers implement strict budget management and centralized procurement system. They usually formulate investment plans in the first half of each year. The signing of contracts is mainly concentrated in the second half of each year, and the acceptance and payment after the completion of the project are also mainly in the second half of each year. The company's labor costs, travel expenses and R & D investment occur evenly in the year. Therefore, the company needs a lot of funds in the process of business development and implementation. The customers they serve are affected by their own budget, centralized procurement system and payment process management system, resulting in a large number of receivables to upstream service enterprises.
As of March 31, 2022, the relevant asset data of the company and major comparable companies in the same industry are as follows:
Below:
Proportion of current assets in total assets accounts receivable and notes receivable in total assets proportion of fixed assets in total assets proportion of total assets of the company
Winning Health Technology Group Co.Ltd(300253) 54.78% 9.28% 6.69%
Heren Health Co.Ltd(300550) 82.61% 17.98% 5.13%
B-Soft Co.Ltd(300451) 60.39% 25.48% 4.66%
Average 65.93%, 17.58%, 5.49%
Suzhou Medicalsystem Technology Co.Ltd(603990) 73.88% 18.96% 15.61%
Average 67.92%, 17.93%, 8.02%
Note: the high proportion of the company's fixed assets in the total assets is due to the completion and operation of the company's headquarters building in 2016.
As of March 31, 2022, the average proportion of accounts receivable and notes receivable in the total assets of the company and major comparable listed companies in the same industry has reached 17.93%, while the average proportion of fixed assets in the total assets is only 8.02%, reflecting that the operation of medical information service enterprises depends more on the continuous scale investment of working capital than the scale of non current assets such as fixed assets. The proportion of accounts receivable and notes receivable in the total assets of the company is higher than that of Companies in the same industry, and there are situations such as failure to collect the payment in time and bad debts. In order to achieve the development goal faster and better, the company needs to continuously invest human, material and financial resources in the business process. Relatively sufficient working capital and reasonable asset liability level are important guarantees for the steady development of the company. After replenishing working capital and repaying interest bearing liabilities, the raised funds will effectively meet the new working capital demand brought by the expansion of the company's business scale, optimize the company's capital structure and alleviate the pressure of the company's capital demand, so as to concentrate more resources to provide guarantee for business development.
2. Increase investment in R & D and innovation, and continuously improve the competitiveness of cutting-edge technologies
Continuous R & D innovation is one of the important factors for the company to maintain competitive advantage and achieve steady growth of performance. Since its establishment, the company has been focusing on the field of medical clinical informatization. Self-help research and development has formed docare series of clinical medical management information system products, doricon digital operating room and the overall solution of Digital Ward and digital emergency first aid platform being promoted, forming a leading market position and high brand awareness in the field of clinical informatization.
The development of new products and the upgrading of existing products are the basis for the continuous development and growth of the company. As software products have the characteristics of fast technology update and short product life cycle, users' functional requirements for software and related products are constantly improving, and the company needs to continuously carry out research, development and upgrading of new technologies and products. With the continuous emergence of new technologies and the accelerating speed of software iteration, the development and innovation of technologies and products is a continuous and complex systematic project. The implementation of the company's R & D plan depends on the support of funds. The shortage of funds has become a bottleneck factor restricting the rapid development of the company.
The amount of R & D investment of the company has gradually increased in recent three years. The details are as follows:
End of December 2021 end of December 2020 end of December 2019 end of December 2021 / year 2021 / year 2020 / year 2019
Number of R & D personnel (person): 281225 218
R & D personnel accounted for 39.25%, 37.31%, 36.58%
The expensed R & D investment in this period is 480050430324576873
(10000 yuan)
The capitalized R & D investment in this period is 232610 614.57 0
(10000 yuan)
Total R & D investment (10000 yuan) 712659491781576873
The total R & D investment accounted for 20.14%, 15.96% and 17.32% of the operating revenue
Input proportion
The proportion of R & D investment capitalization is 32.64% and 12.50% 0
The amount of R & D expenses of the company in the last three years is compared with that of Companies in the same industry. The details are as follows:
Proportion of total R & D expenses in operating income at the end of March 2022, December 2021, December 2020, December 2019 / January March 2022 / 2021 / 2020 / 2019
Suzhou Medicalsystem Technology Co.Ltd(603990) 17.88% 13.57% 13.96% 17.32%
Winning Health Technology Group Co.Ltd(300253) 14.86% 9.29% 10.12% 10.77%
Heren Health Co.Ltd(300550) 15.56% 11.59% 10.05% 10.74%
B-Soft Co.Ltd(300451) 10.56% 11.08% 10.86% 9.33%
From 2019 to 2021, the company's R & D expenses accounted for a larger proportion of the current year's operating revenue than comparable companies in the same industry. At the same time, the number of R & D personnel and the capitalization proportion of R & D investment increased year by year, and the proportion of R & D investment in the current year's operating revenue was generally at a high level, so as to ensure the company's sustainable R & D and provide technical support and power for the expansion and innovation of the company's products and services in the future, R & D investment is bound to remain at this level or even increase. Therefore, the demand for relevant working capital will also increase.
3. Reduce financial expenses and improve profitability
The company's interest expenses from January to march in 2019, 2020, 2021 and 2022 were 4.6301 million yuan, 6.6043 million yuan, 6.6921 million yuan and 1.0877 million yuan respectively. The high financial cost had a great impact on the company's operating performance, and the relative shortage of working capital also restricted the company's development to a certain extent. Therefore, this fund-raising to supplement working capital will effectively alleviate the working capital pressure faced by the company's future development and expansion, and lay a solid foundation for the smooth implementation of the company's strategic objectives. By using the funds raised in this offering to repay interest bearing debts, it will help to reduce the company's financial expenses and improve the company's profitability. (III) feasibility of replenishing working capital
1. The use of the funds raised in this non-public offering complies with the provisions of laws and regulations
The funds raised by the company in this non-public offering are used to supplement working capital and repay interest bearing liabilities, which comply with the provisions of relevant policies, laws and regulations and is feasible. After the funds raised from this non-public offering are in place, the company's net assets and working capital will increase, which is conducive to enhancing the company's capital strength, promoting the company to actively and steadily layout relevant businesses in the industrial chain, improving the company's profitability and market competitiveness, and promoting the sustainable and healthy development of the company's business.
The funds raised in this non-public offering of the company are used to supplement working capital and repay interest bearing liabilities, which comply with the relevant provisions on the use of raised funds in the measures for the administration of securities issuance of listed companies and the Q & A on issuance supervision - regulatory requirements on guiding and standardizing the financing behavior of listed companies (Revised Version), and are feasible.
2. The company has perfect corporate governance structure and internal control system
According to the governance standards of listed companies, the company has established a modern enterprise system with the corporate governance structure as the core, and formed a more standardized and standard corporate governance system and perfect internal control procedures through continuous improvement and perfection. In terms of the management of raised funds, the company has established the management system of raised funds in accordance with the regulatory requirements, which clearly stipulates the storage, use, investment direction, inspection and supervision of raised funds. After the funds raised from this non-public offering are in place, the board of directors of the company will continue to supervise the company's storage and use of the raised funds, so as to ensure the rational and standardized use of the raised funds and prevent the use risks of the raised funds.
3、 The impact of this non-public offering on the company's operation, management and financial status
(I) impact of this issuance on the company's operation
The use of the funds raised in this offering is in line with the relevant national industrial policies and the company's strategic development direction. After the raised funds are in place, it can further improve the company's capital strength, enhance the company's risk prevention ability and competitiveness, consolidate the company's industry position, improve the profitability, and gradually realize the company's future strategic objectives, which is conducive to the sustainable development of the company and in line with the interests of the company and all shareholders.
After the completion of this offering, the company will still have a relatively perfect corporate governance structure, maintain the integrity of personnel, assets, finance, R & D, procurement, production, sales and other aspects, and maintain the independence of personnel, assets, finance, business and other aspects with the company's related parties.
(II) impact of this issuance on the company's financial position
After the funds raised from this non-public offering are in place, the company's total assets and net assets will increase accordingly, the company's capital structure will be optimized, the company's capital strength will be enhanced, and the working capital will be effectively supplemented. At the same time, it is conducive to reducing the company's financial risk, improving the solvency, further enhancing the company's anti risk ability, and providing effective guarantee for the company's subsequent development.
4、 The investment projects of the raised funds involved in the application for approval
The funds raised in this issuance are intended to supplement working capital and repay interest bearing liabilities, and do not involve the need to perform project filing, environmental impact assessment and other related approval matters, nor the use of construction land. 5、 Conclusion of feasibility analysis
To sum up, the use of the funds raised in this non-public offering complies with relevant policies, laws and regulations and the company's overall strategic development plan in the future, which is necessary and feasible. The availability and use of the raised funds and the increase of the company's total assets and net assets will enhance the company's sustainable development ability and anti risk ability, so as to provide important support and guarantee for the company's subsequent development. Therefore, the use of the funds raised in this non-public offering has the necessity and feasibility of implementation, which is in line with the company and all shareholders
