Stock abbreviation: Yidong Electronics Stock Code: 301123 Yidong Electronic Technology Co., Ltd
YiDong Electronics Technology Co., Ltd.
(Tongsha science and Technology Industrial Park, Dongcheng District, Dongguan City, Guangdong Province)
Initial public offering and listing on GEM
of
Listing announcement
Sponsor (lead underwriter)
Address: No. 111, Fuhua 1st Road, Futian street, Futian District, Shenzhen
January 2002
hot tip
The shares of Yidong Electronic Technology Co., Ltd. (hereinafter referred to as "Yidong Electronics", "the company", "the issuer" or "the company") will be listed on the gem of Shenzhen Stock Exchange on January 25, 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.
Unless otherwise specified, the abbreviations or terms in this listing announcement shall have the same meanings as those in the prospectus of the company's initial public offering of shares.
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.) Economic reference network (www.jjckb. CN.) China financial news (www.financialnews. Com. 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 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 risk at the initial stage of gem IPO
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) the number of tradable shares is small
At the initial stage of listing, the lock up period of the company's shareholders before listing is 36 months or 12 months, the lock up period of online lower limit share sale is 6 months, and the lock up period of strategic placement is 12 months. After this issuance, the company's unlimited tradable shares are 51262187 shares, accounting for 21.94% of the total share capital after issuance. At the initial stage of listing, the company has a small number of tradable shares and there is a risk of insufficient liquidity. (III) risk that P / E ratio is higher than the average level of the same industry
The issue price of this offering is 37.23 yuan / share, which does not exceed the median and weighted average of offline investors' quotation after excluding the highest quotation, as well as the securities investment fund, national social security fund, basic old-age insurance fund established through public offering after excluding the highest quotation The enterprise annuity fund established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund quotation median and weighted average in accordance with the measures for the administration of the use of insurance funds, whichever is lower, is 37.4465 yuan / share; According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, the industry of the issuer is "computer, communication and other electronic equipment manufacturing industry (C39)". As of January 7, 2022 (T-3), the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. is 49.88 times, and the diluted average p / E ratio of parent net profit after deducting non recurring profits and losses of comparable companies in the same industry in 2020 is 56.71 times, The diluted P / E ratio of the net profit attributable to the parent company after deducting non recurring profits and losses in 2020 corresponding to this issuance is 50.74 times, which is higher than the average static P / E ratio of the industry in the latest month published by China Securities Index Co., Ltd. and lower than the average static P / E ratio of comparable companies after deducting non recurring profits and losses in 2020. There is a risk that the decline of the issuer's share price will bring losses to investors in the future. There is a risk in this issuance that the acquisition of raised funds leads to a significant increase in the scale of net assets, a decline in the rate of return on net assets, and an important impact on the issuer's production and operation mode, operation management and risk control ability, financial status, profitability and long-term interests of shareholders. 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 decisions rationally. (IV) there may be a risk of falling below the issue price after listing
Investors should pay full attention to the risk factors contained in the pricing marketization, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, and avoid blind speculation. Regulators, issuers and sponsors (lead underwriters) can not guarantee that the stock will not fall below the issue price after listing.
(V) 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 means that when the price of the underlying stock fluctuates violently, the financing purchase of securities or the repayment of securities sales, the sale of securities or the repayment of securities may be blocked, resulting in greater liquidity risk.
3、 Special risk tips
The company specially reminds investors that before making investment decisions, they must carefully read all the contents of "section IV Risk Factors" in the prospectus of the company, and pay special attention to the following risk factors: (I) the risk of market competition
In the field of consumer electronics, the global sales of smart phones and tablets have increased rapidly in recent years, providing a broad market space for FPC; In addition, the application of FPC products in new energy vehicles and industrial fields also shows a steady growth trend. However, due to the large number of production enterprises in FPC Industry, low market concentration and sufficient competition, the company is facing great competitive pressure.
In the field of connector components, downstream customers are also faced with complex and diverse choices when selecting upstream suppliers. The competition in the Chinese market is fierce and continues to intensify. In addition, with the progress of technology and the transfer of flat panel display industry to Chinese mainland, the demand for backlight modules of downstream customers is increasing and competition is becoming more and more intense.
Therefore, if the company cannot continuously improve product quality, technical level and management efficiency and maintain customer stickiness, it will be in a disadvantageous position in the future market competition, and the market share will gradually decline, resulting in the decline of the company's operating performance. (II) risks caused by changes in downstream market demand
The main application fields of the company's FPC products are consumer electronics products such as smart phones, wearable devices and smart homes, as well as power battery management systems such as automotive electronics, new energy batteries, UAVs and avionics. The market competition in the above application fields is relatively fierce and the product upgrading cycle is short, Manufacturers are faced with the risk of whether they can timely follow up the product upgrading of major customers and their own business fluctuations. At present, the overall development of the global economy is unstable, and the uncertain factors of the rotation and cyclical transformation of regional economic development increase. It can not be ruled out that the slowdown of global economic growth and the decrease of residents' disposable income will lead to the shrinkage of FPC market demand in the future, which will affect the development of the company.
During the reporting period (from 2018 to January September 2021, the same below), the company's connector components were mainly used in 5g communication base stations, automobiles, consumer electronics, communications, industry, medical and other fields, and the backlight module was mainly used in LCD and other fields. As the market demand in the fields of consumer electronics and automobiles will be affected by many factors such as macro-economy and policies, such as the decline of downstream market demand caused by adverse factors such as the decline of macro-economy and the decline of support policies in the future, the company's customers may reduce the order volume accordingly, which will have an adverse impact on the sales of the company's products. (III) risks to the sustainability and stability of cooperation with customer Weisheng Technology
Weisheng technology is one of the main customers of the company during the reporting period. Its sales amount in each period of the reporting period was 121.183 million yuan, 107.0185 million yuan, 62.2274 million yuan and 5.2672 million yuan respectively. It was the first, second and fourth largest customers of the company from 2018 to 2020. Weisheng technology has business overlap with the company, and its cooperation with the company is mainly due to insufficient production capacity. The company is selected as a partner to improve the production capacity of FPC business. The main downstream customers of FPC products sold by the company are Xiaomi mobile phones. In 2020, the company's sales scale to Weisheng technology fell sharply year-on-year, and further fell sharply year-on-year from January to September 2021. In the future, if Xiaomi stops purchasing relevant FPC products from Weisheng technology or reduces its purchase share, or Weisheng technology reduces its purchase share to the company, there is a risk that the scale of cooperation between the company and Weisheng technology will be further reduced or even no longer continue to cooperate, resulting in a sharp decline in the company's sales revenue of Weisheng technology. (IV) the risk of intensified competition in the power battery management system FPC business market and the decline of the company's product revenue. The company is one of the earliest manufacturers in the industry to enter the power battery FPC field. Through independent research and development, the company has realized the temperature and voltage signal acquisition of new energy power battery, and the traditional wire harness has been upgraded to signal acquisition FPC. During the reporting period, due to the intensification of market competition and the dynamic adjustment of the company's strategic direction, the company's sales revenue of power battery management system FPC products decreased year by year, which were 110.7653 million yuan, 84.7852 million yuan, 77.7208 million yuan and 60.2192 million yuan respectively in each period. As of October 31, 2021, the amount of orders in hand for the company's power battery management system FPC business was 26.731 million yuan.
In the future, if the company cannot continuously improve the competitiveness of this business by increasing technology R & D investment and reducing product production costs, it will be in a disadvantageous position in the market competition, resulting in a further decline in the revenue of this kind of products. (V) risks to the continuity and stability of Byd Company Limited(002594) cooperation with customers
Byd Company Limited(002594) is one of the main customers of the company during the reporting period. The sales amount from 2018 to 2020 was 86.2561 million yuan, 74.5851 million yuan and 48.0581 million yuan respectively, which are the third, fourth and seventh largest customers of the company respectively. The products sold by the company are mainly power battery management system FPC and a small number of consumer battery protection FPC products. In 2020, the company's sales volume of Byd Company Limited(002594) fell sharply year-on-year. From January to September 2021, the company's sales volume of Byd Company Limited(002594) was RMB 1488400, and there was no new order in 2021. The business cooperation between the company and Byd Company Limited(002594) is uncertain in the future. In the future, if the company stops cooperation with Byd Company Limited(002594) , or the scale of cooperation is greatly reduced, and the company fails to actively take measures to expand other customers or businesses of such products, it may have an adverse impact on the sales scale and profitability of the company. (VI) risk of rising raw material prices
The company purchases many kinds of raw materials, among which the main raw materials are copper strip, base material, covering film, electronic material, gold salt, etc. in the future, if the price of such raw materials rises, and the company cannot take measures to transfer the rising pressure or offset the rising pressure of raw material prices through new products and new technological innovation, the company's operating performance will be adversely affected.
Copper strip is one of the main raw materials for the production of connector parts and components of the company. The amount of copper strip consumed by the production of connector parts and components of the company in each period of the reporting period accounted for more than 40% of the direct material cost of connector parts and components. Since 2021, affected by multiple factors such as the spread of overseas epidemic and loose global liquidity, the prices of bulk commodities such as copper have reached new highs. Although the company can reduce the adverse impact of copper price rise on the company's performance by increasing the product sales price, the increase of product sales price generally lags behind the increase of raw material price in time. In addition, the rising copper price will lead to the company's raw material procurement occupying more working capital, thus increasing the pressure on the company's working capital. (VII) risk of product price decline
Product price is one of the key factors affecting the profitability of the company. With the intensification of market competition, the company's product prices are facing downward pressure, which does not rule out the possibility of the company adopting price reduction strategy to deal with the competition. If the company cannot continuously reduce the production cost of existing products, optimize the product structure and develop new products with high added value and in line with the market demand, the decline of product price will lead to the decline of the company's gross profit margin, which will have an adverse impact on the company's profitability. (VIII) risks caused by the decline of downstream smartphone shipments
The company's main business products are divided into three categories: FPC, connector components and LED backlight modules. Among them, the related products of terminal applications for mobile phones are mainly consumer electronic FPC (including consumer battery protection FPC and mobile phone peripheral FPC). In addition, there are
