Stock abbreviation: Huakang medical Stock Code: 301235 Wuhan Huakang Century Medical Co., Ltd
Wuhan Huakang Century Medical Co., Ltd.
(floor 8-9, building B4, Guanggu financial port, No. 77, Guanggu Avenue, Wuhan East Lake New Technology Development Zone)
Initial public offering and listing on GEM
of
Listing announcement
Sponsor (lead underwriter)
(unit 01-06, 5th floor, Wuxi financial center, No. 10, first financial street, Wuxi Economic Development Zone)
January, 2002
hot tip
Wuhan Huakang Century Medical Co., Ltd. (hereinafter referred to as "Huakang medical", "issuer", "the company" or "the company") will be listed on the gem of Shenzhen Stock Exchange on January 28, 2022. GEM companies have the characteristics of large investment in innovation, uncertainty about the success of the integration of new and old industries, still in the growth stage, high operation risk, unstable performance and high delisting risk. Investors are facing greater market risks. 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 abbreviations or terms in this listing announcement have the same meanings as those in the prospectus of the company's initial public offering of shares and listing on the gem.
The "reporting period" of this listing announcement refers to 2018, 2019, 2020 and January June 2021.
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.com.cn China Securities Network (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 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 risk at the initial stage of gem IPO
The issuing price of this offering is 39.30 yuan / share, which exceeds the median and weighted average of offline investors' quotations after excluding the highest quotation, as well as the Securities Investment Fund (hereinafter referred to as "public fund") and the National Social Security Fund (hereinafter referred to as "social security fund") established through public offering after excluding the highest quotation The median quotation of basic endowment insurance fund (hereinafter referred to as "pension"), enterprise annuity fund established in accordance with the measures for the administration of enterprise annuity fund (hereinafter referred to as "enterprise annuity fund") and insurance funds (hereinafter referred to as "insurance funds") in accordance with the measures for the administration of the use of insurance funds The lower of the weighted average (hereinafter referred to as "four values") is 39.12 yuan / share, so the relevant subsidiaries of the sponsor participate in the strategic placement.
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 risks 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) stock trading risk caused by the relaxation of price limit
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 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, 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 initial stage of listing, and increased the trading risk.
(II) risk of small number of circulating shares
At the initial stage of listing, because the lock-in period of the original shareholders is 36 months or 12 months, and the lock-in period of the online lower limit is 6 months, the total share capital of the company after this issuance is 105600000 shares, of which the number of tradable shares with unlimited sales conditions after this issuance is 23261838 shares, accounting for 22.03% 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) risks that can be regarded as the subject matter of margin trading on the first day of stock 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 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 call 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 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.
(IV) the risk that the company's issuing P / E ratio is higher than the average level of the same industry
According to the industry classification guidelines of listed companies (revised in 2012) issued by China Securities Regulatory Commission (hereinafter referred to as "CSRC"), the industry of Huakang medical is "M74 professional and technical service industry". The static average p / E ratio of "M74 professional and technical service industry" released by China Securities Index Co., Ltd. in the latest month is 33.73 times (as of January 14, T-3, 2022). The valuation levels of comparable listed companies are as follows:
2020 deduction 2020 deduction T-3 day stock corresponding static market corresponding static market securities abbreviation securities code non front EPS non back EPS closing price earnings ratio deduction non front earnings ratio deduction non back (yuan / share) (yuan / share) (yuan / share) (2020) (2020)
Shenzhen Das Intellitech Co.Ltd(002421) 002421. SZ 0.1640 0.1487 3.83 23.35 25.76
Shenzhen Glory Medical Co.Ltd(002551) 002551. SZ 0.1919 0.1821 5.98 31.16 32.84
Zhuhai Hokai Medical Instruments Co.Ltd(300273) 300273. SZ 0.0789 0.0524 6.15 77.95 117.37
Average 44.15 58.65
Average value (excluding Zhuhai Hokai Medical Instruments Co.Ltd(300273) ) 27.26 29.30
Data source: wind
Note 1: if there is mantissa difference in the calculation of P / E ratio, it is caused by rounding;
Note 2: EPS before / after deduction of non recurring profit and loss in 2020 = net profit attributable to the parent before / after deduction of non recurring profit and loss in 2020 / total share capital on T-3 day; The issuance price of 39.30 yuan / share corresponds to the lower diluted P / E ratio of the issuer's net profit attributable to the parent before and after deducting non recurring profits and losses in 2020, which is 81.56 times higher than the average monthly static P / E ratio of "M74 professional and technical services" released by China Securities Index Co., Ltd. on January 14 (T-3) 2022, It is higher than the arithmetic mean value of the static P / E ratio of comparable companies in the same industry in 2020 after deducting non earnings. 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 that the net asset scale will increase significantly due to the acquisition of raised funds, which will have 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.
(V) 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 lead underwriters cannot guarantee that the stock will not fall below the issue price after listing.
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) risk of intensified market competition
The concentration of China's medical purification system industry is low and there are many participating enterprises. The industry presents the current situation of uneven overall technical level and project implementation ability. On the one hand, there are many enterprises engaged in construction and component production in the industry, and the competition is relatively fierce; On the other hand, few enterprises can provide integrated services from project design and implementation to system operation and maintenance. In the future, if the number of enterprises with competitive strength in the field of medical purification increases significantly, and the company fails to maintain or improve its original competitive advantage in the increasingly fierce market competition, it will face the risk of intensified market competition and affect the operating performance of the issuer.
(II) risk of business performance fluctuation caused by concentration and large change of customers
During the reporting period, the total revenue of the company's top five customers was 184862700 yuan, 264407300 yuan, 292920700 yuan and 168.6881 million yuan respectively, accounting for 44.01%, 44.32%, 38.69% and 56.55% of the current main business revenue respectively, accounting for a relatively high proportion and great changes in customers. If the issuer cannot continuously and stably develop new customers in the future, the operating performance may fluctuate greatly.
(III) cash flow risk of operating activities
During the reporting period, the net cash flows from the company's operating activities were -61.5214 million yuan, - 4.2188 million yuan, 84.6487 million yuan and -170.5848 million yuan respectively. As the issuer is mainly engaged in the integration business of medical purification system, which has typical capital intensive characteristics, it needs a lot of funds in many links such as early project bidding, contract signing and performance, project design, equipment and material procurement, construction subcontracting, project maintenance and quality assurance, and the recovery time of project progress payment and completion settlement payment is long. In recent years, the issuer's medical purification system integration business has developed rapidly, and the purification projects undertaken are increasing in scale and amount, resulting in an increasing amount of funds that the company needs to advance. Meanwhile, the accounting period of the issuer's medical equipment and consumables business is also relatively long. At present, the medical equipment and consumables business is in the stage of rapid growth, which will also increase the gap of operating net cash flow. In the future, if customers fail to settle or pay on time, it will affect the company's capital turnover and use efficiency. If the company cannot obtain credit capital support from the bank, or the bank withdraws loans, the company will face significant risk of cash flow, which will have a significant adverse impact on the company's production and operation.
(IV) risk of large balance of accounts receivable and bad debt loss
With the expansion of the company's business scale, the balance of accounts receivable of the company shows an upward trend year by year. At the end of each reporting period, the balance of accounts receivable of the company was 404617700 yuan, 578297400 yuan, 595058700 yuan and 658447000 yuan (including contract assets), with a large balance of accounts receivable; Meanwhile, the balance of bad debt reserves at the end of each reporting period was 44.4309 million yuan, 65.1558 million yuan, 94.4695 million yuan and 91.9498 million yuan (including contract assets). The company's main customers are large and medium-sized public hospitals in China, and the project construction funds mainly come from government financial allocations. In the future, in case of economic recession, depression in the medical industry or major changes in industrial policies, reduction of health expenditure by the state and failure of timely allocation of government funds to hospitals, the company will face the risks of increased accounts receivable, slow collection, large balance of accounts receivable, bad debt loss and deterioration of operating cash flow.
(V) risk that the main business qualification cannot be renewed
The construction of medical purification system projects undertaken by the company requires professional qualifications such as design, engineering contracting and equipment installation issued by the construction department; If it involves the production and agency procurement of medical equipment, it needs the qualification of medical device manufacturing enterprise and medical device trading enterprise issued by the food and drug administration department; If the installation and transformation of special equipment are involved, the installation, transformation and maintenance qualification of special equipment issued by the quality supervision and management department is required. The issuance of major qualification certificates of the industry shall be reviewed by the government management department. It is required that the applicant enterprises must meet the standards required for qualification in terms of scale, business performance and personnel composition.
As of the signing date of this listing announcement, the issuer has the qualification of "special class A for architectural decoration engineering design" and four class I qualifications of "professional contracting of architectural decoration engineering", "professional contracting of building electromechanical installation engineering", "professional contracting of electronic and intelligent engineering" and "professional contracting of fire-fighting facilities engineering", At the same time, it has "grade II general contracting of mechanical and electrical engineering", "grade II professional contracting of environmental protection engineering", "grade III professional contracting of steel structure engineering" and "special equipment design license"（
