Shandong Beichen plans to be listed on the North Stock Exchange, the first IPO guidance company in Shandong announced in 2022

2022-05-11 0 By

Economic Herald reporter Duan Haitao On January 24, the CSRC website published “On Shandong Beichen Mechanical and Electrical Equipment Co., Ltd. to non-specific qualified investors and listed in the Beijing Stock Exchange guidance record report”, this is the first announced in 2022 to accept IPO guidance shandong enterprises,The company, registered in Jinan’s Changqing district, will make a push for the BSE.It is disclosed that the tutoring institution of Shandong Beichen is Open Source Securities. The two sides signed a tutoring agreement on January 18, 2022, and submitted the tutoring record materials to Shandong Securities Regulatory Bureau on January 20. The tutoring period starts from January 2022.The guidance includes guidance on securities laws and regulations and information disclosure, guidance on corporate governance and standardized operation, and guidance on financial and fund raising projects. The guidance will enter the acceptance stage in April 2022.Shandong Beichen was founded in December 2005 with a registered capital of 139.16 million yuan. Its controlling shareholder is Jin Yanchen with a shareholding ratio of 37.49%. The company was listed on the New Third Board in December 2015 with the stock code 835020.According to the introduction, Shandong Beicen is in the special equipment manufacturing industry, the main products and services include heat exchanger, boiler and pressure vessel (including nuclear grade) design, manufacturing and sales, clean energy heating and refrigeration engineering business, waste heat utilization engineering business.The company’s main customers are thermal power enterprises, electric power enterprises (including nuclear power), (petroleum) chemical enterprises, metallurgical enterprises and so on.In recent years, Shandong Beichen has vigorously developed the project general contracting business with clean energy heating and refrigeration as the core, accelerated the transformation and upgrading of the company’s business model, and transformed the company from an equipment supplier into a system solution provider integrating scheme design, equipment installation, engineering and civil engineering.At the same time, the company will increase the r&d and sales of high-end equipment such as nuclear power products, energy-saving and environmental protection heat exchange equipment, and constantly improve the company’s brand competitiveness.For example, on May 14, 2021, the “large plate heat exchange system with high pressure and high NTU(Number ofTransfer Units) for long distance heating relay station” developed by shandong beichen was identified by jinan robot and high-end equipment industry association and considered that the main technical performance of the product reached the international advanced level.The product has been successfully applied in “Intelligent Central Heating Project (Phase II) of Huadian Lingwu Power Plant to Yinchuan City”.Shandong Beichen said that the audited net profit attributable to shareholders of listed companies in 2019 and 2020 was 20.2473 million yuan and 28.3758 million yuan respectively (the lower one before and after deducting non-recurring profit and loss).The weighted average return on equity (calculated on the basis of the lower before and after deducting non-recurring gains and losses) was 8.08% and 9.56% respectively, which met the financial conditions for listing on BSE as stipulated in Article 2.1.3 of the Listing Rules.Plans to issue shares to 32 core employees Financial data shows that after the performance in 2020, the first three quarters of 2021, Shandong Beichen net profit is nearly “halved”.Specifically, in 2019 and 2020, Shandong Beichen’s operating income was 319 million yuan and 363 million yuan respectively, and the net profit attributable to the owner of the parent company was 21.842,400 yuan and 56.015,200 yuan respectively. In 2020, the net profit attributable to the parent company increased by 156.45%.From January to September of 2021, Shandong Beichen achieved operating revenue of 287 million yuan and net profit of 11.9619 million yuan. While the revenue increased slightly, the net profit decreased by 47.24%.Shandong Beichen said that the decline in net profit is mainly the reporting period of raw materials, depreciation and other reasons caused by the decline in gross margin.Shandong Beichen is planning to issue shares to its core employees before receiving guidance to prepare for its listing on the North Stock Exchange, economic Herald reporters noted.Shandong Beichen plans to issue 2.12 million shares to 32 core employees at a price of 2.75 yuan per share and raise a total capital of 5.83 million yuan, according to the prospectus of the stock directional offering released on December 31, 2021.Shandong Beichen said the proceeds from the share sale will be used to replenish the company’s working capital and pay suppliers for raw materials.The purpose of this offering is to improve the company’s financial position, improve the company’s profitability and anti-risk ability, and promote the company’s sustainable and healthy development.As of September 30, 2021, Shandong Beichen’s assets totaled 701 million yuan, its liabilities totaled 335 million yuan, and its net asset per share was 2.63 yuan, economic Herald reporters noted.The private placement price is only slightly higher than net asset per share.As of December 31, 2021, the closing price of Shandong Beichen New Third Board was 3.21 yuan/share, and after the announcement of the plan to be listed on the Beijing Stock Exchange under guidance, shandong Beichen stock rose sharply for two consecutive days, as of January 25, the closing price of the stock was 4.88 yuan/share.For the difference between the issue price and the price of the secondary market, Shandong Beichen explained that “during the period from December 24, 2020 to December 23, 2021, the company’s stock trading volume in the secondary market is only 187,418 shares, the transaction days are 28 days, the turnover rate is 0.13%, the secondary market trading is not active, the transaction price is not reference.”However, if Shandong Beichen is ultimately successful in listing on the Beijing Stock Exchange, the 32 core employees will presumably command a hefty secondary premium for the shares.