First, the introduction of the fixed increase project:
This non-public offering plans to issue shares to no more than 35 specific investors, the number of shares to be issued shall not exceed 165 million shares, and the actual number of shares to be issued shall be determined by the final bidding. The total amount of funds raised shall not exceed 1 billion yuan. After deducting the issuance expenses, it will be used for the technical transformation project of special sewing equipment and intelligent workstation and the investment in the establishment of Nanxiang R & D and marketing center project.
II. Fund-raising projects
1) Technical transformation project of dry special sewing equipment and intelligent workstation: this project plans to expand and upgrade the plant of Zhangjiagang production base to realize localization, standardization and large-scale production of the company's advantageous products. Launch competitive products with more cost-effective advantages, expand market share, and improve the profitability of listed companies. The total investment of the project is 395 million yuan, and it is planned to use this private offering to raise funds to invest 395 million yuan. The project is expected to achieve a sales income of 1.313 billion yuan and a total annual profit of 164 million yuan.
2) invest in the establishment of Nanxiang R & D and Marketing Center project: the total investment of this project is 605 million yuan, and it is planned to use this non-public offering to raise funds to invest 605 million yuan. It is estimated that the sales revenue of this project will be 1.648 billion yuan and the total annual profit will be 122 million yuan.
III. Company profile
The company is engaged in R & D, production and sales of industrial sewing equipment and household sewing machines, as well as knitting machines, office machinery, logistics services and trade circulation. The company has grown into a supplier specializing in producing high-end sewing equipment and providing sewing application technology solutions. The company has a strong research and development team at home and abroad, with advanced testing means, with a strong product and application technology sustainable development ability.
The company's revenue in 17-19 was 30.65,32.01 and 3.21 billion yuan respectively, with a compound growth rate of 2.34%. The net profit of homing is 1.97,1.41 and 86 million yuan respectively. The company achieved revenue of 630 million yuan in the first half of 2020, down 21.87% from the same period last year, and its net profit was 2.5198 million yuan, down 92.63% from the same period last year. The gross profit margin for the first quarter is 26.62% and the net profit rate is 0.17%.
IV. Core logic
1) the industrial sewing equipment produced by the company has been widely used in many different industries and there are well-known enterprise customers in all industries. In the traditional clothing, luggage, leather shoes processing field, with LV, GUCCI, HERMES, BOSS, ARMANI and other top customers; in the automotive interior processing field, for Mercedes-Benz, BMW, Audi, GM and other well-known automobile manufacturers to provide high-end sewing products; in aerospace and new materials, the company also has Boeing Co, Airbus, Comac and other large customers.
V. performance forecast
It is estimated that the return net profit of the company from 2020 to 2022 is 0.7,0.88 and 92 million yuan respectively. Excluding the additional shares, the diluted EPS is 0.13,0.16,0.17 yuan respectively, and the price-to-earnings ratio corresponding to the closing price of 6.51 yuan on September 25th is 51,41,39 times respectively.
VI. Suggestions for participation
The company's products are mainly industrial sewing equipment, mainly used for industrial clothing production, the current downstream industry tends to be saturated, the market has entered the sunset industry, the demand is small, there is little upward space in the future. At the same time, in terms of corporate finance, the proportion of expenses is getting higher and higher, and the operating capacity is beginning to decline, so participation is not recommended.
VII. Investment risk
The recession in the industry exceeded expectations, and the company's operating capacity continued to decline.