China.com Finance, October 3, China.com Finance has learned that Hubei Dongtian Micro Technology Co., Ltd. (hereinafter referred to as “Dongtian Micro”) has responded to the second round of inquiries about the second round of GEM review a few days ago.
Established in 2009, Dongtian Micro is a company specializing in R&D, production and sales of precision optoelectronic thin film components. Its main products are camera filters and optical communication components, which are used in consumer electronics, car cameras, security monitoring equipment, and In multiple application terminal fields such as optical communication signal transmission and data center.
From January to June 2018-2021, Dongtian Micro’s operating income was 136 million yuan, 284 million yuan, 458 million yuan, and 212 million yuan, respectively. The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 526.66 respectively. 10,000 yuan, 29,152,100 yuan, 64,959,700 yuan, 35,185,700 yuan.
From 2018 to 2020, OFILM is the largest customer of Dongtian Micro. The sales revenue of Dongtian Micro from OFIL is 36.210 million yuan, 107 million yuan, and 183 million yuan, accounting for 26.49% and 37.76% of operating revenue, respectively. , 39.99%. From January to June 2021, Dongtian Micro’s sales revenue from Ou Feiguang was 56.392 million yuan, a decrease of 28.03% and 46.18% from the first half of 2020 and the second half of 2020, respectively.
The actual controllers of Dongtian Micro are Gao Denghua, Xie Yun and his wife, who directly or indirectly control 42.39% of the voting rights of the company’s shares. At the same time, Gao Denghua’s chairman and Xie Yun are directors and general managers.
The “Response Report to the Inquiry Letter Regarding the Second Round of Review of the Application Documents for the Initial Public Offering of Hubei Dongtian Micro-Technology Co., Ltd. on the ChiNext Board” published on the website of the China Securities Regulatory Commission on September 30 disclosed the main inquiries. In the GEM inquiry, the Shenzhen Stock Exchange mainly focused on 12 issues including growth, income, customer OFILM, procurement, suppliers, fixed assets, rental properties, listing standards, and post-holiday performance.
The risk of a sharp decline in revenue and profits
According to public information, global smartphone shipments in April and May 2021 decreased by 34.10% and 32% year-on-year. The Shenzhen Stock Exchange requires the combination of a single product, substantial growth in revenue and profits during the reporting period, and year-on-year changes in the latest orders of major customers in 2021, to analyze whether the company has the risk of a sharp decline in revenue and profits, and to provide major risk warnings.
Dongtian Micro replied that as of July 31, 2021, the total amount of the latest orders in hand was RMB 30,552,900 (excluding tax), which was a decrease of 34.19% from the amount of orders in hand on July 31, 2020. Entering the second quarter of 2021, the prosperity of domestic smartphones has significantly weakened, and the downstream market demand has declined in the short term, resulting in a significant year-on-year decline in the company’s current orders from major customers. At the same time, according to the company’s performance forecast, 1-9 2021 Monthly operating performance has declined year-on-year, and the company’s revenue and profits are at risk of decline.
Inquired about the market value calculation process and basis
According to the filing documents, Dongtian Micro has selected the “Shenzhen Stock Exchange’s Rules for the Listing of Stocks on the Growth Enterprise Market” in Article 2.1.1, paragraph 1, item (4), and Article 2.1.2, paragraph 1, item (2), “The estimated market value is not Less than 1 billion yuan, with a positive net profit in the most recent year and an operating income of no less than 100 million yuan” as the listing criteria. The Shenzhen Stock Exchange requires that the calculation process and basis of the estimated market value be explained, and whether the market value calculation parameters are prudent and reasonable.
Dongtian Micro replied that it used the price-earnings ratio (P/E) method and the market-sales ratio (P/S) method in the comparable company law for valuation, and referred to the computer, communications and other electronic equipment manufacturing industries where the company is located (classification Code: C39) and the valuation level of comparable listed companies in the same industry to analyze the company’s estimated market value. Among them, four comparable listed companies in the same industry are selected from Crystal Optoelectronics (002273.SZ), Wufang Optoelectronics (002962.SZ), Medicaid (688079.SH), and Tengjing Technology (688195.SH).
Based on the company’s audited operating income of RMB 457,997,500 in 2020, the calculation is based on the average market-sales ratio of 8.36 times in the industry, 9.80 times the average market-sales ratio of comparable companies in the same industry, and 5.12 times the lowest market-sales ratio among comparable companies in the same industry. The company is expected to have a market value of approximately 2.045-4.488 billion yuan.
In addition, during the reporting period, the company completed a private equity financing in August 2020, and the private equity financing corresponding to the company’s post-investment valuation was 1 billion yuan. The company’s main business continued to develop after this financing, and the scale of operations in 2020 was significantly higher than that in 2019. Therefore, combined with the valuation of the company’s industry and comparable companies in the same industry and the valuation of private equity financing during the reporting period, it is estimated that the company’s estimated market value at the time of listing will not be less than 1 billion yuan.
(Editor in charge: Wei Jingting)