2023 Mid-Year Rev.; China Futures Ind.

Yike Shares, which has been approved to be listed on the New Third Board, is planning to apply for an IPO on the Growth Enterprise Market (GEM) of the Shenzhen Stock Exchange. Similarly, Tianjian New Materials, which is also aiming for both a GEM IPO and a New Third Board listing, has recently officially joined the New Third Board.

Longcheng Fire Protection and two other companies have announced the initiation of an IPO on the Beijing Stock Exchange (BSE). Among them, the newly listed company Longxin Intelligent, which had planned a mainboard IPO, has now shifted its focus to the New Third Board in an effort to aim for a BSE listing. The company has already entered the BSE listing guidance phase.

Advertisement

Two companies planning for a GEM IPO have been listed on the New Third Board.

Yike Shares, which is about to be listed on the New Third Board, has already initiated its IPO plan.

Yike Shares received a letter of approval from the National Equities Exchange and Quotations on June 28, allowing the company to be listed on the New Third Board within 12 months. According to Yike Shares' disclosure, the company had already entered the IPO guidance phase on December 13, 2021.

The company's latest announcement states that it plans to apply for a listing on the Shenzhen Stock Exchange's GEM. This proposal has been reviewed and passed by the company's board meeting. It is reported that the number of shares Yike Shares plans to issue will not exceed 16,666,667, accounting for no less than 25% of the total share capital after the issuance, with the total share capital after the issuance not exceeding 66,666,667.

The public transfer document shows that Yike Shares belongs to the application software development industry, mainly providing mobile digital solutions for small and micro businesses. The company's performance in the first three quarters of last year was positive, with revenue of 143 million yuan in the first nine months of 2023, already exceeding the full-year revenue of 2022; the net profit was 49.28 million yuan, already surpassing the 31.67 million yuan of 2022, and the net profit after deducting non-recurring gains was 45.35 million yuan.

Tianjian New Materials, which was listed on the basic layer of the New Third Board on August 22, has also initiated the Shenzhen Stock Exchange's GEM IPO. According to the company's disclosure, it entered the GEM listing guidance phase on December 5, 2022.

Tianjian New Materials belongs to the plastic parts and other plastic products manufacturing industry, with its main business being the research and development, production, and sales of high-performance modified engineering plastics. The company's main customers are enterprises with plastic product processing businesses, and the end products are mainly used in fields such as 3C electronics, new energy vehicles, and smart homes, with major customers including well-known companies like BYD.

The company's performance last year saw a significant increase compared to the previous year: revenue in 2023 reached 934 million yuan, compared to 832 million yuan in 2022; the net profit was 82.89 million yuan, compared to a profit of 61.80 million yuan in 2022; the net profit after deducting non-recurring gains was 82.79 million yuan, compared to 60.69 million yuan in 2022. The public document shows that BYD is the company's largest customer, with Tianjian New Materials selling 348 million yuan worth of products to BYD in 2023, accounting for 37.29% of the company's revenue for that year.Tianjian New Materials also disclosed its semi-annual report for 2024, with the company achieving a revenue of 467 million yuan in the first half of this year, a year-on-year increase of 18.7%; the net profit was 35.69 million yuan, a year-on-year decrease of 10%, and the net profit after deducting non-recurring gains was 35.68 million yuan, also a year-on-year decrease of 10%.

It is worth mentioning that the company plans to implement an interim dividend for 2024: a cash dividend of 3.80 yuan (including tax) per 10 shares to shareholders participating in the distribution, using undistributed profits. The total expected cash dividend for this equity distribution is 16.2776 million yuan. The company stated that the amount of this cash dividend represents a small proportion of the undistributed profits attributable to the parent company in the consolidated financial statements, and will not have an adverse impact on the company's financial condition and normal production and operation. As of June 30, 2024, the company's consolidated financial statement showed a cash balance of 188 million yuan (with 108 million yuan unrestricted), a cash balance of 11.7642 million yuan for the parent company, a receivable dividend balance of 20 million yuan, and the company has sufficient cash to pay the cash dividend amounts.

Among the shareholders of Tianjian New Materials are several institutions, including Jiaxing Guan Tiantian Light Equity Investment Partnership (Limited Partnership), Suqian Zifeng Zhonghe Equity Investment Partnership (Limited Partnership), Shenzhen Yingning Investment Partnership (Limited Partnership), Gongqingcheng Tianxingjian Junhe Investment Partnership (Limited Partnership), and others.

These companies have initiated the IPO on the Beijing Stock Exchange.

Longxin Smart, which had also planned to go public on the main board, has "switched tracks" to the New Third Board to aim for the Beijing Stock Exchange.

Longxin Smart was listed on the basic layer of the New Third Board on August 28, after starting the main board IPO listing guidance on November 27, 2023. In fact, while applying for listing on the New Third Board, the company had already initiated the IPO plan for the Beijing Stock Exchange.

When officially listed on the New Third Board, the company stated that it had signed an agreement for Beijing Stock Exchange issuance and listing services with a securities company, an accounting firm, and a law firm, planning to submit the issuance and listing application documents to the Beijing Stock Exchange within 12 months after listing.

According to Longxin Smart, the company, after comprehensive consideration of its own development strategy and other factors, and after full communication with the guidance institution CITIC Construction Investment, on June 19, 2024, the guidance institution CITIC Construction Investment changed the intended listing board from the main board to the Beijing Stock Exchange in the public issuance guidance supervision system of the China Securities Regulatory Commission. The supervising bureau for the guidance record is still the Jiangsu Securities Regulatory Bureau, and the guidance institution remains CITIC Construction Investment.

It is reported that CITIC Construction Investment has submitted the first, second, and third progress reports of the guidance work to the Jiangsu Securities Regulatory Bureau on January 10, 2024, April 2, and July 8, respectively, and the company's guidance work is being carried out in an orderly manner.

Longxin Smart is a national-level specialized and innovative "little giant" enterprise in the field of intelligent manufacturing, mainly engaged in the research and development, production, sales, and service of micro-nano high-end composite material preparation equipment and automated production lines.From a financial perspective, Longxin Intelligence not only achieved growth in its performance last year, but also had a very impressive profit scale, with the company claiming to have met the financial conditions for listing on the Beijing Stock Exchange: the net profit attributable to the shareholders of the listed company for the years 2022 and 2023 (calculated based on the lower of the net profit before and after deducting non-recurring gains and losses) were 71.012 million yuan and 137 million yuan, respectively, with the weighted average return on net assets being 45.17% and 61.04%, respectively.

Chenggong General Aviation and Longcheng Fire Protection have also successively initiated the guidance process for listing on the Beijing Stock Exchange. Chenggong General Aviation stated that on August 29, the Shanxi Regulatory Bureau accepted the company's submission of the listing guidance filing application. The company entered the guidance period starting from August 29, with Shenwan Hongyuan Securities as the sponsoring institution.

Longcheng Fire Protection submitted the materials for public offering of stocks to unspecified qualified investors and listing guidance filing to the Shandong Securities Regulatory Bureau on August 30, with Nanjing Securities as the guidance institution.

Both of these companies claim to have met the profit conditions for listing on the Beijing Stock Exchange. The net profit attributable to the shareholders of the listed company for Chenggong General Aviation for the years 2022 and 2023 were 16.29 million yuan and 30 million yuan, respectively. The net profit attributable to the shareholders of the listed company for Longcheng Fire Protection for the years 2022 and 2023 were 15.88 million yuan and 19.52 million yuan, respectively.