A closer look at the Ningde era IPO road show to answer users what problems?

[See Ningde era IPO road show to answer users what problems? ] At 2:00 pm on May 29, 2018, Ningde Times New Energy Technology Co., Ltd. made initial public offerings and made an online roadshow on the GEM.

Ningde Times New Energy Technology Co., Ltd. Chairman Zeng Yiqun, Vice Chairman Pan Jian, Deputy General Manager & Secretary of the Board of Directors Jiang Li, Chief Financial Officer Zheng Shu, and Executive Committee Member & Company of the sponsor of China Securities Investment & Investment Co., Ltd. Liu Naisheng, head of the committee & sponsoring business, and Guo Yanying and Song Shuangxi, managing directors & sponsor representatives of the investment banking department attended the meeting and answered questions from netizens.

Roadshow Highlights

1, the company's total assets?

Pan Jian: In recent years, the company's assets have grown rapidly. At the end of 2015, the end of 2016, and the end of 2017, the company's total assets were 8.67295975 million yuan, 2,858,831.43 million yuan, and 4,966,288.58 million yuan respectively.

2, the company's accounts receivable after the recovery of the situation?

Zheng Shu: At the end of the reporting period, the company’s receivables after the accounts receivable period were in good condition. The accounts receivable at the end of 2015 were recovered 90.34% in the half year after the expiration of the period, and recovered 9.35% from the half year to the year after the expiration of the period. The accounts receivable was recovered by 89.62% in half a year after the period, and recovered 8.48% in half a year to within one year.

3, the company's stock can be purchased on that day?

Guo Yuying: According to the current plan, the company's stock purchase date is May 30, 2018. The payment date is June 1, 2018.

4. What is the change in the price of lithium batteries in the first quarter of this year and what level is expected for the full year?

Zheng Shu: With the advancement of technology, lithium-ion power batteries have declined, and the specific price changes are affected by the market supply and demand.

5. What is the purpose of raising funds for this issue?

Guo Yuying: After the deduction of issuance expenses, the funds raised in this offering will be used in accordance with the following priorities: Ningde era Huxi lithium-ion battery production base project, Ningde era power and energy storage battery R&D project.

6, the issue of the situation?

Song Shuangxi: The number of issued shares does not exceed 217,243,733 shares, accounting for not less than 10.00% of the total share capital after issuance; all of them are new shares and do not involve shareholders’ public offering of shares.

7. The company's actual controller and its shares?

Guo Yuying: The actual controllers of the company are Zeng Yiqun and Li Ping. As of the date of the signing of the prospectus, Zeng Yiqun held 100% of Ruiting Investment, a controlling shareholder of the company, and 29.23% of the company's shares indirectly; Li Ping directly held 5.73% of the company's shares. The two were acting in concert and held the company's shares in total. 34.95% of the total previous equity.

8. What is the company's dividend distribution in recent years?

Zheng Shu: On October 22, 2015, the Ningde Times held a limited meeting of shareholders and resolved to approve the company to withdraw RMB 50 million in accumulated undistributed profits for cash dividends, and distribute them on the proportion of shareholder investment on October 22, 2015. The cash dividend payment was paid in December 2015.

9. What is the total amount of funds raised by the company in this issue? Why is the total amount of funds raised from the original plan of the company significantly reduced?

Guo Yuying: The total amount of funds to be raised by the company in this issuance is 5,461,507,447.62 yuan (5,352,084,454,315.31 yuan after deduction of issuing expenses). The company plans to publicly issue 217,243,733 ordinary shares of RMB to the public, accounting for not less than 10% of the total share capital after the issuance. The number of shares issued is the same as the number of shares of the company previously disclosed on March 12, 2018. The scale of the raised funds is determined on the basis of the number of stocks issued and the expected issuance price, and is less than the total amount of the company’s proposed capital raised in advance on March 12, 2018, which complies with the regulations of the regulatory authorities.

10, like BYD, Samsung, LG they can rely on the overall technology of Sandian and car companies, such as LG to provide a set of programs from the battery to the motor GM, Panasonic BYD also has an output of a similar set of technical solutions, Ningde how to with these Is there an electronics giant’s competition in the core business?

Zeng Xiaoqun: Globalization is one of the main strategies for the company's next development, and it is also one of the necessary paths to realize the company's strategic vision. As a world-class power battery supplier, CATL and Japan and South Korea's leading battery companies have their own characteristics in terms of technology development.

11. The Securities Regulatory Commission announced the opening of a fast IPO channel for four industry unicorns in March this year. By the end of March, the SFC Unicorn’s return to opinion has been launched. The speed is far beyond the expectations of the market. A profound background message is that there has been a major change in the way new stocks are issued in the future. How do you view them?

Liu Naisen: We have noticed the launch of the China Depositary Receipts (CDR) Pilot Plan, which shows that the regulatory authorities took the CDR as a breakthrough point, explored and established a more inclusive capital market system to support the development of leading companies as pilots, and promoted after the completion of the system. Come and form a new situation for China’s new economic development. The changes in the future issuance of new shares shall be subject to the announcement of the relevant competent authority.

12. Is there any state-owned shares before the company's issuance?

Song Shuangxi: As of the date of the signing of the prospectus, there was no state-owned share in the company’s share capital.

13, the company's inventory depreciation preparation analysis?

Zheng Shu: At the end of the reporting period, the balance of inventory depreciation for the company was RMB 5,802.42 million, RMB 176,638,600 and RMB 227,885,400, respectively, accounting for 5.28%, 11.50% and 6.25% of the original inventory value. At the end of 2016, the amount of inventory depreciation for the company accounted for a relatively large amount, mainly because the national subsidy policy on new energy vehicles was adjusted at the end of 2016, and the technical requirements were raised. The demand for products with lower energy density and weaker charge-discharge performance was significantly reduced, and the issuer responded accordingly. For some of the batteries, raw materials and other inventory provision for falling prices.

14. What are the investment estimates for the Ningde era power and energy storage battery R&D project?

Zheng Shu: The total investment for the research project is RMB420 million, of which RMB1,103 million is invested in equipment purchase, which accounts for 24.1% of the total investment. It is mainly used for R&D, testing, laboratory equipment, office equipment purchase and installation; R&D personnel costs 198,700 Ten thousand yuan, which accounted for 47.3% of the total investment amount; materials and work-piece cost was RMB 80,000 million, accounting for 19.0% of the investment, mainly used for the purchase of raw materials and equipment maintenance; other expenses expenses were RMB 400 million, accounting for the amount of investment. 9.5%, mainly used for commissioning external R&D and joint development, utilities, travel expenses, etc.

15. How long does it take for Ningde times to queue up for applications in the normal order? What are the reasons and background for this accelerated audit? What is the biggest difference between this company and listed companies in Fujian Province?

Liu Naisen: The Ningde era belongs to the normal enterprise queuing audit. The current IPO audit is faster than previous years, but the audit is more comprehensive and strict than before. It not only pays attention to financial indicators, but also focuses on non-financial indicators, fully embodying the comprehensive promotion of listed companies. Quality audit concept. We believe that for companies that meet the requirements and quality, the regulatory authorities will certainly support the listing of companies.

【Background Information】

On Tuesday (May 29th), the latest prospectus disclosed in the Ningde Times shows that no more than 217 million shares (217,243,733 shares) are planned to be issued, and the issue price is 25.14 yuan per share. The expected issuance date is May 30, 2018.

>> Ningde era update prospectus: pricing 25.14 yuan / share is expected to be issued on May 30