On September 28, Dongpeng Holdings issued the "Initial Public Offering of A Shares Prospectus", which will be an initial public offering of no more than 143 million RMB ordinary shares (A shares). The shares issued this time are planned to be listed on the Shenzhen Stock Exchange. Listed on the SME board. At the same time, according to the exchange announcement, Dongpeng Holdings will subscribe today (September 29). The subscription code is 003012, the issuance price is 11.35 yuan/share, and the maximum subscription limit for a single account is 42,500 shares.
The total amount of funds expected to be raised in this financing is 1.62305 billion yuan. After deducting issuance expenses, the net amount of funds expected to be raised is 1.480067 billion yuan. The "Instructions" stated that this financing can continue to enhance the core competitiveness of Dongpeng Holdings in terms of technical strength, product structure, marketing, financial status, etc., and at the same time, it will help Dongpeng introduce more outstanding talents to achieve business development for the company. Goals create favorable conditions.
Dongpeng Jiangxi Fengcheng and Hunan Lixian Bases
Total investment of 1.26218 billion yuan to expand 8 lines
According to the announcement, the funds raised by Dongpeng Holdings this time are all centered on the company’s main business. Uses include:
1. The new environmentally friendly and ecological stone plate renovation project with an annual output of 3.15 million square meters is to expand three new environmentally friendly and ecological stone plate production lines in the existing factory of Donghua Shengchang, focusing on the development of imitation of precious natural marble texture plates and sandstone series Slabs and travertine series slabs. After the completion of the project, the annual production capacity will be 3.15 million square meters, which will help enrich the company's decorative space and ceramic tile sales supporting capabilities, and enhance its comprehensive competitiveness.
2. The project to expand 4 ceramic production lines is to expand 4 ceramic production lines on the existing land in Dongpeng, Fengcheng, including 2 porcelain tile production lines, 1 antique tile production line and 1 full glaze production line. After the completion of the project, it will form a total design and production capacity of 21.9 million square meters of ceramic tiles (pieces) per year. The implementation of this project can accelerate the expansion of Fengcheng Dongpeng's production capacity and enhance the company's nationwide radiation capabilities, thereby improving the company's profitability and enhancing its sustainability. Sustainable development capabilities.
3. The second phase expansion project of Lixian Xinpeng Ceramics Co., Ltd. is to build 4 high-end antique tile production lines on the existing land of Xinpeng Factory in Lixian County. After the project is completed, it will reach an annual production scale of 15.6 million square meters of high-end antique tiles. This project will help increase the influence of the company's antique ceramic tiles in the national and even international markets.
4. The construction project of a water-saving sanitary ware production line with an annual output of 1.6 million pieces is to build a 1.6 million water-saving sanitary ware production line in the existing factory in Dongpeng, Jiangxi. After the project is completed, the annual output will be increased to 500,000 pieces of one-piece toilets, 500,000 pieces of split toilets, 200,000 pieces of squat toilets, 80,000 pieces of urinals, and 320,000 pieces of basin and column water tanks.scale. The implementation of this project can effectively meet the market demand for the company's sanitary ware products and enhance the company's profitability and overall competitiveness.
5. The construction project to produce an annual output of 2.6 million water-saving sanitary ware and 1 million hardware faucets is on the existing land in Dongpeng, Jiangmen, to build an annual output of 2.6 million water-saving sanitary ware and 1 million hardware faucets. production line. The implementation of this project will help accelerate the company's expansion and development strategy and increase the production capacity of water-saving sanitary ware.
6. Dongpeng information equipment and system upgrading and transformation projects mainly include application system construction, infrastructure construction, talent introduction and training. The implementation of this project will help the company grasp various market information in a timely manner and provide strong support for sales decisions. At the same time, the company's existing R&D resources can be effectively integrated to improve R&D efficiency.
7. The intelligent product exhibition hall construction project includes the construction of the company's new headquarters building exhibition hall and the construction of intelligent exhibition hall projects by subsidizing dealers. The implementation of this project will help improve the company's marketing network. This fundraising project is expected to have good returns. After the funds raised are in place, the company will accelerate the construction of the above-mentioned fundraising projects and increase shareholder returns.
According to the overview of the use of raised funds, Dongpeng Holdings plans to invest 1.26218 billion yuan in the production capacity expansion of the Fengcheng production base in Jiangxi and the Lixian production line base in Hunan, with a total of 8 production lines. Among them, Jiangxi Fengcheng Dongpeng has invested a total of 600 million yuan to expand 4 ceramic production lines, which will be completed in three years. It is expected to use 600 million yuan of funds raised this time; Hunan Lixian Xinpeng Ceramics has a total investment of 662.18 million yuan to build 4 high-end ceramic production lines. The antique tile production line is expected to use 100 million yuan of funds raised this time.
4981 Dongpeng ceramic tile dealer stores
Estimated revenue in 2020 is 6.796 billion yuan
As of June 30, 2020, Dongpeng’s ceramic tile and sanitary ware product dealer system covers most provinces and most county-level cities across the country, including 1,753 ceramic tile dealers and 4,981 ceramic tile dealer stores; sanitary ware It has 82 dealers and 1,468 sanitary ware dealer stores. In October 2017, it developed 1 overseas ceramic tile dealer and opened an overseas dealer store. In addition to the distribution system, the company has also established 112 ceramic tile directly-operated stores/showrooms and 2 sanitary ware directly-operated stores/showrooms in the country.
The announcement shows that in recent years, Dongpeng’s main business scale and profitability have increased. In 2017, 2018, 2019 and January to June 2020, the main business income was 6,591,793,300 yuan, 6,569,470,700 yuan, 6,679,762,700 yuan and 2,577 million respectively., 6.2097 million yuan.
In 2017, 2018, 2019 and January to June 2020, the ceramic tile business revenue was 5,441,143,200 yuan, 5,347,506,300 yuan, 5,558,415,200 yuan and 2,193,159,400 yuan respectively, accounting for 82.5% and 81.4% of the company's total revenue respectively. %, 83.2%, 85.1%.
Due to the intensified competition in the industry, Dongpeng Holdings’ main business revenue declined slightly in 2018. At the same time, the decline in gross profit margin resulted in a decline in net profit attributable to shareholders of the parent company. In the first half of 2020 due to the impact of the epidemic, Dongpeng Holdings' performance declined compared with the same period last year. However, as the impact of the epidemic gradually weakens and market demand gradually recovers, the company's performance is expected to gradually recover.
In 2017, 2018, 2019 and January to June 2020, Dongpeng Holdings’ net profits attributable to shareholders of the parent company after deducting non-recurring gains and losses were 989.791 million yuan, 793.6571 million yuan, 794.377 million yuan and 215.9991 million yuan respectively. Ten thousand yuan.
According to the profit forecast review report No. E00389 of Deshi Bao (He) Zi (20) issued by Deloitte, Dongpeng Holdings’ forecast operating income in 2020 is 6,795,590,600 yuan, a year-on-year increase of 0.65%; affected by the impact of the new coronavirus epidemic Affected by factors such as the increase in the proportion of fixed expenses due to online shutdowns and the decrease in the conversion rate of outdoor advertising, the company's expense rate is predicted to increase and the net profit rate will decline in 2020. The net profit attributable to shareholders of the parent company is predicted to be 628.9825 million yuan in 2020, year-on-year. A decrease of 20.82%; the net profit attributable to the parent company after deducting non-recurring gains and losses for 2020 is forecast to be 581.974 million yuan, a year-on-year decrease of 19.04%.
The first three quarters of 2020
Estimated revenue of 4.558-4.663 billion yuan
The announcement also stated that based on the resumption progress of direct sales channels such as dealer channels and projects, combined with the company’s orders on hand and other factors, it is expected that Dongpeng Holdings’ operating income range from January to September 2020 will be 4,558,444,500 yuan to 4,663,159,600 yuan Yuan, a year-on-year decrease range of 3.27% to 5.44%; the net profit attributable to shareholders of the parent company ranges from 404.0955 million yuan to 429.1942 million yuan, a year-on-year decrease range of 23.58% to 28.05%; after deducting non-recurring gains and losses, the net profit attributable to the parent company The shareholder's net profit range is from 359.8565 million yuan to 384.9553 million yuan, with a year-on-year decrease range of 24.69% to 29.60%.
The decline in performance from January to September 2020 was mainly affected by the decline in performance in the first quarter of 2020. As the epidemic is gradually brought under control and the construction and sanitary ceramics industry has gradually ushered in the peak consumption season, the company will further utilize the reputation built by previous advertising campaigns foundation, and actively implement the company's strategic deployment to expand sales. In the third quarter of 2020, it is expected that the adverse effects that led to the decline in performance from January to June 2020 will gradually be eliminated. The company's expected operating income and net profit attributable to shareholders of the parent company before and after deducting non-recurring gains and losses from January to September 2020 will decline by It is significantly narrower than that from January to June 2020.
In addition, at the end of 2017, the end of 2018, the end of 2019 and the end of June 2020, the total assets of Dongpeng Holdings were 6,668,125,100 yuan, 7,731,597,300 yuan, 9,864,929,100 yuan and 9,926,772,100 yuan respectively. The growth in total assets is mainly due to the accumulation of profits and the increase in the scale of accounts receivable brought about by the rapid growth of main business income, and the increase in investment in fixed assets and projects under construction due to the company's expansion of production scale.
(The article is reproduced from Ceramic Information)
