June 24, shenzhen Stock Exchange formally accepted huike Co., LTD. (hereinafter referred to as: Huike) gem listing application. According to the prospectus, the company intends to offer no less than 644,444,444 yuan of ordinary shares for the initial public offering, After deducting the issuing cost, all the raised funds will be used for the r&d and upgrading project of changsha Huico LARGE-size OLED semiconductor display device, Mini LED direct display and backlight production line expansion project, Huico Intelligent Iot display solution project, Mianyang Huico Oxide production-research integration project. And RMB 285,000.00 to supplement working capital.
In terms of display panel business, Huinco is actively promoting the construction of Oxide TFT, current type backplane and process platform as well as product technology development while laying out amorphous silicon A-Si TFT-LCD technology. It is the first platform to realize the development and production technology of G8.6 high generation Oxide RGB OLED backplane in China, and has completed the mass production technology development and product verification of Oxide LCD. At the same time, relying on the independent development platform of Oxide backplane technology, the company actively lays out advanced technology reserves in the field of high-generation OLED display, and develops and innovates Mini LED technology to constantly improve the company's comprehensive layout of multi-technology route in the field of new semiconductor display.
In terms of intelligent display terminal business, the company currently has four display terminal production bases, namely Chongqing Jinyang, Hefei Jinyang, Guangxi Zhixian and Yichang Huike, mainly producing INTELLIGENT TV terminals and monitors, all-in-one PCS, laptops, tablets, advertising machines, smart fitness mirrors and OTHER IT and intelligent iot terminals.
In terms of performance, from 2019 to 2021, the company achieved operating revenue of 10,057,686,920 yuan, 1,846,3750,100 yuan and 3,570,9219,300 yuan respectively, with a compound annual growth rate of 83.74%; Net profit was -130,872,500 yuan, 466,8221,200 yuan and 785,1325,100 yuan, respectively. R&d investment accounted for 3.72% of operating revenue.
For the performance changes, Huike shares believe that the market changes and their own production line progress related.
In 2019, due to the impact of global economic slowdown, trade friction and other factors, the expansion of capacity at home and abroad led to intensified competition, and the display panel market experienced a stage adjustment, with panel prices falling sharply. The company's panel factories in Chuzhou Huike and Mianyang Huike are in the stage of construction and capacity climbing, yet scale effect has not been formed. Meanwhile, the increased investment in r&d of new products and the expansion of operation scale have greatly increased the cost during the period, and the initial investment of new production line is large, resulting in losses in 2019.
Since 2020, the novel Coronavirus pandemic has broken out globally, bringing new rigid demand for online office, education and entertainment. It has played a positive role in driving the market of TV sets and display panels, and the consumer market has a strong demand. At the same time, due to the Gradual withdrawal of Korean panel manufacturers from the LCD panel market, panel prices rose rapidly in 2020.
Under the background of the improvement of industry prosperity, Huike Shares implemented the "vertical integration strategy" of panel and terminal products. Chuzhou Huike and Mianyang Huike newly built panel production lines were put into operation in the second quarter of 2019 and the second quarter of 2020 and gradually released capacity. The company got rid of the stage trough in 2019 and its performance picked up. In 2020, the company achieved operating revenue of RMB 1,846,3750,100 yuan, an increase of 74.57% compared with 2019. With the emergence of scale effect, the company turned from loss to profit in 2020, with a net profit of 414,742,000 yuan in 2020.
The panel market in 2021 continues the industry boom of 2020. With the increasing trend of panel industry centralization and the stability of the industry pattern, the profitability of the industry has gradually increased. In addition, the company in mianyang, chuzhou sun, sun, changsha sun new panel production line capacity greatly released, the company product type and size, the new 55 inches or more large size TV panel products and pad, laptops and other small and medium size IT panel products, new product development, production brings new revenue and profit growth for the company. In 2021, the company's operating revenue reached 3,570,9219,300 yuan, an increase of 93.40% compared with 2020, and its net profit reached 540,6206,000 yuan, an increase of 1203.51% year-on-year.
According to the prospectus, directors, supervisors, senior managers and other core personnel of the company will receive a total remuneration of 22.565,000 yuan in the company in 2021. Wang Zhiyong, chairman of the board and General manager, will receive a salary of 1,250,000,000 yuan in 2021; Lu Jihui, director and deputy general manager, will receive a salary of 1,183,300 yuan in 2021; Ma Jing, director, Deputy general manager and secretary of the board, will receive a salary of 1,012,700 yuan in 2021. The company's chairman Wang Zhiyong and director Wang Xinying are uncles and nephews, chairman Wang Zhiyong and supervisor Qu Lunsheng are Cousins, supervisor Huang Beizhou is chairman Wang Zhiyong's cousin husband, supervisor Xu Shunjun is chairman Wang Zhiyong's niece.
