On May 17, the IPO review status on the main board of the Shenzhen Stock Exchange of Dongshi Automotive Technology Group Co., Ltd. was changed to “terminated” because the company and its sponsor withdrew the listing application.
The Zhitong Finance App learned that on May 17, Dongshi Auto Technology Group Co., Ltd. (Dongshi Co., Ltd.)'s IPO review status on the main board of the Shenzhen Stock Exchange changed to “terminated” because the company and its sponsor withdrew the listing application.
According to the prospectus, the company is one of the few manufacturers specializing in auto parts in China that also provides large-scale support for commercial vehicles and passenger cars, and has obvious advantages in terms of vehicle weight reduction, integration, functionality, and reliability. Over the years, the company has “gone hand in hand”. It has formed an auto parts industry system with a complete range of categories and a complete industrial chain around the three major systems of automobile body, chassis, and power, and has a number of specialized and unique auto parts products.
The company's main raw materials are outsourced parts, steel and aluminum. Important suppliers include Hubei Hengchang Material Technology Group Co., Ltd., Wuhan Honda Trading Co., Ltd., Valin ArcelorMittal Auto Sheet Co., Ltd., Wuhan Gangshi Automobile Materials Co., Ltd., Dongfeng Commercial Vehicle Co., Ltd., and Shiyan Dongfeng Sanli Auto Lamps Co., Ltd. In each period of the reporting period, the company's direct material costs accounted for 77.96%, 75.88% and 74.81% of the company's main business costs, respectively. Material costs accounted for a high proportion of the company's operating costs, and fluctuations in raw material prices had an important impact on the company's production costs.
In addition, the company has high-quality and stable customers such as Dongfeng Commercial Vehicle, Dongfeng Liuqi, Dongfeng Honda, Dongfeng Passenger Vehicle, Great Wall Motor, and Rantu Auto. During the reporting period, due to macroeconomic and automobile industry fluctuations, the company's revenue declined, but the revenue for each year was over 3 billion yuan, and the company's operating performance remained stable at a high level. It is a large-scale enterprise.
According to the prospectus, the company plans to publicly issue no more than 60 million RMB common stock (A shares). The actual capital raised (after deducting the issuance fee) will be used to implement the following projects:
On the financial side, revenue for 2020, 2021, and 2022 was approximately 4.18 billion yuan, 3,964 billion yuan, and 3.258 billion yuan, and net profit was approximately 282 million yuan, 293 million yuan, and 218 million yuan, respectively.
According to the prospectus of Dongshi Co., Ltd., there is a risk that the company has a high concentration of customers. In each period of the reporting period, the company's sales to the top five customers (under the same control and consolidation caliber) accounted for 83.32%, 79.20%, and 69.18% of the main business revenue, respectively. The company's customers were concentrated, and the main customers had a great impact on the company's performance.
Furthermore, there is a risk of fluctuations in raw material prices. The company's main raw materials are outsourced parts, automotive steel, aluminum, etc., and the main raw materials account for a large share of the company's main business costs. In each period of the reporting period, the company's direct material costs accounted for 77.96%, 75.88% and 74.81% of the company's main business costs, respectively. Material costs accounted for a high proportion of the company's operating costs, and fluctuations in raw material prices had an important impact on the company's production costs. Although domestic steel prices have declined from their high in the second and third quarter of 2021, the overall price of high-strength thermoformed steel used in the company's thermoforming business showed an upward trend in 2020-2022 due to market supply and demand relationships.