(I) company basic information

Full Name: Shenzhen Huada Zhizao Technology Co., Ltd.

Abbreviation: Huada Zhizao

Stock code: 688114.SH

IPO filing date: December 7, 2020

Listing date: 9 September 2022

Listed sector: CRE Board

Industry: Special Equipment Manufacturing (China Securities Regulatory Commission Industry 2012 Edition)

IPO Sponsor: CITIC Securities

Sponsor representatives: Xiao Shaochun and Lu Ming

IPO Underwriters: CITIC Securities, CICC, UBS Securities

IPO lawyer: Beijing Jiayuan Law Firm

IPO Auditor: KPMG Huazhen (Special General Partnership)

(II) practice evaluation

(1) letter situation

the amount of related party transactions involved in the joint bidding for land and cooperative construction between the issuer and related parties was huge, but it was not disclosed until the stock was listed and traded, and the violation of the letter was warned by the Shanghai stock exchange. Insufficient disclosure of related information, financial irregularities and large uncompensated losses has questioned independence and internal control stability. The embodiment of core technology in the production process, comparison with comparable companies, competitive advantages and disadvantages, etc. are not fully disclosed; the accuracy and completeness of the selection of comparable companies in the same industry have been questioned. The disclosure of accounting policies and accounting estimates is templated; "tips on major matters" and disclosure of risk factors are not in place; Clearly point out the optimization details of information disclosure such as "addition and deletion, pertinence and supplementary disclosure"; The prospectus and the lawyer's work report require revision of the abbreviations such as Huada Holding and Huada Gene. The reply to the first round of inquiry is incomplete.

(2) Regulatory penalties

Huada Zhizao was subject to regulatory warning measures taken by the Shanghai Stock Exchange for failing to disclose connected transactions in a timely manner, and major foreign investment and connected transactions were the focus of the audit, but Huada Zhizao did not disclose them in a timely manner.

(3) supervision by public opinion: no deduction

(4) Listing cycle

the average number of days from declaration to listing for listed A- share enterprises in 2022 is 403.6 days, and the listing cycle of Huada Zhizao is 642 days, which is higher than the overall average.

(5) whether to declare multiple times: do not belong to, do not deduct points

(6) Issuance fee and issuance fee rate

huada zhizao underwriting sponsorship commission rate of 7.54, higher than the overall average of 5.19, higher than the sponsor citic securities 2022 IPO underwriting project average commission rate of 3.27.

(7) First-day performance

Up 14.71 on First Day of Listing

(8) three-month performance

Shares are up 26.76 per cent in three months.

(9) Issue P/E

Huada Zhizao's IPO price-earnings ratio is 74.47 times, the industry average is 36.17 times, and the company is 106 percent higher than the industry.

(10) actual fundraising ratio

it is estimated that 2.846 billion yuan will be raised and 3.602 billion yuan will be actually raised, with an over-raised ratio of 27%.

(11) Post-IPO Short-Term Performance

in 2022, the company's operating profit decreased by 57.48 percent year-on-year compared with the previous year, and the net profit of non-returning parents decreased by 46.43 percent year-on-year compared with the previous year.

(12) Abandonment ratio and underwriting ratio

abandonment rate of 1.32 per cent.

(III) total score

the total score of huada zhizao IPO project is 51.5 , and the classification is e . The reason why the classification rating of Huada Zhizao is low is that the quality of the company's letter is poor, the violation of the letter is warned by the Shanghai Stock Exchange, the listing cycle is longer and the efficiency is lower, the issuance cost rate is higher, the issuance price-earnings ratio is higher, and the operating profit of the first fiscal year after listing has fallen sharply.