The first private equity fund to be introduced, Shandong Boli raised 20 million “supplement flow”

Economic Herald reporter Du Hai New Three board Shandong Bo Li (873125.NQ) plans to introduce a private equity fund institutions through the first private increase.January 24, Shandong Boli disclosed “Southwest Securities recommended work report on Shandong Boli stock Directional issuance”, the company plans to issue no more than 3,0211,000 shares, is expected to raise no more than 20 million yuan.The issue object is Guoying Venture Capital Partnership (limited partnership), Zhangdian District, Zibo, and the issue object is a private fund, which has completed the filing of private fund in amAC of China.”The proceeds of this share issue will be used to supplement the company’s working capital.”Shandong Bo Li introduction.After this issue, there will be 5 shareholders. Shandong Boli is located in Zhangdian District, Zibo City, and its main business is the design, production and sales of daily glass products (including foreign and domestic trade).Prior to this, the company has not issued common shares, preferred shares and convertible corporate bonds, and has not undergone major asset restructuring and share repurchase issues.This issue of the company belongs to the issue determined by the issue object, and there is only one targeted issue object.It is reported that Zibo Zhangdian Guoying Venture Capital Investment Partnership (limited partnership) was established on May 14, 2021. The manager of the private equity fund is Shandong Shunheng Private Equity Fund Management Co., LTD.The manager has completed registration with AMAC as a private fund manager.Before this issue, Shandong Bo Li has a total of 4 shareholders, including natural person shareholders 2, partnership shareholders 2.After the issuance of the company, there will be 5 shareholders, including 2 natural shareholders, 2 partnership shareholders and 1 private fund.The price of the company’s directional offering here is 6.62 yuan/share, and the fund raised is expected to be no more than 20 million yuan. The specific number of shares to be issued and the total amount of fund raised are subject to the subscription results.Economic Herald reporters noted that since the listing date of Shandong Bo Li to the issuance date of the above report, the company did not produce secondary market transactions, no reference to the secondary market transaction price;The company has not issued shares and there is no historical issue price for reference.So, how is the issue price of 6.62 yuan/share determined?According to the audit report issued by Shanghai Shanghai Certified Public Accountants (Special general partnership), as of December 31, 2020, The net asset per share of Shandong Boli was 2.87 yuan, and the earnings per share was 0.62 yuan.On May 28, 2021, the company has implemented the 2020 annual equity distribution (10 to 2 to 2 yuan). After the equity distribution, the net asset per share is 1.91 yuan and the earnings per share is 0.44 yuan.On September 30, 2021, the company’s net asset per share was 2.24 yuan, and its earnings per share was 0.33 yuan.The stock issue price of 6.62 yuan per share is higher than the company’s net assets per share on December 31, 2020 and September 30, 2021.However, why is there a high “premium rate” for this issue relative to net asset value per share?On Jan. 25, when a reporter from The Economic Herald called the company’s office, a staff member who answered the phone said they would refer relevant questions to tian Yangyang, the company’s secretary.To the deadline, economic newspaper reporter still did not get the other side of the reply.”The price of this offering is determined after consultation with the issuing object based on a comprehensive consideration of the macroeconomic environment, the company’s industry and development stage, the company’s growth, net assets per share, earnings per share and other factors.”Shandong Boli sponsor brokers believe that the company’s share price is not unfair, damage to the interests of the company and shareholders, the pricing is reasonable.It is reported that the total amount of capital raised by Shandong Boli is expected to be used to supplement the working capital of the company after deducting the issuance fee, and the specific purpose is to pay the payment for suppliers.”With the development of the company’s main business, the company’s business scale continues to mature and expand, and the demand for procurement from suppliers increases. The funds raised this time will be used to pay suppliers for procurement.”Shandong Boli said: “The move is related to the company’s main business, will enhance the company’s financial strength, speed up the company’s business development, improve the company’s profitability and risk resistance, is reasonable and necessary.”In addition, after the directional offering, the company registered capital, total assets, net assets, net cash flow of financing activities and other financial indicators, will have a certain degree of improvement.In shandong Bo Li’s view, the stock issue is conducive to improving the company’s financial position, reduce the company’s asset-liability ratio and debt servicing risk, is conducive to enhancing the company’s ability to resist risks;The increase of the company’s cash reserves will help to guarantee the company’s capital needs in the process of business development, promote business development, and promote the further growth of the company’s operating revenue and profit.The cash inflow generated by the company’s fund-raising activities will increase, and the total amount of cash can be improved, which is conducive to improving the company’s cash flow level.Financial data show that in 2020, Shandong Boli achieved operating revenue of 184 million yuan, an increase of 1.201 million yuan, or 0.61%, compared with 2019, mainly due to the company’s efforts to expand the domestic market and the increase of domestic sales revenue, overseas sales revenue decreased due to the impact of the epidemic.In 2020, the net profit attributable to the owner of the parent company was 13.2966 million yuan, which decreased by 3.094 million yuan or 18.88% compared with 2019. The main reasons are as follows:The company’s gross profit declined under the comprehensive influence of a slight increase in revenue and a decrease in gross profit margin. In 2020, the company’s net profit declined due to the decrease in exchange rate and the increase in exchange loss and the increase in financial expenses, and the decrease in government subsidies and the decrease in other earnings.It is worth noting that before the directional issuance, Shandong Bo Li’s controlling shareholder bi Yanfeng, the actual controller bi Yanfeng, Li Rui.After this issue, the company’s controlling shareholder is still Bi Yanfeng, the actual controller is still Bi Yanfeng, Li Rui.Before and after the directional issuance, the company’s control rights have not changed.

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