Ruike Laser: Fair price of independent business related transaction

On April 17, the IPO of Wuhan Ruike Fiber Laser Technology Co., Ltd. was successfully held. The company plans to publicly issue no more than 32 million shares on the GEM of the Shenzhen Stock Exchange. The total share capital after the issue will not exceed 128 million shares. Ruike Laser is the first in China. Independent research and development, production and sales of fiber lasers in the National Torch Plan key high-tech companies. The company has successively undertaken several major R&D projects, including the National Science and Technology Support Program, the National 863 Program, the National Major Project, and the National Key R&D Project. China's first fiber laser industry standard, the company's high-power fiber laser has become a revolutionary product in the field of industrial laser processing. The company will raise funds to invest in high-power fiber laser development and industrialization projects, high-power semiconductor lasers Industrialization, R&D and Application Engineering Center project, with a total investment of 1.119 billion yuan.

Acquisition of consolidated data changes

Recently, some media pointed out that there were many inconsistencies in the financial data and financial indicators of the two versions of the prospectus published before and after the Ruico Laser, and they questioned the authenticity of the company’s financial data. In fact, it can be found by reading the prospectus, March 2017. Ruike Laser acquired an 85% equity interest in Core Fiber at a price of RMB 59.568 million. The actual controlling shareholders of the two companies are China Aerospace Sanjiang Group, thereby realizing the business combination under the control of the same group. The financial data was retrospectively adjusted according to accounting standards. As a result of the changes in the previous period's financial data, after the adjustment, the main data and major financial indicators in the balance sheet, income statement, and cash flow statement have changed accordingly. This is a normal adjustment of financial data and due diligence. There is no so-called 'data fight'. Case.

Wuhan Ruixin Special Optical Fiber Co., Ltd. specializes in the research and sales of specialty optical fibers. It has a first-class R&D team led by experts of the National Thousand Talents Program and decades of experience in the design, R&D and production of special optical fiber industry at home and abroad. A generation of MCVD core rod manufacturing equipment, high-temperature doping systems and special optical fiber drawing equipment, mastering all core process technologies from the preparation of optical fiber preforms, rare earth doping, and drawing to optical fiber testing, with the capability of mass production of special optical fibers, and providing customers with special Customized services for demand. The technical indicators of the company's products have reached the technological level of similar foreign products. They are widely used in high power fiber lasers and amplifiers, optical fiber sensors, optical fiber devices, optical instruments, oil extraction, medical and scientific research, etc. , The main products include double-clad large-mode field active and passive optical fiber, elliptical cladding type and panda type polarization-maintaining optical fiber, energy transmission fiber and various special specifications of single-mode and multi-mode optical fiber, etc. It is reported that 2017, Rui Core fiber to achieve a net profit of 14.2154 million yuan.

Independent production and operation

Some media also stated that the increase in the related company's laser revenue has raised doubts about the growth of the company's operating revenue. In fact, in the prospectus, the company has made detailed disclosures of all related transactions, and there is no situation in which related transactions are concealed. , Procurement, production and sales operations are all independent of the controlling shareholder. The actual controller and other enterprises controlled by it, and the controlling shareholder, actual controller and other enterprises controlled by it, do not have horizontal competition or apparently unfair related party transactions. The related transactions took place strictly in accordance with the relevant provisions of the “Articles of Association” and other relevant regulations. The principle of fairness and reasonableness was followed, and the prices of related transactions were fair. The related party transactions were in line with the needs of the company's production and operations and were necessary. There was no damage to the company and other shareholders. It is the case of the interests of small and medium shareholders. At the same time, the controlling shareholder of the company, the actual controller has issued a commitment to the company to avoid competition with the industry, and promised not to directly or indirectly operate any of the main business of Ruike Lasers in any way. May constitute a competitive business, not directly or indirectly to any Other companies with the same or similar businesses invest or control.

In addition, the main products of Ruike Laser are fiber lasers, and the special optical fiber is the key raw material of fiber lasers. Through the acquisition of Ruixin Fiber, Ruike Laser will realize the production of key raw materials and improve the industrial layout of self-produced components and materials. The synergy effects will be further strengthened to enhance the company's vertical integration capabilities and comprehensive R&D capabilities, reduce production costs, enhance profitability, enhance competitive advantages, and in particular increase competitiveness with internationally renowned companies. At the same time, this acquisition will reduce associated transactions and enhance the company Business independence.

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