Shanghai Stock Exchange: Puyuan Jingdian will be listed on the Science and Technology Innovation Board for the first time on November 4

On October 28, according to an announcement disclosed by the Shanghai Stock Exchange, Precision Electronics Technology Co., Ltd. (hereinafter referred to as Precision Electronics) will make its first IPO on the Science and Technology Innovation Board on November 4.

According to the prospectus, Precision Electronics is a high-tech enterprise engaged in the research, development, production and sales of general electronic measuring instruments. Its main products include digital oscilloscopes, radio frequency instruments, waveform generators, power supplies and electronic loads, multimeters and data collectors, etc. It is currently the only Chinese company equipped with a self-developed digital oscilloscope core chipset and successfully achieved product industrialization.

From 2018 to 2020, Puyuan Precision Electronics achieved operating income of 292 million yuan, 304 million yuan, and 354 million yuan, with corresponding net profits of 39.0956 million yuan, 45.9904 million yuan, and -27.1664 million yuan, respectively.

Puyuan Jingdian said that the company has suffered losses in the past year and may continue to suffer losses in the future. The main reason is that in order to further establish and improve the company's long-term incentive mechanism and fully mobilize the work enthusiasm of the company's middle and senior management and key employees, the company began to implement a large-scale equity incentive in 2020.

Among them, the amount of share-based payment recognized in 2020 was RMB 81.3921 million, which resulted in a loss in 2020; the amount of share-based payment expected to be recognized in each year from 2021 to 2024 was RMB 92.0779 million, RMB 55.3762 million, RMB 12.6809 million, and RMB 1.8299 million, respectively. Large share-based payment expenses have a certain degree of adverse impact on the company's operating performance, and thus delay the company's profitability, resulting in the risk of continued losses for the company in the future.

In addition, as of the end of the reporting period, Precision Electronics' sales were distributed in more than 80 countries and regions around the world. During the reporting period, its overseas sales revenue accounted for 59.97%, 56.83% and 54.15% of its main business revenue, respectively. Among them, the sales revenue in the US market was RMB 54.5917 million, RMB 50.7663 million and RMB 58.4031 million, respectively, accounting for 18.69%, 16.71% and 16.49% of the company's operating income in the same period.

Puyuan Jingdian said that in recent years, the Sino-US trade friction has gradually escalated, and the US government has increased the scope and rate of tariffs on Chinese imports. Currently, all the company's products exported to the United States are subject to a 25% tariff. If the Sino-US trade friction escalates further in the future, the company's sales revenue or profit level in the US market may decline.