Guojin Securities Sponsors Reach Machinery IPO Project Receives B-Grade Quality Rating with Extended Listing Timeline and Higher Fee Rates

Deep News09-09

(1) Company Overview Full Name: Chengdu Reach Machinery Co., Ltd. Abbreviated Name: Reach Machinery Co., Ltd. Stock Code: 301596.SZ IPO Application Date: June 10, 2022 Listing Date: May 13, 2024 Exchange: Shenzhen ChiNext Board Industry: General Equipment Manufacturing IPO Sponsor: Guojin Securities Sponsor Representatives: Chen Li, Zhang Chunyi IPO Underwriter: Guojin Securities IPO Legal Counsel: King & Wood Mallesons IPO Auditor: ShineWing Certified Public Accountants (Special General Partnership)

(2) Performance Evaluation (1) Information Disclosure: The company was required to clarify compliance with ChiNext positioning requirements; provide supplementary disclosure regarding "overlapping situations between customers and suppliers, and between customers and competitors" and "third-party payment situations"; explain whether the issuer's information disclosure was truthful, accurate, and complete; clarify the reasonableness of the declining trend in average procurement prices for customized blanks versus the rising trend in unit weight procurement prices for major categories of customized blanks, and whether the related explanations contain logical contradictions.

(2) Regulatory Penalties: No points deducted

(3) Media Supervision: No points deducted

(4) Listing Timeline: Points deducted The average timeline from application to listing for A-share companies in 2024 was 629.45 days. Reach Machinery's listing timeline was 703 days, exceeding the overall average.

(5) Multiple Applications: Not applicable, no points deducted

(6) Issuance Fees and Fee Rates Reach Machinery's underwriting and sponsorship fees totaled 34.9449 million yuan, with an underwriting and sponsorship commission rate of 9.78%, higher than the overall average of 7.71%.

(7) First-Day Trading Performance The stock price rose 167.79% above the issuance price on the first trading day.

(8) Three-Month Trading Performance The stock price rose 168.36% above the issuance price after three months of trading.

(9) Issuance Price-to-Earnings Ratio Reach Machinery's issuance P/E ratio was 15.65 times, compared to the industry average of 26.43 times, representing 59.21% of the industry average.

(10) Actual Fundraising Ratio Expected fundraising: 357 million yuan; Actual fundraising: 357 million yuan.

(11) Short-term Post-listing Performance In 2024, the company's operating revenue increased 5.24% year-over-year, net profit attributable to shareholders increased 4.46% year-over-year, and non-GAAP net profit attributable to shareholders increased 3.08% year-over-year.

(12) Subscription Withdrawal and Underwriting Ratios Withdrawal rate: 0.53%

(3) Overall Score Reach Machinery's IPO project received a total score of 84 points, classified as Grade B. Negative factors affecting the evaluation included: room for improvement in information disclosure quality, listing timeline exceeding two years, higher issuance fee rates, and a withdrawal rate of 0.53%. This collectively indicates that while the company demonstrates relatively strong short-term profitability, information disclosure quality requires improvement, and investors should pay attention to the authenticity behind the performance metrics.

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