Zhizhen New Energy withdrew its application and terminating to be listed on the Sci-Tech Innovation Board
The hydrogen energy industry development entered a new stage in 2022, but the listing and financing does not seem to be ideal. The Shanghai Stock Exchange website disclosed that Zhizhen had withdrawn its application for listing on the Scie-tech Innovation Board, and Shanghai Stock Exchange decided to terminate the public offering of Zhizhen and be listed on the Sci-Tech Innovation Board Review on December 23, 2022.
December 21, 2022: Shanghai Zhizhen New Energy and its sponsor submitted the “Withdrawal Application for Initial Public Offering and Listing of Shanghai Zhizhen New Energy’s stock on the Scie-tech Innovation Board of the Exchange” to Shanghai Stock Exchange, with the aim of withdrawing Zhizhen’s application documents. Shanghai Stock Exchange. Shanghai Stock Exchange decided to terminate the public offering of Zhizhen and be listed on the Sci-Tech Innovation Board Review according to Article 67 of Rules Governing the Listing of Stocks on the Sci-Tech Innovation Board.
Shanghai Zhizhen New Energy and Jiangsu Guofu Hydrogen Energy Equipment Co., Ltd. terminated their listings for the same reason according to the disclosure documents of Shanghai Stock Exchange. Both companies decided to applicate to withdraw their listing applications.
Shanghai Zhizhen New Energy intends to publicly issue no more than 10.7 million shares, not less than 25% of the total share capital after the issuance, and the total share capital atter the issuance should not exceed 42,684,545 shares according to the disclosed prospectus. The total capital to be raised will exceed 12 billion yuan, of which 671.33 million RMB will be used to expand the fuel cell BP production project, 289.3 million RMB will be used to the R&D center construction, while 260 million RMB will be used for working capital supplement.
The compound annual growth rate (CAGR) of Zhizhen New Energy reached 285% during the reporting period and turn the loss into profit in the year 2021, with a net profit of 20.1617 million RMB according to the disclosed prospectus. Accounts Receivable (AR) of Zhizhen New Energy from 2019 to 2021 are respectively 14.81 million RMB, 18.63 million RMB and 53.19 million RMB, accounting for 54%, 27% and 24% of the Total Revenue. The fast received payments making the cash flow better the other companies that have applied for listing.
According to the prospectus, the top five customers of Zhizhen New Energy accounted for more than 94% of the revenue, among which Shanghai Hydrogen Propulsion Technology Co., Ltd. (SHPT) is the largest customer of Zhizhen New Energy. 48.1% of the revenue come from SHPT, reaching 107 million RMB. SHPT opened the new factory in 2021, the production capacity of fuel cell systems and fuel cell stacks reached 6,000 units, while the capacity utilization rate of SHPT fuel cell stack and fuel cell system achieved 22.53% and 11.52%. As the second largest customer of Zhizhen New Energy, Shang H-RISE New Energy Technology Co., Ltd. contributes 26.1% of the total revenue in 2021. SHPT and H-RISE contributed a total of nearly 166 million RMB revenue, while the total revenue of Zhizhen New Energy in the year 2021 reached 223 million RMB. The purchase order form SHPT and H-RISE also enabled Zhizhen New Energy to meet the listing requirements operating income of more than 200 million RMB in the past one year. SAIC, the parent company of SHPT indirectly holds nearly 9% of the shares of Zhizhen New Energy.
Zhizhen New Energy chose to apply for exemption disclosure in response to the requirements by Shanghai Stock Exchange of sold bipolar plate to SHPT, H-RISE, FTXT and Sun Rise Power, as well as the stack production of the corresponding customer companies.