？ 16 Nov 2020 1 China STAR Market Weekly: The first 4 STAR Market 50ETFs will be listed this week, STAR Market investment ushered in a new era 195 4 No. of Companies Listed Last Week This weekly report is available on as of 13 Nov Thomson Reuter Research Bank, Bloomberg, Standard & Poors' Capital IQ, Dow Jones Factiva, Proquest, 1,436.9 0.32% FactSet and other licensed trading ▲ STAR 50 Index Weekly platforms and terminals. For enquiry, please email to [email protected] 146.7 bln 8.40% Contents Weekly Turnover (RMB) Weekly ▲ Industry News Highlights Company Announcements Companies Registered on STAR Market - No. of Companies Registered on 42.9 bln 1.66% STAR Market by Industry & Region Margin Financing & Securities Weekly ▲ Lending (RMB) R&D Investment - Performance by Industry - R&D Investment Ranking STAR Market vs Global Tech Indices Margin Financing & Securities Lending 10% - Margin Financing & Securities Lending of A-shares - Margin Financing & Securities Lending of STAR Market 0% STAR Market Stocks' PE vs Comparables Weekly Shares Performance & Financial -10% Announcement 8/21 8/28 9/4 9/11 9/18 9/25 10/2 10/9 10/16 10/23 10/30 11/6 11/13 Applicants’ Status NASDAQ KOSDAQ JASDAQ FTSE techMARK 100 STAR Market Data source: China Knowledge, SSE Notes: STAR - Science Technology Innovation Board; We choose STAR 50 index to represent STAR Market. Tech Sectors’ PE in Major Markets STAR Market KR China Helpdesk: GB Michael Lee Email: [email protected] TEL: (86) 21 8033 6883 US Global Distribution: Ted Worley Email: [email protected] 0 20 40 60 80 100 120 Data source: China Knowledge, SSE China STAR Market 1 16 Nov 2020 1 Company Announcement • Nov 13 – The SSE announced that the IPO application of Hangzhou Kelin Electric Co., Ltd. is passed. This time, Kelin Electric plans to publicly issue no more than 13.975 million new shares, and plans to raise RMB 513 million. Kelin Electric was established in 2002. The company is based in the field of smart grids, focusing on the construction of control devices and platforms for the health of electrical equipment. Customers mainly include State Grid and its subsidiaries and companies engaged in power system -related businesses. The prospectus shows that in the daily use and operation of electrical equipment, factors such as load, internal stress, wear, corrosion, and insulation aging will reduce the reliability of electrical equipment. The intelligent sensing and diagnostic early warning device for electrical equipment independently developed by Kelin Electric is mainly composed of two parts: intelligent sensors and a digital platform to track the development of various degradation processes, and realize intelligent diagnosis and scientific early warning of electrical equipment. • Nov 12 - The IPO review status of Huahai Technology Co., Ltd. on the STAR Market was changed to "inquired". The company plans to raise RMB 1 billion. Huahai Technology is a high-end semiconductor equipment manufacturer with core independent intellectual property rights. It is mainly engaged in the R&D, production, sales and technical services of semiconductor special equipment. Its main products are chemical mechanical polishing (CMP) equipment. The company launched the first domestic 12 - inch CMP equipment with core independent intellectual property rights and realized mass production and sales. It is currently the only domestic high -end semiconductor equipment manufacturer that provides 12-inch CMP commercial models for integrated circuit manufacturers. As of Sep 30, 2020, the company has 147 domestic and foreign authorized patents, including 88 invention patents, 59 utility model patents, and 5 software copyrights. The company has shipped 43 CMP equipment and has 26 orders in hand. • Nov 11 - The SSE accepted the IPO application of Zhuhai Guanyu Battery Co., Ltd. on the STAR Market. Zhuhai Guanyu plans to issue no more than 158 million shares this time, and plans to raise about RMB 3.249 billion for the Zhuhai polymer lithium battery production base construction project, Chongqing lithium battery cell packaging production line project, R&D center upgrade construction project and supplementary flow Funding projects. Zhuhai Guanyu was founded in 2007, the company is headquartered in Zhuhai, and has production bases in Chongqing and India. Zhuhai Guanyu is mainly engaged in the research and development, production and sales of consumer polymer soft-pack lithium-ion batteries, as well as power lithium-ion batteries. The company's main products are polymer soft-packed lithium-ion batteries, which have the advantages of high energy density, long cycle life, safety and reliability. Among them, consumer lithium-ion battery products are the main source of Zhuhai Guanyu's income. China STAR Market 2 16 Nov 2020 1 Companies Registered on STAR Market No. of Companies Registered on STAR Market by Industry As of 13 Nov, 456 companies had applied in the STAR Market, of which 197 had started trading. Most of these companies are engaged in IT, biotech, high-end equipment manufacturing and new materials. NO. OF COMPANIES ISSUED NO. OF COMPANIES UNISSUED （197） （259） High-end Equipment Manufacturing Energy Saving and Environmental Protection Biotechnology Other Services New Materials Electric Vehicles Information Technology New Energy Data source: China Knowledge, SSE No. of Companies Registered on STAR Market by Region The companies in STAR Market are mainly concentrated in Beijing, Guangdong, Jiangsu, Shanghai and Zhejiang. There are fewer in northeast, northwest, southwest and central China. 80 70 60 50 40 30 20 10 0 Data source: China Knowledge, SSE China STAR Market 3 16 Nov 2020 1 R&D Investment - 2019 Performance by Industry In terms of R&D investment, except for Electric Vehicles industry which respectively includes three companies, the Median R & D investment of Information technology industry surpassed the Biological industry to become the highest. From the perspective of R&D to revenue ratio, Biotechnology industry is the top of list with 23.84%. Bio-Thera Solution (688177), Junshi Bioscience (688180), Cambricon (688256) and Sinocelltech (688520) reported their R&D investments contributing more than 100% of revenue. R&D Investment RMB mln % 70 60 54 50 40 18 30 20 6 10 0 2 Information Electric Vehicles New energy New Materials Biotechnology Energy Saving and High-end Equipment Technology Environmental Manufacturing Protection R&D Investment % of Revenue Data source: China Knowledge, SSE Note: R&D Investment = median of R&D investment of all companies in that industry. R&D Investment to Revenue Ratio = total R&D investment of companies in each industry / total revenue R&D Investment Ranking R&D Invest % of R&D Rank Stock Code Company Name % of Employee Industry (RMB Revenue Personnel mln) 1 688981.SH SMIC 4,744.46 21.55 2,530 16 Information Technology Qi An Xin Technology 2 688561.SH 1,047.10 33.20 2,591 38 Information Technology Group Inc. Energy Saving and 3 688599.SH Trina Solar Co., Ltd. 859.74 6.85 571 4 Environmental Protection Shanghai Junshi 4 688180.SH 708.91 123.30 526 28 Biotechnology Biosciences Co.,Ltd. China Railway Signal & 5 688009.SH 510.17 4.09 4,216 21 Information Technology Communication Verisilicon Microelectronics 6 688521.SH 425.07 31.72 789 84 Information Technology (Shanghai) Co., Ltd. SHENZHEN TRANSSION 7 688036.SH 424.38 3.07 1,602 10 Information Technology HOLDINGS CO., LTD. High-end Equipment 8 689009.SH Ninebot Limited 317.09 6.91 1,004 42 Manufacturing Beijing Kingsoft Office 9 688111.SH 306.49 33.47 1,547 65 Information Technology Software, Inc. 10 688520.SH Sinocelltech Group Limited 289.08 176177.45 748 87 Biotechnology Cambricon Technologies 11 688256.SH 277.39 318.10 794 75 Information Technology Corporation Limited InfoVision Optoelectronics( 12 688055.SH 261.10 6.78 458 13 Information Technology Kunshan) Co., Ltd. Amlogic (Shanghai) 13 688099.SH 260.89 27.61 712 79 Information Technology Co.,Ltd. 14 688177.SH Bio-Thera Solutions, Ltd. 244.59 501.35 249 33 Biotechnology China Resources 15 688396.SH 227.07 7.41 684 9 Information Technology Microelectronics Limited Data source: China Knowledge, SSE China STAR Market 4 16 Nov 2020 1 Margin Financing & Securities Lending Margin Financing & Securities Lending of A-shares (as of 13 Nov) The scale of margin financing and securities lending showed an upward trend last week. As of 13 Nov, securities lending accounted for 7.26%. Margin Financing Securities Lending Securities Lending Ratio RMB bln 1,800 8% 1,600 7% 1,400 6% 1,200 5% 1,000 4% 800 3% 600 2% 400 200 1% 0 0% Data source: China Knowledge, SSE Margin Financing & Securities Lending of STAR Market (as of 13 Nov) As of 13 Nov, the net balance of margin financing and securities lending stood at RMB 42.9 bln, including RMB 31.3 bln margin financing and RMB 11.59 bln securities lending.The amount of securities lending of SHANGHAI FRIENDESS (688188) , TITAN SCIENTIFIC (688133) , NINEBOT (689009 ), CAMBRICON (688256) , LEADYO (688135) exceeded margin financing. RMB mln Margin Financing Securities Lending 900 800 700 600 500 400 300 200 100 0 Data source: China Knowledge, SSE Data source: China Knowledge, SSE China STAR Market 5 16 Nov 2020 1 Shares Performance (13 Nov vs 6 Nov) & Q3 2020 Financial Announcement Stock % Closing Revenue Revenue Net Profit Net Profit Company Name Code Change Price (RMB mln) YoY (%) (RMB mln) YoY (%) 688133 TITAN SCIENTIFIC 24.6 97.2 904.1 40.0 50.8 63.1 688179 ALADDIN 21.8 57.9 159.9 31.7 48.2 61.2 688127 LANTE OPTICS