Shenzhen Megachips Co., Ltd. (hereinafter referred to as the "Issuer") will implement its initial public offering of no more than 56 million shares of Renminbi ordinary stock (A-shares) through the trading system of the Shenzhen Stock Exchange and the electronic platform for offline issuance on May 31, 2010. The Issuer and the sponsor (lead underwriter) specially request investors to pay attention to the following contents:
10. This special announcement of investment risks does not guarantee the disclosure of all investment risks associated with this offering. Investors are advised to fully understand the characteristics and various risks inherent in the securities market, rationally evaluate their own risk-bearing capacity, and independently decide whether to participate in the subscription of this offering based on their own economic strength and investment experience.
6. For this offering subscription, any allocation object can only choose one method of either offline or online for subscription. All allocation objects participating in the offline quotation, subscription, and allocation cannot participate in the online subscription. An individual investor can only use one qualified account for subscription; any subscription contrary to these regulations will be considered invalid.
2. Investors intending to participate in this offering subscription must carefully read the Summary of the Prospectus Intention for the Initial Public Offering of Shares by Shenzhen Megachips Co., Ltd., published on May 21, 2010, in the China Securities News, Securities Times, Shanghai Securities News, and Securities Daily, as well as the full prospectus intention on the Juchao website (www.cninfo.com.cn), especially the sections on "Special Risk Warning" and "Risk Factors." Fully understand the various risk factors of the issuer, independently determine its operating status and investment value, and prudently make an investment decision. The issuer's operating status may change due to political, economic, industry, and management level influences, and the resulting investment risks should be borne by the investors themselves.
8. After the completion of this offering, it needs to be approved by the exchange before it can be publicly traded on the exchange. If approval is not obtained, the shares issued in this offering will not be listed, and the issuer will return the subscription funds to the participating online investors at the issue price plus bank interest for the same period.
5. All shares of the issuer are tradable shares. The shares issued in this offering and the shares allocated online have lock-up periods, which are detailed in the prospectus intention. These lock-up arrangements are voluntary commitments made according to relevant laws and regulations for the need of corporate governance and operational stability.
Issuer: Shenzhen Megachips Co., Ltd.
Sponsor (Lead Underwriter): Guosen Securities Co., Ltd.
9. The issuer and the sponsor (lead underwriter) earnestly request investors to pay attention: Investors should adhere to the concept of value investment when participating in this offering subscription. We hope that investors who recognize the investment value of the issuer and wish to share in the growth results of the issuer participate in the subscription. Any investor who doubts that the issuer is purely "raising money" should avoid participating in the subscription.
4. Newly listed stocks in recent periods have been affected by market trends and have not appeared above the issue price. Regulatory authorities, issuers, and sponsors (lead underwriters) cannot guarantee that the stock will not fall below the issue price after listing. Investors should fully pay attention to the risk factors contained in pricing marketization, know that the stock may fall below the issue price after listing, truly enhance risk awareness, strengthen the concept of value investment, and avoid blind speculation.
3. This offering follows the principle of market-oriented pricing. In the preliminary inquiry stage, institutional investors quote prices based on their real subscription intentions. The issuer and the sponsor (lead underwriter) determine the offering price of this offering after comprehensively considering factors such as the basic situation of the issuer, future growth potential, and underwriting risks. The P/E ratio corresponding to this offering price may exceed the average P/E ratio level of comparable listed companies. Any investor participating in the offline subscription is deemed to have accepted the current offering price. If investors do not agree with the pricing method and offering price of this offering, it is suggested that they do not participate in this subscription.
7. If the capital raising of this offering is successful, the actual amount of funds raised by the issuer will exceed the amount required for the projects disclosed in the prospectus intention. Regarding the use of this part of the funds, the issuer has only made an initial disclosure in the prospectus intention. Although the issuer has established internal control systems for the storage, use, and management of the raised funds and will strictly comply with relevant regulations to standardize the use of the raised funds and improve the efficiency of fund utilization, improper use of funds may adversely affect the profitability of the issuer. Please pay attention to the risk of small-scale fundraising dispersion of the issuer.
1. Any decision or opinion made by the China Securities Regulatory Commission or other government departments regarding this offering does not indicate their substantive judgment or guarantee of the investment value or harm to investors' interests of the issuer's stock. Any statement to the contrary is false and misleading.