■ Financial Investment News reporter Lin Ke Mapping Qing Zixiu
With the continuous increase of capital market regulatory policies, the threshold for enterprises to go public has been raised, and the issuance of A-share new shares has pressed the deceleration button.
Standing at the current point in time, in the first half of the year, the IPO market was much quieter than in previous years. According to statistics, in the first half of the year, a total of 44 new shares of A-shares were successfully listed, raising a total of about 32.478 billion yuan, while in the same period last year, a total of 173 new shares were listed, with a total financing of 209.677 billion yuan. With the introduction of the new "National Nine Articles" and the continuous promotion of strict supervision, the number of entrepreneurs who terminated the audit reached 280 in the first half of the year, doubling year-on-year.
The number of entrepreneurs who terminated the audit hit a new high in a single month
As of July 1, 2024, there are a total of 517 companies in the A-share IPO queue. Among them, Shenzhen has the largest number of companies queuing for IPO on the main board, reaching 171, accounting for about 33.7% of the total. followed by the GEM, with 131 companies in the queue, accounting for about 25.33% of the total; There are 100, 69 and 46 companies on the Beijing Stock Exchange, the Shanghai Main Board and the Science and Technology Innovation Board, respectively. According to the review progress, more than 200 companies planning to IPO are in the inquiry stage, accounting for more than 40% of the total.
Although there are still more than 500 companies in the IPO queue, this has decreased significantly compared to the end of 2023. As of July 1, 280 companies have terminated IPO review on the three major exchanges in Shanghai, Shenzhen and North China in 2024, far exceeding the 122 in the first half of 2023, and the number of entrepreneurs terminated for review has doubled year-on-year and hit a record high. In terms of a single month, from January to May this year, the number of companies terminated by the three major exchanges was 33, 20, 33, 45 and 46 respectively. In June, the number hit a record monthly high of 103.
Why are more and more companies to be listed falling in front of the A-share gate, and the number of companies withdrawing their listing applications has also increased significantly? The reasons are, on the one hand, related to the increase in the entry threshold for listing; On the other hand, it is related to strict regulatory policies such as "reporting is responsible".
From a policy perspective, on March 15, the China Securities Regulatory Commission (CSRC) issued and implemented the "Regulations on On-site Inspection of Initial Public Offering Enterprises". The China Securities Regulatory Commission said that it will greatly increase the proportion of on-site inspections, expand coverage, and severely punish the clues of fraudulent issuance and financial fraud found in the on-site inspections once verified, practice the investor-oriented regulatory concept with thunderous means, tighten and consolidate the responsibilities of all parties, effectively improve the regulatory efficiency of issuance and listing, and improve the quality of listed companies from the source.
On April 12, the new "National Nine Articles" were released, and the standards for new stock listings became stricter.
On April 30, the Shenzhen Stock Exchange and the Shanghai Stock Exchange respectively issued revised business rules such as the Stock Listing Rules and the Stock Issuance and Listing Review Rules to further clarify the positioning and listing requirements of each sector.
A few days ago, in order to strictly control the import, smooth the export, promote dividends, further improve the quality and investment value of listed companies, and protect the legitimate rights and interests of investors, judging from the significant increase in the number of enterprises terminated for review in a single month, the power of the new listing regulations is emerging and continues to be released.
Interviewed by a reporter from the Financial Investment News, a brokerage analyst said: "With the deepening of strict supervision, the management continues to increase the review of IPOs, and a new ecology of the A-share IPO market has gradually formed. Overall, the impact of strict regulation on the IPO market is multifaceted, including raising the listing threshold, strengthening supervision, optimizing the market ecology, affecting the pace of new stock issuance, and promoting market reform. These changes will help improve the overall quality and development level of the capital market, and create a healthier and more stable investment environment for investors. Although it will lead to a slowdown in the pace of IPOs in the short term, in the long run, it will help improve the overall quality of listed companies. ”
The listing process of three Sichuan enterprises has been smoothly promoted
At present, there are 9 companies in Sichuan Province that are still in the listing queue process. The review progress of three Sichuan enterprises, including Chengdu Great Wall Development Technology Co., Ltd. (hereinafter referred to as "Development Technology"), Sichuan Southwest Jiaotong University Railway Development Co., Ltd. (hereinafter referred to as "Jiaotong University Tiefa"), and Chengdu Dexin Digital Technology Co., Ltd. (hereinafter referred to as "Dexin Technology"), is in the stage of inquiry and acceptance.
The reporter of the Financial Investment News found that the development of science and technology is the Sichuan enterprise that has gone the furthest in the listing process. Since the initial application was accepted on December 12, 2023, on June 21, 2024, Development Technology has replied to the second round of inquiries from the Beijing Stock Exchange. According to the application draft, Kaifa Technology is one of the earliest companies in the world to participate in the research and development and deployment of smart meters. Since 1998, the company has cooperated with ENEL, the Italian national power company, to carry out the research and development and large-scale deployment of the world's first generation smart meter project with automatic meter reading function. For more than 20 years, the company has taken the European market, which is the forefront of global smart metering technology, as a starting point, and responded to the call of the state to encourage intelligent manufacturing equipment to "go global", and successfully promoted about 84 million sets of "Made in China" smart metering terminals to more than 40 countries around the world, mainly developed countries in Europe.
In terms of operating performance, in the first three quarters of 20023, the operating income of Development Technology was 1.873 billion yuan, a year-on-year increase of 56.91%; net profit was 365 million yuan, a year-on-year increase of 355.98%. In terms of R&D, the company continues to increase investment, and has been at the forefront of global smart metering technology for many years, providing customers with industry-leading products and services with strong technical strength. As of the end of the reporting period, the company had 135 patents, including 38 invention patents.
With years of technology accumulation and precipitation to serve the markets of developed countries, the development of science and technology has formed a rich reserve of platform design solutions, which can achieve fast and efficient design and delivery in the face of differentiated product needs in different downstream countries or regions, and the market response speed has been greatly improved. The company's products can be adapted to more than 30 mainstream manufacturers around the world for electricity, water and gas meters, AMI system software and other products, and can collect and transmit various energy data such as electricity, water and gas, with deep product integration capabilities.
As a recently accepted company, Dexin Technology disclosed a series of documents such as prospectus, issuance sponsorship, and listing sponsorship on June 28. From 2021 to 2023, the company achieved operating income of 263.13 million yuan, 334.6292 million yuan and 411.023 million yuan respectively, and the net profit attributable to the owners of the parent company after deducting non-recurring profits and losses in each period was 80.8226 million yuan, 99.7042 million yuan and 125.5583 million yuan respectively, showing a continuous growth trend in net profit.
Dexin Technology plans to issue no more than 20 million shares to the public, and the raised funds will be invested in three projects: the technical transformation and construction of the headquarters production base, the construction of the marketing network, and the upgrading and construction of the technology research and development center.
Dexin Technology said that the fundraising project will carry out intelligent transformation and upgrading of the headquarters production base, so as to effectively enhance the company's independent testing capabilities and improve the level of intelligent manufacturing. At the same time, the company's existing marketing service network will be upgraded and improved as a whole to improve the company's business expansion ability and market competitiveness.
Six "suspended" audits of Sichuan enterprises or made a comeback
Unlike the above three Sichuan enterprises that are waiting in line to enter the next stage, Chengdu Jiachi Electronic Technology Co., Ltd. (hereinafter referred to as "Jiachi Technology"), Sichuan 6912 Communication Technology Co., Ltd. (hereinafter referred to as "6912"), Sichuan Ovant Bioengineering Co., Ltd. (hereinafter referred to as "Ovant"), Chengdu Wanchuang Technology Co., Ltd. (hereinafter referred to as "Wanchuang Technology"), Sichuan Fengsheng Paper Technology Co., Ltd. (hereinafter referred to as "Fengsheng Co., Ltd."), Chengdu Ruisi Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Rise"Ruisi Environmental Protection") and other 6 Sichuan enterprises, due to various reasons, the audit is in the "suspension" stage.
It is worth mentioning that this "suspension" is not a "termination", once the conditions are met, it will be a high probability event for these companies to re-sprint to A-shares. From the perspective of Jiachi Technology, which is expected to raise the highest amount of funds among the above six companies, the suspension of its listing application is not due to its own reasons, but the sponsor hired by the company has been taken by the China Securities Regulatory Commission to restrict its business activities, and its issuance and registration procedures have been suspended in accordance with relevant regulations. It is reported that the listing sponsor of Jiachi Technology was suspended by the Jiangsu Securities Regulatory Bureau for 6 months due to the Jin Tongling fraud case.
As early as 2022, Jiachi Technology, which has already applied for an IPO, has had many twists and turns on its way to listing. After the company declared in June 2022, the issuance review was suspended on September 30 of the same year due to the expiration of financial information. At the end of 2022, the company updated its financial information and resumed the queue, which was approved at the meeting on June 19, 2023. On March 22, 2024, the registration process was submitted, but due to the sponsor, it will take time for the company to resume listing review.
From a fundamental point of view, from 2020 to 2023, Jiachi Technology will achieve revenue of 279 million yuan, 530 million yuan, 769 million yuan and 981 million yuan respectively, with growth rates of 89.9%, 45.04% and 27.55% in the past three years; The net profit attributable to the parent company in each period was -13.6907 million yuan, 316 million yuan, 484 million yuan and 564 million yuan respectively, and the growth rate in the last three years was 2404.58%, 53.43% and 16.45% respectively.
From the perspective of the amount of funds raised, Jiachi Technology is the only one among the suspended Sichuan enterprises that has raised more than 1 billion yuan, and plans to use the raised investment funds of 1.244 billion yuan to invest in three projects.
In addition to the suspension of the audit due to non-self-reasons, the expiration of financial data is a "common problem" of the audit suspension of most enterprises.
According to public information, on March 31, 2024, Vantron Technology suspended the pace of the IPO because the financial information recorded in the IPO application documents had expired and needed to be supplemented.
Judging from the latest disclosure of the last draft, Vantron Technology is a high-tech enterprise that provides customers with Internet of Things communication and control products, including Internet of Things gateways, mobile communication terminals and other Internet of Things communication equipment and Internet of Things control equipment. The company has seized the opportunity of the rapid development of the global Internet of Things and embedded computers with leading embedded technology, and has a wide range of customer bases in the fields of intelligent manufacturing (industrial Internet), smart buildings, smart sports equipment, smart prisons, etc., forming a high brand awareness.
■ Reporter's observation
The number of high-quality IPO companies will increase under the new "National Nine Articles".
Financial Investment News reporter Lin Ke
In the past few years, although the IPO market has maintained a rapid growth momentum, it has also exposed some problems, such as the low quality of some listed companies, the lack of transparency in information disclosure, and even the occurrence of fraudulent listings. In the context of strengthening supervision, relevant policies have been introduced since the beginning of this year to help the high-quality development of the IPO market.
Following the first two "National Nine Articles" in 2004 and 2014, in 2024, the capital market will usher in the third "National Nine Articles". Each round of institutional reform will play an important leading role in the capital market. The "Nine Articles" were promulgated in the context of strengthening investor protection, promoting market fairness, and enhancing the internal stability of the market.
The new "National Nine Articles" clearly state that it is necessary to "improve the listing standards of the main board and the growth enterprise board", and "improve the evaluation standards for the scientific and technological innovation attributes of the science and technology innovation board". This move means that the entry threshold for the IPO market will be raised in the future, and the quality requirements for listed companies will be more stringent. The reform of China's capital market has also entered a new stage of development after the promulgation of the new "National Nine Articles".
As an important part of the capital market, the IPO market will be profoundly affected by the new "National Nine Measures". Affected by the continuous tightening of supervision, as of now, 280 companies have terminated the IPO review of the three major exchanges in Shanghai, Shenzhen and North this year, far exceeding the 122 in the first half of 2023. With the successive introduction of relevant policies, it will undoubtedly have a far-reaching impact on the IPO market and promote the development of the market in a more standardized, transparent and efficient direction.
As an ordinary investor, not everyone has the ability to find the "pit" left by the company from the hundreds of pages of prospectus, and the regulator's increased supervision of the early stage of the IPO will help screen out high-quality companies with real development potential and investment value, and reduce the phenomenon of indiscriminate filling in the market.
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