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On August 14, Liu Jingkang, founder of Insta360, posted a message on WeChat Moments about the company.IPOHe said: "After the on-site inspection in 2022, the company did not receive any regulatory dissuasion. I do not ask for approval, but only for fair characterization, so as not to hurt the 2,000 post-90s who really want to let the world know about China's smart manufacturing and technological rise through technology."

Nandu Wancaishe reporter also contacted Insta360 for information. As of press time, the company has not responded.

According to public information, Insta360 was founded in 2015 and is headquartered in Shenzhen. It is a world-renowned smart imaging brand based on panoramic technology. According to Frost & Sullivan data, Insta360 has been the world's largest panoramic camera market for five consecutive years, with a market share of over 50%. It has also defeated many European and American giants in the sports camera market, and its market share ranks among the top two in the world.

Founder Liu Jingkang: No approval required, only fair judgment

Despite the rapid development of the company, Insta360's listing process has encountered setbacks under the current background of strict IPO access control by regulatory authorities. Judging from Liu Jingkang's WeChat Moments, he seems to feel aggrieved about being "accidentally injured". Liu Jingkang said: "People are the product of the environment. In the context of the A-share downturn and financial anti-corruption, the China Securities Regulatory Commission is worried about mis-releasing problematic companies. I understand this very well and have no complaints. But I would also like to clarify our situation. If there is anything that is not true, I will voluntarily resign."

Liu Jingkang also said that now his monthly salary is basically used to pay interest, and the interest is seven figures a year. In addition, since equity incentives cannot be made during the IPO period, the company will give an additional $3 million in annual bonuses to core talents. "Compared to profits, a technology company has nothing without talent." He mentioned that the company has been established for 9 years and has accumulated profits of 10 figures, but no dividends.

Liu Jingkang is also confident about the company's development. He said that the company's performance is good, and it has grown four times in the four years since the IPO application. From only 1/40 of the industry leader GoPro in 2017, it has surpassed GoPro in the first half of this year. At the same time, excluding this year's growth, the company's performance last year rankedScience and Technology Innovation BoardandGEMThe company is also a "small giant" enterprise and a champion in a single category. In terms of exports, the company earns US$400 million in foreign exchange a year and pays nine figures in local taxes a year.

In September 2021, Insta360 was selected as a national-level "little giant" enterprise with special expertise and innovation, and won the national manufacturing champion in the same year. It is a well-deserved "little giant" in the field of panoramic sports cameras, and is even called "the pride of domestic products" by consumers. This young company, founded in 2015, took only 7 years.

The rapid development of Insta360 has also aroused the fear of American sports camera GoPro, which has accused Shenzhen Insta360 of patent infringement and applied for a 337 investigation. In the domestic market, DJI also launched Osmo Action in 2019 to enter the sports camera market. At present, DJI's latest generation of product Osmo Pocket 3 pocket gimbal camera is in short supply and has become a strong competitor of Insta360.

The China Securities Regulatory Commission inquired about indirect shareholders, who is Chen Bin?

Nandu.com reporter noted that after Insta360 submitted its registration application, the China Securities Regulatory Commission had launched inquiries into three aspects: revenue growth, share-based payments, and marketing expenses. It also asked for additional information on indirect shareholder Chen Bin. Insta360 did not mention Chen Bin in the four updated prospectuses and the responses to the four rounds of inquiries from the Shanghai Stock Exchange.

Public information shows that Chen Bin was born in October 1970. He worked at the Shenzhen Stock Exchange and served as a senior manager, assistant director of the comprehensive research institute, and deputy director of the research institute. He was also seconded to the issuance department and listed company department of the China Securities Regulatory Commission. He has served as the chairman and general manager of Megau Holdings since November 2012.

On May 28, 2021, the CSRC issued the "Guidelines on the Application of Regulatory Rules - Issuance Category No. 2", which clearly stated that intermediaries should conduct verification of the shareholding of resigned personnel in the CSRC system and submit special explanations. The focus is to verify whether the resigned personnel have improper shareholding, including using the influence of their original positions to seek investment opportunities, interest transfer during the shareholding process, shareholding during the prohibited period, shareholding as an unqualified shareholder, and the source of shareholding funds is illegal and irregular.

Insta360's IPO application was accepted on October 28, 2020, less than nine years after Chen Bin left the Shenzhen Stock Exchange in March 2012. According to the Guidelines, Insta360 and its intermediary institutions should submit a special verification report on Chen Bin's investment when submitting the issuance application documents.

Liu Jingkang also clarified that the company had no interest transfer, the sensitive shareholders were not audit positions, and the bid was the highest (50% higher than Shenzhen Capital Group). The investment was not concealed, the "Regulations" were issued half a year after the IPO application, and a special inspection report was submitted to the regulator within one or two months after the "Regulations" were issued, and it was cleared one and a half years ago.

Insta360 also did not disclose information about one of its founders, Chen Jinyao. Chen Jinyao and Liu Jingkang were college roommates and joined Liu Jingkang's entrepreneurial team in 2015. He later left and founded Jiangsu Yingzhi Technology, where he served as CEO and jointly established a laboratory with Yangzhou Public Security Bureau.

Insta360's prospectus did not disclose Chen Jinyao's position in the company, whether he held shares, or whether it constituted competition among peers.

Written by: Nandu Wancaishe reporter Cheng Yang