two ipos terminated in one week, and the independence of xingfu electronics, which is about to go to the meeting, is questioned
2024-09-24
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from september 16 to september 22 (that week), two companies on the shanghai, shenzhen and beijing exchanges updated their inquiries and responses, one company submitted its registration application, two companies planning to go public whose registrations had taken effect updated their status, two companies terminated their review, and one company disclosed that it would be reviewed at the board meeting next week.
during the week, only two companies planning to go public on the shenzhen stock exchange terminated their review, while no company on the shanghai stock exchange or the beijing stock exchange terminated their review. among these two companies, luoyang zhongchao new materials co., ltd. (hereinafter referred to as "zhongchao") has failed in its four attempts to go public in eight years, while the ninth design and research institute of the machinery industry co., ltd. (hereinafter referred to as "ninth design and research institute of the machinery industry") withdrew its application more than a year after it was approved, and its related transactions with faw group have attracted market attention.
hubei xingfu electronic materials co., ltd. (hereinafter referred to as "xingfu electronics"), which has applied for listing on the science and technology innovation board, will be reviewed at the board meeting on september 27. the company's independence has been questioned.
xingfu electronics will go to the board meeting on september 27, and its independence is questioned
during the week, only one company planning to go public updated its status on the shanghai stock exchange. on september 20, the shanghai stock exchange disclosed that xingfu electronics would be reviewed on september 27.
the company's ipo application was accepted on may 9, 2023, entered the inquiry stage on june 3 of the same year, and disclosed the response to the second round of inquiry letters in early september this year.
as an independent listing platform for electronic chemicals spun off from xingfa group, xingfu electronics has a high degree of related-party transactions with its controlling shareholder xingfa group, and the company's listing independence has been questioned. the exchange inquired about related-party transactions in both inquiries.
according to the application materials, during the reporting period (2020-2022), xingfu electronics purchased ordinary yellow phosphorus from xingfa group and its subsidiaries, and the relevant major recurring purchase amounts during the reporting period were 117 million yuan, 198 million yuan and 191 million yuan respectively. in this regard, in the first round of inquiries, the exchange asked xingfu electronics to explain the necessity and rationality of related transactions with xingfa group and whether xingfu electronics was dependent on xingfa group.
in the second inquiry, the exchange also required xingfu electronics to comprehensively sort out the company's various related transactions and analyze the necessity and rationality of related transactions. in combination with the changes in the amount and proportion of various related transactions during the reporting period and the company's future plans, the exchange also required xingfu electronics to analyze the company's future related transaction amounts and proportions. changes in the trend, specific measures to reduce related transactions with controlling shareholders and actual controllers in the future, whether related transactions affect the independence of the issuer and whether it constitutes dependence on the controlling shareholder or actual controller, and whether there is a situation of mutual benefit transfer with related parties based on the fairness of the related transaction prices.
in the shenzhen stock exchange, two companies that had registered and were planning to go public updated their status that week. among them, beijing boco test system co., ltd. was registered and became effective on september 18. the exchange disclosed the registration approval of wuhan gangdi technology co., ltd., which was registered and became effective on august 23. in addition, the shenzhen stock exchange also had two companies that were planning to go public terminate their review due to withdrawal of orders, namely zhongchao co., ltd. and the ninth institute of machinery.
on the beijing stock exchange, one company submitted its registration application, and two companies updated their inquiries and responses. on september 20, hefei kobail new materials co., ltd. submitted its registration application, and the company was approved at the meeting on august 23 this year.
on the same day, hangzhou sannai environmental protection technology co., ltd.'s response to the third round of inquiries was disclosed; wenzhou juxing technology co., ltd. updated the financial data of the first two rounds of responses.
two orders terminated: zhongchao shares attempted ipo four times in eight years, and the ninth institute of machinery withdrew its order after more than a year of approval
among the two companies that had their ipo review terminated, china super holdings has attempted ipo four times in eight years, but all ended in failure.
zhongchao shares first conducted ipo counseling filing in 2016, but it was terminated a few months later. in 2019, zhongchao shares applied for the growth enterprise market, and the ipo application was accepted by the china securities regulatory commission on june 25, 2019. later, it considered withdrawing the application and completing the equity incentive before applying for the science and technology innovation board. in august of that year, the company's ipo application was terminated for review.
in 2020, zhongchao co., ltd. switched to the science and technology innovation board, and its ipo application was accepted in october of that year. however, since 2021, the china securities regulatory commission and the exchange have further reiterated the positioning of the science and technology innovation board and strictly controlled it. after careful evaluation by zhongchao co., ltd. and the sponsor, it was considered that the company's scientific and technological innovation attributes were not prominent enough. in the end, zhongchao co., ltd. decided to withdraw its listing application on january 20, 2021.
in 2023, china super holdings once again sprinted towards the science and technology innovation board. its ipo application was accepted on june 6 of that year, and it entered the inquiry stage on june 30. it responded to two rounds of inquiries. the exchange has issued a third round of review inquiry letters, but has not yet responded. finally, the review was terminated on september 20 this year due to the withdrawal of the order.
zhongchao co., ltd. is an enterprise engaged in the research and development, production and sales of advanced inorganic non-metallic materials. its main business products include ultrafine aluminum hydroxide, special alumina, boehmite, etc. among them, the main operating income and operating profit come from ultrafine aluminum hydroxide products, and the revenue share of this product in 2023 is 89.02%.
the company is at risk of a decline in product gross profit margin. from 2021 to 2023, the company's main business gross profit margin was 30.72%, 27.70% and 25.84% respectively. "in the first half of 2024, the market price of the company's main raw material, industrial-grade aluminum hydroxide, showed an upward trend, resulting in an increase in the unit raw material cost of the company's ultra-fine aluminum hydroxide products and a further decline in gross profit margin," said zhongchao co., ltd.
according to the inquiry letter, the growth and innovation of zhongchao shares have attracted the attention of the exchange. the exchange requires zhongchao shares to explain the necessity of large-scale expansion of zhongchao shares and companies in the same industry, whether there are risks of intensified competition and overcapacity, and whether the inorganic coating material business has growth and innovation, based on the current downstream applications and market space of ultrafine aluminum hydroxide and market supply and demand data.
another company whose review was terminated was the ninth institute of mechanical engineering, which withdrew its order more than a year after passing the review.
the main business of the ninth institute of machinery is smart factory epc, comprehensive solutions for smart equipment and consulting and design services. according to the prospectus, the company has risks such as a high proportion of related sales and a high customer concentration.
since the ninth institute of machinery was once a wholly-owned subsidiary of faw group, it has a relatively close business relationship with faw group. during the reporting period (2019-2021 and the first half of 2022), the amount of related sales to faw group accounted for 68.20%, 49.30%, 44.37% and 13.51% of the operating income respectively.
"during the reporting period, the proportion of the company's related-party transactions, especially the proportion of related-party transactions with faw group, gradually decreased, but faw group's business still has an important impact on the company. if there are major adverse changes in the business cooperation between the company and its related parties, especially faw group, it will have an adverse impact on the company's profitability." said the 9th institute of machinery.
in addition, the company's high dividend ratio was also questioned. it has paid high cash dividends for three consecutive years and is planning to go public to raise funds to supplement its working capital. during the on-site inquiry at the meeting, the listing committee asked the company to explain the necessity and rationality of the high cash dividend ratio.
(this article comes from china business network)
