The Positioning Of Gem And The Attribute Of Scientific And Technological Innovation Have Become The Focus Of The Exchange

On the afternoon of May 17, the official website of Shanghai Stock Exchange showed that two more IPO companies applied for cancellation. Up to now, there have been 10 IPO cancellations in May, which is basically the same as that in April, but slowed down compared with the first quarter.

These enterprises did not disclose the specific reasons for the cancellation. However, according to the 21st century economic report, most of the 10 cancellation enterprises have gone through the exchange inquiry. In addition to the traditional indicators such as the ability to continue operation, the stability of the actual controller, and the rationality of related party transactions, the gross profit rate is abnormally high, the risk of accounts receivable, and The authenticity of financial data and whether it is consistent with the listed sector are the most concerned issues.

All of the 10 cancellation enterprises are enterprises to apply for the science and technology innovation board and the growth enterprise market. What is striking is that whether it is in line with the attributes of the board to be listed has recently become a focus of attention for some enterprises planning to apply for the gem or the science and technology innovation board. For example, Zhixin pharmaceutical, COSCO, Guanlong and Baichuan intelligent have been questioned by the market or the exchange for many times, whether they meet the listing positioning of gem or the requirements of sci tech innovation board. Some enterprises that failed to "answer" this question chose to cancel orders later.

"There are many reasons for taking the initiative to withdraw materials. On the one hand, there are indeed enterprises with poor quality or who do not meet the listing conditions, which stop under repeated regulatory inquiries; on the other hand, the company's information disclosure is not standardized or is not fully prepared." A partner of a private equity firm in South China was interviewed.

10 enterprises withdraw orders

Specifically, the 10 material removal enterprises come from eight major industries, and are distributed in the general equipment manufacturing industry, electrical machinery and equipment manufacturing industry, railway, shipping, aerospace and other transportation equipment manufacturing industry, chemical raw materials and chemical products manufacturing industry, food manufacturing industry, pharmaceutical and biological manufacturing industry, computer, communication and other electronic equipment manufacturing industry and special equipment manufacturing industry.

Among the above-mentioned material withdrawal enterprises, there are 5 declaration enterprises from the science and technology innovation board and the growth enterprise market, with a total planned fund-raising amount of 6.403 billion yuan. Among them, Baichuan intelligent, which plans to raise 1.45 billion yuan of funds, has applied for IPO on September 27, 2020 and applied to withdraw its IPO after replying to the second round of inquiry (May 17), and its sponsor is CITIC Securities.

According to the public data, Baichuan intelligent's main business income mainly comes from rail transit locomotive and rolling stock maintenance equipment, rail transit locomotive and vehicle detection equipment, safety operation control equipment and maintenance services.

According to the financial data of the prospectus (application draft), from 2017 to the first quarter of 2020, Baichuan intelligent achieved business income of 601.2658 million yuan, 722.3219 million yuan, 822.9387 million yuan and

74.4122 million yuan; The net profits attributable to the owners of the parent company were 116.0737 million yuan, 58.6003 million yuan, 220.0759 million yuan and 18.2622 million yuan respectively.

Earlier, Baichuan intelligence was widely questioned by the market due to product structure differences, fluctuations in gross profit margin, R & D expenses far lower than the average of peers, the highest proportion of government subsidies and tax subsidies in total profits of more than 40%, high customer concentration, and existing competitors as suppliers.

It is worth mentioning that among the IPO companies that withdrew their applications this month, there was one company that had already passed the meeting, but the company finally chose to take the initiative to "withdraw". This company is Qiande electronics.

On May 7, Qiande electronics officially terminated its listing examination due to withdrawal of materials, which was only more than three months after Qiande electronics obtained the "pass" of Shenzhen Stock Exchange GEM Listing Committee. On July 10, 2020, Qiande electronics submitted its gem IPO application to Shenzhen Stock Exchange and was accepted. During this period, it went through two rounds of inquiry and successfully held the meeting on January 28, 2021.

According to the public data, Qiande electronics is mainly engaged in the R & D, design, production and sales of precision connectors. Its products are widely used in consumer electronics, automotive electronics and other fields. Its customer groups include apple, Samsung, Xiaomi, vivo, oppo and other top six mobile communication terminal brands in the world.

However, Qiande electronics has been controversial since it was listed. The reporter noted that the municipal Party committee meeting on the gem held two rounds of inquiries on whether Qiande electronics had adjusted profits and where the ultra-high gross profit rate came from.

In addition, the market also questioned Qiande electronics or the existence of concealment of major investment and construction projects. According to the prospectus, the capacity of connector products of Qiande electronics increased greatly during the reporting period. In 2017, the production capacity was only 2.377 billion pieces, and increased to 3.255 billion pieces in 2019. However, during the same period, the number of employees of the company continued to decrease, with 3737 employees in 2017, and 3575 in 2018, and 2905 in 2019.

At the same time, according to Henan construction engineering information network, tiangong.com and other websites, Qiande electronics invested in the construction of "Zhengzhou Qiande Electronic Co., Ltd. annual output of 3 billion precision connectors project" from 2013 to 2016, and the total project investment of the project was as high as 300 million yuan. However, according to the information shown in the prospectus, by the end of 2017, the capacity of Qiande electronic's connector products was only 2.377 billion, which was greatly different from the "3 billion precision connector project" involved in the public information.

"The cancellation of these enterprises also reflects the implementation of the audit concept with information disclosure as the core under the registration system by the regulatory authorities. The key work of IPO audit is to ensure the quality of information disclosure, urge issuers and intermediaries to disclose information truthfully, accurately and completely through audit and inquiry, improve the quality of information disclosure, and effectively prevent non-compliance with issuance conditions "Breaking through the barrier with illness" in terms of listing conditions Shanghai a large securities firm investment banking department pointed out.

The nature of science and technology innovation and the positioning of gem become the focus of inquiry

The reporter of 21st century economic report has observed that recently, whether the IPO companies meet the requirements of listing and issue and plate positioning are becoming the key to the success of IPO companies.

This may be related to the valuation "dividend" enjoyed by gem and Kechuang board. After the registration system reform, the science and technology innovation board and the growth enterprise market have the opportunity to enjoy the valuation higher than that of the main board when issuing new shares. Therefore, some enterprises will be more inclined to be listed on the science and technology innovation board or gem.

Some regulators have made it clear to reporters of the 21st century economic report that the relevant sectors have clear requirements for the industry positioning and negative list of enterprises to be listed. The scale of listing audit has not changed. However, according to the recent inquiries released by some companies to be listed, the focus of the inquiry is on the description of the enterprise's positioning in the industry, whether it conforms to the positioning of the science and technology innovation board, and whether it conforms to the gem's "three innovations and four innovations".

For example, Baichuan intelligent has invested 7.18%, 5.27%, 3.59% and 6.41% of its operating revenue in the past three years, which is lower than the average level of comparable companies in the same industry. The financial index of the Listing Rules of the science and technology innovation board clearly requires that "the proportion of R & D investment in the operating revenue of the same period in recent three years shall not be less than 15%". Although Baichuan intelligent has just passed the line, its scientific and technological innovation attribute has been questioned by the market.

And Zhixin Pharmaceutical Co., Ltd., an enterprise applying for gem withdrawal a week ago, has twice become the focus of Shenzhen Stock Exchange's audit whether it conforms to the gem positioning.

Shenzhen Stock Exchange pointed out that the application documents showed that the innovation, creation and creative characteristics of Zhixin pharmaceutical industry, scientific and technological innovation, mode innovation, format innovation and the integration of new and old industries were mainly reflected in the production mode of small package decoction pieces, the development of "online pharmacy" distribution mode in the sales process, and the application of vacuum vapor phase humidification method and non-standard optimization technology of Aspergillus flavus pretreatment.

Therefore, the Shenzhen stock exchange requires the company's sponsor to explain the specific basis for judging Zhixin pharmaceutical to meet the recommendation requirements of the Interim Provisions on the application and recommendation of Shenzhen Stock Exchange's gem enterprises.

Earlier, some enterprises on the gem terminated the examination because they did not meet the gem positioning. For example, on March 25, the municipal Party Committee on the gem rejected Hongji energy saving's IPO application. During the period when the company applied for gem IPO, the company and its sponsor institutions conducted three rounds of inquiry and response, all of which involved the positioning of gem.

"It's true that Hongji energy conservation is a bit of a brush with new business. It's actually a general technology in the construction industry." Wang Jiyue, a former senior investment banker, said“ Hongji energy saving choose gem is not careful enough, if go to the main board, there will be no such problem. Perhaps the reason why we chose gem is that the main board has certain restrictions on the P / E ratio of listed companies, and listing on the gem can obtain a relatively higher valuation. "

As early as the announcement of the reform plan for the registration system of the growth enterprise market, the exchange repeatedly stressed that the newly declared enterprises must be high-tech enterprises or enterprises in traditional industries that are integrated with new technologies and new models, that is, meet the positioning requirements of "three innovations and four innovations" of the gem, and inject strong vitality into the service innovation driven national strategy and the transformation and upgrading of the real economy.

Wang Jiyue pointed out: "the positioning of the gem and the science and technology innovation board has been emphasized by the two major exchanges. The positioning of several companies to be listed is relatively reluctant, so they are repeatedly questioned in the process of listing. We believe that the subsequent reporting enterprises will be more careful in choosing the suitable plate for the listing of enterprises