Enterprise News:
The IPO of Red Oriental was pressed the pause button
Beijing Stock Exchange's "Big Mac" IPO project Henan Red Oriental Chemical Co., Ltd. ***, hereinafter referred to as "Red Oriental") (873777NQ) Beijing Stock Exchange listing project was suddenly pressed the pause button. The reason given for the suspension of Red Oriental's listing is that "due to the fact that the first concern still needs to be further implemented". (Legal and Business Research on Listing of Enterprises).
Maitron sharesTermination of the IPO
Maxtron Enterprise Management Services Co., Ltd. is a third-party after-sales outsourcing service integrator focusing on the electronics industry。Due to the withdrawal of the application for issuance and listing of Mytron shares and its sponsors, the Shanghai Stock Exchange terminated its issuance and listing review. (*Investment Banking Business Information).
Corporate Public Opinion:
HighTide Pharmaceutical's IPO in Hong Kong has not yet been commercialized, and it continues to lose money and become insolvent
Shenzhen HighTide Biotechnology Co., Ltd. (hereinafter referred to as HighTide Pharmaceutical) resubmitted its report to the Hong Kong Stock Exchange and planned to be listed on the main board, with UBS Group and Huatai International as its joint sponsors. This is the second time HighTide Pharma has submitted this year.
Founded in 2011, HighTide Therapeutics is a globally integrated biopharmaceutical company focused on discovering, developing, and commercializing first-in-class, multi-target, metabolic and digestive diseases. HighTide has not yet commercialized its products. HighTide still faces the risk that the product will not be commercialized or delayed.
As it has not yet achieved commercial realization, HighTide's current daily income is mainly composed of non-operating income such as ** subsidies, bank interest income, short-term time deposit investment income, etc., which is reflected in the income statement as "other income and income". Under the high R&D investment, HighTide has been losing money year after year. Accumulated losses of 10 in less than three years2.7 billion yuan.
More urgently, HighTide has fallen into insolvency. As of June 30, 2023, HighTide Pharma's total assets were approximately 7$5.9 billion, while total liabilities are about $1.78.7 billion yuan, with an asset-liability ratio of 23544%。(Insight IPO).
Gaotai Electronics IPO:In the first half of the year, revenue fell by more than 40% year-on-year. The actual controller received nearly 300 million dividends, and the fund-raising scale reached 1 percent of total assets6x for expansion
On December 1, 9 months after the application was accepted, Suzhou Gaotai Electronic Technology Co., Ltd. *** hereinafter referred to as "Gaotai Electronics") submitted for registration and planned to be listed on the main board of the Shanghai Stock Exchange. Gaotai Electronics takes functional new materials as the core, and is mainly engaged in the research and development, manufacturing and sales of composite functional materials, composite functional devices and electronic-grade traceability products.
In recent years, as the global economy has slowed down, the consumer electronics market has performed poorly. Gaotai Electronics' sales have also been affected. During the reporting period, the revenue in the first half of the year fell by more than 40% year-on-year.
From 2020 to 2022, the annual cash dividends of Gaotai Electronics will be 50 million yuan and 1300 million yuan, 1300 million yuan, a total of 3100 million yuan, accounting for about 60% of the three-year net profit54%, based on the current shareholding ratio, Ye Jian and Wang Yifang get about 2$8.3 billion. The Shanghai Stock Exchange issued an inquiry about the whereabouts of dividends, but Gaotai Electronics denied that the relevant products were products specially established for issuers, single funds** or passively managed products, and also denied that the company had "three types of shareholders" such as contractual private placement**, asset management plans, and trust plans.
In this issuance, Gaotai Electronics plans to raise 115.5 billion yuan for the construction projects of various production bases. As of the end of June 2023, the total assets of Gaotai Electronics are 72.5 billion yuan, the amount of funds raised is about 159 times. (Insight IPO).
Imagine the high-tech IPO: financial data is chaotic and abnormal, and internal control is deficient, and employees' wages are so low that they create a performance myth
Changxiang Hi-Tech is a high-tech enterprise focusing on the field of rail transit operation, integrating design, R&D, production, sales and service. On May 17, Changxiang Hi-Tech announced that it received a letter of completion of the acceptance work issued by the Henan Securities Regulatory Bureau on May 15, and had passed the IPO counseling and acceptance of the Henan Securities Regulatory Bureau under the guidance of Zhongyuan **. On May 25, the IPO of Changxiang Hi-Tech Beijing Stock Exchange has been accepted, and as of December this year, the IPO process has entered the third round of inquiries.
In 2020, the per capita profit of Imagine Hi-Tech is only half of that of its peers, but in 2022, it will become twice as high as the average of its peers, and the per capita profit is still more than twice that of its peers when its per capita income is lower than that of its peersIn addition, the ridiculously low wages of employees also create a performance myth. The monthly salary of R&D employees before tax is 4,360 yuan, and the monthly salary after deducting the five insurances and one housing fund borne by individuals is only 3,291$8. During the reporting period, the average salary of R&D personnel of comparable companies in the same industry was much higher than that of Changxiang Hi-Tech. In addition, the salary of the production staff is even lower, and after deducting the five insurances and one housing fund borne by the individual, the salary of the production personnel is only 0220,000 yuan, 0250,000 yuan and 0270,000 yuan. In terms of per capita profit, it will also be only half of its peers in 2020, and it will become twice as high as the average of its peers in 2022.
Considering that Hi-Tech completed the manufacture and delivery of the products without signing a contract and without receiving an advance payment, which is very inconsistent with the order of business logic, and also shows that there are major loopholes in the issuer's internal control, combined with the fact that its fourth-quarter revenue is extremely high compared with its peers, and the proportion of revenue that is just higher is highly consistent with the proportion of the issuer's fourth-quarter revenue that was arranged for delivery before the contract was signed, it can be reasonably speculated that the issuer's fourth-quarter revenue is likely to be overestimated or cross-period.
The auditor is a third-party intermediary agency, which only provides reasonable assurance rather than absolute assurance for the audit report, and the auditor has a limited time on site, so the auditor will set the importance according to the risk situation of the audited unit, and the misstatement below the importance is usually not concerned, which can be popularly understood as grasping the misstatement matters and letting go of the small ones, but even if it is already in the case of grasping the large and letting go of the small ones, it still issued 6 pages of adjustment matters to the issuer, which is enough to confirm that the quality of the issuer's financial data is very worrying。 (*Valuation House).