Kunpeng Project
Author: Liu Jie.
For IPOs, successfully passing the review of the listing committee meeting means that the company is about to enter the "dawn", and the dawn of listing is ahead. According to the IPO financial news, since the beginning of this year, there are 13 companies that are still "folding" after the IPO has passed the meeting, and most of the above-mentioned companies have passed the meeting for more than one year.
In addition, according to IPO financial statistics from IPO financial news, at present, there are 8 IPO companies that have passed the meeting before 2023, of which the longest meeting has been nearly two years. Judging from past cases, the performance of the IPO company after the period has a greater impact on its subsequent listing process.
13 companies that have passed the IPO "folded".
According to Wind statistics, since 2023, there have been 13 IPO companies that have successfully passed the meeting but failed to successfully go public (see Table 1 for details). From the perspective of time, most of the above-mentioned companies have more than one year from passing the review to terminating their listing. Among them, the longest is a discrete device company, which was approved by the Listing Committee on September 1, 2021, and after about 22 months, it chose to voluntarily withdraw its registration application in July this year.
Previously, World Agricultural Machinery, a giant in the field of agricultural machinery that has attracted much attention due to its large financing scale on the GEM, has also recently ushered in the news of the termination of registration, which has been about 20 months from the meeting to the termination of registration. For the termination of the registration of World Agricultural Machinery, part of the reason can be seen from a warning letter disclosed by the China Securities Regulatory Commission.
On November 9 this year, the China Securities Regulatory Commission issued a warning letter to Haitong ** and related responsible persons, saying: "After investigation, I will find that you did not perform your relevant duties diligently and conscientiously in the process of sponsoring the initial public offering and listing of Jiangsu World Agricultural Machinery Co., Ltd., and failed to report and disclose the freezing of the shares of the actual controller of the issuer to the Shenzhen ** Exchange in a timely manner, and did not find that the issuer's accounting foundation is weak, and the internal control is not perfect. In the case of incomplete disclosure of fund lending information, the prospectus is changed without the consent of the China Securities Regulatory Commission or the Shenzhen ** Stock Exchange. As a result, the China Securities Regulatory Commission (CSRC) took the supervision and management measures of issuing a warning letter to Haitong**.
According to statistics, in addition to the main board IPO companies affected by the comprehensive registration system translation review, the average time from the meeting to the submission of registration for GEM IPO companies is about four months, and the average time from the meeting to the submission of registration for IPO companies on the Science and Technology Innovation Board and the Beijing Stock Exchange is about one month. It can be seen that the time taken by the company mentioned above from the meeting to the approval exceeded the average time, and finally failed.
The above-mentioned companies are obviously only one step away from listing, why did they fail to obtain registration for a long time, and finally the IPO "failed"?According to the IPO financial news, the reasons for the termination of the listing of relevant companies are different, including the voluntary withdrawal of materials after being selected by the regulator for on-site inspection, the risk of instability of the company's performance, the existence of loopholes in internal control, the non-compliance with the positioning of the sector, and the doubtful rationality of the fundraising project. With the increasingly stringent regulatory review and the increasingly perfect full-link review of listing, it is difficult for companies with "hard injuries" to be approved for listing again.
Taking Rainbow New Energy as an example, Rainbow New Energy's main business is the production, research and development and sales of photovoltaic glass, according to its last updated opinion implementation letter reply, from January to May 2022, the procurement of quartz sand and soda ash, the main raw materials of Rainbow New Energy's photovoltaic glass business, has increased compared with the average purchase price in 2021, of which soda ash is more, with an increase of 2495%, it is expected that soda ash ** will remain at a high level in the future. From January to May 2022, its natural gas, electricity and oxygen procurement** increased compared to 2019 and 2020.
In response to the above situation, Rainbow New Energy also carried out relevant risk warnings in the prospectus, saying that soda ash gradually fell after a rapid **, which had an adverse impact on its operating performance, and its future performance may decline or even lose money.
In addition, the main raw materials required for the production of photovoltaic glass are quartz sand, soda ash, etc., and the main energy sources are natural gas, electricity and oxygen. From 2019 to 2021, the proportion of direct materials consumed in photovoltaic glass in the financial statements of Rainbow New Energy was respectively. 46% and 4281%；The proportion of energy consumed in the cost of photovoltaic glass is as follows: 97% and 3565%。It can be seen that the fluctuation of raw materials and energy** has a greater impact on its cost and profitability.
According to the reply document to the implementation letter of the audit center, in 2021 and 2022, the net profit of Rainbow New Energy will be 16.4 billion yuan, 8923240,000 yuan, down 4573%。It is in this context that Rainbow New Energy chose to withdraw its listing application, and the listing process was terminated on December 13, nearly 15 months after its meeting.
Many companies have been meeting for a long time but have not been registered
The follow-up performance of some companies is not good
According to incomplete statistics from Wind, at present, there are 8 IPO companies that have passed the meeting before 2023 (see Table 2 for details), of which the longest meeting has been nearly two years.
For some enterprises to submit registration, the founder and sponsor of the IPO listing number, He Daosheng, said: "After the meeting, the company needs to submit the registration to the exchange, and the failure to submit the registration means that the exchange believes that the company has problems and is not suitable for submission for the time being, and most of the (enterprises have passed) have not submitted for too long, and the probability of withdrawing the application later is relatively high, and they are facing the risk of not being able to register." ”
From the perspective of the sector, the above-mentioned companies are all enterprises that plan to land on the GEM. At the end of 2022, the new regulations of the GEM were released, clarifying the positioning criteria of the GEM, mainly focusing on the two dimensions of innovation and growth, and setting specific measurement indicators that meet the actual needs of accurately grasping the positioning of the GEM from the aspects of compound growth rate of R&D investment, amount of R&D investment, and compound growth rate of operating income. At the same time, for enterprises that meet certain conditions, some indicators such as the compound growth rate of operating income are exempted from application to meet the actual needs of different types of enterprises.
In the above context, performance has become an important factor affecting the growth of some companies, but the performance of some companies is not optimistic. Taking Weishuo Henderson, which successfully passed the meeting on November 24, 2022, as an example, the company mainly produces precision hinge products for consumer electronics, and the product terminals are used in notebook computers.
According to the announcement of the results of the 82nd review meeting of the GEM Listing Committee in 2022, since the second half of 2021, Weishuo Henderson's operating performance has continued to decline, and from January to June 2022, the net profit deducted from non-attributable to the parent company decreased by 28 year-on-year49%。Therefore, the Listing Committee requested it to explain whether there is a significant risk of a continuous decline in operating performance based on factors such as changes in the downstream market structure, orders in hand and the impact of the epidemic. In addition, the Listing Committee also asked it to explain the necessity and capacity digestion measures for its new annual production capacity of 30 million sets of precision shafts under the condition that global notebook shipments declined year-on-year and the capacity utilization rate was insufficient and significantly declined.
On September 27 this year, Weishuo Henderson updated the listing-related announcements and replied to the implementation of the opinions of the Listing Review Center. According to the data, in 2022, its operating income will be 53 billion yuan, down 24 percent year-on-year10%, and the net profit attributable to the parent company after deducting non-profits was 6697120,000 yuan, down 2364%。The decline in its performance is related to the decline in the downstream market, according to data released by Canalys in January 2023, global laptop shipments fell by 19% in 2022. Weishuo Henderson said that the decline in global notebook shipments had a certain impact on its performance.
It is worth mentioning that the impact of the decline in PC shipments on Weishuo Henderson comparable companies in the same industry seems to be different, according to the data, in 2022, the average revenue decline of comparable companies in the same industry will be 742%, while its revenue plummeted by 24 for the year10% (see Table 3 for details), far exceeding the industry average.
The competition in the notebook computer industry is fierce, and brands often adopt the strategy of "skimming pricing", that is, when the product has just entered the market, it will be positioned at a higher level, as the product enters the mature period, the manufacturers will usually take the initiative to reduce prices in order to seize market share, and the price reduction pressure of downstream terminal products will be transferred to the upstream structural parts manufacturers. Weishuo Henderson was affected by "skimming pricing", and the proportion of high-margin products decreased.
In 2022, the sales amount of its dual-axis products with relatively high gross profit margin accounted for 48 percent of its main business revenue68% down to 3941%, and the sales amount of single-axis products with relatively low gross profit margin accounted for 46 percent of the main business revenue26% to 5715%, and its profitability has weakened.
With the reduction of revenue scale and poor downstream market, the capacity digestion of Weishuo Henderson's fundraising and investment projects has also become a major concern of the regulators. According to the reply document to the inquiry letter, in 2022 and the first half of 2023, the capacity utilization rate of its dual-shaft shaft will be respectively. 44%；The capacity utilization rate of single-axis spindles is as follows. 18%；The capacity utilization rate of other shafts is as follows. 81%, the capacity utilization rate of Weishuo Henderson's main products is obviously not high.
Therefore, in the letter of inquiry, the Shenzhen ** Exchange asked it to analyze and explain the necessity of its fund-raising projects, whether there is a risk that production capacity cannot be digested, and improve the relevant risk warnings based on market demand, market share, capacity utilization rate, changes in production and sales rates, capacity digestion plans, and the impact of new depreciation and amortization expenses of fund-raising projects.