2019 IPO Break Through Failure Analysis: 19 Enterprises Are Not Gross Margin, Letter Phi Clear Focus Of Attention

Several families are happy and anxious.

In 2019, a total of 247 companies in the A stock market successfully reached the last mile of the listing through the trial meeting and the board meeting of the board of innovation.

On the other side, dozens of enterprises have lost their IPO for various reasons.

Looking at the entire A share, in 2019, 29 enterprises stopped the trial meeting and the upper Municipal Committee meeting because of "no pass", "cancel the audit", "postpone voting". 19 of them were directly rejected. Combing the announcement, gross margin, continued profitability, related transactions, core competitiveness, significant differences in financial data, and other regulatory issues become the focus of attention.

According to the science and technology board, while the IPO pass rate keeps the lead, the failure of enterprise IPO is more diversified.

The IPO case also reveals the importance of the sponsor's idea.

Is there any reason why IPO is different?

According to Wind statistics, in 2019, a total of 29 companies in A share failed. In addition to the 3 "suspension of voting" and 7 abolition of the audit as of January 13, 2020, a total of 19 enterprises were not included in the upper session, of which 5 were the main board, 16 were the gem, 2 were medium and small boards, and 6 were the board of science and technology.

From the feedback point of view, gross margin, continuous profitability, related party transactions, core competitiveness, and significant difference in financial data have become the focus of regulatory attention.

The audit opinion of up to 17 of the 19 companies was involved in gross margin.

Gross margin is an important financial indicator to consider the business and profitability of enterprises. It is also one of the most concerned financial indicators in the IPO process, and it has a significant impact on the success of IPO. One investment bank pointed out.

The comparison of gross margin with comparable companies in the same industry is one of the intuitive ways to reflect the profitability of enterprises. Most IPO companies will disclose their performance comparison with the same industry in their prospectus, and IPO companies with gross margin and their peers are often the focus of the IPC.

From the point of view of audit, the overall gross margin of the issuer in the reporting period is higher than that of the comparable industry, and the fluctuation of the gross profit margin of the main business is mentioned.

For example, AI Rong software, the thirteenth company in 2019 IPO, was concerned about the first audit opinion. During the reporting period, the overall gross profit margin and net profit margin of AI Rong software were higher than that of the comparable industry companies. The representative of the issuer indicated that the gross margin and net interest rate during the reporting period were significantly higher than those of the comparable listed companies in the same industry.

For the Suzhou planning and Design Institute, the issuance examination committee was concerned that "gross profit margin continued to rise during the reporting period, and the gross profit margin of the provincial planning business was significantly lower than that of the projects in the province. The gross profit margin of the listed companies continued to decline, and the gross profit margin of the construction design business during the reporting period was significantly lower than the average level of the same industry", requiring the issuer to explain in detail from 6 aspects.

In addition to gross margin, or related transactions involving transport interests, supervision is also the focus of repeated attention.

For example, Tianyuan pet, the issuance examination committee was concerned that in 2012, the publisher bought Wang Pingxi, Hao Bo controlled Beijing cool Di, Beijing pie and Shanghai pet three subsidiaries, and the 2014 publishers sold the three subsidiaries to Wang Pingxi and Hao Bo. The representative of the issuer is requested to explain the reasons for the purchase of the three former subsidiaries of Beijing, such as Cody, and the original seller, and the reasonableness of the business, the reasons for the adoption of different pricing policies and the impact on the issuers. Whether Wang Pingxi and Hao Bo are related to the issuers and their shareholders, executives, customers and suppliers, etc.

Some enterprises have disclosed financial data in property exchange and new third board before sprint IPO, and there are significant differences with the disclosure of IPO.

For the aforementioned Tianyuan pet, the issuing committee pointed out that the relevant information disclosure of issuers during the three board listing period was different from that of the previous five customers and the top five suppliers. The 5 suppliers and purchase amounts before the 2015 production and outsourcing were different, and required that they be explained in detail.

Ke Chuang plate "pluralism" road to collapse

In 2019, the nominal pass rate of science and Technology Board reached 93.97%, ranking first in all sectors, but after the termination of IPO in various ways, the actual pass rate was 79%.

Compared with the traditional IPO, the way of enterprises to sprint the board of innovation is more diversified.

As of the end of 2019, the 23 "termination audit" companies of the science and technology board, as many as 20 accepted the enterprise department "active withdrawal", has not yet moved towards the upper Municipal Committee meeting and will stop IPO.

In July 8, 2019, the Shanghai Stock Exchange announced that it had agreed to withdraw the application of Beijing science and Technology Innovation Board issued by the papaya mobile Polytron Technologies Inc and its sponsor, and decided to terminate its issuance and listing of the science and technology innovation board. This is also the first time that the "first withdrawal" of the launch of the science and technology board has appeared.

At that time, the Shanghai Stock Exchange said that the withdrawal of the application for issuing the listing was to declare the independent judgment and normal behavior of the enterprise, and the Shanghai Stock Exchange should respect it. On the basis of giving full play to the functions of the open inquiry type audit, the relevant person in charge of the Shanghai Stock Exchange said that the issuer should make an examination and judgement on whether the issuer was in line with the issuing conditions, listing conditions and information disclosure requirements, and form an audit opinion. It will continue to focus on information disclosure and grasp the positioning of the science and innovation board, focusing on the key elements of the issuer's scientific creation, advanced technology, and the use of advanced technology to carry out production and operation, major business and technical risks.

In the enterprises of the municipal Party committee meeting of the board of science and technology, the 3 members of the national science and technology circles, the Titan technology and the Bola network were not represented at the Municipal Committee meeting. After the deliberation of the first committee of the board of directors on the board of directors of the Heng Heng Ka Xin group, the company was "not registered" by the SFC.

Ke Chuang plate emphasizes the core of information disclosure. The 4 companies that have been denied have also confirmed the importance of the science and technology board for the clarity of information disclosure from different aspects.

For example, the first company that failed to hit the board failed to pass the four round of inquiries and passed the deliberation of the municipal Party committee, but was rejected by the SFC in the last session. There are two main reasons for the SFC's rejection of its listing: first, it adjusted the recognition time of 4 major contracts totaling 159 million yuan in 2019, and the reasons for its identification as special accounting treatment were inadequate. There was also a similar problem in the century space after which the application for registration was withdrawn. Two, we did not disclose the corrections of previous accounting errors, and did not disclose the issue of share transfer and share payment of real controllers.

2019 is the first year of registration. The registration system of Ke Chuang plate has opened the curtain of the reform of the securities industry, and the pricing and underwriting capabilities will become more important. Judging from the current pattern of "Chuang Chuang", the head broker of "three middle and one China" still has the advantage. The IPO case also reveals the importance of sponsorship.

As the first IPO company in the history of A shares, zhe Pharmaceutical (688266.SH) opened its online purchase in January 14th. By the end of 2019, there were 6 unprofitable biopharmaceutical companies, and 4 of them were from the CICC company's fifth listing standards. At present, CICC has abundant reserves in its enterprise type, covering almost all kinds of enterprises, such as the red chip structure, the same rights and fifth sets of standards.

CITIC construction investment has encountered some problems in the science and technology board project. The first company of the SFC not to be registered, Heng An Jiaxin, and the company's century space for taking the initiative to withdraw materials in the registration section are all recommended by CITIC. From its reserves of science and technology board enterprises can be seen that there are many of their hands in line with the original IPO evaluation system of the company, most of them have already started planning IPO matters, in the Ke Chuang plate after the news came out, quickly transferred to the science and create plate.