What Is The Failure Of Huijie Technology IPO Due To The Initiative "Cancellation" Of The 11Th Sci Tech Innovation Board Project In The Year?

Another example is the withdrawal of the IPO of the science and technology innovation board.

On August 10, the Shanghai Stock Exchange issued a decision on terminating the examination of Huijie technology's IPO and listing on the science and technology innovation board, which meant that Huijie technology's IPO journey through the science and technology innovation board was officially ended.

The stop of Huijie technology has also made the number of issuers taking the initiative to withdraw materials since this year as many as 11. As more and more people come to apply for the IPO of the investment bank, they think that the number of the companies that come to the IPO market does not meet the requirements of the normal IPO, which means that more and more enterprises come to apply for the IPO and the quality of the projects has increased.

In the view of many analysts, the main reason for Huijie technology to withdraw materials is from two aspects: on the one hand, it provides contact and call center services for financial institutions. With the rapid development of AI speech recognition technology, its core technical ability is relatively limited; on the other hand, most of its small-scale business income still comes from a single customer, which may give Huijie technology the opportunity to provide it with the service Bring risks.

Double risk

As a supplier of contact center system solutions for the industry, there may be two reasons behind Huijie technology's initiative to withdraw materials.

Firstly, the moat of Huijie technology's core technology has been questioned to a certain extent.

According to the disclosure of Huijie technology, its current business covers communication exchange, contact center cloud platform, intelligent voice analysis, intelligent voice robot, etc.

Some people in the industry believe that Huijie technology has been deeply involved in the financial field, such as contact and call services, and may also be expected to become a leader in the vertical track.

"Because finance belongs to a professional field, there will be many professional terms and vocabulary. If you know more about this industry, you can obviously do more vertical and in-depth in intelligent call service."

However, some people in the AI industry frankly said that the intelligent voice business carried out by Huijie technology in banking, insurance and other financial institutions is actually mainly used in intelligent customer service scenarios. However, this is a highly competitive field with giants.

"The main reason is that the competition in the field of intelligent voice is too fierce. Giants are fighting on the track, and it is difficult for small and medium-sized enterprises to survive. If a company only provides contact and call service on the vertical track, the final outcome will be either eliminated in the competition or acquired by the giant." An algorithm engineer from bat said frankly, "intelligent customer service is actually composed of speech recognition and semantic recognition. At present, the technology is relatively mature. As long as companies with a little bit of algorithm technology are competing for this track."

Another reason for Huijie technology to withdraw materials is considered to be related to excessive customer concentration.

The application draft of the prospectus shows that the business income of Huijie technology from 2017 to 2019 is 84.8037 million yuan, 84.4308 million yuan and 124.56 12 million yuan respectively, of which the sales amount of China Merchants Bank accounts for 24.50%, 40.28% and 48.40% respectively; this means that nearly half of Huijie technology's revenue in 2019 comes from China Merchants Bank.

"Once the customer is lost, it will obviously have a significant impact on the performance structure of Huijie technology, and the phenomenon that the customer structure is too single also shows a certain lack of core competitiveness." One investment bank person who pays close attention to Huijie technology said.

It is worth mentioning that Huijie technology used to be a new third board company, and chose to delist for IPO in 2018. Now, the new third board is also carrying out the selective layer reform, which also makes some people who pay attention to Huijie technology feel sorry.

"If you didn't delist from the new third board, in fact, even if the scientific and technological innovation board failed in the sprint, you can still come back to the selected layer to seek small IPO and valuation improvement." An investment banker close to Huijie technology sighed.

Selection of withdrawal materials

In the view of industry insiders, although Huijie technology has certain risks in its core technology competitiveness and customer dependence, it is more of a defect in enterprise management, while the direction of registration system reform is more focused on information disclosure and enterprise compliance.

In the view of investment bankers close to the exchange, it may be precisely for this reason that Huijie technology has chosen to withdraw materials on its own initiative rather than whether it will be rejected.

"Whether it is a technical problem or a revenue problem, Huijie technology may face many problems in breaking through the science and technology innovation board. However, it is difficult to draw a conclusion that" it is not in line with the positioning of the science and Technology Innovation Board "if it meets the requirements of the standard science and technology innovation board for listed enterprises. Therefore, it is possible that the termination mode of withdrawing materials may be taken in the end, instead of being denied." An investment bank person close to the exchange said, "compared with whether the listing is not carried out, the voluntary withdrawal of materials is actually more dignified. It has a bit of the smell of being" killed. "

In fact, many issuers who are regarded as having a certain gap with the positioning requirements of the scientific and technological innovation board in the examination process of the exchange ended the journey of listing on the scientific and technological innovation board by means of communication in advance and actively persuading them to quit. Huijie technology has become the 11th issuer to terminate the examination due to the active withdrawal of materials this year.

"The review of the meeting of the science and technology innovation board has clearly defined the direction of the registration system. However, if the enterprise is rejected at the meeting for some reasons that are not specific enough or difficult to quantify, there will be a certain deviation from the direction of the registration system reform." "Therefore, it has become a tacit agreement between the issuers and the exchange around the examination link of the scientific and technological innovation board to urge some enterprises that do not meet the conditions to withdraw materials voluntarily through communication in the inquiry link," said the investment bank close to the exchange

In addition, according to the reporter, after being advised to quit, the sponsor will cooperate with the exchange to actively dissuade the enterprise.

"Usually, this kind of communication is also completed through the sponsor. If the sponsor fails to cooperate with the sponsor to achieve the goal of persuading the recommended enterprise, other projects operated by the sponsor may also receive additional" attention ". Therefore, the sponsor usually persuades the project to withdraw materials at this time." Last year, a lot of investment banks started to move down

However, voluntary withdrawal of IPO application does not mean that the company's future IPO hopes are completely dashed. In fact, many enterprises withdrawing materials from the science and technology innovation board later launched a new sprint on the gem, the select layer and other new stock reform territory.

For example, papaya mobile, the Internet data marketing provider who withdrew materials from the science and technology innovation board, just recently submitted its listing application on the gem; for example, in November last year, Xianlin 3D, which withdrew the listing application of the science and technology innovation board, changed its path to conduct a small IPO at the selected layer of the new third board.

"If the quality, technology and long-term development of the enterprise are OK, even if the company does not meet the listing requirements at this stage, or take the initiative to withdraw materials, or even whether the company will be denied, there will still be opportunities to land in the capital market in the future." A securities trader close to the regulatory level said frankly, "therefore, for issuers, they should strive to improve their operating ability and governance level, and keep up with the public companies. In fact, listing is a matter of course."

During the year, 11 enterprises terminated listing on the science and technology innovation board

As mentioned above, with the termination of Huijie's IPO, Huijie has become the 11th scientific and technological innovation board enterprise that failed to go public due to withdrawal of materials in 2020.

In 2020, the first two companies to be listed on the science and technology innovation board that voluntarily terminate the audit are all from Guangdong.

On January 21, 2020, the Shanghai Stock Exchange announced that Guangzhou Hongsheng Optoelectronic Technology Co., Ltd. and Guangzhou Hexin Instrument Co., Ltd. respectively applied to the exchange for withdrawal of application materials and approval on the same day. The similarity between the two companies is that they only conducted two rounds of inquiry and reply, and then took the initiative to withdraw the materials.

In the following months, due to the impact of the epidemic, the IPO audit progress of the scientific and technological innovation board was delayed.

On April 30, 2020, after more than half a year's review, Aoji Technology Co., Ltd., which was sponsored by Huatai united, also reluctantly submitted an application for withdrawal of IPO materials to the Shanghai Stock Exchange.

The following may was the most frequent month to terminate the listing of the science and technology innovation board this year. In just one month, four enterprises chose to finish their first listing on the science and technology innovation board.

In addition to Henan Cologne new energy Co., Ltd. and Weihai Tiangang Instrument Co., Ltd., the remaining two enterprises are also from Guangdong, namely Shenzhen yisou Tianxia Technology Co., Ltd. and Guangdong Jingke Electronic Co., Ltd.

Micro invasive (Shanghai) Network Technology Co., Ltd. sponsored by Galaxy Securities should be the most concerned and well-known enterprise in the market among the enterprises withdrawing materials. In fact, the famous emperor had been working in the capital market for a while.

At that time, from the president of Shanda network to the president of Xinhua Industrial Group Co., Ltd., Tang Jun once became the ultimate "model" of professional managers in China. After leaving Xinhua capital, Tang Jun founded micro invasive network, which was once regarded as a sign of identity transformation from "worker" to "boss". However, with the termination of the listing of minimally invasive network technology innovation board, the dream of the former "emperor of working" to own a listed company has been disillusioned again.

Guizhou Baishan cloud Technology Co., Ltd., which withdrew its application materials on July 7, can be said to be the most pitiful enterprise among these failed enterprises.

As early as April 2019, that is, at the beginning of the formal acceptance of the application materials, the science and technology innovation board, as one of the previous groups of enterprises, has been listed in the list. After seeing that most of the companies in the same batch or even later than that have completed the listing, they have to declare the failure of listing.

Zhengzhou Xinda Jiean Information Technology Co., Ltd. is the 10th enterprise to terminate the listing on the science and technology innovation board this year. It was established in 2004. It is an enterprise specializing in security chip design, and its IPO fate is also full of twists and turns.

In 2012, Zhengzhou Xin Da jie'an started the IPO guidance for the first time, but after several twists and turns, the counseling work was also stopped in 2014. In 2015, it chose to land on the new third board, and terminated the listing of the new third board at the end of December 2017, starting to impact the IPO. In November 2019, the company formally submitted its listing application to the science and technology innovation board, but it was also defeated due to the termination of listing on July 23, 2020.

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