IPO Suspension Wave In September: When The "6 + 3" Financial Report Data Is Due, Enterprises Are Busy Filling In Information, And 152 Gem Reporting Enterprises Press The Pause Button

Gem enterprises have ushered in a "stop tide".

On Friday and Saturday night (September 25 and 26), 11 more GEM companies suspended the IPO process due to "updating financial information". As of September 28, nearly half of the IPO companies on the gem have suspended the audit process.

According to the data, at present, there are 378 IPO reporting enterprises under the gem registration system, of which 2 enterprises voluntarily withdraw materials and terminate the examination, 35 enterprises have successfully listed, and among the remaining 341 listed companies in the examination status, a total of 152 enterprises have applied for suspension of examination, accounting for 44.57%.

The 21st century economic report reporter noted that the reasons for these enterprises to apply for suspension of examination are "the issuers and sponsors update the financial information and take the initiative to apply for suspension of the examination procedures of IPO".

Behind this wave of suspension is the centralized expiration of the validity period of financial reports of the reporting enterprises.

According to the public information, the validity period of the Prospectuses of the enterprises to be listed is six months, counting from the date of the last signing before the public development bank. The issuer shall use the prospectus within the validity period to complete this offering. The latest financial statements within six months after the expiration date of the prospectus. Under special circumstances, the issuer may apply for an appropriate extension, which shall not exceed three months.

According to the investment bank, the benchmark date of the financial report audit report of the reporting enterprises is mainly December 31, 2019, which means that the final effective date of the financial report data of these enterprises is September 30, 2020. This arrangement also makes September the "golden period" for many gem IPO reporting enterprises.

152 enterprises suspended audit

According to the incomplete statistics of the reporter of the 21st century economic report, among the 152 enterprises applying for suspension of audit, about 50 enterprises are stock declaration enterprises transferred from the CSRC, and the remaining 102 enterprises are all newly declared IPO enterprises this year.

In terms of industry distribution, the suspension of audit enterprises come from 42 industries, the largest number of which are special equipment manufacturing industry, computer, communication and other electronic equipment manufacturing industry, chemical raw materials and chemical products manufacturing industry, software and information technology service industry. 17, 14, 12 and 11 enterprises respectively applied for suspension of audit.

From the perspective of registered places, these enterprises are distributed in 20 provinces in China. Among them, Guangdong Province, Zhejiang Province and Jiangsu Province are the major IPO reserve provinces, and 32, 28 and 25 enterprises in the normal audit status have suspended the audit process due to the update of financial data.

From the sponsor institutions, a total of 43 institutions' projects have been suspended. CITIC Securities, as one of the most powerful investment banking institutions, has taken over 32 Enterprises' IPO projects on the gem, but 15 of them have suspended the audit; the following 14 projects have been applied for suspension by China credit construction investment and Minsheng securities.

Different from the previous suspension of IPO under the influence of sponsor institutions, the reporter noted that the current centralized declaration of suspension of audit projects is mainly due to the update of financial information and delay the listing process.

In the view of the industry, it is normal to apply for suspension of audit actively due to updating financial data.

The reporter pointed out that under the normal situation of listing application of South China securities companies, it would not affect the normal audit process of listing application of medium-sized securities companies

As a matter of fact, the enterprises that applied for suspension of IPO examination due to the drag of GF Securities in the early stage also quickly resumed the IPO audit after changing the sponsor.

On July 20, Guangdong Securities Regulatory Bureau issued the notice of administrative supervision measures in advance to take three major regulatory measures on GF Securities. One of the punishment measures was to suspend the qualification of GF sponsor for half a year. This news had a serious impact on the 6 IPO reporting companies of GF Securities on the gem at that time. Six companies, including Henghui security, hope Co., Ltd., Jinpu Garden Co., Ltd., Yaxiang flavor and Jingtai Co., Ltd., successively applied for suspension of audit.

However, five of them quickly changed their doors and restarted the IPO process after the change of sponsor institutions, and entered the normal audit state. At present, Yaxiang flavor, Jinpu garden and hope Co., Ltd. were changed to "inquired" status on September 11, September 16 and September 16 respectively, while Henghui security and Dongjian technology returned to the accepted status.

Some enterprises take the opportunity to extend the inquiry?

It is worth mentioning that during the period when a large number of enterprises concentrated on updating materials, the reporter of 21st century economic report learned from investment bank personages that some companies extended the period of answering inquiries by borrowing the updated financial information.

According to the data of Shenzhen Stock Exchange, as of the evening of September 28, 119 enterprises have been inquired by Shenzhen Stock Exchange, but their responses are different.

For example, Hangzhou reliable care products Co., Ltd. and Guangdong Qide New Material Co., Ltd. have already received the inquiry letter on July 29. However, nearly two months later, the company has not disclosed the reply letter. Although some enterprises have responded to the first round of inquiry early, they have started to deal with the second round and third round of inquiry of the exchange.

According to the arrangement of the exchange, after the issuance of the first round of examination and inquiry, the Shenzhen stock exchange can continue to raise the inquiry within 10 working days after the reply in case of finding new inquiry items, the issuer fails to give targeted answers, the information disclosure does not meet the requirements and other circumstances specified by the Shenzhen Stock Exchange. The total time for the issuer, its sponsor and securities service institutions to reply to the examination and inquiry of Shenzhen stock exchange is total No more than three months.

In the face of this tight rhythm, some enterprises that have encountered multiple rounds of inquiries or replies from the Shenzhen Stock Exchange take a long time, so the application for suspension of audit may usher in more abundant "preparation time".

According to the incomplete statistics of 21st century economic reporter, at present, 152 enterprises applying for suspension of audit due to updating financial data are basically enterprises that have been inquired by the exchange.

Among them, the largest time span, such as Jinyuan lighting, was accepted by Shenzhen Stock Exchange on June 22, and its status was updated to "inquired" on July 17, but the company was still in the inquiry state after answering the first round of inquiry on August 25. On September 17, Jinyuan lighting applied for suspension of audit, 73 days after the first round of inquiry.

"This is also true of the enterprises that have applied for the examination of the science and technology innovation board. Many enterprises have two, three and four rounds of inquiry after the first round of inquiry. Moreover, the supervisors ask many detailed questions, often hundreds of questions, and the time is in a hurry. It is normal to strive for more reply time with the help of supplementary financial information." The investment bank said. According to its introduction, the interim report data is basically ready and will not take up too much time.

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