Fourth! Chuangxin Laser Withdraws IPO Registration Application Of Science And Technology Innovation Board

Finally, Kexin's IPO application was withdrawn, and the company's IPO application was withdrawn. On October 23, the CSRC website showed that Chuangxin laser actively requested to withdraw its registration application documents and terminate the IPO of the science and technology innovation board.

Chuangxin laser is the fourth enterprise on the science and technology innovation board to terminate its listing due to the withdrawal of materials in the registration process. The other three are Guangdong Liyuanheng Intelligent Equipment Co., Ltd., 21st century space technology application Co., Ltd. and Bozhong Precision Technology Co., Ltd.

From the time line, Chuangxin laser's decision to withdraw its IPO application is not easy. It has been 10 months since it was submitted for registration on December 27, 2019. During the registration period, Chuangxin laser, its actual controller Jiang Feng and IPO project sponsor were also supervised by the CSRC and the Shanghai Stock Exchange respectively.

The main reason why Chuangxin laser was supervised and verified was a report letter. The content of the letter was that Chuangxin laser was suspected of concealing matters such as chairman Jiang Feng's controlling aikewei through a third person. However, it was under the control of ACG that the issue was not disclosed under the control of ACG.

Although Chuangxin laser passed the meeting smoothly, it also left a "stain" that the letter was not true. Market participants speculate that the above matters or constitute the main reason for Chuangxin laser to terminate IPO.

Since then, the registration of Kexin Group Co., Ltd. and BCG has been withdrawn. However, it does not mean that the company's registration with BCG has been withdrawn.

Concealing related parties from supervision

Chuangxin laser's IPO application for science and technology innovation board was accepted by the Shanghai Stock Exchange as early as April 2019. The sponsor was Haitong Securities, which was approved by the Shanghai Municipal Committee in November. Submitted for registration in December of the year.

From the IPO project process, Chuangxin laser accepted earlier, but it took seven months to successfully pass the meeting. During this time, some people reported the company's suspected concealment of chairman Jiang Feng's control of AI Kewei through a third person. Under the supervision of repeated inquiries, Jiang Feng's behavior of concealing related parties was settled.

According to the disclosure, on July 9, 2019, the Shanghai stock exchange received a report letter about Chuangxin laser. On July 11, the Shanghai Stock Exchange issued a letter of report verification, clearly requiring the intermediary agencies of Chuangxin laser to carry out verification.

During the first verification, the personnel of the intermediary organization interviewed Jiang Feng in person. Jiang Feng did not truthfully explain the actual control relationship between him and aikewei, saying that the company and aikewei were cooperative relations. On September 17, when the Shanghai Stock Exchange asked for further verification, the intermediary agency submitted the letter of report verification again. The verification reply said that on the basis of the first verification, it would further obtain supplementary evidence materials and expand the scope of verification accordingly. On August 27, the agency paid a second visit to Jiang Feng. In the second interview, Jiang Feng confirmed the fact that he actually controlled AI Kewei through a third person during the reporting period.

After further verification, the intermediary found out that aikewei was a company controlled by a third party by Jiang Feng from February 6, 2015 to August 22, 2019, which should be disclosed as an affiliated party of the issuer, and the transactions between the issuer and aikewei should be disclosed as related transactions.

Reporter inquiry found that in fact, the company and love for the related matters are not serious. Aikewei's business scale is relatively small, and its business income from 2016 to 2018 was 401900 yuan, 49600 yuan and 181700 yuan respectively. Moreover, before the company's listing declaration, Arco has terminated its operation and started the cancellation procedure.

However, according to the CSRC, Jiang Feng continued to conceal the relevant facts about actual control of aikewei before the verification of the second report letter, which resulted in the omission of information disclosure about related parties and related transactions in Chuangxin laser's prospectus (application draft), and should bear the main responsibility for the violations. In March this year, the CSRC decided to take supervision and management measures against Chuangxin laser and Jiang Feng. The Shanghai Stock Exchange also gave supervision and warning to Chen Xinjun and Xu Xiaoming, the sponsor representatives of the project.

Why does Chuangxin laser conceal the relationship? In the registration draft, Chuangxin laser mentioned an important reason: there is a conflict of interest between aikewei and Chuangxin laser's customers. Aikewei is the downstream extension of the issuer's business, and it will inevitably compete with the issuer's customers. This behavior will lead to the criticism of the issuer's competitors and the concerns of customers, which will affect the sales of existing products of Chuangxin laser.

"The core of the registration system is information disclosure, and the bottom line is the truth of information disclosure. Chuangxin laser has deliberately concealed the situation, which is worse than some companies' exaggeration. Although the meeting was over, the company was still subject to regulatory penalties, and the regulatory attitude was very clear. Moreover, the letter also involves financial problems. Instead of being vetoed by the regulatory authorities, it is better to take the initiative to withdraw and find another opportunity. " An investment banker in Shanghai told reporters.

After its listing on October 26, the reporter was still in the middle of a busy phone call to understand the company's listing arrangement on October 26.

Several organizations step on thunder

Put aside the above problems, in terms of the company's business and industry prospects, Chuangxin laser was originally a target favored by institutions.

According to the prospectus, Chuangxin laser is one of the first batch of fiber laser manufacturers established in China and the second largest domestic fiber laser manufacturer in terms of sales volume in the domestic market. From 2016 to 2018 and the first half of 2019, the company achieved operating revenue of 420 million yuan, 600 million yuan, 710 million yuan and 490 million yuan respectively, with a good overall development momentum and a rapid growth trend of business income. Among them, the three-year compound growth rate from 2016 to 2018 reached 29.52%.

Chuangxin is a leader in the industry. The company said that it took the lead in making breakthroughs in the field of high-power and ultra-high-power continuous fiber lasers in China, and developed and produced 4000W, 5000W single module continuous fiber lasers and 25000w, 30000w and 35000w multi module continuous fiber lasers, filling the gap in the field of high-power and ultra-high power in China. The company is one of the main forces to realize import substitution in the field of fiber lasers in China.

An analyst tracking the electronics industry pointed out that "due to the high threshold of laser technology, only a few domestic enterprises including Chuangxin can realize the localization and large-scale production of fiber laser and laser core optical devices."

From the perspective of comparable companies, Ruike laser and Chuangxin laser have the most similar industry and products, and are also the company's largest competitor in China. Ruike laser has certain first mover advantages in China. In recent years, its revenue and profits have maintained a rapid growth. The market has given a high valuation level, and the latest dynamic P / E ratio has reached 153 times. With this benchmark, the valuation of Chuangxin laser is expected to be high.

Chuangxin laser's shareholder list also shows the market's recognition of it.

Guoxiangxinguang holds 10.89% of the shares of Chuangxin laser. In the limited partnership, as the largest general partner (LP), Guoxiang Xinguang has invested 200 million yuan, holding 91% of guoxiangxinguang. According to the public information, the state venture capital is a venture capital institution jointly funded by China Guoxin holding company, postal savings bank, China Construction Bank and Shenzhen investment holding company with the approval of the State Council. The total scale of the national venture capital fund is about 200 billion yuan. It is based on the use of market mechanism to promote the implementation of national strategy, and invest in enterprise technological innovation and industrial upgrading projects.

Shanghai Lianchuang, an old private equity firm, holds 7.66% equity of Chuangxin laser, ranking the third largest shareholder. Hubei Xiaomi industry investment fund, China Merchants Bank, Saifu investment and other well-known institutions are listed in the company's main shareholders through various fund products. Among them, Xiaomi industry investment fund or in Chuangxin laser to apply for science and technology innovation board 3 months before the shock.

A private equity person said, "the domestic fiber laser technology is gradually mature, and the technology iteration is fast. Chuangxin has certain advantages in the field of fiber laser, and the scarcity may be the main reason why the company is favored by the above investment institutions."

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