2278 Companies To Be Listed Or Under Pressure

Stepping into 2021, the wind of strict audit of A-share IPO is becoming increasingly fierce. According to wind data, since the beginning of 2021, 70 IPO companies have terminated the audit, and in the fourth quarter of last year, when the number of termination reached its peak, only 43 enterprises were interrupted. From the perspective of public information, most of the enterprises that terminate the audit voluntarily withdraw the application materials, in which the on-site inspection and supervision of IPO play a decisive role.

In addition to the fierce "withdrawal tide" of IPO, the sudden cancellation of audit by the provisional meeting enterprises, the termination of the registration system of enterprises that have passed the meeting, and 80% of the 20 enterprises undergoing on-site inspection withdraw materials and give up listing, all of which make the "issuers" queuing up for examination feel a chill.

While strictly controlling the quality of the enterprises under examination, the strict attitude towards IPO entry is moving forward. Recently, a domestic head of securities investment bank personnel told the 21st century economic report that the overall work of IPO guidance and acceptance is tightening, and the guidance period has a trend of extension.

"To strictly control the entry barrier, we should start from the more front-end. Compared with the IPO enterprises under examination, the number of enterprises receiving guidance is larger. In the audit stage, on-site inspection and supervision can be used to control the quality and rhythm, and in the guidance stage, the guidance and acceptance process can be started. " A senior investment bank in Beijing said.

"Card" for IPO guidance and acceptance

"In the past, most of them have gone through the market, but now the local securities regulatory bureaus have different political strategies, but the overall guidance review will be more stringent, and the focus will be more detailed, so as to compact the responsibility of the guidance stage." Talking about the recent experience of participating in the counseling acceptance, said the head of the securities investment bank personnel.

Compared with IPO queuing companies, the number of companies to be listed in the guidance period is larger. According to wind data, as of March 15, there were 479 enterprises in the A-share market that had submitted IPO application materials, but had not yet passed the examination and approval of the national development and examination commission or the municipal Party committee. The number of enterprises that have submitted guidance and filing materials is as high as 2278.

"There are also reasons for the crowded queuing of enterprises under examination at the back end of the line to guide the acceptance and release of water, so tightening up should be done. For example, there are many projects in Beijing, Zhejiang, Shenzhen and Shanghai, which can not be checked and accepted by people. Moreover, due to the large number of projects, the acceptance standards are relatively strict, and the quality and rhythm should be well controlled, and other minor problems are relatively large. " The senior investment bank said.

However, in the interview process, the investment industry insiders said that at present, the SFC has not yet received the new regulations to tighten the supervision and acceptance link audit.

"The rules are still those rules, but now they are compacted. For example, the principle of coaching period should not be less than three months. Of course, we can also communicate with each other now, but in the past 20 or 30 days, we should not have passed the guidance. " The head of the securities investment bank said.

According to the information of some enterprises in the guidance period collected by the 21st century economic report, before September 2020, the cases of the planned IPO enterprises with the counseling period shorter than 3 months have occurred from time to time, and the actual counseling period of some enterprises is even less than 2 months. After September of that year, there was no case of less than three months' counseling period in the statistical range.

It is reported that, in addition to the requirements for the length of the guidance period, at present, the securities regulatory bureaus all over the country also generally require enterprises to submit the guidance work report continuously and on time every two months during the guidance period, and can not replace the last guidance work report with the guidance work summary report.

In terms of intermediary institutions, the regulatory authorities require that securities companies should assist the tutors to establish and improve the basic corporate governance system, and urge the counseling objects to conduct self-examination and explain the situation item by item in accordance with the "strengthening the self-examination items of corporate governance special activities to be listed", and form the "self inspection report and rectification plan" according to the relevant format guidelines.

It is worth mentioning that as early as the beginning of 2020, the supervision has already noticed the problems existing in the IPO guidance link. In that year, the Guangdong Securities Regulatory Bureau issued a circular on the relevant issues concerning the guidance work of the companies to be listed in the jurisdiction, pointing out that some guidance agencies did not make materials seriously, the guidance process was mere formality, the implementation of the guidance procedures was not in place, and the regulatory requirements were not implemented. Guangdong securities regulatory bureau is even more blunt. The above problems reflect that the management of the guidance agency does not pay enough attention to it, the tutors are not diligent enough, and some personnel are lack of integrity.

After that, the acceptance of Sanfu Xinke, which plans to be listed on the science and technology innovation board, was not approved by Guangdong securities regulatory bureau. The company only recently submitted its application for listing on the science and technology innovation board.

"Lame" enterprise listing guidance ebb

At the same time of gradually tightening the IPO guidance and acceptance work, since 2021, there have been a number of IPO termination counseling cases in the market.

According to the 21st century economic report, 41 companies have terminated the IPO guidance process since the beginning of 2021.

"There are many reasons for the termination of IPO guidance, which can not be generalized by tightening supervision. At present, there is no spot check on enterprises in the guidance period." According to the above-mentioned senior investment bank personage, the enterprise may choose to terminate in the guidance stage due to dissatisfaction with the service of securities companies, job hopping of the project team leader of the investment bank, and switching to the listing track. "Some even want to get subsidies from the local government in order to enter the counseling period. Once the tutoring is for several years, if it fails to meet the listing standard, the counseling will be terminated directly.".

For example, among the 41 enterprises that terminated the IPO guidance process, TEDA new material, a company listed on the new third board, changed the guidance record to the selection level of declaration.

In the interview, some enterprises that terminated the counseling in 2021 told the reporter of the 21st century economic report that the purpose of the termination of the counseling was to adjust the development strategy and cater to the market. "It is mainly the problem of securities companies, but it is not convenient to disclose the specific problems of securities companies. The future listing plan is still under consideration. In view of the opportunity for the full implementation of the registration system and the selection of the new three board transfer board, the company faces many choices, which are under consideration. "

"The recent implementation of the policy of selecting layer to board has provided a new possibility for the listing of companies listed on the new third board, and some enterprises choose to switch to coach the track. But this also shows that the quality of most enterprises is still in doubt and can not meet the listing requirements of a shares for the time being. " These senior investment banks believe that.

For example, TEDA new materials began to receive listing guidance as early as 2016, and submitted the gem listing application that year. However, the company was questioned by the IEC that the net profit was not affected by the fluctuation of revenue. It deliberately lowered the salary and increased the performance, and finally failed to pass the meeting. In recent years, TEDA's performance continues to be under pressure. In 2019, the net profit attributable to the parent company was less than 1.5 million yuan. In the first half of 2020, the net profit recovered, but it was only 13.81 million yuan.

"In practice, there is still a hidden threshold for the performance of the listing of" main eight to create five ". At least investors and intermediary agencies choose projects like this. Enterprises with net profits less than 50 million want to enter the gem with excellent quality and high scientific and innovative attributes." In the interview, a person in charge of the company to be listed said.

Another private placement personnel in a secondary market in Beijing said that among the 41 enterprises that terminated the counseling, such as genfeng canon and Antai shares, had liquidity problems, and the quality of enterprises was relatively poor.

According to the latest financial data disclosed by the company, in the first half of 2020, the net profit attributable to the shareholders of the listed company was 1.62 million yuan, a year-on-year decrease of 111.76%. As for the performance of the loss, genfeng jianeng said that due to the impact of the new crown pneumonia epidemic, regular payment of employees' wages, loan interest and other fixed expenses during the shutdown period caused pressure on the business capital chain of the enterprise to a certain extent, and the company's sales in the first half of the year also decreased significantly compared with the same period. However, the company's annual net profit in 2019 was only less than 7.5 million yuan, which was 78.87% lower than that in 2018.

In addition, the equity holding behavior of the actual controller of genfeng jianeng has also been exposed recently. After receiving a report from the national stock transfer company, it was found that Hao Baoyu, the subscriber, was suspected of holding shares on behalf of genfeng jianeng in June 2018. Hao Baoyu is the actual controller, chairman and general manager of genfeng jianeng. In the secondary market, genfeng jianeng is also unpopular with investors. The closing price of the company's shares for 30 consecutive trading days was lower than the par value of each share, which once triggered the risk of immediate downgrade.

In the first half of 2020, the net profit attributable to the shareholders of the listed company remained positive, but it was only 4.79 million yuan, down 88.8% year-on-year. The net cash flow generated by the company's operating activities continued to be negative, reaching - 190 million yuan in the first half of 2020. Recently, Aetna has also received regulatory letters due to undisclosed external investment, defects in internal control and unreasonable handling of individual contracts.

"Although there are various reasons for termination of counseling, under the current pressure of on-site inspection and supervision, immature project intermediaries in the future will not provide guidance. Enterprises that feel that the performance is not solid enough, or can not reach the stage of application guidance, will also give up the guidance as the IPO withdrawal materials. " The head of the securities investment bank said.

IPO quality control "new three passes" link up line

After the IPO "withdrawal tide" in 2021, it is not only the supervision and acceptance of the securities regulatory bureau that has been tightened. According to the personnel of an investment bank of a large domestic securities firm, the internal requirements of securities companies on projects are becoming more stringent.

According to wind data, since the beginning of 2021, there have been 70 IPO companies to terminate the audit, and in the fourth quarter of last year when the number of termination reached its peak, only 43 enterprises were interrupted. In the spot check on information disclosure quality of first-time enterprises released by the CSRC at the beginning of the year, 16 of the 20 selected enterprises have voluntarily withdrawn their application materials, with a withdrawal ratio of 80%.

"Since October last year, the regulatory authorities have begun to screen out enterprises with diseases through on-site inspection and on-site supervision, and many" candidates "have already felt timid." According to the personnel of the investment bank of the above-mentioned large-scale securities companies, the enterprises that withdraw their applications within 10 working days will not carry out on-site inspection due to the regulations on on on-site inspection of initial enterprises. This also led to some enterprises began to plan to withdraw materials and avoid inspection after receiving on-site inspection notice.

"The exchange is also very angry about the withdrawal of materials. For some typical cases, the exchange said that even if the withdrawal of materials, it also needs to conduct on-site inspection." The investment bank personnel of the large-scale securities firm disclosed that "although the withdrawal of materials has no actual loss to the securities companies, it will be OK to restart the listing after one year of RE polishing, but the large securities chamber of Commerce cares more about the views of the regulatory authorities and the market reputation. We will now declare projects according to the standards that can pass the on-site inspection."

In addition to the two "sharp swords" of on-site inspection and guidance and acceptance, on February 1, the Shanghai Stock Exchange also issued the "Shanghai Stock Exchange science and technology innovation board listing audit business guide No. 2 - Information Disclosure and verification requirements for common problems". According to the regulations, in the process of enterprises applying for listing on the science and technology innovation board, the recommendation agencies, law firms, accounting firms and other intermediary institutions shall refer to the filling requirements in the self inspection form, and submit the forms and relevant special reports at the same time or within 3 working days after acceptance.

"At present, many securities companies report IPO projects. They queue up the semi-finished products first. Anyway, if the exchange wants to inquire, it will leave problems for the audit." Wang Jiyue, a senior investment bank personage, said that before that, the market had formed a culture of "regarding auditors as project teams, changing prospectuses into prospectuses, and taking auditing as the core to control quality". Therefore, the issuance of self-examination forms was issued to improve audit efficiency and declaration quality.

"In the past, if the registration system was too loose, the investment banks would also consider the content that can be released by regulatory review, and it is unnecessary for them to check the content. As a result, investment banks reported projects all over the place, resulting in congestion in the queue. Now regulation is fixing it. " The above senior investment banks pointed out that the current supervision relies on on on-site inspection and on-site supervision to clean up the sick enterprises in the IPO queuing process. At the same time, the responsibility of audit will be moved forward and pressed forward. Through self-examination form and tightening guidance and acceptance work, the sponsor should undertake the first audit pass.

"In the past, under the most ideal state, as long as the registration system of enterprises was approved by the municipal Party committee, now the on-site inspection and supervision of IPO, the filling and filling of self inspection form, and IPO guidance and acceptance have become three new barriers. It can be said that it is to control the quality of listed companies from the source, and at the same time alleviate queuing congestion. " The senior investment bank said.

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