The main reason for the "retreat" of NEEQ companies this year is that the performance of 48 enterprises to be IPO terminated has declined
Every reporter Chen Chen Every editor Xie Xin
Due to the further strict review on IPO, the rate of IPO review meeting remains at a low level. This has also put a lot of enterprises and sponsors in line under great pressure, and some enterprises simply chose to quit and terminate the review. As of March 15, 48 enterprises to be IPO have terminated the review this year, and 26 enterprises have so far since late February alone, accounting for more than 50% of the entrepreneurs who terminated the review this year. In addition, the reporter of the Daily Economic News also noted that among the enterprises that have terminated the review, there are 14 enterprises from the NEEQ. The decline in operating performance is the main reason why most NEEQ enterprises choose to "retreat".
The number of NEEQ companies terminating review increased sharply
Under the current low IPO passing rate, many enterprises and sponsors who are queuing for IPO review are facing huge pressure, so many enterprises choose to retreat from difficulties.
According to the disclosure of the CSRC, 146 enterprises terminated their review in 2017, of which 64 terminated their review in more than two months from the performance of the new IEC on October 17, 2017 to the end of 2017, accounting for more than 40%.
In 2018, this phenomenon continues and shows an accelerating trend. As of March 15, a total of 48 enterprises have terminated the examination this year, compared with 8 enterprises in the same period last year. 28 of the 48 enterprises that have terminated the examination plan to land on the GEM, accounting for nearly 60%. There are 14 companies planning to land on the main board of Shanghai Stock Exchange and 6 companies planning to land on the small and medium-sized board.
The reporter of the Daily Economic News further combed and found that among the 48 enterprises that had terminated the review, 14 were from the NEEQ, accounting for nearly 30%, while the total number of enterprises that planned to terminate the review of IPO on NEEQ last year was only 19. The reporter of the Daily Economic News also noted that the decline in performance was the main reason for most NEEQ companies to withdraw materials and terminate the review. According to the reporter's statistics, among the new three board enterprises that terminated the review this year, at least 6 enterprises experienced performance decline in the first half of 2017, accounting for more than 40%. Another example is Tianjin Tianyan Technology, Hunan Xiangjia Animal Husbandry and other enterprises whose performance declined by more than 100%.
"In the past, many NEEQ listed companies lacked judgment, did not have a clear strategic plan, and drifted with the tide to carry out listing guidance. This phenomenon is difficult to be rational. If this situation continues, a large number of NEEQ listed companies will rush to participate in the IPO, which is bound to cause IPO queue congestion and increase the cost of IPO queue time", The research team of the new third board of Essence Securities thinks so.
Guangzhou Securities Hang Seng, on the other hand, said that it is suggested that the new third board enterprises to be IPO should learn from the problems encountered by other enterprises in the meeting, summarize experience, and focus on seven types of hot issues (standardized operation, profitability, financial statements, related party transactions, information disclosure, rationality of fund-raising projects, and three types of shareholder issues) reviewed by the IEC according to the requirements of the IEC, Solve the problems and defects in their own operations. Especially for enterprises with "three types of shareholders", after the audit caliber of "three types of shareholders" is clear, they should rectify and standardize in accordance with the requirements of the new regulations and make disclosure, so as to successfully pass the review of the IEC.
26 enterprises have retreated since late February
In addition to the above, the reporter of the Daily Economic News also found a place worthy of attention - most of the above 48 enterprises that terminated the examination decided to terminate the examination in late February and later this year.
On February 23, the CSRC made it clear in the regulatory Q&A that it would distinguish between transaction types and strengthen supervision over restructuring projects whose underlying assets had been rejected for IPO applications. Among them, for restructuring and listing transactions (commonly known as backdoor listing), enterprises should run for at least three years after the IPO is rejected before they can plan for restructuring and listing; For other restructuring transactions that do not constitute reorganization and listing, the CSRC will strengthen the supervision of information disclosure, focusing on the specific reasons and rectification of whether the IPO has been rejected, and whether the relevant financial data and operating conditions have changed significantly compared with the IPO application and the reasons.
Then on March 9, the CSRC publicized the situation of the IPO sponsors in 2017. Chang Depeng, the spokesman of the CSRC, said at the regular press conference that the CSRC would, in the next step, strengthen the supervision of the sponsors in combination with the review and daily supervision, find problems, resolutely deal with them and strictly hold them accountable.
These two blockbuster news have had a great impact on the proposed IPO enterprises and sponsors. The reporter of the Daily Economic News noted that, from February 23 to March 15, 26 enterprises chose to terminate the review in less than a month, accounting for more than 50% of the number of enterprises that have terminated the review so far this year.
"Compared with being rejected at the IEC, the active withdrawal of materials will have less impact on both the issuer and the sponsor, and it is a rational choice for enterprises that are not fully prepared to terminate the audit", Northeast Securities The Strategy Daily further analyzed and said: "The reasons for the termination of a company to be listed are generally divided into two categories: one is the lack of sustainable growth ability, involving the company's fundamentals, main business, etc.; the other is the standardization, including financial standardization, corporate governance, etc."
Editor in charge: Chen Youran SF104
