Guide: According to the relevant insiders who are close to Lide Electronics Technology, they confirmed to KOKOK Financial News that Lide Electronics Technology has officially submitted its IPO resumption guidance record to Hubei Securities Regulatory Bureau two months ago. At present, the related guidance work for its second time breakthrough listing is in full swing. In addition, Lide Electronics Technology, which decided to go back to the listing journey, did not choose Zhongyuan Securities, the sponsor of its initial IPO, to continue to escort it, but instead turned to Guotai Jun'an.
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This article was originally launched by Koukouipo (ID: Koukouipo)
Author: He Zhuowei @Beijing
Editor: Zhai Rui @ Beijing
If we take stock of the representative typical cases in the recent A-share IPO issuance review, the IPO of Wuhan Lide Power Technology Co., Ltd. (hereinafter referred to as "Lide Power Technology") should be difficult to avoid.
The reason why the IPO of Lide Electronics Technology was on the list has attracted market attention, not because of its huge issuance scale, nor because of its outstanding fundamentals, but as the first special case of the main board in recent years that it failed to complete the issuance within the valid period after obtaining the IPO approval document.
April 11, 2023 is the expiration date of the issuance approval of the CSRC for the IPO of Lide Electronics Technology at that time, but its IPO, which was suspended on May 26, 2022, still failed to restart before that time limit, which doomed Lide Electronics Technology to return with regret when the IPO was the last kilometer from landing in the A-share market.
Looking back on the capital journey of the listed company in that year, it can be said that before May 26, 2022, it was all plain sailing.
As a provider of special vehicles, special equipment, special tools, professional services and system solutions for distribution network uninterrupted operation, Lide Power Technology has been committed to providing distribution network uninterrupted operation products and services for the power system since its establishment. It formally submitted its application for listing on the Shenzhen Main Board to the CSRC in June 2021 and was accepted, After a series of feedback opinions and supplementary materials, on January 27, 2022, at the 11th Issuance Review Meeting of the 18th Issuance Review Committee of the CSRC in 2022, the IPO of Leader Electronics Technology successfully passed the review of the Issuance Review Committee of the CSRC, and quickly obtained the issuance approval document of "sealing up" in the middle of April 2022, more than two months later.
The period of validity of the IPO issuance approval issued by the CSRC is 12 months. In principle, enterprises can choose the time of issuance within the period of validity of the IPO approval. However, for the vast majority of enterprises, in order to prevent the change of "long nights and long dreams", they basically start the issuance process at the first time after obtaining the issuance approval.
The same was true of Lide Electronics Technology.
After obtaining the issuance approval in the middle of April 2022, Lide Electronics Technology started its IPO issuance process without stopping, and officially released the issuance pricing at the end of April of the same year.
However, human calculation is still not equal to heaven calculation.
At the end of May 2022, after surviving the three weeks of risk warning due to the high issue price, the IPO of Leader Electronics Technology fell under the "suspension of issuance".
In the morning of May 26, 2022, Lide Electronics Technology Co., Ltd., which had completed the initial inquiry of IPO, suddenly issued an announcement calling for the suspension of the next issuance process. According to the original plan, it will start the online roadshow of this IPO the next day.
For the sudden accident, Lide Dianke explained in the relevant announcement that it was because "the remaining matters need to be checked" and decided to suspend the subsequent issuance for the purpose of protecting the rights and interests of investors.
This suspension lasted for nearly a year, until the issuance approval expired, and the IPO of Lide Electronics Technology also meant the official end.
Admittedly, in the history of A-share IPO issuance, like Lidec, it has completed all the IPO review processes and formally obtained the issuance approval from the CSRC. However, there have been several cases where the IPO was suspended due to emergencies on the eve of listing - ten years ago, there were lessons of imminent failure in the IPO process of Li Li Electronics, Suzhou Hengjiu, Aosaikang, etc., and in 2017, there were also Jinchuang Group Yong'anhang encountered setbacks of delay before and after its IPO entered the roadshow, and more recently, the failure of Ant Group's IPO on the eve of listing in 2020.
The failure of Lide Electronics Technology's IPO has also made it the only case in the Shanghai and Shenzhen IPO market since 2021 that the IPO was stopped after the launch of the IPO and ultimately led to the failure of the IPO.
"After the expiration of the IPO issuance approval period, the only way for Lide Electronics Technology to continue listing is to re apply for approval under the registration system and go through the whole listing process again." As early as April 2023, before the IPO issuance approval of Lide Electronics Technology expired, the relevant person in charge of the investment banking department of a large securities firm in Beijing with the prefix "China" told KOKOKOK Financial News.
Although the so-called "remaining matters" of the delayed issuance of Sri Lanka Electric Power Technology Co., Ltd. has been kept secret so far. However, it was learned by Knock Finance that after the initial sprint for listing failed, Lide Electronics Technology has officially restarted its IPO in the near future.
According to the relevant insiders close to Lide Electronics Technology, Xiang Kekou Financial Information confirmed that Lide Electronics Technology had officially submitted its IPO guidance record to Hubei Securities Regulatory Bureau two months ago. At present, the guidance work related to its second breakthrough listing is in full swing.
Lide Electronics Technology, which decided to go back to the listing journey, did not choose Zhongyuan Securities, the sponsor of its initial IPO, to continue to escort it, but instead turned to Guotai Jun'an.
According to a schedule of Guotai Jun'an's IPO guidance work for Lide Power Technology obtained by Kokkow Finance, the relevant IPO guidance agreement was signed on July 3, 2023, less than three months after the final failure of Lide Power Technology's initial IPO. According to the plan, if everything goes well, Lide Power Technology will apply for guidance acceptance in October 2023 to complete the preparation work before IPO declaration, That is to say, Reed Electronics Technology will probably submit its listing application to the regulatory authorities for the second time before the end of 2023 at the earliest.
1) With the support of all star shareholders, Lide Electronics Technology restarted its listing
Whether from the perspective of its fundamentals or its luxurious shareholder lineup, it is impossible for Lide Electronics Technology to give up its dream of listing which was only a step away after its initial IPO was "sniped" and ended.
According to the prospectus officially released by the first IPO of Lide Electronics Technology earlier, as early as 2021, Lide Electronics Technology has achieved a breakthrough in deducting non net profits of more than 100 million yuan, recording revenue of about 459 million yuan in the current period, and corresponding non net profits of 100.9 million yuan.
At the same time, in the prospectus, it also predicted the performance of Lide Electronics Technology in the first quarter of 2022, with a year-on-year growth rate of 107.41% - 129.24% in operating revenue and a year-on-year growth rate of 352.72% - 402.75% in net profit deduction.
The luxurious shareholder lineup is also one of the highlights of the previous IPO of Leader Electronics Technology.
According to the latest equity structure of Leader Electronics Technology, it currently has 32 shareholders, including 16 institutional shareholders in addition to 16 natural person shareholders.
Many well-known domestic enterprises and investment institutions, such as Silicon Valley Paradise, Wenshi Food, Jianxin Investment, Changjiang Wenjin, etc., have appeared in the shareholders' list of Lide CETC. In particular, Wenshi Food has sent its three investment institutions - Wenshi Investment, Wenshi No.4 and Qichuang Share to hold 3.1909 million shares of Lide CETC, accounting for 5.02% of its current total equity, It has also become the largest external institutional shareholder in the shares of Leader Electronics Technology.
"The rapid growth of performance is obviously also an important factor for Lide Electronics Technology to decide to restart its IPO in the short term, which will also lay a solid foundation for its second time of going public." The person in charge of the investment banking department of the above large securities companies said that as long as Lide Electronics Technology continues to maintain its growth of performance in the second half of 2022, on the premise of successfully resolving the "remaining issues" that troubled the previous IPO, The prospect of this relaunch of Lide Electronics Technology is worth looking forward to.
So, more than a year ago, what is the "remaining matter" that caused the IPO of Lide Electronics Technology to suddenly stop in the process of issuance?
Lide Electronics Technology still keeps a secret about this.
In June 2022, shortly after the IPO of Leader Electronics Technology was suspended, some people close to the regulatory level disclosed to Knock Financial News that Leader Electronics Technology's IPO was temporarily suspended on the night before the roadshow, or some disputes in its history were involved.
Although the above persons concerned did not disclose the specific content of the "historical entanglement".
However, some clues that occurred around this time period may be seen.
According to the exclusive information of KOKOK Financial News at that time, one month after the IPO of Lide Electronics Technology was suspended on the eve of the issuance, that is, on June 28, 2022, Lide Electronics Technology quickly took a natural person named Chen Wei to the court in the name of the company with a "liability dispute for damage to the interests of the company".
The relationship between Chen Wei and Lide Electronics Technology is not simple.
He is not only the ex-wife of Wang Songfeng, the actual controller of LDEC today, but also the former actual controller of LDEC and the daughter of the founder of LDEC.
Lide Electronics Technology Co., Ltd. was established in 2007, and its legal representative and major shareholder are both natural person Wang Songfeng.
At present, Wang Songfeng directly holds 28.56% of its shares, which is the controlling shareholder of Leader Electronics Technology; At the same time, Wang Songfeng also indirectly controls 10.92% of the voting shares of Lidec by controlling Wuhan Confid Investment Partnership (Limited Partnership), and 24.52% of the voting shares of Lidec by controlling Wuhan Mingruida Investment Partnership (Limited Partnership).
That is to say, Wang Songfeng currently controls 64.00% of the voting shares of Lidec through direct and indirect means.
In fact, when it was first founded, Lide Electronics Technology was not owned by Wang Songfeng, but by Hubei entrepreneur Chen Changfan.
According to the industrial and commercial information, on July 30, 2007, the natural persons Chen Changfan and Hu Xiangwang invested a total of 3 million yuan to set up Wuhan Lide Technology Co., Ltd. (hereinafter referred to as "Lide Co., Ltd."), of which Chen Changfan contributed 2.7 million yuan to hold 90% of the shares of Lide Co., Ltd., and Hu Xiangwang held the remaining 10%. Hu Xiangwang is the brother of Chen Changfan's wife, which is the predecessor of Lide Electronics Technology.
At the time when Lide Limited began to show its strength, Chen Changfan suddenly made a bold decision to transfer all the shares to his daughter Chen Wei at zero consideration.
Through the above transfer, Chen Weicheng is the new controller of Lide Limited.
At this time, Chen Wei's husband was Wang Songfeng.
In 2011, in the fifth year of the establishment of Lide Electronics Technology Co., Ltd., Chen Wei and Wang Songfeng ended their marriage for many years with a Voluntary Divorce Agreement.
At the same time, Chen Wei also transferred all of his shares in Lide Electronics Technology to Wang Songfeng at a price of only 1 yuan.
In this way, Wang Songfeng formally obtained the control of Lidec from Chen Wei and his family, and became the new actual controller and chairman of Lidec.
Led by Wang Songfeng, Leader Electronics Technology has experienced more than ten years of development, and finally launched its first sprint to the A-share IPO capital market in 2021.
Chen Wei, who has not held any position in the company for ten years, was sent to the dock by the company for "harming the company's interests" ten years later after the IPO of the company was hit hard. This has to be imagined - according to the judicial interpretation, the responsibility dispute of harming the company's interests refers to the abuse of shareholders' rights or directors, supervisors Disputes caused by senior managers' violation of legal obligations and damage to the company's interests.
According to the relevant announcement of the hearing issued by the People's Court of Hongshan District, Wuhan, the first trial of the case of Lide Electronics Technology v. Chen Wei on the liability dispute for damage to the interests of the company was originally scheduled to be held on July 18, 2022.
However, according to the financial information of Koukow, after consideration, Lide CETC finally abandoned the lawsuit against Chen Wei - in September 2022, because Lide CETC failed to pay the legal fees within the specified period, the court ruled that the case should be handled as if Lide CETC, the plaintiff, had withdrawn the lawsuit.
Lidec's initial IPO was suspended after the launch of the issue. Whether it was related to Chen Wei or not, Lidec did not give a positive answer. However, after Lidec gave up the prosecution of Chen Wei's "responsibility for harming the interests of the company", Lidec's initial IPO was also blown up soon afterwards.
2) How can Guotai Jun'an be recommended?
"Lide Electronics Technology Co., Ltd., which has restarted its IPO, should adjust its financing plan and related plans accordingly." The above-mentioned insiders close to Lide Electronics Technology Co., Ltd. told KOKO Financial News, but it is still in the early stage of coaching, and the specific plan has not been formally finalized.
However, it can be confirmed that Zhongyuan Securities, which had previously escorted the IPO of Lide CETCA to successfully pass the issuance and examination committee of the CSRC, has lost the opportunity to continue to sponsor its secondary listing, and will not act as the sponsor of the new round of listing of Lide CETCA again. Instead, Guotai Jun'an will be the sponsor.
This is not the first time that Reed Electronics Technology has changed its sponsor in the process of IPO planning for several years.
According to Kokkow Financial News, in May 2019, Lide Electronics Technology, which had just terminated its listing on the NEEQ, decided to officially launch its IPO plan, so two months later, it took the lead in signing an IPO guidance agreement with Tianfeng Securities, and Tianfeng Securities also sent a team of practitioners led by Cui Wei to immediately carry out relevant due diligence work.
However, after more than a year, on September 18, 2020, Lide Electronics Technology and Tianfeng Securities suddenly announced to cancel the coaching agreement signed by both parties and terminate their listing coaching.
At the same time, the explanation given by Reed Electric Co., Ltd. is "based on the industry, its own business development and the latest developments in the capital market" and "based on the needs of its own development strategy".
Surprisingly, just ten days later, that is, September 28, 2020, Lide Electronics Technology, which claimed to terminate the listing guidance "according to the needs of its own development strategy", quickly signed the listing guidance agreement again with new securities companies, starting a new IPO journey.
Zhongyuan Securities is the securities firm that replaced the IPO of Lide Electronics Technology, the sponsor of Tianfeng Securities.
After the failure of the first IPO of Lide Electronics Technology, today's Zhongyuan Securities has also tasted the taste of the project being seized.
Then, why would Lide Electronics Technology invest under Guotai Jun'an when it restarted its IPO?
"The cooperation between Lide Electronics Technology and the sponsor representative was quite tacit in the last IPO, and the replacement of the sponsor institution does not mean the replacement of the sponsor representative." The above-mentioned insider close to Lide Electronics Technology told KOKOK Finance News that this time, Lide Electronics Technology chose to give up Zhongyuan Securities and choose Guotai Jun'an, It is related to the sponsor representative who successfully escorted him to the meeting of the municipal party committee.
Public information shows that Hui Miaofeng and Xi Xinyue from Zhongyuan Securities were the sponsor representatives of the IPO of Lide Electronics Technology.
Hui Miaofeng can be said to be a senior representative of investment banking recommendation. Previously, he served as the director general manager of the investment banking department of Zhongyuan Securities. From entering the securities industry in 2008 to officially registering as the sponsor representative in early 2013, Huimiaofeng has more than ten years of experience in the industry. During this period, Huimiaofeng has been responsible for and participated in the IPO projects of Thayer, Lidman, Cent, Zhanpeng Technology, Youcai Resources, etc.
Compared with Hui Miaofeng, Xi Xinyue is only a new investment banker. Although he also entered the securities industry in 2008, he did not officially register as a sponsor representative until July 2020. So far, no investment banking project has been completed by him as a sponsor representative.
Hui Miaofeng can be said to be the leader of the recommendation work for the IPO project of Lide Electronics Technology.
According to the relevant work materials on the IPO of Lide Dianke, which was recommended by Zhongyuan Securities, Hui Miaofeng was the leader of the guidance team during the guidance work on the listing of Lide Dianke at that time.
According to the above-mentioned insiders close to Lide Power Technology, just at the threshold of Lide Power Technology's decision to restart IPO, Hui Miaofeng, who was originally the recommendation representative of Zhongyuan Securities, suddenly left his job and changed jobs, while his new employer was Guotai Jun'an.
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