Six enterprises and 16 intermediaries were fined, and on-site inspections of 44 proposed IPO enterprises were about to start. The 21st Century Economic Reporter has learned that in recent years, 44 enterprises have voluntarily withdrawn their application materials.
We have a project. The net profit of GEM is about 50 million yuan, and the application materials have been withdrawn. July 12, a Southern brokerage investment banker told reporters. The net profit scale is small, and if there is any problem, it will be withdrawn. The investment bankers said.
The Securities Regulatory Commission (SFC) has launched another round of on-site verification of IPO, and the clearance of the barrier lake of IPO has begun.
44 middle-sized enterprises have voluntarily withdrawn materials
On the evening of July 12, the SFC disclosed that, in accordance with the problem-oriented and lottery method, 44 enterprises under examination had recently been scheduled to start on-site inspection. The 21st Century Economic Reporter has learned that securities firms have been notified of on-site inspections before, and many of the 44 companies selected for on-site inspections have withdrawn their application materials.
One of our projects has been withdrawn and the net profit of GEM is around 50 million. I feel that the signal from the SFC now is that small and problematic companies with small net profits would be better off withdrawing. A Southern brokerage investment banker told reporters. Another investment banker also told reporters that the company had withdrawn applications for projects.
According to the data of the Securities Regulatory Commission, as of July 4, the number of IPO queuing enterprises awaiting trial has reached 501. Among them, the number of planned IPO companies on the main board is 186, the number of small and medium-sized boards is 104, and the number of GEM 211. In addition, the number of companies applying for listing on the GEM has reached 144.
Some small-scale enterprises also passed the meeting smoothly some time ago, and the market understood it as a positive signal, so many enterprises reported it and formed a new round of barrier lake. A large brokerage investment banker said.
The clearance of the barrier lake has begun.
On the evening of July 12, the SFC said that in recent years, through daily audits and on-site inspections of the initial issuing enterprises, it was found that some enterprises had some problems, such as insufficient cost accounting, inadequate provision for impairment of related assets, defects in the basic work of internal control, and untrue disclosure of related party funds. Therefore, the SFC has taken measures to supervise the issuance of warning letters by six initial issuing enterprises with related problems.
These six enterprises are: Hong Jin New Material, Jurong Ningwu, Jiaman Clothing, Star Semiconductor, Shanghai Zhijiang Biology, Mingguan New Material. Four of them are in the normal audit procedure, while Ningwu Jurong has terminated the review, and Shanghai Zhijiang Biotechnology has withdrawn its application.
This shows that if the sick will take the initiative to withdraw the application or terminate the review, it will eventually be difficult to escape. On the other hand, it is difficult to shirk the responsibility of relevant intermediaries.
According to the information that has been verified, the SFC has initiated relevant regulatory procedures in accordance with the seriousness of the circumstances for eight sponsoring agencies, four accounting firms and four law firms with professional quality problems. Other enterprises will take relevant measures according to the verification of the problem. The SFC said.
The SFC has imposed penalties on six prospective IPO companies and 16 intermediaries, sufficiently demonstrating its power. The SFC said that in order to further shorten the audit cycle and improve the audit efficiency, it will continue to arrange spot checks, drawing lots and on-site inspection according to the acceptance and audit progress.
Through on-site inspection and daily supervision, we will further promote the standardized operation of first-time applicant enterprises, improve the quality of information disclosure, urge intermediaries to improve their level of practice, create a good market ecology, improve the quality of listed companies from the source, and constantly enhance the ability of capital market to serve the real economy. The SFC pointed out.
Focus on verifying the authenticity of financial data
As for the diversion effect of issuance, since there is no need to freeze funds for new shares, brokers generally believe that the impact is limited.
In 2014, the Securities Regulatory Commission conducted 10 random checks and lots of companies to be listed in the IPO market. In that year, a group of active withdrawers appeared in the IPO waiting team. Subsequently, the frequency of lottery checks decreased, five times in 2015, two times in 2016, four times in 2017 and two times in 2018.
In addition to random lottery, the SFC will also conduct irregular on-site inspections of IPO companies. However, unlike in the past, the number of directional inspection enterprises in this field inspection is larger. Investment bankers told reporters that most of the enterprises targeted for inspection had found some problems in the early stage.
Whether it is random lottery or on-site inspection, the core focus of the SFC inspection is still the authenticity of enterprise financial data, and strictly prevent enterprises from breaking through with illness. The six enterprises in this penalty have problems in financial data.
For example, there are some problems in the four semiconductors in Jiaxing, such as less accounting for financial expenses, inaccurate recognition of government subsidies, inadequate disclosure of the impact of the relaxation of credit policies on individual customers in 2015 to expand sales on current operating performance.
There are some problems in the new material of Luhuahongjin, Zibo, such as inaccurate value of fixed assets, inappropriate confirmation of repair fees, inappropriate accounting treatment of government subsidies, inconsistent information disclosure of income confirmation accounting policies and receivable bills with facts.
Source: Responsible Editor of 21st Century Economic Report: Yang Bin_NF4368