27 mistakes in IPO materials, rectification of Dongguan Securities Disclosure by sponsor

category:Finance
 27 mistakes in IPO materials, rectification of Dongguan Securities Disclosure by sponsor


It is worth noting that Qide new material was recommended by Dongguan securities, the reporting accountant and the issuers lawyer were xinyongzhong and Guangdong Xinda respectively. The three intermediary agencies have disclosed the implementation of rectification.

Because the regulatory authorities have always required the IPO application materials to be true, accurate and complete, and there are so many errors in the IPO application materials of Qide Xincai, whether the relevant intermediary agencies are professional and diligent has been questioned by the market.

27 errors

Qide new materials is a new material enterprise located in Jiangmen City, Guangdong Province. Its main business is high-performance polymer composites and products based on modified nylon and modified polypropylene.

In the first half of this year, the outbreak of new crown epidemic led to the outbreak of revenue in the field of protective equipment of Qide new material. According to the data, from January to June 2020, the companys revenue in the field of protective equipment was 106 million yuan, of which the sales revenue of modified polypropylene composite melt blown material was 98.9738 million yuan, accounting for 93.75%. This large increase in revenue gave Qide new materials a greater base for its impact on IPO.

On July 3, 2020, the application document of Qide new material gem listing was officially accepted by Shenzhen Stock Exchange, and it is planned to raise 326 million yuan for further expansion of production scale and construction of R & D center.

It is worth noting that on November 3, in response to the third round of inquiry letter of Shenzhen Stock Exchange, there were 17 factual errors in the application materials.

However, on November 20, in response to the letter of implementation of the opinions of the audit center, Qide new materials showed that there were as many as 27 errors in the information and data of the materials reported by the issuer.

Among them, there are a series of mistakes in writing and writing. For example, the misrepresentation of the basis for the shareholders capital increase pricing; the misrepresentation of the pricing basis for the transfer of Zhongshan bangsus equity; the misrepresentation of bond investment as Qide holding; the clerical error in the annual depreciation rate of housing and buildings; the error in copying the analysis contents of other products in the analysis of the main business income.

In the application materials, there are still many data statistics and data calculation errors. For example, the statistics of online sales of childrens car safety seats are wrong; the growth of gross profit rate of polypropylene composite materials from January to June 2020 is inconsistent with the table, which is the calculation error of unit price increase of Nanjing Julong in 2017; the gross profit proportion of four main business products in the first half of 2020 is wrong; the average unit price and proportion of precision injection mold customers in 2018 are calculated The total gross profit rate of different high performance modified composite products is wrong.

Three intermediaries

Implement rectification

Due to the fact that the information disclosure of the IPO application materials is true, accurate and complete, and the information disclosure errors in the IPO application materials of Qide new materials, the sponsor Dongguan securities and other relevant intermediary agencies are obviously to blame.

On November 20, in reply to the letter of implementation of the opinions of the audit center of Shenzhen Stock Exchange, the three major intermediary agencies disclosed the implementation of the rectification.

At the same time, the sponsor reiterated the relevant requirements of quality control and core system, and drafted the draft of notice on improving the quality of investment bank project undertaking, which strengthened the internal audit requirements of application materials and the internal control measures of application documents. The sponsor project team also made a deep reflection on the wrong items, and summarized the data adjustment and the reasons for the errors.

Guangdong Xinda, the lawyer of the issuer, has taken three major rectification measures

First, increase the members of the project team and form a special working group to conduct a comprehensive and repeated careful inspection and review on the contents of the legal documents issued and issued in the subsequent reply stage, as well as the previous prospectuses and the working papers produced by issuing the above-mentioned legal documents.

Second, the core department reviewed the legal documents submitted by the project team in accordance with the internal management system of Xinda lawyers on securities legal business, and the core department put forward feedback opinions, and the project team revised and improved the relevant documents according to the internal management system of Xinda lawyers on securities legal business.

Third, we will discuss and cross check the application documents together with the sponsor, the issuer and the reporting accountant. We will timely revise and correct the information disclosure errors and make a profound reflection. The prospectus is marked in bold and regular script.