Interface News Reporter | Yin Jingfei
The new "National Nine Articles" are coming, and the difficulty of the listing exam questions on the main board has risen sharply, who can successfully pass?
Recently, the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively solicited opinions on the revision of the stock listing rules, and planned to appropriately raise the threshold for listing on the main board.
There are three sets of examination papers for listing on the main board, and different scoring standards are adopted, and many companies planning to IPO to sprint to the main board have chosen the "first set of examination papers".
According to Wind statistics, as of April 17, the A-share main board has disclosed that there are 168 companies to be listed for review. There are 151 companies that choose the "first set of exam papers", 1 company that chooses the second set of exam papers, and 1 company that chooses the third set of exam papers, and the remaining 15 wind do not show which set of exam questions they selected.
The three threshold changes in the first set of listing examination papers have become the focus of market attention. After the promulgation of the nine articles of the new country, in order to get the passing score of the first set of listing examination papers, it is necessary to cross three thresholds at the same time: first, the net profit in the last three years is positive, and the cumulative net profit in the last three years is not less than 200 million yuan, second, the net profit in the last one year is not less than 100 million yuan, and third, the cumulative revenue in the last three years is not less than 1.5 billion yuan or the net operating cash flow is not less than 200 million yuan (the net profit is subject to the lower before and after deducting non-recurring gains and losses).
First, the cumulative net profit threshold in the last three years has been raised from 150 million yuan to 200 million yuan; second, the net profit index in the last year has been increased from 60 million yuan to 100 million yuan, and third, the net cash flow index generated by cumulative operating activities in the past three years has been increased from 100 million yuan to 200 million yuan, and the cumulative operating income index in the last three years has been increased from 1 billion yuan to 1.5 billion yuan.
After the threshold for listing on the main board, especially the difficulty of the first set of listing examination papers, has increased, many companies planning to IPO may no longer be able to get IPO tickets.
Jiemian News statistics found that only a few of these companies in the queue have updated their 2023 financial data and all meet the above requirements, while most of the remaining companies are currently in the "suspended" state of updating their financial information. Referring to the performance of the three-year reporting period from 2020 to 2022, many companies are facing greater pressure to "break through", and whether they can successfully pass depends more on their performance in 2023.
Who is stumped by 200 million net profit? 2023 performance becomes the "finale"
The first major threshold for the first set of examination papers listed on the main board is: the net profit in the last three years is positive, and the cumulative net profit in the last three years is not less than 200 million yuan. According to the statistics of interface news, it is a bit difficult for 14 companies to IPO to get IPO tickets.
It should be noted that there are many complex accounting subjects in the financial report, which is the specific indicator of net profit? is it net profit, net profit attributable to the parent company, or non-net profit?
Reviewing the relevant listing documents of the Shenzhen Stock Exchange and the Shanghai Stock Exchange, it is necessary to compare the net profit attributable to the parent company and the net profit after deducting non-profits, whichever is lower, the lowest is the passing line. Although some companies planning to IPO have satisfied that the cumulative net profit attributable to the parent company in the past three years has exceeded 200 million yuan, the cumulative net profit after deducting non-profits is less than 200 million yuan, and it still cannot meet the standard.
Among the 14 companies planning to IPO, according to the statistics of Jiemian News, there are 7 companies planning to IPO with a cumulative net profit attributable to the parent company of less than 200 million yuan during the three reporting periods from 2020 to 2022, and 7 companies planning to IPO with a cumulative net profit of less than 200 million yuan after deducting non-profits.
According to the old version of the listing standard, "the net profit in the past 3 years is positive, and the cumulative net profit in the last 3 years is not less than 150 million yuan", the above-mentioned 14 companies to IPO have all met the standard, but under the deterrence of the "New National Nine", these 14 companies are a bit hanging in the sprint IPO, and whether they can pass the assessment of the New National Nine will depend more on their performance in 2023.
In fact, Jiemian News found that many of the 14 companies are not far from the 200 million yuan passing line. For example, Fujian Haidian Operation and Maintenance Technology Co., Ltd. (hereinafter referred to as Haidian Operation and Maintenance) has a cumulative net profit attributable to the parent of 190 million yuan during the three-year reporting period from 2020 to 2022, and a net profit attributable to the parent company of 184 million yuan after deducting non-profits.
The actual controller is the State-owned Assets Supervision and Administration Commission of Fujian Province, and the cumulative net profit attributable to the parent company in 2021 and 2022 will reach 176 million yuan and 170 million yuan respectively, which means that if its net profit attributable to the parent in 2023 and the net profit attributable to the parent after deducting non-profit exceed 24 million yuan and 30 million yuan respectively, it can meet the cumulative net profit requirements of the last three years.
The company's first announcement date is October 9, 2022, and the acceptance date is June 20, 2023.
Jiemian News understands that the suspension of IPO review is generally due to the internal or external environment of the company to be listed on the stock market, regulatory requirements and other reasons. or actively or passively withdraw the application, temporarily suspend the listing application, and restart the IPO when the conditions are met. An industry insider told Jiemian News that there are five main reasons for the suspension of the review, first, the review process cannot be continued due to incomplete application documents, etc.; second, the issuer's subject qualification is doubtful or the practice of intermediaries is restricted, resulting in the failure to continue the review process; third, there are doubts about the information disclosed by the issuer that need further verification; and fourth, the issuer takes the initiative to request the suspension of the review or other reasons that make the review work unable to be carried out normally.
For Haidian O&M, if it wants to restart the IPO, one of the materials that needs to be supplemented is the 2023 financial report.
For another example, Chaoying Electronic Circuit Co., Ltd.'s cumulative net profit attributable to the parent company in 2021 and 2022 will reach 287 million yuan and 160 million yuan respectively in 2021 and 2022, and the pressure on its performance assessment in 2023 is not great. In 2021 and 2022, Shanghai Jinbiao Cultural and Creative Co., Ltd. will have a cumulative net profit attributable to the parent company and a net profit after deducting non-profits of 169 million yuan and 151 million yuan respectively, and the company's lowest performance from 2020 to 2022 has exceeded 52 million yuan, and its performance assessment pressure in 2023 is not great.
However, not all of the 14 companies have had such an easy time in terms of performance.
For example, Xinjiang Kailong Clean Energy Co., Ltd. (hereinafter referred to as Kailong Clean Energy). During the three-year reporting period from 2020 to 2022, its net profit attributable to the parent company and net profit attributable to the parent after deducting non-profits reached 173 million yuan and 160 million yuan respectively, which is still a certain distance from the threshold of 200 million yuan. From 2021 to 2022, its net profit attributable to the parent company and net profit attributable to the parent after deducting non-profits will reach 130 million yuan and 119 million yuan respectively. This means that in 2023, its net profit attributable to the parent company and net profit attributable to the parent after deducting non-profits will need to reach 70 million yuan and 81 million yuan respectively in order to cross the 200 million passing mark of the first set of examination papers listed on the main board.
Kailong Clean Energy's first IPO announcement date was in 2019, and the IPO acceptance date is June 15, 2023. The company is mainly engaged in oil and gas field venting, natural gas purification and recovery, gas injection business, natural gas power generation and main power services of service-oriented enterprises, the actual controller is Zeng Qiang. In addition to performance pressure, the company has been questioned in terms of public opinion, such as relying on "two barrels of oil" in revenue, excessive concentration of marketing areas in Xinjiang and Sichuan, large fluctuations in the gross profit margin of core business, worrying about the stability of performance, low investment in research and development expenses, debt lawsuits, and problems in internal control.
It is necessary to be vigilant about whether these pre-IPO companies hovering on the edge of the passing line will rush to increase their performance in 2023 by playing the side ball, and at the same time, even if the above-mentioned 14 pre-IPO companies meet the 2023 performance standards, whether they can cross the other two thresholds of the first set of examination papers for listing on the main board.
Who is stuck with a net profit of not less than 100 million in the past 1 year?
According to the old version of the listing rules, the second major threshold in the first set of examination papers for listing on the main board is that the net profit in the past one year is not less than 60 million yuan. However, after the promulgation of the new "National Nine Articles", its threshold has also risen sharply from 60 million yuan to 100 million yuan. The increase in this threshold has also stuck many companies planning to IPO.
According to the statistics of Jiemian News, 28 companies chose the first set of examination papers for listing on the main board, and their performance in 2022 is higher than 60 million yuan, whether it is the net profit attributable to the parent or the net profit after deducting non-profits. However, after the promulgation of the nine articles of the new country, either the net profit attributable to the parent is less than 100 million yuan, or the net profit after deducting non-profits is less than 100 million yuan, or both indicators fail.
As a result, these 28 companies are a bit hanging in the pan for IPO.
For example, Jiangsu Dayi Technology Co., Ltd. (hereinafter referred to as Dayi Technology). Dayi Technology is a professional lithium battery power tool manufacturer, mainly engaged in the research and development, production and sales of power tools, the enterprise is a family business, the actual controller is Huang Jianping, Huang Jianhui, Huang Jinkang and Ni Yuhong. From 2020 to 2022, the company's net profit attributable to the parent company will reach a total of 231 million yuan, and the net profit after deducting non-profits will reach 210 million yuan.
The company's IPO acceptance date is March 2, 2023, and the review date is March 31, 2024, and the current IPO review status is suspended. If it wants to restart the IPO, the first problem facing this company is that the performance indicators in 2023 (whether it is net profit attributable to the parent company or net profit after deducting non-profits) will be higher than 100 million yuan. As of the end of June 2023, the company's net profit attributable to the parent company was 65 million yuan, and the net profit after deducting non-profits reached 60 million yuan. It is still unknown whether the performance of the whole year in 2023 can rush to the passing line of 100 million yuan.
In addition to the substandard performance, the company's large-scale capital lending and occupation, internal control, capacity utilization rate is declining, and the company plans to double the IPO fundraising and expand production, which have been questioned by the regulator and public opinion.
Of course, the failure of performance in 2022 does not mean that these 28 companies will not be able to participate in this round of IPO, many companies are hovering on the edge of the 100 million yuan passing line, and whether they can turn things around in one fell swoop depends on their performance in 2023. For example, Chaoying Electronic Circuit Co., Ltd. (hereinafter referred to as Chaoying Electronics). Although the company's net profit attributable to the parent company after deducting non-profits in 2021 was only 75 million yuan, in the first half of 2023, its net profit attributable to the parent company and net profit after deducting non-profits will both reach about 120 million yuan, exceeding the passing line of 100 million yuan.
It is worth noting that in addition to the 28 companies, the remaining more than 120 companies planning to IPO that choose the first set of examination papers for listing on the main board will also face the risk of being eliminated if their performance in 2023 is lower than the red line of 100 million yuan.
Who is hindered by 1.5 billion yuan in revenue or 200 million yuan in operating net cash flow?
According to the old version of the listing rules, the third major threshold for the first set of examination papers for listing on the main board is that the cumulative net cash flow generated by operating activities in the past three years is not less than 100 million yuan or the cumulative operating income is not less than 1 billion yuan.
However, after the promulgation of the new Nine Articles, this threshold has also been raised considerably. That is, the cumulative net cash flow generated by operating activities in the last three years shall not be less than 200 million yuan or the cumulative operating income shall not be less than 1.5 billion yuan.
The increase in this threshold has also stopped some companies planning to IPO.
During the three-year reporting period from 2020 to 2022, the net cash flow from operating activities was less than 200 million yuan, and at the same time, there were 3 companies planning to IPO with a cumulative operating income of less than 1.5 billion yuan.
They are Changchun Zhuoyi Biological Co., Ltd., Shandong Jinhong New Materials Co., Ltd. (hereinafter referred to as Jinhong New Materials) and Suzhou Jiaqishi Technology Co., Ltd.
Taking Jinhong New Materials as an example, under the old version of the listing rules, although the cumulative net cash flow from operating activities from 2020 to 2022 is only 28 million yuan, which cannot cross the threshold of "not less than 100 million yuan", the cumulative revenue in the past three years has reached 1.232 billion yuan, which is enough to meet the threshold line of "the cumulative operating income in the past three years is not less than 1 billion yuan".
However, under the new regulations, Jinhong New Material's revenue will no longer be able to meet the target. The cumulative revenue of 1.232 billion yuan from 2020 to 2022 obviously does not reach the threshold of "not less than 1.5 billion yuan".
The IPO acceptance time of Jinhong New Materials is December 2023, and the IPO review has been changed to suspend the review. As of the first half of 2023, the company's revenue reached 840 million yuan.
It should be noted that six companies planning to IPO have touched two of the three major financial red lines in the Main Board Listing Criterion1 at the same time.
According to the statistics of interface news, these six are Haidian Operation and Maintenance, Jinyonghe Seiko Manufacturing Co., Ltd., Suzhou Jiaqishi Technology Co., Ltd., Chaoying Electronic Circuit Co., Ltd., Qiaoyi Logistics Co., Ltd., and Changchun Zhuoyi Biological Co., Ltd.
For example, the cumulative net profit attributable to the parent company of Haidian O&M during the three-year reporting period from 2020 to 2022 reached 190 million yuan, and the net profit attributable to the parent after deducting non-profits reached 184 million yuan, both of which were lower than the minimum requirement of "200 million yuan for the first set of listing examination papers on the main board", and the net profit in 2022 was only 87 million yuan, which was lower than the passing line of the net profit of not less than 100 million yuan in the last 1 year of the "first set of listing examination papers on the main board".
For another example, the net profit of Changchun Zhuoyi Biological Co., Ltd. in the last one year cannot cross the threshold of 100 million yuan, and at the same time, the cumulative revenue or cumulative operating cash flow amount in the last three years cannot cross the third threshold of "the first set of listing examination papers on the main board".