Registration-based sector IPO weekly inventory: 8 will pass, new stocks appeared to break + abandon

This week (November 1 to November 5), the Sci-Tech Innovation Board and the ChiNext Board added a total of 3 new accepted enterprises, 8 enterprises passed the Listing Committee meeting, 5 enterprises registered and took effect, and 0 terminated the review.

Overall review of the Sci-Tech Innovation Board and the ChiNext Board:

As of November 5, the Shanghai Stock Exchange has accepted a total of 667 enterprises applying for the Science and Technology Innovation Board, of which 6 are in the accepted state, 62 are in the inquiry stage, 12 are in the listing committee review stage, 40 are in the stage of submitting registration, 381 have obtained the registration results, 32 have been suspended due to financial updates, and 134 have terminated their audits.

During the same period, the Shenzhen Stock Exchange accepted a total of 752 GEM reporting enterprises, of which 6 were in the accepted state, 156 were in the inquiry stage, 50 were in the listing committee meeting stage, 39 were in the stage of submitting registration, 257 had obtained the registration results, 127 were suspended, and 117 were terminated.

What's new this week:

This week (November 1 to November 5), the Shanghai Stock Exchange accepted 3 new IPO applications for the Science and Technology Innovation Board; 1 company in the inquiry stage entered the inquiry stage this week, and another 16 companies updated the information; in the listing committee review stage, 6 companies met this week, and 2 companies at this stage updated their information; only 1 company updated the information in the registration process; in terms of registration results, 3 companies took effect this week, and 1 company updated the information; 0 companies suspended the review because of the financial update 0 companies terminated the audit.

The Shenzhen Stock Exchange has not newly accepted the GEM IPO application of enterprises, and 27 companies have updated their information during the inquiry stage, 2 companies have met this week, 1 company that submitted registration has updated information, 2 companies have registered effectively this week and 1 has updated information, 0 have suspended the review, and 0 have terminated the review.

Newly accepted IPO companies:

On November 4 and November 5, the Shanghai Stock Exchange accepted IPO applications from 1 and 2 companies respectively. The three companies are Chongqing Shanwaishan Blood Purification Technology Co., Ltd. (hereinafter referred to as "Shanwaishan"), Hefei Xinhuicheng Microelectronics Co., Ltd. (hereinafter referred to as "Huicheng Shares"), and Shanghai Mengke Pharmaceutical Co., Ltd. (hereinafter referred to as "Mengke Pharmaceutical").

Among them, Shanwaishan was once a New Third Board company, listed on the New Third Board on August 1, 2016, but terminated its stock listing on October 25, 2018. The company is engaged in the research and development, production and sales of blood purification equipment and consumables, and provides chain hemodialysis medical services, with net profits of -27.5406 million yuan, -34.9333 million yuan, 18.3341 million yuan and 3.4056 million yuan in 2018-2020 and the first half of 2021, respectively.

Shanwaishan plans to raise 1.247 billion yuan for the industrialization project of blood purification equipment and high-value consumables, the construction project of blood purification research and development center, the construction project of marketing network upgrade and remote operation and maintenance service platform, and the supplementary working capital.

However, Shanwaishan also reminded that the company faces risks such as the procurement policy with volume, the "two-invoice system" policy, the procurement of some core raw materials through imports, the low shareholding ratio of the actual controller, the loss of bad debts in accounts receivable, and the negative net cash flow from operating activities.

In addition, Huicheng Shares and Mengke Pharmaceutical also plan to raise 1.564 billion yuan and 1.250 billion yuan respectively.

Meeting Status:

This week, a total of 6 IPOs on the Star Market passed. Among them, on November 1, there were 2 IPO companies on the Science and Technology Innovation Board, namely Shaanxi Lite Optoelectronic Materials Co., Ltd. and Suzhou Nanocore Microelectronics Co., Ltd. The four IPO companies that passed the meeting on November 4 were Puyuan Precision Technology Co., Ltd., China Catalyst New Materials Co., Ltd., Heyuan Biotechnology (Shanghai) Co., Ltd., and Suzhou Dongwei Semiconductor Co., Ltd.

The IPO applications of these 6 companies took about 5 months from acceptance to meeting, and 1 company's IPO application was accepted at the end of May and entered the inquiry process in June; 5 companies were accepted in June and entered the inquiry link in July.

In terms of registration, on November 2, Jiahe Meikang (Beijing) Technology Co., Ltd., Shenzhen Oceanwide Tonglian Precision Manufacturing Co., Ltd., and Shanghai Nanfang Model Biotechnology Co., Ltd. took effect.

In terms of the GEM, Wuhan Huakang Century Medical Co., Ltd. (hereinafter referred to as "Huakang Century") and Hainuoer Environmental Protection Industry Co., Ltd. (hereinafter referred to as "Hainuoer") successfully passed the meeting. Both companies accepted at the end of last year and entered the inquiry process in January this year.

However, at the Listing Committee meeting, the Listing Committee also raised some questions about the two companies, for example, for Huakang Century, the Listing Committee paid attention to the issuer's main customers as public hospitals. In 2020, the business entertainment expenses included in the management expenses were 4.8208 million yuan, an increase of 53.13%. Therefore, the issuer was asked to explain the compliance and integrity of the business hospitality expenses; in addition, the company also had a large proportion of cross-regional procurement of labor services.

For Hainuoer, the Listing Committee is concerned that the issuer and related responsible entities have been taken by the national stock transfer system to issue self-regulatory measures such as issuing warning letters due to information disclosure violations.

What's new this week: IPO break + abandonment

From November 1 to November 3, a total of 5 new stocks were listed in the A-share market, of which 4 were from the ChiNext Board and 1 from the Shenzhen Main Board.

Among them, the listing of Hualan shares (301093.sz) listed on November 1 and Zhengguang shares (301092.sz) listed on November 2 broke.

This means that from October 22 to November 2, the A-share market has seen a break on the first day of new listing for 8 consecutive trading days.

In addition, it is worth noting that on November 4, Qiangrui Technology announced the results of the online issuance, the results showed that the number of online investors of Qiangrui Technology who gave up the subscription reached 509100 shares, and the online investors gave up the subscription amount of 15.1814 million yuan.

Therefore, in the end, the number of underwritten shares of the sponsor institution (lead underwriter) reached 509,300 shares, the underwriting amount was 15.1873 million yuan, and the number of underwritten shares of the sponsor institution (the lead underwriter) accounted for 2.76% of the total number of shares issued.

This also makes Qiangrui Technology the only company with a disposal ratio of more than 1% since the implementation of the registration system in 2019, and the largest proportion of abandonment in the A-share market in recent years.

Qiangrui technology is "disliked", in addition to its own performance factors, but also affected by the recent continuous break of new stocks, investors' psychological expectations have dropped again and again, and the new is no longer "stable and profitable".