As a major reform of the overall capital market, the implementation of the comprehensive registration system is of milestone significance, and on March 3, the implementation of the comprehensive registration system ushered in the full moon. According to the statistics of Oriental Wealth Choice, between February 17 and March 2, a total of 17 companies were reviewed in the IPO market, of which 3 were rejected, 16 was suspended, and 31 companies successfully passed the first pass, with a passing rate of 2.1%. In addition to the companies at the meeting, many companies have also started to "withdraw from the drum" within this month, and the IPO directly withdrew their orders. The performance of the IPO market in the past month has sent a signal to the market that the registration system is not the same as deregulation, and it has also deterred companies who want to come to the IPO market to "try their luck".

28 companies will be approved

Between February 2 and March 17, a total of 3 companies were approved.

According to the statistics of Oriental Wealth Choice, since the implementation of the comprehensive registration system on February 2, the Shanghai and Shenzhen North Stock Exchange has held a total of 17 issuance and review meetings, arranging 11 enterprises to attend the meeting, but Guangzhou Tianji Electronic Technology Co., Ltd. canceled the review, so a total of 32 enterprises attended the meeting.

From the results of the meeting, 28 companies were approved, including Kangsheng Biotechnology, Huawei Technology, Blue Electronics, Haisen Pharmaceutical, etc., with a passing rate of 90.32%. Among the 28 enterprises, the number of companies that hit the main board was the largest, reaching 16, which was also the first batch of main board translation enterprises, which was completed on March 3 and 13.

Judging from the progress of IPOs of enterprises on the main board, the speed is relatively fast, and 16 of them have all submitted registration applications. On the evening of March 3, the official website of the China Securities Regulatory Commission showed that among the 16 enterprises, 16 main board IPOs of CITIC Metal, Jiangyan Shares, Evergreen Technology, Zhongheavy Technology, Parsons Brinckerhoff, CLP, Shaanneng Shares, Haisen Pharmaceutical, Dengkang Dental and Nanming Group were approved by the CSRC, and the CSRC approved the registration applications for the initial public offerings of shares by the above-mentioned enterprises.

Wang Jiyue, an investment banker, said in an interview with a reporter from Beijing Business Daily that the main board IPO approved companies are expected to start issuance as soon as next week, and the first batch of main board companies listed after the full registration system will appear within 3 weeks.

Preparations for the technical aspects of the full registration system issuance are also in full swing. On the evening of March 3, the Shanghai and Shenzhen Stock Exchange both issued an announcement that they will carry out a comprehensive registration system issuance customs clearance test and trading business network test on March 14, and after the completion of this test, the technical system related to the issuance business of the full registration system of Shanghai and Shenzhen will be officially launched. From March 3, the online issuance business of full registration system can be launched according to business arrangements.

In addition to the main board enterprises, there were 4, 2 and 6 IPO companies on the ChiNext Board, the Science and Technology Innovation Board and the Beijing Stock Exchange respectively.

The IPOs of both companies were rejected

Among the enterprises at the meeting, there were also two rejected enterprises, Shanghai Wenyi Electric Co., Ltd. (hereinafter referred to as "Wenyi Electric") and Zhejiang Taimei Medical Technology Co., Ltd. (hereinafter referred to as "Taimei Medical").

Specifically, Wenyi Electric broke through the GEM meeting on March 3, but it failed to pass on the same day, and it also became the first company to be rejected after the implementation of the comprehensive registration system. According to the data, Wenyi Electric specializes in the research and development, production and sales of electrical connection and protection related products, and the company's main business income comes from the sales revenue of electrical connection and protection related products.

It is worth mentioning that the actual controller of Wenyi Electric is Chen Bing, Chen Jiazheng father and son, and the two together control 100% of the company's shares, of which Chen Jiazheng was born in 1999 and is studying as a bachelor.

Since it is the first company to be rejected after the implementation of the comprehensive registration system, Wenyi Electric will be asked questions, which has also attracted great attention from the market. At the audit meeting, Wenyi Electric's operating income of electrical connection products in 2022 mainly came from the new Gonow Automobile, which entered the top five customers for the first time that year, and was asked in detail.

Following Wenyi Electric, on March 3, a rejected company, namely Taimei Technology, wanted to attack the science and technology innovation board to raise 15 billion yuan, but it also finally folded.

According to the prospectus, Taimei Technology is a leading digital solution provider for the life science industry based on cloud computing and big data technology in China, with products and services covering clinical research, pharmacovigilance, pharmaceutical marketing and other links. This impact listing, Taimei Technology is also regarded by the market as the first stock to seek pharmaceutical SaaS.

At the listing committee meeting, the SSE required Taimei Technology to explain the company's ability to continue operating based on the slowdown in the growth rate of main business income during the reporting period, the decline in gross profit margin, the high expense ratio during the period, and the relatively low proportion of SaaS product revenue.

In addition, Xuanzhu Biotech was suspended from deliberation at the meeting on March 3, and the company is waiting for the second meeting, and intends to raise 8.24 billion yuan in an IPO on the science and technology innovation board.

25 IPO cancellations

In addition to the companies that were blocked from A-shares, 25 companies voluntarily withdrew their IPO applications.

According to the statistics of Oriental Wealth Choice, as of March 3, a total of 16 companies on the Growth Enterprise Market of the Shenzhen Stock Exchange had withdrawn their IPOs, while 17 companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange had withdrawn their IPOs, with a total of 8 companies having cancelled their IPOs.

According to the latest date, on the evening of March 3, one IPO on the ChiNext and one on the Science and Technology Innovation Board each withdrew orders. Among them, according to the official website of the SSE, CNNC and its sponsor decided to withdraw the application for issuance and listing, and in accordance with the relevant provisions of Article 16 of the Rules for the Review of the Listing of Stocks, the SSE terminated its listing review on the Science and Technology Innovation Board.

On the evening of the same day, the official website of the Shenzhen Stock Exchange showed that Tongtaiying also applied to withdraw the listing application documents, and decided to terminate the review of its initial public offering and listing on the Growth Enterprise Market.

It is understood that CNNC Xiyi's proposed fundraising amount is relatively high, and the original plan was to raise 20 billion yuan on the science and technology innovation board.

In addition to the above two companies, there are also 16 enterprises in the ChiNext market, such as Ecosound and Light, Sui Green Cross, Shibang Communications, and Schindler Industries; In the science and technology innovation board market, 7 companies such as Jichuang North, Ruicheng Xinwei, Lipin Pharmaceutical, and Boyaa Technology withdrew their IPOs.

On the whole, the above-mentioned withdrawal enterprises have the highest amount of capital to be raised by Jichuang North, and the company originally planned to raise 60.1 billion yuan to invest in 8 projects, including display touch integrated chip research and development and industrialization projects, display and multimedia processing chip research and development and industrialization projects, and OLED display driver chip research and development and industrialization projects.

In addition, the proposed fundraising amount of four companies, Suilu Cross, Lipin Pharmaceutical, Ruicheng Xinwei and Isaac Technology, is also relatively high, all of which are more than 4 billion yuan.

Du Meng, an independent economist and chairman of the China Enterprise Capital Alliance, told the Beijing Business Daily reporter that the essence of the registration system reform is to hand over the right to choose to the market, strengthen market constraints and legal constraints, and compared with the approval system, it not only involves changes in the review subject, but more importantly, fully implements the concept of information disclosure as the core. "Since the implementation of the comprehensive registration system, the number of cancellations in the IPO market has been at a high level, and two IPOs have been rejected within a month, and there have been suspended, which also shows that the comprehensive registration system does not mean relaxing quality requirements, and the review and control will be more stringent." Du Meng said.

Beijing Business Daily reporter Ma changed