The data shows that three companies have disclosed IPO declarations since November. Compared with the previous one, the number of newly declared enterprises has not changed much. However, it is worth noting that a number of net profits in the newly declared IPO companies have fallen below 80 million.
However, many investment bankers told reporters that the move does not mean the relaxation of the IPO net profit standard. "There will be more than half a year from the filing to the final meeting. Before the meeting, these companies can update the data to 2018. These companies have confidence in the net profit for the full year of 2018, or want to bet on the rumor that the net profit will be relaxed next year." On November 8, a large brokerage investment banker told the 21st Century Business Herald.
In fact, the current IPO audit of the China Securities Regulatory Commission remains in a state of strictness. According to the statistics of the reporters, the high probability that the net profit of the shareholders of the parent company in 2017 will be less than 80 million in 2017 will be cancelled. Since the beginning of this year, all companies with a net profit of less than 80 million will be rejected.
The data shows that the annual net profit is below 80 million, but there are some lucky ones. according toChoice dataSince the beginning of this year, there have been nine successful net profit of less than 80 million in 2017. However, it is worth noting that most of these nine companies are high-tech industries with strong R&D capabilities.
“In the traditional industries with a net profit of less than 80 million, it will be difficult to get through, but if it is a high-tech, new economic enterprise supported by the regulatory authorities, it has more patents, such as biomedicine, AI, etc. Low profits will also pass." The above investment bankers told reporters.
Newly reported company's net profit is lower
At the beginning of this year, the industry was rumored that for the newly declared IPO companies, the main board required a net profit of not less than 80 million yuan in the most recent year. According to the statistics of the 21st Century Business Herald, as of November 8, there have been 33 main board companies that have filed IPOs this year. The net profit of the companies declared before October was above 80 million (except for Xiaomi Group).
However, since October, new reporting companies with net profit below 80 million have appeared, such as Xiamen Yaxun Network and Jiaxing Star Semiconductor. Xiamen Yaxun Network first disclosed the draft on October 12. According to the report, Yaxun Networks achieved a net profit of 73.73 million yuan in 2017, and the net profit for the first half of this year was only 23.08 million yuan.
The net profit of another reporting company, Jiaxing Star Semiconductor, in 2017 was only 52.58 million yuan, which is the lowest level of the main board application enterprises this year. But in the first half of this year, it realized a net profit of 46.56 million yuan. The 2017 net profit levels of these two companies have become the lowest level of the main board companies declared this year.
Recently, the net profit of the declared enterprises of the GEM and the small and medium-sized board has also been below 50 million. For example, the small and medium-sized board enterprise Mingguan new materials declared on November 2, the net profit in 2017 was only 39.84 million yuan; the GEM company Alte Automotive Technology, which was declared on September 28, had a net profit of only 46.17 million yuan in 2017. This basically did not exist before September.
Do these signs mean the relaxation of IPO filings for corporate performance standards? However, many investment bankers told reporters that there is no sign of any loosening in the IPO review.
“Newly-reported companies may not meet the requirements in 2017, but it will take an average of 6-9 months from filing to review to attendance. These business performance data will be updated to 2018 annual data, some companies It is expected that the performance of the whole year will be better in 2018." On November 8, a senior broker of a large brokerage in Beijing told reporters.
For example, although Alte Automotive Technology's net profit in 2017 was less than 50 million, its net profit in the first half of this year reached 49.01 million yuan. According to this estimate, Alte's annual net profit of automobile technology can exceed 80 million.
“It’s said that these companies are also in the position, or some companies are gambling to relax the IPO review next year. If they are really relaxed, they will become the first lucky ones. If they are not relaxed, they can delay the meeting or withdraw the materials. "A small and medium-sized brokerage brokerage in South China told reporters."
IPO audit is still strict
In fact, many investment bankers have recently said that the IPO standard will have a lower probability of future. “There are few companies that meet the requirements of 80 million.” Many investment bankers said so.
But despite this, from the current point of view, the regulatory layer has not relaxed in the IPO review standards. In 2017, the high probability that the net profit of the shareholders of the parent company is less than 80 million will be cancelled.
On November 6th, Guangdong Rifeng Cable, a company that plans to be listed on the small and medium-sized board, was temporarily disqualified before the meeting. The China Securities Regulatory Commission said that in view of the fact that Guangdong Rifeng Cable still has related matters that require further verification, it is decided to cancel the review. It is worth noting that the net profit of Guangdong Rifeng Cable in 2017 was 61.82 million yuan, and the net profit after deducting non-recurring gains and losses was 61.48 million yuan.
Another cancellation of the review is Changzhou Tongbao Optoelectronics, which is going to be listed on the GEM. Changzhou Tongbao Optoelectronics, which was supposed to be on the market on October 30, was temporarily cancelled before the trial. The CSRC stated that in view of the application of the withdrawal of the application materials by Changzhou Tongbao Optoelectronics, it was decided to cancel the review. According to the report, Tongbao Optoelectronics' net profit in 2017 was 62.74 million yuan.
In addition, the recent net profit of Zhuhai Anlian Ruishi Technology, Zhejiang Hengqiang Technology, Shenzhen Yuchi Monitoring Technology, Beijing Jinfang HVAC Energy Saving Technology and other companies in 2017 was less than 80 million. "In fact, now there is no distinction between the sectors, basically the net profit is above 80 million." The above-mentioned small and medium-sized brokerage insurance told reporters.
In fact, since the beginning of this year, the main board companies that successfully passed the IPO audit have net profit of more than 80 million attributable to the shareholders of the parent company in 2017. No company with a net profit of less than 80 million has successfully met.
"At present, the IPO audit is still under strict review. Before the industry has been spreading the performance requirements, otherwise there will be very few reserve enterprises, and the pressure on corporate performance is also great, which is not conducive to supporting the real economy. But it is a special time point. Some people in the regulatory layer are changing, and the second is the launch of the science and technology board, so there will be doubts about whether the future IPO auditing standards will change.” On November 8, a large brokerage investment bank in Beijing told reporters.
New economic enterprises are supported
The data shows that the annual net profit is below 80 million, but there are some lucky ones. according toChoiceData, this year, there are 9 companies with a net profit of less than 80 million in 2017, but they have successfully met.
“A traditional industry with a net profit of less than 80 million will be difficult to get through, but if it is a high-tech, new economy supported by the regulatory authorities, then even if the profit is lower, you can have a meeting.” A small and medium-sized brokerage investment banker Said.
The nine companies that have a profit of less than 80 million but have successfully passed the meeting are specialized equipment manufacturing, professional technical services, pharmaceutical manufacturing, and general equipment manufacturing.
An obvious example is Zhejiang Fenglong Electric Co., Ltd. In 2017, the net profit was only 47.81 million yuan, and the net profit after deduction was 42.54 million yuan, but it still passed smoothly. The reason is that it is a high-tech enterprise.
According to the prospectus, Zhejiang Fenglong Electric Co., Ltd. is a high-tech enterprise with a provincial R&D center. As of the signing date of this prospectus, the company has obtained 58 patents, including 9 invention patents (including 2 US patents) and utility model patents. 49 items. The R&D project has been listed as “National Torch Plan Industrialization Demonstration Project” and “National Science and Technology SME Technology Innovation Fund Project”, and has won many provincial, municipal and district-level scientific and technological achievements awards.
Jiangsu Aipeng Medical is also the same. In 2017, the net profit was 57.92 million yuan, and the net profit after deduction was only 45.58 million yuan, but it still passed smoothly. According to the prospectus, as of the date of signing this prospectus, the company has 58 patents, 3 types of medical device registration certificates, and 9 types of medical device registration certificates, and has passed ISO9001, ISO13485 and other quality management system certifications. Obtained CE certification in the European Union and FDA certification in the United States.
According to the statistics of the 21st Century Business Herald, most of the companies with a net profit of over 80 million have a strong R&D capability. The company itself has a number of patents. For example, Qingdao Blue Bio owns 189 domestically licensed invention patents and US authorized patents. 3 pieces, 9 PCT international applications; as of the end of 2016, Mingde Bio has 150 patents.
In fact, since the beginning of this year, the regulatory authorities have been vigorously supporting the encouragement of the new economy. At the beginning of this year, the regulatory authorities repeatedly expressed their support for the new economy and unicorn enterprises. The relevant leaders of the China Securities Regulatory Commission have repeatedly stated that they will create tools and institutional arrangements, focus on supporting innovative, leading and demonstration enterprises, and there will be many innovations in supporting the reform of the new share issuance system of new economic enterprises.
"If the industry in which the company is located is strongly supported by national policies, such as biomedicine, chips, etc., it has a number of core technologies and invention patents. Such a company will have a smooth meeting even if its profit is less than 80 million." A brokerage in Beijing Investment bankers told reporters.
At the latest training meeting of the issuance department on November 2, the relevant person in charge also pointed out that enterprises that want to support the new economy, new business forms, overcapacity, and backward industry should not report. This year, 73 IPO companies are high-tech, accounting for 80% of the IPO.
(Article source: 21st Century Business Herald)