Mei Ri Jing Ji Xin Wen·2025-06-07 16:01Core Viewpoint - The Shenzhen Stock Exchange has implemented regulatory measures and disciplinary actions against Huimang Microelectronics Co., Ltd. (referred to as "Huimang Micro") and its sponsor, CITIC Securities, following the company's withdrawal of its IPO application after nearly a year and a half [1][4]. Group 1: Regulatory Actions - The Shenzhen Stock Exchange issued two regulatory measures and three disciplinary actions targeting Huimang Micro's IPO project, including actions against CITIC Securities and two of its representatives [1]. - CITIC Securities failed to adequately verify the effectiveness of Huimang Micro's internal controls over distribution revenue, leading to inaccurate verification opinions [2]. - The exchange emphasized that CITIC Securities did not pay sufficient attention to abnormal large fund flows between Huimang Micro and its major suppliers and related parties, resulting in inadequate verification procedures [3]. Group 2: Financial Discrepancies - Huimang Micro's distribution revenue constituted a significant portion of its main business income, with percentages of 91.37%, 94.58%, 95.85%, and 96.78% over the reporting periods [2]. - The company did not fully disclose irregularities in its distribution revenue internal controls, including discrepancies in credit policy execution and deficiencies in original documentation for revenue recognition [2]. - There were inconsistencies in the disclosed production cycle for Huimang Micro's products, which affected the accuracy of inventory aging calculations and provisions for inventory impairment [3]. Group 3: Previous IPO Attempts - This is not the first time Huimang Micro has faced challenges in its IPO process; the company previously attempted to list on the Sci-Tech Innovation Board but withdrew its application in January 2022 after being subjected to a site inspection [5]. - CITIC Securities has sponsored Huimang Micro's IPO twice, both of which were unsuccessful, and has recently received regulatory warnings from the Shanghai Stock Exchange for inadequate due diligence in other projects [5].