Nan Fang Du Shi Bao·2025-06-10 23:17Core Viewpoint - The Shenzhen Stock Exchange has issued multiple penalties related to the IPO project of Huimangwei Electronics, involving the issuer, sponsor CITIC Securities, and auditor Dahua Accounting Firm, highlighting significant regulatory scrutiny and failures in due diligence [2][5][6]. Group 1: Violations Identified - CITIC Securities and Dahua failed to adequately verify the effectiveness of Huimangwei's internal controls over distribution revenue, leading to inaccurate verification opinions [2][3]. - There was insufficient scrutiny of abnormal large fund flows between Huimangwei and its major suppliers and related parties, with inadequate alternative verification measures taken [3][4]. - The production cycle disclosed by Huimangwei was found to be inconsistent with actual production times, affecting inventory valuation and impairment assessments [4][5]. Group 2: Regulatory Actions and Context - The Shenzhen Stock Exchange issued written warnings to CITIC Securities and Dahua, and criticized specific representatives and auditors involved [5][6]. - Huimangwei's IPO attempts have failed twice, first on the Sci-Tech Innovation Board and then on the Growth Enterprise Market, with the latest withdrawal occurring in January 2024 [5][6]. - The recent penalties reflect a broader trend of increased regulatory enforcement in IPO processes, emphasizing the responsibility of intermediary institutions and the need for thorough due diligence [6][7].