Xin Lang Zheng Quan·2025-08-11 10:07Summary of Key Points Core Viewpoint - The A-share IPO market showed significant recovery in July 2025, with a total of 8 companies completing IPOs and raising 241.64 billion yuan, a 164.3% increase compared to June 2025 [1][16][17]. IPO Market Overview - In July 2025, only 1 new company was accepted for IPO, a sharp decline from the 150 companies in June [1][3]. - The approval rate for IPOs in July was 88.89%, with 8 out of 9 companies passing the review, breaking the previous 100% approval rate for the year [1][3][6]. IPO Termination - Six companies terminated their IPO processes in July, a decrease from 10 in June [2][11]. - Notably, Guizhou Duocai New Media terminated its IPO after 28 months post-approval, raising questions about the efficiency of the underwriting process [14][15]. Specific Company Analysis: Hengkun New Materials - Hengkun New Materials was the only company whose IPO review was postponed, leading to a drop in the approval rate of its underwriter, CITIC Securities, from 100% to 80% [6][10]. - The main concerns raised by regulators included potential intellectual property disputes and the appropriateness of revenue recognition methods [6][7][8]. - The company's revenue from self-produced products increased significantly from 28.22% in 2021 to 63.77% in 2024, while revenue from introduced products decreased correspondingly [8][9]. Financial Performance of Newly Listed Companies - The average issuance price-to-earnings ratio for newly listed companies in July was notably high, with Yitang Co. achieving a ratio of 51.55, significantly above the industry average of 29.44 [21]. - The underwriting fees for newly listed companies varied, with Hanhai Group having the highest fee rate at 9.72% [21][22]. - Hanhai Group reported a dramatic increase in net profit from 0.57 billion yuan in 2020 to 5.2 billion yuan in 2024, indicating strong financial performance despite high issuance costs [23].