Core Points - Zhuzhou Keno New Materials Co., Ltd. has terminated its IPO application after over two years of waiting, marking a significant event in the current IPO landscape in China [1][3] - A total of 98 companies have withdrawn their IPO applications this year, with the Beijing Stock Exchange leading with 37 withdrawals [1][4] - The audit firm Tianjian has the highest number of terminated IPO projects, accounting for 24 out of the 98 [1][8] Company Summary - Zhuzhou Keno focuses on the development and industrialization of III-V group chemical element purification technology, primarily dealing with high-purity materials such as gallium, indium, bismuth, and tellurium [3] - The company aimed to raise approximately 588 million yuan for projects including the production of 500 tons of semiconductor high-purity materials and the establishment of an advanced materials research center [3] - The company's revenue for 2022, 2023, and projected for 2024 is approximately 679 million yuan, 609 million yuan, and 787 million yuan respectively, with net profits of about 50.9 million yuan, 42.9 million yuan, and 70.8 million yuan [3] Industry Summary - The regulatory environment has tightened, leading to a decrease in the number of IPO withdrawals compared to over 400 last year, indicating that companies are more cautious before applying for IPOs [5] - The China Securities Regulatory Commission (CSRC) has implemented stricter regulations, including a higher random inspection rate for IPO applications, which may contribute to improved quality of companies entering the market [4][5] - Multiple companies, including Destai and Boshan, have attempted to go public several times without success, suggesting potential internal issues or a lack of readiness for the IPO process [6][7]

Core Viewpoint - A total of 72 companies have voluntarily withdrawn their IPO applications in 2023 due to insufficient performance growth, lack of technological innovation, and doubts about the necessity of fundraising [3][4][7] Group 1: IPO Withdrawal Statistics - As of July 11, 2023, 72 companies have withdrawn their IPO applications, a decrease of over 70% year-on-year [3] - The majority of withdrawn applications are from the Beijing Stock Exchange (27 companies) and the ChiNext (20 companies) [4] - The manufacturing sector, particularly specialized equipment manufacturing, software and information technology services, and automotive manufacturing, accounts for most of the withdrawn companies [4][5] Group 2: Reasons for Withdrawal - Key issues leading to IPO withdrawals include performance sustainability, fundraising necessity, technological advancement, and risks associated with actual controllers [3][7][11] - Many companies faced multiple rounds of inquiries from regulatory bodies, indicating a lack of clarity in their responses [5][11] - Specific examples include companies like Feiyu Technology and Nipe Holdings, which experienced significant declines in revenue and profit prior to their withdrawal [7][8] Group 3: Company-Specific Challenges - Feiyu Technology's revenue dropped from 4.29 billion to 3.85 billion, with a projected net profit decline of 95.35% [7] - Nipe Holdings faced a net profit decline in its firefighting and rescue equipment business, prompting regulatory scrutiny [7] - Mingmei New Energy's low R&D expenditure relative to its peers and its limited number of original patents raised concerns about its innovation capabilities [8][9] Group 4: Regulatory and Compliance Issues - Issues related to the actual controller's past illegal activities, such as money laundering, have also hindered IPO processes [11] - Companies like Qizhi Laser faced inquiries regarding the necessity and rationality of their fundraising projects, especially given their existing cash reserves [12]