Core Viewpoint - The IPO application of Kaiyuan Securities has been terminated due to the withdrawal by its sponsor, Guolian Minsheng, indicating significant compliance and regulatory challenges faced by the company in its pursuit of public listing [1][2][8]. Group 1: IPO Status and Background - Kaiyuan Securities' IPO journey began in June 2022, with the company aiming to raise 4 billion yuan for various business enhancements [3]. - The company faced a series of regulatory hurdles, including a six-month suspension of its bond underwriting business due to compliance violations, which has impacted its operational performance [13][15]. - The termination of the IPO review marks the end of a three-year effort for the company to go public, highlighting the shift in the market focus from scale to quality for securities firms [2][17]. Group 2: Reasons for Withdrawal - The withdrawal of the IPO application may be linked to the need for Kaiyuan Securities to change its accounting firm, as regulations limit the tenure of the same auditor for state-owned enterprises to eight years [10][12]. - Industry insiders suggest that merely changing the sponsor would not typically lead to an IPO termination unless there are other significant issues, such as financial internal control deficiencies or inaccurate disclosures [2][10]. - The company has previously faced compliance issues, which may have contributed to the decision to withdraw the IPO application [2][13]. Group 3: Financial Performance and Market Position - In 2024, Kaiyuan Securities reported a revenue decline of 6.61% to 2.859 billion yuan, while its profit increased by 13.71% to 834 million yuan, indicating a mixed financial performance [15]. - The company's investment banking revenue significantly dropped by nearly 46% in 2024, reflecting challenges in its core business [16]. - Kaiyuan Securities is primarily controlled by Shaanxi Coal and Chemical Industry Group, with a shareholder structure heavily influenced by state-owned enterprises, which presents both regional advantages and competitive pressures [9]. Group 4: Future Outlook and Recommendations - Experts suggest that securities firms should focus on compliance, business transformation, and technological advancement to navigate the current regulatory landscape effectively [17][18]. - The market is expected to see a differentiation among securities firms, with those lacking compliance facing stricter scrutiny, while those with unique business models may find opportunities for growth [17][18].