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two years of waiting, marking a significant event in the current IPO landscape [1][3] - A total of 98 companies have withdrawn their IPO applications this year, with the Beijing Stock Exchange having the highest number of withdrawals at 37 [1][4] - The tightening regulatory environment has led to a decrease in the number of IPO terminations compared to the previous year, indicating that companies may be better prepared before applying for listings [5][4] Company Summary - Zhuzhou Keno focuses on the purification technology and industrialization of III-V group chemical elements, primarily dealing with high-purity gallium, indium, bismuth, and tellurium [3] - The company aimed to raise approximately 588 million yuan for projects including a semiconductor high-purity materials production line and an advanced materials research center [3] - Despite its efforts, Zhuzhou Keno's IPO application was not approved after entering the inquiry phase on July 17, 2023, following its acceptance on June 21, 2023 [3][4] Industry Summary - The number of companies withdrawing their IPO applications has reached 98 this year, with a notable decrease from over 400 in the previous year, reflecting improved readiness among applicants [4][5] - The tightening of regulations by the China Securities Regulatory Commission (CSRC) has emphasized accountability for companies during the IPO process, which may contribute to the decline in withdrawals [4] - The trend of companies facing multiple failed IPO attempts suggests underlying issues within these firms that have not been effectively addressed [6][7]

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two years of waiting, marking a significant event in the current IPO landscape [1][3] - A total of 98 companies have withdrawn their IPO applications this year, with the Beijing Stock Exchange leading in the number of withdrawals [1][5] - The regulatory environment has tightened, leading to a decrease in the number of IPO withdrawals compared to previous years [5][6] Company Summary - Zhuzhou Keno focuses on the development and industrialization of III-V group chemical element purification technology, primarily dealing with high-purity gallium, indium, bismuth, tellurium, and their oxides [3] - The company aimed to raise approximately 588 million yuan for projects including a semiconductor high-purity materials production line and a research center for advanced materials [3] - Despite being accepted for IPO on June 21, 2023, and entering the inquiry phase on July 17, the company did not receive an opportunity for a listing meeting [3][4] Industry Summary - The number of companies withdrawing their IPO applications has reached 98 this year, with 37 from the Beijing Stock Exchange, 31 from the Shanghai and Shenzhen main boards, and 26 from the ChiNext [5] - The tightening of regulations by the China Securities Regulatory Commission (CSRC) has led to a more rigorous screening process, resulting in a significant reduction in IPO withdrawals compared to over 400 last year [5][6] - The trend indicates that companies may be more cautious in their IPO applications, potentially leading to higher quality listings and increased investor confidence in the market [6][8]

Core Viewpoint - The recent trend of IPO withdrawals has raised concerns, with 72 companies terminating their IPO applications this year, primarily due to material withdrawal, with over 40% of these companies originally planning to list on the Shenzhen Stock Exchange [1][5]. Group 1: IPO Withdrawals - Two notable companies, Zhongchuan Shuangrui (Luoyang) Special Equipment Co., Ltd. and Guangdong Shunde Rural Commercial Bank Co., Ltd., have recently withdrawn their IPO applications after long waiting periods, with the former having been approved for 8 months and the latter waiting for 6 years [1][2]. - As of July 9, 2023, a total of 72 companies have terminated their IPO applications this year, with the Shenzhen Stock Exchange seeing the highest number at 29, followed by the Shanghai Stock Exchange with 16 and the Beijing Stock Exchange with 27 [5][6]. - Among the withdrawn applications, four companies had been waiting for over 5 years, including Shunde Rural Commercial Bank, Zhejiang Destai New Materials Co., Ltd., Guangzhou Bank, and China Tea Co., Ltd. [6]. Group 2: Reasons for Withdrawal - The reasons for these withdrawals include policy changes, shifts in industry profitability, and changes in company operations, with some companies potentially facing reports of misconduct [1][11]. - Zhongchuan Shuangrui's IPO was halted due to a lack of registration submission after passing the review, with concerns raised about its related party transactions and independence during the review process [3]. - Shunde Rural Commercial Bank faced extensive feedback from the regulatory body, including 62 issues related to information disclosure and asset quality, leading to its eventual withdrawal after years of waiting [4]. Group 3: Impact of On-Site Inspections - Several companies that withdrew their IPO applications had been subject to on-site inspections, with all five companies from the first batch of inspections in 2023 ultimately withdrawing their applications [12]. - Companies that faced on-site inspections and subsequently withdrew their applications have also faced penalties for various violations, including undisclosed internal control deficiencies [13].

Core Insights - The recent withdrawal of IPO applications by two companies has raised concerns about the overall health of companies in the IPO pipeline [1][2] - A total of 72 companies have terminated their IPO applications this year, with over 40% of these originally planning to list on the Shenzhen Stock Exchange [1][3] Group 1: Company-Specific Withdrawals - Zhongchuan Shuangrui (Luoyang) Special Equipment Co., Ltd. withdrew its IPO application after being in the review process for 8 months, originally aiming to raise 654 million yuan [2] - Guangdong Shunde Rural Commercial Bank has been in the IPO queue for 6 years, facing numerous regulatory hurdles and ultimately choosing to withdraw its application [2][3] Group 2: General Trends in IPO Withdrawals - Among the 72 companies that have withdrawn their IPO applications this year, 29 were from the Shenzhen Stock Exchange, 16 from the Shanghai Stock Exchange, and 27 from the Beijing Stock Exchange [3] - Four companies have been in the IPO queue for over 5 years, indicating a significant backlog in the IPO process [3] Group 3: Regulatory and Compliance Issues - Companies that have faced prolonged delays in their IPO processes may be experiencing underlying issues, including regulatory scrutiny and compliance failures [6][7] - The trend of companies withdrawing their IPO applications after being subjected to on-site inspections suggests a growing concern over compliance and governance standards [6][7]