Core Viewpoint - The recent disciplinary actions taken by the Shenzhen Stock Exchange against two senior underwriters from CITIC Securities, Chen Qiang and Zhao Liang, suggest that there are underlying issues related to the failed IPO of Guoyao Co., Ltd. that have not been fully disclosed [2][11]. Group 1: Company Background - Guoyao Co., Ltd. is a remote sensing big data service provider established in April 2004, relying on the Chinese Academy of Sciences Remote Sensing Application Research Institute [3][4]. - The company aimed to raise up to 764 million yuan through its IPO to fund projects including the upgrade of its EV-Globe platform and the construction of a remote sensing big data service system [5]. - The actual controller of Guoyao, Wu Qiuhua, holds 57.60% of the shares and has a background in the Chinese Academy of Sciences [6][7]. Group 2: IPO Process and Challenges - Guoyao submitted its IPO application to the Shenzhen Stock Exchange on June 28, 2023, but faced significant challenges during the review process, leading to the termination of its IPO application in June 2024 [8][9]. - The company’s financial performance showed growth, with revenues of 294 million, 387 million, and 528 million yuan from 2021 to 2023, but its net profits did not meet the expectations set by the new regulatory requirements [9][10]. - The termination of the IPO was attributed to the tightening of capital market regulations and the inability to meet the new profit thresholds [11]. Group 3: Regulatory Issues - The Shenzhen Stock Exchange raised concerns about the disclosure of fund flows related to the actual controller, Wu Qiuhua, during the IPO review process, particularly regarding large amounts of fund borrowing [14][16]. - The underwriters, Chen Qiang and Zhao Liang, are believed to have failed in their due diligence regarding these financial irregularities, leading to their recent disciplinary actions [18][22]. - Since the beginning of 2025, a total of 73 underwriters have faced disciplinary measures from regulatory authorities, with CITIC Securities being one of the firms with the highest number of penalized representatives [22].