Core Viewpoint - Shaanxi Kaiyuan Securities, despite strong fundamentals and regional dominance, has faced three failed IPO attempts, highlighting challenges in the A-share market and compliance issues [1][5]. Group 1: Company Overview - Shaanxi Kaiyuan Securities has annual revenue of 2.8 billion, employs 3,100 people, and holds over 10% market share in the New Third Board [1][3]. - The company has excelled in the New Third Board, ranking first in new listings for five consecutive years with 689 companies under its sponsorship [3][4]. - In the bond underwriting sector, it led with 129 bonds underwritten in 2022, totaling 135.4 billion, a 44.9% increase year-on-year [4]. Group 2: IPO Challenges - The first IPO attempt in 2018 failed due to declining performance and regulatory penalties; the second in 2020 was hindered by due diligence failures; the third attempt faced scrutiny over historical compliance issues [5][6]. - The company struggles with being perceived as a regional player rather than a national contender, which is a significant barrier in the A-share market [6][9]. - Compliance failures have led to a six-month suspension of its bond underwriting business, severely impacting its core operations [7][8]. Group 3: Lessons for Regional Leaders - The case of Shaanxi Kaiyuan Securities serves as a cautionary tale for other regional leaders, emphasizing that strong local performance does not guarantee national recognition [9][10]. - Compliance should be viewed as essential for long-term success rather than a mere formality; neglecting it can lead to severe consequences [10]. - The advantages of being a state-owned enterprise come with increased scrutiny and regulatory expectations, which must be managed carefully [10][12].

Core Viewpoint - The article discusses the withdrawal of the IPO application by Kaiyuan Securities, marking it as the second securities company to do so since last year, highlighting challenges in the IPO process for securities firms in China [2][4]. Group 1: IPO Status - The IPO review status of Kaiyuan Securities has been updated to "terminated (withdrawn)" by the Shenzhen Stock Exchange [3]. - The withdrawal was initiated by the sponsor, Minsheng Securities, but the specific reasons for the withdrawal were not disclosed [7]. - Kaiyuan Securities has been in the IPO queue for nearly three years, with its progress stagnating since its transition to the A-share market in 2022 [6][7]. Group 2: Industry Context - Following the withdrawal of Kaiyuan Securities, only four securities firms remain in the IPO queue: Caixin Securities, Hualong Securities, Bohai Securities, and Dongguan Securities [8]. - The article notes that the IPO application withdrawal trend reflects broader challenges faced by securities firms in the current market environment [4][8]. Group 3: Company Performance - Kaiyuan Securities, known as the "King of New Third Board," has been a leader in the New Third Board business, with 723 companies under continuous supervision, accounting for 11.77% of the total listed companies [10]. - The company has set a goal to become a top-tier securities firm focused on the Beijing Stock Exchange, with a total of 14 companies sponsored for listing on the exchange [10]. - The net profit of Kaiyuan Securities has shown steady growth from 515 million yuan in 2021 to 687 million yuan in 2024 [10]. Group 4: Business Challenges - In October 2024, the China Securities Regulatory Commission suspended Kaiyuan Securities' bond underwriting business for six months due to compliance issues [11]. - This suspension is expected to negatively impact the company's operating performance in 2024 and 2025, with investment banking revenue dropping by 45.89% year-on-year in 2024 [12].

Core Viewpoint - The IPO application of Kaiyuan Securities has been terminated, marking the second securities company to withdraw its listing application since last year, primarily due to the need to change its accounting firm after exceeding the maximum tenure of eight years for state-owned enterprises [1][3][10]. Group 1: IPO Status and Plans - Kaiyuan Securities' IPO was initially planned to raise 4 billion yuan for various business enhancements, including upgrading traditional brokerage services and strengthening investment banking capabilities [5]. - The company has been in the IPO queue since July 2022, with the application transitioning to the Shenzhen Stock Exchange after the implementation of a comprehensive registration system in the first quarter of 2023 [6][7]. - Despite the withdrawal, the company intends to continue pursuing its IPO plans, potentially resubmitting its application in 2026 [3][10]. Group 2: Market Environment and Challenges - The regulatory environment for IPOs has tightened significantly since the second half of 2023, with the China Securities Regulatory Commission announcing a "phase of tightening IPO pace" to balance investment and financing [8]. - The overall IPO market is expected to shrink further in 2024, with only 100 companies projected to go public, the lowest number since 2014 [8]. Group 3: Business Strategy and Performance - Kaiyuan Securities has established a strategic focus on the New Third Board and the Beijing Stock Exchange, aiming to create a differentiated service model for small and medium-sized enterprises [11][12]. - The company has consistently ranked first in the industry for the number of new companies recommended for listing on the New Third Board for seven consecutive years [11]. - Financial performance shows a steady increase in net profit from 5.15 billion yuan in 2021 to an expected 6.87 billion yuan in 2024, with securities investment being the primary revenue source [13].

Core Viewpoint - Kaiyuan Securities has become the second brokerage to terminate its IPO review after the implementation of the comprehensive registration system, leaving four brokerages still in the IPO queue [1][2]. Group 1: IPO Status - As of June 23-29, two companies, including Kaiyuan Securities, have terminated their IPO reviews, with four brokerages remaining in the queue [1]. - Before the comprehensive registration system, six brokerages were in the IPO queue, including Dongguan Securities and Kaiyuan Securities, with the latter applying for listing on the Shenzhen Stock Exchange [3]. - Following the implementation of the comprehensive registration system, four brokerages completed the transition, while two were accepted as new applications [3]. Group 2: Financial Performance - In 2024, Kaiyuan Securities reported operating revenue of 2.859 billion yuan, a year-on-year decline of 6.61%, while its net profit was 695 million yuan, an increase of 12.78% [5]. - The company faced a six-month suspension of its bond underwriting business due to regulatory penalties, which is expected to negatively impact its operating performance in 2024 and 2025 [5][6]. Group 3: Shareholding Structure - The controlling shareholder of Kaiyuan Securities is Shaanxi Coal and Chemical Industry Group, holding 58.80% of the shares, with the actual controller being the Shaanxi Provincial State-owned Assets Supervision and Administration Commission [3]. Group 4: Business Operations - Kaiyuan Securities has been recognized as a leader in the New Third Board business, maintaining a strong position in the industry with 723 companies under continuous supervision, accounting for 11.77% of the total listed companies [6]. - However, from 2021 to mid-2024, the company only completed 14 stock IPO projects, primarily on the Beijing Stock Exchange [6].