Chinese regulatory authorities have issued additional information requests to several companies seeking overseas listings.
The China Securities Regulatory Commission (CSRC) has published a list of supplementary material requirements for companies pursuing overseas listings for the period. The CSRC's international department has requested additional information from ten firms.
Among them, Xinde Technology has been asked to provide details regarding corrective actions taken after being penalized for collusive bidding, and to clarify whether this constitutes a major legal violation.
According to a previous filing with the Hong Kong Stock Exchange on February 16, Xinde Technology submitted an application for a main board listing, with ICBC International and Zhongtai International acting as joint sponsors.
The CSRC has requested Xinde Technology to supplement explanations on the following matters, requiring legal counsel to verify and provide clear legal opinions.
Capital and Shareholding Details
The regulator has asked for an explanation of the pricing basis for all previous capital increases and equity transfers, confirmation of whether capital contributions were fully paid, and an assessment of any issues such as failure to fulfill contribution obligations, withdrawal of capital, or flawed contribution methods. A clear conclusion on the legality and compliance of all historical equity changes is required.
Shareholder Information
Regarding shareholder circumstances, the company must detail the basic information of other shareholders holding more than 5% of shares, as per relevant regulatory guidelines. It must also explain the rationale behind the share price for shareholders added within the last 12 months, the reasons for any price discrepancies among them, and provide a clear conclusion on whether any improper benefit transfer occurred.
Employee Share Plans
The company is required to have its employee share ownership plan verified for price fairness and standardized operation in accordance with regulatory guidelines. A clear conclusion is needed on whether there was any improper benefit transfer and if the plan is legal and compliant.
Compliance and Operations
Concerning standardized operations, the company must explain the corrective measures taken after it and its subsidiaries received administrative penalties for using land without proper title registration and for being banned from participating in military procurement activities for three years due to collusive bidding. It must clarify whether these actions constitute major legal violations and if they have a significant adverse impact on daily operations or the current listing.
Additionally, the company must report on the progress of obtaining property rights registration for relevant land and buildings, and the latest developments in any litigation cases, assessing their potential material impact on daily operations and the listing process.
Share Encumbrances
The company is asked to state whether shares held by shareholders intending to participate in the "full circulation" scheme are subject to pledges, freezes, or other encumbrances.
Previous Listing Plans
An explanation is required regarding the prior filing for A-share listing guidance and the submission of an A-share listing application, including whether plans to advance an A-share listing continue and the specific arrangements. The company must also clarify if any circumstances could significantly affect the current overseas listing.
According to its prospectus, Xinde Technology was founded in 1999 and is a leading animal health enterprise in China. It is primarily engaged in the research and development, production, and sales of a comprehensive range of animal health and supporting products, including veterinary biologics, traditional Chinese veterinary medicines, chemical drug preparations, feed, and additives.
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