In November 2025, the number of A-share IPO reviews hit a yearly high, with 17 companies undergoing review—16 passed, while only Jiangsu Yongda Chemical Machinery Co., Ltd. (Yongda Shares), sponsored by Guotai Haitong, faced deferred deliberation.
On the termination front, five companies withdrew their IPO applications in November, maintaining single-digit termination figures for consecutive months. In terms of issuance and fundraising, 11 companies completed listings, raising a total of RMB 10.188 billion.
**IPO Review Status: Yongda Shares Deferred—Will Guotai Haitong Get Another Chance?** Eight new companies were accepted for IPO review in November, up by three month-on-month, with seven targeting the Shanghai and Shenzhen markets.
Yongda Shares, specializing in pressure vessels for industries like chemicals, oil refining, and photovoltaics, faced scrutiny over three key issues: revenue recognition, operational stability, and the reliability of photovoltaic project income. The review committee demanded further verification of internal controls, revenue justification, and recoverability of receivables, citing potential adverse impacts on performance.
As of H1 2025, Yongda’s receivables stood at RMB 338 million, with over 80% overdue. Notably, its major PV client, Hesheng Silicon (now a court-listed debtor), owed RMB 77.98 million. A 50–100% bad debt provision could slash 2025 net profit by RMB 38.99–77.98 million (2024 net profit: RMB 107 million), raising regulatory doubts.
Eleven IPO projects secured approval in November—eight on the Shanghai/Shenzhen exchanges and three on the Beijing Exchange.
**IPO Withdrawals: Xinqiang Electronics Exits After 5 Months; Industrial Securities Loses All Shanghai/Shenzhen Projects** Five companies terminated IPO processes in November, continuing the single-digit trend seen since July 2025.
Xinqiang Electronics (Qingyuan) Co., Ltd. withdrew its创业板 application within five months of filing (June 30–November 28), amid scrutiny over governance and related-party transactions. The family-controlled firm (95.04% ownership by the Yu family) distributed 83% of 2022–2023 profits as dividends. Nearly 20% of its revenue relied on joint ventures acting as intermediaries, raising concerns about its business model.
Haichuang Optoelectronics, the last科创板 project sponsored by Industrial Securities, also withdrew. Its revenue and net profit plunged 20.75% and 46.56% YoY in 2024, respectively, while R&D spending lagged behind peers (7.38–9.55% vs. industry’s 11.34–14.08%).
**IPO Issuance: Hengkun New Materials’ High PE; Daming Electronics’ Audit Fees Raise Eyebrows** Among November’s 11 listings, Hengkun New Materials stood out with a 71.42x PE (vs. industry’s 60.47x), raising RMB 1.01 billion. Its underwriting fee (RMB 82.37 million, 8.15%) and audit cost (RMB 21.65 million, 2.14%) were notably higher than larger issuers like Southern Grid Digital (RMB 2.714 billion raised, audit fee: RMB 12.01 million).
Daming Electronics also drew attention for its 3.14% audit fee ratio (RMB 15.78 million on RMB 502 million fundraising), exceeding peers with larger offerings.
Comments