The shock waves of three intermediaries, including ShineWing certified public accountants and Beijing Jindu law firm, are still oscillating.
According to the reporter’s statistics, as many as 94 IPO projects have been collectively suspended due to the supervision and filing of three intermediaries. In addition, the restructuring, fixed growth and convertible bonds of a number of A-share listed companies have also been affected.
94 single IPO audit collective “suspension”
Recently, the number of IPO projects suspended due to the filing and investigation of relevant intermediaries has been increasing. According to the data, as of February 9, the audit status of IPO projects of 94 enterprises in Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing stock exchange had been changed to “suspended review”, involving Sino German securities, Beijing Jindu law firm and ShineWing Certified Public Accountants (special general partnership).
Among them, Tianjin Beijing Tongrentang Co.Ltd(600085) has suspended the review for the second time because the audit institution has been filed for investigation. On February 7, Lizhu pharmaceutical announced that the joint-stock company Tianjin Beijing Tongrentang Co.Ltd(600085) was investigated by the CSRC due to the audit institution ShineWing certified public accountants hired by the IPO, and the audit of this issuance and listing was suspended.
As early as 2019, Tianjin Beijing Tongrentang Co.Ltd(600085) was suspended from examination because Ruihua certified public accountants, an IPO audit institution, was filed for investigation by the CSRC. After the review was resumed, Tianjin Beijing Tongrentang Co.Ltd(600085) changed the audit institution to ShineWing.
oscillation continuation:
restructuring and refinancing of several A-share companies were affected
In addition to the IPO of more than 90 companies affected, the restructuring, fixed growth and convertible bond issuance of many companies had to be suspended.
For example, on January 27, Sinolink Securities Co.Ltd(600109) announced that the legal services provided by the law firm hired by the company for non-public offering of shares to other companies were filed for investigation by the CSRC. The company recently received the notice of suspension of examination of administrative license application issued by the CSRC.
Beijing Hualian Hypermarket Co.Ltd(600361) on the evening of January 28, it was announced that Beijing Jindu law firm, the legal adviser hired by the company for major asset restructuring transactions, and ShineWing Certified Public Accountants (special general partnership), the asset audit institution to be placed in the company, are being filed for investigation by the China Securities Regulatory Commission because of their legal and audit services for other companies, There is uncertainty about the time of filing and investigation. As this major asset restructuring involves administrative licensing matters, according to relevant laws and regulations, before the above-mentioned intermediaries are filed for investigation, the application materials for this major asset restructuring of the company are at risk of being accepted by the China Securities Regulatory Commission.
According to the official website of gem issuance and listing audit information, as of February 9, 2022, the review of refinancing applications of three GEM listed companies had been suspended due to the investigation of ShineWing certified public accountants.
restarting the project is not difficult
Being “suspended” at key nodes such as sprint IPO will undoubtedly affect the rhythm of the company’s capital operation. How long will this large-scale “suspension” last? Where are the companies lining up for IPO?
Insiders told reporters that the business volume of accounting firms and law firms involved in the large-scale suspension of the review of the IPO is in the forefront of the industry, so it has a large scope.
Zhang Lei, member of Huatai joint securities Executive Committee, said that after the suspension of the review project, the intermediary submitted a review report, and after the regulatory authorities resumed the review application, the company and the intermediary can continue to promote the project, and the approval process determines the speed of the resumption of the review of the project.
there is no clear regulation on the review time at present. However, in terms of past cases, the impact is relatively limited.
More typical are Byd Company Limited(002594) semiconductors. On August 18, 2021, its IPO process was suspended due to the filing and investigation of Tianyuan law firm. However, less than half a month, that is, on September 1, 2021, Tianyuan law firm issued a review report and Byd Company Limited(002594) semiconductor resumed the review.
Whether the enterprises involved in the suspension of the project will change intermediaries is also of concern.
Industry insiders said that if the project signatories were not investigated, most companies would choose to wait for review. According to relevant regulations, if the issuer needs to replace the sponsor or securities service institution, the replaced sponsor or securities service institution shall complete due diligence within 3 months from the date of suspension of audit, reissue relevant documents, review the documents issued by the original sponsor or securities service institution and issue review opinions.
in addition, it is understood that the intersection point of the above three registered intermediaries was that they jointly served LETV’s refinancing project from 2015 to 2016. among them, Jindu law firm once served as the issuer’s lawyer in LETV’s 2016 fixed increase project, Zhongde securities as the sponsor and ShineWing as the audit institution.
In April 2021, the CSRC disclosed the decision on administrative punishment, and found that LETV had made financial fraud from 2007 to 2016, and there were false records in the IPO application documents submitted and disclosed and the annual reports from 2010 to 2016. Among them, LETV’s non-public offering of shares in 2016 constituted a fraudulent issuance.
