① Goertek Microelectronics's spin-off listing was terminated. Goertek said it was “a decision made after fully considering various factors such as the current market environment, valuation level, and policy orientation”; ② The IPO review is getting stricter. Recently, many GEM participating companies, such as Jingchuang Technology, Liuchun Intelligence, and Huayi Co., Ltd., have terminated their listing, and over 8 companies planning to split the listing this year.
Financial Services Association, May 22 (Reporter Wang Biwei) Since the October 2022 meeting, although the parent company Goertek (002241.SZ) has responded several times that the listing process is still in progress, Goertek Microelectronics Co., Ltd. (“Goertech” for short), which is dubbed “China's No. 1 MEMS sensor company”, has not progressed on its way to listing. Today, the market's long-standing questions have finally come to fruition.
This afternoon, Goertek Co., Ltd. announced that the company plans to terminate the spin-off of its subsidiary Goertek from the Shenzhen Stock Exchange GEM listing and withdraw the relevant listing application documents.
Regarding the termination of the listing, Goertek Co., Ltd. told the Financial Federation reporter: “This termination is a decision made after fully considering various factors such as the current market environment, valuation level, and policy orientation. In the future, the company will coordinate the planning of future capital operations of Goertek Microelectronics and fulfill relevant information disclosure obligations in accordance with regulations. Both the spin-off and the termination of the spin-off are normal capital operations. Since this year, many leading companies in the capital market have terminated related spin-off and listing plans. Regardless of whether it is spun off or not, the company will strive to continue to do a good job in the management of all segments of the company's business, including Goertek, promote the improvement of the company's profitability, and return investors with excellent business performance.”
According to information, Goertek originates from the MEMS R&D team formed by Goertek in 2004. It was established as a wholly-owned subsidiary to operate independently in 2017. The business is mainly R&D, production and sales of MEMS devices and microsystem modules. According to the prospectus, from 2020 to the first half of 2023 (three years plus one issue), the company's revenue was 3.160 billion yuan, 3.348 billion yuan, 3.125 billion yuan and 1,232 billion yuan, respectively.
As regulatory policies become stricter, a number of participating companies have recently withdrawn their IPO applications. “Passing the stock exchange review does not mean that it will necessarily pass the (registration) review by the Securities Regulatory Commission. Due to the lengthening of the registration cycle, the pace of the IPO can essentially be adjusted dynamically through this process. Furthermore, if the relevant company experiences changes in performance or other changes in objective circumstances, etc., it may be possible that the meeting has passed but is unable to successfully register for listing.” A capital market lawyer told the Financial Federation reporter.
Judging from Goerwei's response to inquiries, the company's deducted non-net profit fell by 84.70% in the first half of 2023.
The reporter noticed that recently, a number of GEM participating companies, such as Jingchuang Technology, Liuchun Intelligence, and Huayi Co., Ltd., have terminated their listing.
Meanwhile, with regard to spin-off listed companies, the regulatory review is also gradually becoming stricter. According to incomplete statistics from the Financial Federation reporter, over 8 A-share companies, including Dazu Laser (002008.SZ), Keda Manufacturing (600499.SH), Wall Nuclear Materials (002130.SZ), and Weichai Power (000338.SZ), have successively indicated that they have terminated the listing of their spin-off subsidiaries this year.
In April of this year, the new “National Nine Rules” clearly proposed “strict supervision and spin-off listing” in the “Strict Issuance and Listing Entry Regulations”. This will face stricter supervision and scrutiny for proposed IPO companies that plan to obtain financing opportunities through spin-off and listing.