Genie Microelectronics IPO: Company Quality Is Terrible! Investigated by the CSRC, Subjected to On-Site Supervision by the Shenzhen Stock Exchange, Sued by Former Executives!

Source: International Investment Bank Research Report

1. The Beijing Stock Exchange issuance review website shows that the 29th meeting of the Beijing Stock Exchange is about to review Jieli Technology’s IPO.

2. Jieli Technology is a company that continuously pursues an IPO, but it is a chaotic management company with no need for fundraising! As early as March 2017, the company first applied for an IPO (Shanghai Stock Exchange Main Board), but failed due to litigation with Jianrong Integration. On October 25, 2018, the company applied for a second IPO (Shanghai Stock Exchange Main Board), but was selected for on-site inspection. The inspection found chaotic financial management, leading to withdrawal and a report to the CSRC for investigation. Then, at the end of 2024, the company applied for an IPO on the Beijing Stock Exchange, which was thought to be withdrawn, but unexpectedly entered review.

3. Interestingly, when checking historical data on the Beijing Stock Exchange website, Jieli Technology’s application draft disappeared because the system defaults to only viewing data from the past year, indicating that the company’s IPO has been a long time ago.

4. After adjusting the search date, the application draft was found. Comparing the information, the current review draft plans to raise 680 million yuan, while the 2024 application draft planned to raise 1.08 billion yuan, a 37% reduction. Previously, the company’s fundraising target on the Growth Enterprise Market was 2.5 billion yuan, and on the Main Board was 586 million yuan. The chaotic fundraising is more casual than children’s diaper pants.

5. The company has no real need for fundraising. The latest debt ratio in the IPO prospectus is only 7.77%, much lower than 99% of middle-class companies. The company has almost always distributed all its funds before the IPO. The IPO prospectus shows that since pursuing an IPO, the total dividends paid out amount to about 869 million yuan.

Drafts are missing because of default one-year view

Debt ratio only 7.77%

Annual dividends 869 million yuan

Fundraising as casual as diaper pants

Previous reports: @Jieli Technology IPO chaos: investigated by CSRC, supervised on-site by Shenzhen Stock Exchange, sued by former secretary for money, and questioned by Beijing Stock Exchange over 12 issues including irregular seal management.

The Beijing Stock Exchange review website shows that Zhuhai Jieli Technology Co., Ltd. and Guotai Junan Securities Co., Ltd. have received inquiry letters, including 12 questions such as irregular seal management. The company’s history is chaotic; if the Beijing Stock Exchange accepts such a company, it would be a miracle.

1. Jieli Technology’s relationship with the capital market dates back to 2017. In March 2017, the company first applied for an IPO (Shanghai Stock Exchange Main Board) but failed due to litigation with Jianrong Integration. On October 25, 2018, it applied again for an IPO (Shanghai Stock Exchange Main Board), but was selected for on-site inspection. The inspection found chaotic financial management, leading to withdrawal and a report to the CSRC for investigation.

2. On September 13, 2021, the company applied for a third IPO (ChiNext), aiming to raise 2.5 billion yuan. Possibly due to previous CSRC investigations, Shenzhen Stock Exchange conducted three rounds of inquiries and on-site supervision. The “Shenzhen Stock Exchange ChiNext Issuance and Listing Review Dynamics” (2022 Issue 8) describes that during supervision, the issuer’s previous application was subject to on-site inspection, revealing large transactions using employees’ personal bank accounts. The current application still shows similar issues but lacks sufficient evidence and reasonable explanations. However, Jieli Technology responded to inquiries on the New Third Board, attributing the third IPO failure to supervision notices from the Shenzhen Stock Exchange and the downturn in the consumer electronics industry during review.

3. An interesting fact is that on March 25, 2024, former CFO and Secretary Li Hantao sued Jieli Technology for dividends. The company explained that it had not paid the dividends to Li Hantao because “since November 2022, the company has tried multiple channels to contact Li Hantao regarding shareholder meetings, dividend payments, and listing applications but has been unable to establish effective contact.” Do you believe that?

4. The company’s main business is actually white-label headphone chips. The company is quite wealthy. The IPO prospectuses on the ChiNext and Beijing Stock Exchange show that the company has paid dividends multiple times since 2019, totaling 700 million yuan. Does such a company need to raise funds?

5. Like many wandering IPO companies, the company’s fundraising and projects are loosely connected; as long as money is provided, it’s fine. This time, the company plans to raise 1.008 billion yuan on the Beijing Stock Exchange, compared to a target of 2.5 billion yuan on the Growth Enterprise Market, and 586 million yuan on the Main Board. The three fundraising amounts vary greatly. For the Beijing Stock Exchange, raising 1 billion yuan is already quite significant.

Jieli Technology’s journey from the Shanghai Stock Exchange to the Shenzhen Stock Exchange to the Beijing Stock Exchange

Once reported by the CSRC for regulation

Actual controller

Relationship to look at

Since 2019, distributed 700 million yuan in dividends

This time, raising 1.008 billion yuan

Irregular seal management