Six-Month Wait Ends as Honghua Digital Secures CSRC Registration, Completing 2020 Packaging & Printing IPO Cohort

According to a June 1, 2021 disclosure from the Shanghai Stock Exchange,

the China Securities Regulatory Commission approved the registration of the initial public offering of Hangzhou Honghua Digital Technology Co., Ltd.

After a wait of roughly six months, the company secured the CSRC clearance, marking a decisive step toward its public listing.

Looking back, the company's STAR Market IPO had been approved at the listing committee meeting on November 25, 2020.

That approval was followed by a long six-month wait before the CSRC registration came through. Honghua Digital has reportedly spent 28 years in digital inkjet printing; its main models, built on core technologies, are internationally competitive in performance metrics and overall competitiveness.

For companies in the IPO review queue, 2021 proved demanding. Before the year was even half over, IPO terminations had already surpassed the total for all of last year.

By May 22, 2021, 119 IPO terminations had been recorded, including 112 voluntary withdrawals—well above the number of IPO terminations in all of 2020.

In 2020, 82 companies terminated review for the full year. The CSRC said it would deal seriously with companies that 'run the gate while sick' and would never let them simply withdraw and walk away.

In 2021, IPO-bound companies faced many setbacks. On January 28, Guangzhou Jiuheng Barcode Co., Ltd.'s first offering was rejected. On January 19, 2021, Hongming Intelligent's IPO was impacted by a major change involving RMB 60 million in mask machine payment with Huaxing Medical, forcing it to announce termination of review one day before its attempt. Yuto Technology is both a major customer and a shareholder of Hongming Intelligent.

Yet a successful listing by a Dongguan printing company ended the packaging and printing sector's unlucky streak.

On March 22, Dongguan Chutian Long listed on the Shenzhen Stock Exchange SME board, becoming Dongguan's 62nd listed company and the fifth local Dongguan printing company listed domestically. Its prospectus states that Chutian Long has advanced smart card production lines, technical processes, and automated production procedures. In 2019, the company shipped 357.49 million smart card products, ranking among the industry's leaders.

On June 1, Hangzhou Honghua Digital Technology Co., Ltd. also received CSRC approval for the registration of its initial public offering. From that point, all packaging and printing companies that passed review in 2020 had completed their listings.

According to incomplete statistics, seven packaging and printing companies passed review in 2020: Longlide Intelligent Technology Co., Ltd., which listed on ChiNext on September 10; Guangdong Tianyuan Industrial Group Co., Ltd., which listed on the SME board on September 21; Senlin Packaging, which passed review on October 29; Jinfu Technology Co., Ltd., which listed on the SME board on November 6; Hangzhou Honghua Digital Technology Co., Ltd., which passed review on November 25; Hanghua Ink Co., Ltd., which listed on December 11; and Shanghai Ailuo Co., Ltd., which passed review on December 23.

In 2021, packaging and printing companies also appeared in the IPO review queue. A group of printing enterprises—Houwei Packaging Technology, Huilin Packaging, Guangdong Gaoyi, Zhejiang Guangyuan, Zhongshan Zhongrong, Fujian Nanwang, Shandong Xinjufeng, Zhongrong Printing Group, Beijing Rongda Technology, and Hubei Hongyu New Packaging Materials—were selected for the list of reserve enterprises for listing.

The industry hopes these leading players will realize their listing dreams as soon as possible.

——This article is reproduced from China Packaging Network (pack.cn), original link: http://news.pack.cn/show-377540.html