Case Study on the Failure of Huichuan Technology's IPO

Abstract

Since the establishment of the Science and Technology Innovation Board in 2019, as of July 21, 2023, a total of 546 companies have successfully listed on the board. Against the backdrop of rapid economic development, many companies have made going public their ultimate goal. The research on listing review derived from IPO has become a very popular research area nowadays. The content of this article is a case study of IPO failure, which explains the main review points of the NDRC on IPO in terms of substantive and legal compliance. Through the theory of information asymmetry, it explains the differences in information understanding between sellers and buyers in transactions. Next, we will describe the development of the industrial automation industry and compare it with domestic and foreign industries, discussing the three main reasons for the IPO failure of industrial automation industry enterprises. Taking Huichuan Technology as an example, this article describes the IPO process of Huichuan Technology and deeply analyzes the reasons for its IPO failure from three aspects. Finally, there are suggestions for improving the success rate of corporate IPOs. Enterprises should enhance their research capabilities, strengthen internal management, maintain independence, strictly control product quality, and pay more attention to information disclosure. The aim is to provide reference for industrial automation industry listed companies, standardize the sustainable profitability, accounting, internal control and other issues of listed companies, and ensure that they enter the capital market with a high-quality attitude.