Yangtze Memory’s IPO update! The CSRC has disclosed the progress of the first round of listing tutoring, and the tutoring team has announced the details.

According to disclosures on the official website of the China Securities Regulatory Commission, on July 10, Yangtze Memory Technologies Co., Ltd. (hereinafter referred to as “Yangtze Memory”) released a report on the progress of the counseling work for its initial public offering (IPO) and stock listing (Phase 1).

On May 19, Yangtze Memory completed the IPO counseling filing. The counseling institutions are CITIC Securities and CITIC Jianchuan. Yangtze Memory is the only domestic IDM (vertically integrated manufacturer) company that independently develops and produces 3D NAND flash memory.

Yangtze Memory IPO counseling team unveiled

The time period for Yangtze Memory’s Phase 1 IPO counseling work is May 19 to June 30. As the counseling institutions, CITIC Securities and CITIC Jianchuan jointly dispatched 31 people to form a counseling work group. Through counseling methods such as on-site due diligence, organizing centralized lectures, and communications on specific issues, they conducted the counseling work for Yangtze Memory.

The main contents of Phase 1 of Yangtze Memory’s IPO counseling work include two aspects.

First, the counseling work group continues to advance due diligence work, sorts out and tracks Yangtze Memory’s corporate governance and standardized operations, and gains a more systematic and in-depth understanding of Yangtze Memory’s basic situation and business development.

In response to shortcomings identified in Yangtze Memory’s standardized operations, the counseling team proposed improvement recommendations and provided guidance to help and urge Yangtze Memory to effectively implement the improvement measures and put the compliance plan into practice.

Second, the counseling work group arranges and supervises Yangtze Memory to focus on learning laws and regulations such as the Company Law of the People’s Republic of China and the Securities Law of the People’s Republic of China, and continues to convey the latest regulatory requirements and review updates from the securities market to Yangtze Memory.

Through methods such as centralized lectures and individual Q&A, the counseling team helps Yangtze Memory and the personnel receiving counseling to understand the statutory conditions for listing, review concepts, the review process, and related regulatory knowledge. It also urges them to deeply understand requirements relating to issuance and listing and standardized operations.

IPO counseling disclosures still have issues and work for the next phase

At present, there are two main issues in Yangtze Memory’s IPO counseling.

First, the counseling work group will further urge Yangtze Memory to improve its corporate governance and internal control systems in accordance with the requirements for listed companies. In coordination with securities service institutions, and based on the results of comprehensive due diligence, it will sort out and verify Yangtze Memory’s corporate governance structure and its standardized operations, promptly identify issues, provide solution recommendations, and ensure that Yangtze Memory’s governance structure is sound, its internal control design is effective, and execution is in place.

Second, based on regulatory requirements from the China Securities Regulatory Commission and the stock exchange regarding disclosure of shareholder information by companies conducting a first-time public offering, and with Yangtze Memory and its shareholders’ cooperation, the counseling work group will advance the shareholder eligibility penetration review and verification work for Yangtze Memory.

Considering that the work involved for Yangtze Memory to obtain its shareholder penetration review materials is substantial, the counseling work group will closely coordinate with securities service institutions, communicate extensively with Yangtze Memory’s shareholders, and continue to advance Yangtze Memory’s shareholder penetration review and implement the relevant regulatory requirements.

Yangtze Memory’s IPO counseling work for the next phase mainly includes two aspects.

First, the counseling work group will continue to carry out due diligence and compliance-oriented counseling for Yangtze Memory. For issues found during the work, it will promptly coordinate with relevant intermediary institutions and communicate and discuss with Yangtze Memory, study and determine the compliance plan, and urge Yangtze Memory to seriously implement the rectification requirements.

At the same time, the counseling work group will continue to urge Yangtze Memory to improve its corporate governance and internal control systems and enhance its level of standardized operations.

Second, the counseling work group will timely and continuously convey the latest regulatory normative documents for listed companies to the personnel receiving counseling. It will actively urge them to conduct comprehensive study and training on regulatory knowledge, and urge them to deeply understand the laws, regulations, and rules regarding issuance and listing and standardized operations, so they are aware of their responsibilities and obligations relating to information disclosure and fulfillment of commitments. It will also help establish integrity, self-discipline, and rule-of-law awareness for entering the securities market.

Source of this article: China Fund News

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