A Case Study on The Failed IPO of Xi'an Xintong Pharmaceutical Research Co., Ltd. on The SSE STAR Market

Abstract

In order to support the development of innovative enterprises and promote the transformation and upgrading of China's economy, the science and technology innovation board was officially opened on June 13 of 2019, and the first batch of companies were listed on July 22, with a total of 25 companies. China's securities market has entered a stage of reform and development from the approval system to the registration system. The registration system can lower the threshold for enterprises to go public, improve the speed of enterprise listing, and help enterprises quickly obtain capital and resources and expand the scale of enterprises. However, enterprises under the registration system need to pay more attention to corporate governance and information disclosure in order to bear more market risks and regulatory pressures. This paper takes Xi'an Xintong Pharmaceutical Research Co., Ltd. as the research object to explore the reasons behind the failure of its IPO on the Science and Technology Innovation Board, and summarizes the conclusions, which has certain research significance. This paper first uses the literature analysis method to conduct a detailed analysis of the literature related to the Science and Technology Innovation Board and IPO, which provides some theoretical support for the following paper. Then, the basic situation of the case company, the main business, financial data and the motivation for the IPO failure were introduced in detail. Finally, suggestions are given according to the reasons for failure and summarized.