8 resigned personnel from the China Securities Regulatory Commission system invested in IPO companies? Latest response from the Shanghai Stock Exchange
A company planning to go public has unexpectedly seen 8 resignations from the China Securities Regulatory Commission system among its shareholders, which has attracted regulatory attention.
On the evening of September 13th, the Shanghai Stock Exchange released a response to a reporter's question by a relevant person in charge, stating that recently, there have been media reports that 8 indirect shareholders of Deyi Microelectronics Co., Ltd., a company under review on the Science and Technology Innovation Board, have resigned from the China Securities Regulatory Commission system and invested in the company. According to the responses from the issuer and intermediary agencies, the 8 resigning personnel from the China Securities Regulatory Commission system mentioned in media reports mainly indirectly invested through employee stock ownership plans and equity incentive plans established by relevant investment institutions, and did not involve investment behavior led by the resigning personnel. These 8 resigning personnel indirectly held less than 1 share of the issuer's shares.
The Shanghai Stock Exchange stated that the China Securities Regulatory Commission (CSRC) and the exchange have always adhered to the principle of a sharp edge approach and strict supervision of IPO companies in which former CSRC employees invest, and have taken multiple measures to effectively reduce the identity value of former employees.
The China Securities Regulatory Commission has issued the "Guidelines for the Application of Regulatory Rules - Issuance Category No. 2", which clarifies the situation where resigned personnel improperly invest in IPO enterprises, and puts forward strict verification requirements for intermediary institutions to prevent resigned personnel from improperly investing in IPO enterprises through profit transfer and other means. At the same time, the China Securities Regulatory Commission has established a special verification and independent review system to ensure the fairness and impartiality of the review process. Next, the Shanghai Stock Exchange will conduct an audit of Deyi Microelectronics Co., Ltd. in accordance with the law and regulations.
Latest response from the Shanghai Stock Exchange
Deyi Micro was established in 2017 by the merger of Shenzhen Sige Semiconductor and Shenzhen Lierding Technology.
Due to multiple rounds of equity financing, the equity of Deyi Micro is extremely dispersed, and there are no shareholders who hold 30% of the shares individually or in total. A single shareholder cannot control the shareholders' meeting or board of directors, and there are no controlling shareholders or actual controllers.
The chairman of the company is Wu Dawei, who indirectly holds 3.16% of the company's shares and also serves as the executive partner of Zhicunwei and Shanding Technology, controlling a total of 11.70% of the company's voting rights. He is the largest shareholder of the company.
Under the dispersed equity, there are 8 former employees of the China Securities Regulatory Commission who have resigned from the original shareholders of Deyi Micro, which has also attracted regulatory attention.
The Shanghai Stock Exchange mentioned relevant issues in both rounds of inquiries. Finally, according to the responses from the issuer and intermediary agencies, the 8 resigning personnel from the China Securities Regulatory Commission system mentioned in media reports mainly indirectly invested through employee stock ownership plans and equity incentive plans established by relevant investment institutions, and did not involve investment activities led by the resigning personnel. These 8 resigning personnel indirectly held less than 1 share of the issuer's shares.
For example, the multiple shareholders involved indirectly hold the equity of the proposed listed company through the state-owned holding or management entity of the National Small and Medium sized Enterprise Development Fund Co., Ltd., which is an indirect shareholder. The shareholding is indirectly held through the employee shareholding plan of the unit. After penetration, it can be seen that these shareholders indirectly hold less than 1 share of the issuer's shares and their shareholding ratios are all below 0.000001%.
In response to inquiries from the Shanghai Stock Exchange, De Yiwei also stated that there was no abnormality in the price of the issuer's shares indirectly held by the 8 departing employees.
Focusing on storage control technology
In terms of main business, DeYiWei is a chip design company with storage control technology as its core. The company's main business is the research and development, design, and sales of storage control chips and storage solutions. Its main products and services include solid-state drive storage control chips, embedded storage control chips, and extended storage control chips, as well as storage control IP, storage products, technical services, and other storage control chip based storage solutions.
According to the prospectus, DeYiWei is one of the few storage control chip companies in China that has mastered the core technology of storage control, achieved large-scale shipment of independently developed storage control chips, and has the ability to provide full coverage storage solutions for solid-state drives, embedded systems, and expandable product lines. The company already has six core technologies covering key aspects of storage control chips and multiple domestic and foreign invention patents, which can effectively improve the competitiveness of storage control chips and ensure the performance, power consumption, reliability, and stability of memory products.
During the reporting period, from 2019 to 2021 and from January to June 2022, the company shipped 270 million storage control chips directly or indirectly through memory products. Among them, the shipment volume of SSD storage control chips exceeded 13 million in 2021. According to data from iResearch Consulting, the company's global market share of SSD storage control chips reached 4%.
In terms of profits, from 2019 to 2021 and from January to June 2022, the company achieved operating income of 126 million yuan, 207 million yuan, 745 million yuan, and 471 million yuan, respectively. The net profit attributable to the parent company was negative, with losses of 83.8317 million yuan, 293 million yuan, 69065200 yuan, and 35.9111 million yuan, respectively.
