Pan-furniture company's IPO review was collectively suspended due to incomplete application documents

On July 4, the China Securities Regulatory Commission released the "Basic Information Table on Suspension of Review and Termination of Review of Initial Public Offerings of Companies", which showed that 589 companies were included in the "suspension of review" list. From cabinets, lighting, home textiles to bathroom ware, almost all pan-home furnishing industries were included. According to the "Questions and Answers on Issuance Supervision - Regarding Suspension of Review of Initial Public Offerings of Stocks", the suspension of review is divided into the following situations: Situation 1: The application documents are incomplete and the review process cannot be continued; Situation 2: The issuer's subject qualifications are doubtful or the intermediary's professional behavior is restricted and the review process cannot be continued; Situation 3: There are doubts about the information disclosed by the issuer that requires further verification; Scenario 4: The issuer actively requests to suspend the review or other reasons prevent the review work from being carried out normally. According to information released by the China Securities Regulatory Commission, the reason for the suspension of review by 14 home furnishing companies was "Situation 1", that is, incomplete application documents, etc., which made the review process unable to continue. Some people in the industry said that companies that have suspended audits can resume normal audit status as long as they submit their semi-annual reports. August and September are expected to be the peak period for companies that have suspended review to submit their semi-annual reports. China's home furnishing market has low concentration, and many companies hope to grow their companies by going public. Currently, none of the home furnishing companies participating in IPOs have strong financial resources and do not have an advantage in cash flow. On the one hand, the issuance fees of intermediaries usually account for 10% to 15% of the funds raised by the company, and may also involve some hidden fees. Some home furnishing companies with tight cash flow may not be able to survive the day of listing. Not long ago, it was reported that Fuzhishima Furniture was bankrupt, and some people pointed out that it was affected by the IPO.