Jinjiang Electronics restarts IPO guidance: How does the "termination history" vanish into thin air?

Recently, Sichuan Jinjiang Electronic Medical Equipment Technology Co., Ltd. (hereinafter referred to as "Jinjiang Electronics") submitted an IPO guidance filing application to the Securities Regulatory Commission.

This is the second time Jinjiang Electronics has initiated an IPO within three years.

As early as June 2023, Jinjiang Electronics attempted to launch an IPO on the Sci-Tech Innovation Board but withdrew its IPO application after just one round of inquiries, announcing the termination of the IPO review.

The sponsor for both of Jinjiang Electronics' IPO attempts is CITIC Securities Co., Ltd.

Strangely, CITIC Securities stated in the remarks of Jinjiang Electronics' IPO guidance materials that "there have been no cases in the past three years where Jinjiang Electronics' application for the initial public offering of stock was terminated, disapproved, or not registered." According to convention, if a company initiates an IPO twice within three years, the sponsor will clearly list the company's past IPO application history in the remarks of the guidance materials.

For example, in another IPO guidance project by CITIC Securities, Aike Medical Devices (Beijing) Co., Ltd. (hereinafter referred to as "Aike Medical") also made a second attempt at an IPO, and the remarks in the guidance materials clearly stated, "On April 20, 2023, the company's application for listing on the Sci-Tech Innovation Board of the Shanghai Stock Exchange was accepted, but due to changes in the market environment, the company withdrew its previous listing application and received a decision to terminate the review from the Shanghai Stock Exchange on April 11, 2024."

The contrast in the remarks has brought more confusion to the market.

Why, in the case of two IPO attempts, does CITIC Securities, as the same sponsor, provide detailed disclosures of Aike Medical's previous IPO withdrawal and termination review records, while neglecting Jinjiang Electronics' public history of IPO termination in the guidance materials?

The inconsistency in disclosure not only contradicts industry practices but also raises questions about the accuracy of the information in the guidance materials.

In addition, according to CITIC Securities' plan, Jinjiang Electronics is expected to complete guidance by March to April next year, aiming to take the first step towards application.

Jinjiang Electronics focuses on electrophysiological three-dimensional mapping systems and catheters, radiofrequency ablation, and various consumables. Its most innovative product is the Pulsed Field Ablation System (referred to as "PFA"), which is expected to be approved for listing by the National Medical Products Administration in 2024, becoming the first product in the domestic PFA field to receive listing approval.

PFA represents a significant disruption to existing ablation surgeries.

Currently, three-dimensional systems are generally equipped with radiofrequency and cryoablation catheters, which are also the mainstream surgical methods. However, the ablation energy of these two surgical methods lacks tissue selectivity, making it easy to cause various complications such as thrombosis and pulmonary vein stenosis In contrast, PFA, which generates almost no heat, has advantages such as short treatment time and fast ablation speed, ensuring precision while reducing damage to surrounding tissues to minimize the risk of complications.

However, the PFA market is facing more competition. Since the end of 2024, several domestic medical device companies, including Huatai Medical (688617.SH) and Aikemai, have received approval for their PFA products to be launched.

This may pose more challenges for the commercialization of Jinjiang Electronics' PFA.

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