New stock news | DeFeng Technology's IPO application rejected, exclusive sponsor "rebuked"

According to the disclosure of the Hong Kong Stock Exchange, Beijing De Feng Xinzhengcheng Technology Co., Ltd. (De Feng Technology) submitted its listing application to the Hong Kong Stock Exchange on November 14, but it was returned on November 24. Its exclusive sponsor Daijin Capital Limited was criticized, becoming the latest case of criticism by the Hong Kong Stock Exchange after a two and a half year hiatus. According to the policy, a company whose IPO application is returned by the Hong Kong Stock Exchange must wait at least 8 weeks before reapplying. Public information shows that criticism is a notification mechanism of the Hong Kong Stock Exchange, which means that if the sponsor submits a listing application and it is rejected, the company and sponsor, along with the rejection date, will be recorded on the Hong Kong Stock Exchange Disclosure Website to enhance the quality of listed companies on the Hong Kong Stock Exchange. The "Criticism Mechanism" has been implemented for 11 years now, with 10 cases on the Main Board and 15 cases on the GEM, involving 26 sponsors including large brokerage firms such as Goldman Sachs, Morgan Stanley, and J.P. Morgan. Examples of companies that have been successfully listed after being "criticized" include YADONG GROUP (01795) and BAIYING HOLDING (08525). According to the prospectus, De Feng Technology was established in March 2015. It is a developer of AI-powered industrial Internet of Things (AIoT) production optimization software solutions, focusing on helping China's energy, manufacturing, and mixed industries achieve energy efficiency improvement, operational excellence, safety production, and sustainable development. The company provides comprehensive and integrated custom AIoT production optimization software solutions and service packages, having completed over 600 projects during the reporting period, mainly serving Chinese state-owned enterprises with over 200 customers, including leading enterprises in the electricity and utilities, oil and gas, and tobacco industries. It is understood that De Feng Technology had prepared for a listing on the SSE STAR Market in 2022, terminated A-share listing-related work in October 2024, and submitted its listing application to the Hong Kong Stock Exchange in November this year. It is worth noting that De Feng Technology's listing in Hong Kong this time also involves a performance-based agreement, granting investors special rights including but not limited to redemption rights, anti-dilution rights, and priority subscription rights. In November 2025, the founder of the company, Wang Qingjie, signed a supplemental agreement with investors to extend the target IPO completion date from December 31, 2024 to December 31, 2026, and the redemption rights in the original shareholders' agreement were terminated before the submission of the prospectus by De Feng Technology. If this IPO fails, the terminated redemption rights will automatically be reinstated. By granting redemption rights to investors, De Feng Technology incurred redemption liabilities of RMB 12.24 billion, RMB 14.55 billion, and RMB 14.62 billion in the years 2023, 2024, and the first half of 2025, respectively.