New IPO News | Tongya Technology Plans Hong Kong Stock IPO, China Securities Regulatory Commission Requires Supplementary Explanation of Pricing Basis for Previous Capital Increases and Share Transfers

On September 4, the China Securities Regulatory Commission (CSRC) issued the "Supplementary Material Requirements for Overseas Issuance and Listing Filing (August 31, 2026 - September 4, 2026)." The CSRC's International Department issued supplementary material requirements for five enterprises. Among these, it requested Tongya Technology to provide further explanation regarding the basis for pricing the issuers previous capital increases and equity transfers, whether actual capital contributions were made, and other related matters. According to a disclosure by the Hong Kong Stock Exchange on June 9, Guangdong Tongya Technology Co., Ltd. (referred to as "Tongya Technology") has submitted an application to list on the main board of the Hong Kong Stock Exchange, with Orient International acting as its exclusive sponsor. The CSRC asked Tongya Technology to elaborate on the following matters and requested that lawyers conduct a review and provide clear legal opinions: 1. The basis for pricing of the issuer's previous capital increases and equity transfers, whether actual contributions were made, whether there were any unfulfilled capital obligations, capital withdraws, or defects in the method of contribution, and to provide a clear conclusive opinion on the legality and compliance of the previous equity changes. 2. Please list the names of the parties involved in the historical shareholding arrangements, the proportion of stakes held, the start and end times of the arrangements, and the methods of termination for these arrangements. Additionally, in conjunction with the employment situation of the party being held during the shareholding period, further explain the reasons for the shareholding arrangements, their evolution, legality and compliance, whether there are disputes or potential disputes, whether the party being held was subject to legal provisions prohibiting shareholdings (including any violations of non-compete regulations), and in accordance with Article 8 of the "Interim Measures for the Administration of Overseas Issuance and Listing of Securities by Domestic Enterprises," explain whether the controlling shareholders held equity involves major ownership disputes. 3. The specific fulfillment of regulatory procedures related to overseas investments and foreign exchange registrations for the establishment of overseas subsidiaries, and to provide a conclusive opinion on compliance. 4. The progress of state-owned shareholders in fulfilling the identification of state-owned equity and other state asset management procedures; the basis for determining the management department of state-owned equity. 5. Whether the participants in the employee equity incentive plans (including the equity incentive granted to specific employees released in 2020) are employees of the company, the specific composition and employment status, whether participants have any related relationships with other shareholders, directors, supervisors, or senior management of the issuer, the pricing basis, and to provide a clear conclusive opinion on the legality and compliance of the implemented equity incentive plans, and whether there is any transfer of benefits. 6. Whether the shares held by the shareholders intending to participate in "full circulation" are subject to pledges, freezes, or other rights defects. According to the prospectus, Tongya Technology is a supplier of high-performance precision metal connection wires, primarily focused on the R&D, production, and sales of precision cable conductors. According to a Frost & Sullivan report, based on projected revenues for 2025, the company holds a 15.5% market share in the global ultra-fine cable conductor market, ranking third globally and first in China. During the historical performance period, the company's products have been widely used in fields including smart terminals, precision medical equipment, low-altitude economy, Siasun Robot & Automation, computing power centers, new energy vehicles, and other equipment. Tongya Technology's main products include precision cable conductors and precision metal wire ropes. During the historical performance period, most of its revenue came from the sale of precision cable conductors, with its products widely applied in fields such as smart terminals, precision medical devices, low-altitude economy, Siasun Robot & Automation, computing power centers, new energy vehicles, and others. The company began producing precision metal wire ropes in 2023, which is still in the capacity ramp-up and product optimization stage. The product line diameter ranges typically from 0.008 mm to 0.5 mm, generally categorized into ultra-fine products (0.03 mm), fine products (>0.03 mm, <0.1 mm), and regular products (0.1 mm).