IPO News | Qunce Technology's proposed Hong Kong stock IPO, China Securities Regulatory Commission requires clarification on whether it is a Taiwanese listed company's spin-off subsidiary listing circumstances, etc.

The Zhitong Finance App learned that on September 11, the China Securities Regulatory Commission issued the “Notice on Requirements for Supplementary Material Filing for Overseas Issuance and Listing (September 7, 2026 to September 11, 2026)”. The International Division of the China Securities Regulatory Commission issued supplementary material requirements for a total of 9 companies. Among them, Qunce Technology was asked to explain whether the current listing in Hong Kong was a situation where a subsidiary of a company listed on the Taiwan Stock Exchange was spun off and listed independently in other overseas markets, etc. According to the Hong Kong Stock Exchange's disclosure on June 8, Qunce Technology submitted a listing application to the main board of the Hong Kong Stock Exchange, and CITIC Securities was its sole sponsor.

The China Securities Regulatory Commission requested Qunce Technology to further explain the following matters, and ask lawyers to conduct inspections and issue clear legal opinions:

1. Please explain whether this listing in Hong Kong is a situation where a company listed on the Taiwan Stock Exchange spin-off its subsidiary is listed independently in other overseas markets. (1) If it is a spin-off of a listed company, the rationality, necessity, and feasibility of the spin-off and listing should be explained; (2) whether the listed company and the subsidiary to be split are independent of each other, whether the listed company can maintain independence and continuous operation capacity after the spin-off, and whether the new company formed by the spin-off has corresponding standardized operation capabilities; (3) whether the spin-off complies with the relevant regulations of overseas markets.

2. Please explain: (1) The need for the issuer to establish 21 employee shareholding platforms; (2) In accordance with the requirements of the “Guidelines for the Application of Regulatory Rules Overseas Issuance and Listing No. 2”, explain the background of the establishment of the employee stock ownership plan, personnel composition, number of shares, price fairness, agreement agreement, implementation of decision-making procedures, etc., and issue clear concluding opinions on whether the employee shareholding plan is legal and compliant; (3) Explain the shareholding price, basis for the 3 employees to rehire after retirement and then sign a labor contract with the issuer to participate in the shareholding employee Whether the plan is legal and compliant and does it exist The transfer of interests results in clear concluding opinions.

3. Please explain whether there are any share escrow in the issuer's historical history, and whether there are situations where laws and regulations prohibit entities holding shares directly or indirectly. Please list the reasons, prices, and pricing grounds for new shareholders in the last 12 months, explain the reasons for differences in share prices, and issue clear concluding opinions on whether the share price is fair and reasonable, whether there is a transfer of benefits, etc.

4. Please explain the compliance of the overseas listing structure, including the specific circumstances of implementing regulatory procedures for foreign exchange management, overseas investment, foreign investment, tax administration, etc., whether investment project approval and filing procedures are handled in accordance with regulations, and whether investment information is submitted to the competent commercial authorities in accordance with the regulations.

5. Please explain the specific circumstances of the business scope of your company and subsidiary companies involving commission agents and property management, whether they are actually carrying out relevant business and obtaining the necessary qualifications, and explain in detail the business model, revenue scale and share, etc.

6. Please provide additional information on whether the shares held by shareholders who intend to participate in the “full circulation” have been pledged, frozen, or have other rights defects.

According to the prospectus, Qunce Technology is a leading supplier of advanced IC packaging IC carrier boards in mainland China, focusing on the R&D, production and sales of IC carrier boards. According to Frost & Sullivan, in terms of revenue, Qunce Technology is the largest IC carrier board company in the FCBGA carrier board market and FCCSP carrier board market in mainland China in 2025, with market shares of 25.3% and 13.4% respectively; in terms of revenue, Qunce Technology is also the second largest IC carrier board company in mainland China in 2025, with a market share of 12.5%.

The company's IC carrier board is divided into three categories: FCBGA carrier board, FCCSP carrier board and CSP carrier board. The products are widely used in artificial intelligence servers, high-speed computing, data centers, intelligent equipment, automotive electronics and industrial control. Its parent company, Xinxing Electronics from Taiwan, entered the IC carrier board market in 1997 and has been ranked number one in the world in terms of revenue for many years.

On the financial side, from 2023 to 2025, the company's revenue was 2,794 billion yuan, 3.659 billion yuan, and 3.603 billion yuan, respectively, and annual profit was approximately 686 million yuan, 924 million yuan, and 647 million yuan respectively.