A Study Of The Financial Issue About Companies Failed In Growth Enterprise Market IPO

On October 2009,the first batch of 28 GEM companies listed on the Shenzhen Stock Exchange.Since 2013 there was a one-year-long suspension,more than five hundred companies have listed on the gem successfully.According to the statistics,there are more than sixty companies were rejected for various aspects of the financial issues.In order to learn more about these financial issues,provide a reference for these companies and counseling organizations.I used the literature research method and case analysis method in this article,described the basic characteristics of the GEM market,and on the basis of the literature and the commission public information.I analyzed the problems which led to the rejection,including the sustainability of profit,related party transactions,financial data authenticity,financial risk,and the necessity of raising money.According to the analysis,we come to a conclusion that,to appear on the GEM,companies should pay more attention to their own sustainable profitability,watch and prevent from the possible unstable factors that may influence the profit,pay attention to related transactions,pay attention to the business income and operation cost ratio,and improve the company's asset quality.They should also strengthen the management of accounts receivable,inventories and other assets,evade the possible financial risk.In this paper,I introduced the case of Beijing TD pharmaceutical Company failing to go public on GEM,specifically analyzes the financial problems exposed in the audit stage,and then analyzed the influence of these financial problems,which includes sustainability of profit,the necessity of raising money,hiding the related party transactions,and financial data fraud.In this paper,I put forward some suggestions to improve the success rate of IPO from the aspects of agency and company.