Jinzhi Education IPO Terminated After Withdrawal

Jiangsu Jinzhi Education Information Co., Ltd., a leading provider of information services for higher education institutions, has had its initial public offering (IPO) review process terminated by the Shenzhen Stock Exchange. The decision was made after the company and its sponsor withdrew their application for listing on the ChiNext board, in accordance with the 62nd clause of the 2024 revised rules of the Shenzhen Stock Exchange.

Jinzhi Education's path to an IPO has been fraught with challenges. The company first attempted to list on the Science and Technology Innovation Board in September 2020. After responding to two rounds of inquiries from the Shanghai Stock Exchange, Jinzhi Education withdrew its application in December 2021, leading to the termination of its registration in January 2022. The company then shifted its focus to the ChiNext board, submitting its application in June 2022. However, after several rounds of inquiries and a review by the listing committee in July 2023, the company ultimately decided to withdraw its application, resulting in the termination of the review process in June 2025.

The company, established in January 2008, specializes in providing information services to higher education institutions and vocational schools. Its core products include a smart campus operation support platform and application systems, all based on private and public cloud architectures. These services encompass software development, SaaS, maintenance, and system integration. Jinzhi Education's financial data reveals significant accounts receivable and lengthy collection periods. The primary funding source for its clients' information infrastructure projects is government fiscal allocations, which are subject to complex approval and disbursement processes, leading to extended collection periods.

The company's latest prospectus indicates that its accounts receivable and contract assets totaled 253.04 million yuan, 339.96 million yuan, and 356.16 million yuan for the years 2020, 2021, and 2022, respectively. These amounts constituted 53.24%, 69.15%, and 78.28% of the company's revenue for those years, showing a year-over-year increase. The company's return on average equity, calculated by excluding non-recurring gains and losses, was 20.66%, 15.84%, and 14.53% for the years 2020, 2021, and 2022, respectively, indicating a decline in profitability.

Jinzhi Education had planned to raise 577 million yuan through its IPO, with the funds earmarked for several projects, including the construction of a hybrid cloud-based smart campus platform, an integrated intelligent teaching cloud platform, a marketing service network and business middle office, and a product research and development fund. The company's underwriter for the IPO was Guotai Junan Securities.