Yushu Technology Co., Ltd. has been selected for an on-site inspection as part of the IPO review process. The China Securities Association recently announced the second batch of companies chosen for on-site inspections in 2026, with two firms randomly selected: Yushu Technology and Zhongke Aerospace Technology Co., Ltd. Yushu Technology is a leading contender to become the first humanoid robotics company listed on the A-share market, while Zhongke Aerospace is competing to be the first commercial aerospace firm to go public.
Yushu Technology specializes in the research, development, production, and sales of high-performance general-purpose humanoid robots, quadruped robots, robotic components, and embodied intelligence models. It was the first company globally to commercially launch and deploy high-performance quadruped robots. Zhongke Aerospace, on the other hand, is China's first mixed-ownership commercial rocket enterprise. Leveraging the reliability and payload capacity of its Li Jian series rockets, it has successfully completed 11 launch missions, deploying 86 satellites and one spacecraft into orbit with a total payload mass of nearly 16 tons.
On-site inspections are a key pre-IPO regulatory measure, typically conducted every three months. For newly accepted applicants, 20% are randomly selected for inspection to verify the quality of their application materials, excluding those already under targeted review. The inspections focus on financial authenticity, internal control compliance, information disclosure quality, and the performance of intermediaries. Strengthening IPO inspections helps enhance compliance awareness among listing candidates and intermediaries, encouraging more cautious and standardized applications while reducing risks associated with substandard filings.
In the past, some companies withdrew their applications upon being selected for inspection or cooperated poorly with regulators. However, under the "accountability upon application" principle, market participants now have a clearer understanding of inspection expectations, leading to a significant reduction in such withdrawals. Among the 13 companies selected for inspection in 2026, all are currently under normal review. In 2025, 16 IPO candidates were randomly inspected: one withdrew its application, seven have already listed, two are awaiting issuance, and six remain under review.
Regulators have previously criticized companies for deficiencies in information disclosure uncovered during inspections. Issues included personal bank accounts being used for expense payments, improper accounting treatments for significant matters, and omissions in disclosing major shareholders or related parties. Some companies also had normative flaws, such as incorrect consolidation scope or imprudent estimates of asset depreciation periods. The regulators have required these companies and their intermediaries to rectify the problems.
If a company is found to have disclosure defects or compliance issues during inspection, the review process may be delayed until corrections are made. Authorities have emphasized a risk-based, focused, and differentiated approach to inspections, aiming to improve the quality of IPO applications while protecting investor interests.