Beijing Defeng New Journey Technology Co., Ltd. (Defeng Technology) saw its listing application submitted to the Hong Kong Stock Exchange on November 14th returned on November 24th. Its sole sponsor, Rijin Capital Limited, was publicly censured in a practice known as "name-and-shame," marking the first such case by the HKEX in two and a half years. Under existing policy, an IPO application returned by the HKEX requires the company to wait at least eight weeks before reapplying.
Public information indicates that the "name-and-shame" mechanism is a criticism and disclosure system by the HKEX. When a listing application submitted by a sponsor is returned, the company and sponsor, along with the return date, are recorded on the HKEX's disclosure website, aiming to enhance the quality of listed companies in Hong Kong. This system has been in effect for 11 years, with 10 Main Board and 15 GEM listing applications returned to date, involving 26 sponsors, including major firms like Goldman Sachs, Morgan Stanley, and J.P. Morgan.
Notable examples of companies that were previously "named and shamed" but later achieved successful listings include YADONG GROUP (01795) and BAIYING HOLDING (08525). According to its prospectus, Defeng Technology was established in March 2015 and is a technology developer specializing in AI-powered industrial Internet of Things (AIoT) production optimization software solutions, focusing on helping China's energy, manufacturing, and hybrid industries improve energy efficiency, achieve operational excellence, ensure safety, and pursue sustainable development.
The company offers a comprehensive and integrated portfolio of customized AIoT production optimization software solutions and services. During its track record period, it has completed over 600 projects, primarily serving Chinese state-owned enterprises, with a client base exceeding 200 companies, including leaders in the power and utilities, oil and gas, and tobacco industries. It is understood that Defeng Technology had previously prepared for a listing on the Shanghai Stock Exchange's STAR Market in 2022, terminated its A-share listing efforts in October 2024, and submitted its application to the HKEX this November.
Notably, Defeng Technology's Hong Kong listing attempt involves a valuation adjustment mechanism (VAM) agreement, granting investors special rights including, but not limited to, redemption rights, anti-dilution rights, and pre-emptive subscription rights. In November 2025, company founder Wang Qingjie signed a supplemental agreement with investors, extending the target date for completing an IPO from December 31, 2024, to December 31, 2026, and the redemption rights under the original shareholder agreement were terminated prior to the submission of the prospectus. Should this IPO fail, the terminated redemption rights will automatically be reinstated.
Due to granting these redemption rights to investors, Defeng Technology recorded redemption liabilities of RMB 1.224 billion, RMB 1.455 billion, and RMB 1.462 billion for the years 2023 and 2024, and the first half of 2025, respectively.