Tahe Music Receives CSRC Overseas Listing Feedback on Hong Kong IPO Filing

Tahe Music has received feedback from China's securities regulator on its overseas listing filing, with the China Securities Regulatory Commission's International Department asking the company to supplement disclosures and have lawyers verify the matters and issue clear legal opinions, according to Jiemian News. The questions cover the paid-in status of domestic operating entities' registered capital, the basis for past capital increases and equity transfers, whether any capital contribution obligations were unmet, whether there were nominee shareholding arrangements, and whether the company's domestic business involves foreign investment restricted or prohibited sectors. The regulator also asked Tahe Music to explain the compliance of its offshore structure and round-trip investment, including foreign exchange, outbound investment, foreign investment and tax procedures, as well as the fairness of transaction consideration and whether related transferors fulfilled tax filing obligations. It further requested details on the legality of the equity incentive plan, possible benefit transfers or disputes, the use of a trust structure, and the basic information of the trust and related domestic entities. In addition, the company was asked to disclose the circumstances and rectification measures related to administrative penalties imposed on Chengdu Tahe by the Chengdu Municipal Bureau of Culture, Radio, Television and Tourism, and to clarify whether the Hong Kong listing is a spin-off of a Nasdaq- and Hong Kong-listed company and, if so, whether the parent and spun-off unit are operationally independent.