The registration system is a new track for listed companies
Listen to thunder in a silent place.
May 15th is the second "National Investor Protection Day". In this special period of this year, it seems to have added a different style to the increasingly strengthened investor protection in China's capital market.
The new securities law has been implemented on March 1, establishing a registration system for securities issuance in my country’s capital market. Perhaps the epidemic has attracted the attention of the society, and the market generally lacks sufficient information on the rapid and deep influence of the registration system. Preparation and in-depth consideration. A few days ago, the reform of the GEM registration system has been announced, and the incremental and stock reforms are being promoted simultaneously. Such a large scale is to accumulate experience for the implementation of the registration system reform in the whole market. The registration system ultimately settles on protecting investors. Investors will trust whoever protects the rights and interests of investors, and capital resources will flow to whom. The survival of the fittest in the capital market will further intensify.
Reforms are advancing rapidly, not without a trace. The new securities law clarifies the registration system, fundamentally changes the rules of the game in the capital market, strengthens market supervision, and focuses on protecting the rights and interests of investors. This greatly increases the cost of violations and takes a qualitative step towards marketization and rule of law. Currently, there are less than 4,000 listed companies, and there may be tens of thousands in the future. It is foreseeable that the registration system is the new normal, and it is more and more common for companies to go public or delisting; the registration system is a weighing machine, which will more accurately measure the quality of listed companies; the registration system is a developer, and the information disclosure of listed companies must be more Fully transparent.
It can be seen that the registration system is a new track for listed companies to compete. Listed companies and investors are the relationship between fish and water. If you protect water, you protect fish. How can you lead the way, how can you get in the water? This is a major issue faced by all listed companies.
1. Understand the new rules and establish new ideas
The registration system is centered on information disclosure and requires listed companies to disclose information truthfully, accurately and completely. Regulators do not make substantive judgments on the quality and price of securities. Under the registration system, the securities issuance conditions have undergone a qualitative change. The approval system emphasizes "sustainable profitability" to "sustainable ability to operate", and from "profit" to "operation". This is a profound change in thinking. Because business ability is more inclusive and diverse than profitability.
The new refinancing regulations for listed companies released on February 4, 2020 also follow the spirit of the registration system, canceling the requirement for two consecutive years of profitability, and reducing the base price of pricing to 20%. The full implementation and step-by-step implementation of the registration system should be said to be both positive and stable, reflecting the consistent gradual reform thinking.
In fact, as long as a company has the ability to operate continuously, it will eventually have the ability to sustain profitability. This is a relationship between process and result. However, many new economic models require financing just before profitability, and the registration system solves this problem. Therefore, issuers are required to fully disclose information, and investors should not be fooled, or even mislead the market through "beauty".
In order to ensure the implementation of information disclosure, the Securities Law provides for a corresponding disciplinary system, and supervision has not only been boosted but also charged. Fines for fraudulent issuance, market manipulation, internal transactions, etc., have been increased by five or even ten times, and a new chapter has been created to improve the civil litigation system, protect the interests of investors, and introduce a class action system with Chinese characteristics, allowing The investor protection agency accepts the entrustment of more than 50 investors and represents litigation, and "explicitly withdraws and tacitly joins", which reduces the difficulty of litigation and increases the willingness to defend rights. With the emergence of the professional "Qiuju", such rights protection lawsuits will increase substantially in the future, and listed companies should not have any fluke mentality.
2. Strength must be hardcore, operation must be standardized
The huge progress of the registration system is to select the ability of listed companies to protect investors by means of market-based choices, guide the flow of capital resources to high-quality enterprises, and promote the development of the real economy and economic upgrading and transformation. The Science and Technology Innovation Board, ChiNext Board, Selected Layers of the New Third Board, Main Board, and Small and Medium-sized Boards will all open the gates successively. The number of listed companies continues to increase. Only with good performance, standardized and transparent, listing is no longer difficult, and the listing status is an era of rare goods. Gone forever. The balance of the capital market has gradually shifted from listed companies to investors, and the group of listed companies must adjust their mentality to follow the trend and have new thinking and new actions.
On the one hand, we must keep our original intentions and follow the right path to ensure the company's compliant operation and return investors. Rolling up your sleeves and working hard is not the same as reckless and reckless work. Listed companies must have a deep sense of awe. "Awe" means not engaging in crooked ways. "Respect" means to fully respect investors from the bottom of their hearts and create generous returns for the majority of investors. For example, Aier Ophthalmology has been rated as A-level by the Shenzhen Stock Exchange for information disclosure for many consecutive years. The accumulated cash dividend has exceeded twice the IPO funds raised, and the company's market value has reached 20 times that of the initial listing. On the other hand, we must actively develop a harmonious shareholder culture and advocate voting by hand. For example, the annual shareholder meeting of Aier Ophthalmology is like a carnival for investors. They come to the meeting site from all over the world to provide ideas for the company's development.
On the other hand, adapt to the new situation and form new advantages. In addition to strengthening the main business, listed companies must also pay more attention to investor relations (IR), build it into a company's competitive advantage, and continuously gain more investors' votes of confidence, increase the company's market value and shareholder value, thereby boosting the company The realization of the strategy. For example, in 2017, a large number of listed companies failed in their fixed growth because there was no one to subscribe. Even in this case, Aier Ophthalmology successfully issued and introduced strategic shareholders such as Hillhouse Capital. The financing at the critical stage has promoted the company's strategic development. Therefore, respecting investors is a win-win situation for investors and the company, and it should be a rational choice for listed companies. If it is still passive and conservative, it will be marginalized.
3. Adapt to the new normal and seek new breakthroughs
Under the new normal of the registration system, listed companies must focus on investor protection and seek breakthroughs wholeheartedly, fully, and throughout the process.
1. Practise long-termism and share weal and woe with investors
Listed companies must treat investors as honest and sincere as A-Gump, not forgetting their original intentions. No matter how the market changes, always stand with investors. Over the past ten years since Aier Ophthalmology went public, it has experienced several irrational and violent fluctuations. The controlling shareholder and chairman of the company decisively increased their holdings at the first time, showing confidence to the market with practical actions. With the outbreak of the new crown epidemic this year, the company focused on fighting the epidemic with one hand and communication on the other. It communicated closely with investors through telephone conferences, online Q&A, open letters, etc., and conducted in-depth and objective analysis of the industry development law and the company’s operating situation, effectively resolving investors’ concerns. Anxiety. As the company's market value has gradually recovered, it has recently hit a record high, which has effectively safeguarded the interests of investors.
In order to advocate rational investment, Aier Ophthalmology established and implemented the "National Hospital Investor Reception Day System" in 2019. Investors can go to the front line and learn about the development situation from the hospital management. Individual shareholders with 600 shares per year give 100 shares (more than 300 meet the conditions); in order to promote value investment and facilitate investors at home and abroad to grasp important information at the first time, the company introduces bilingual interpretation of regular reports and major events in Chinese and English.
Lu Yao knows horsepower. In the ten years since its listing, Aier Ophthalmology has maintained a compound annual growth rate of more than 30%, and its transparent and standardized operation has won the favor of the capital market. The company's investor team has gradually gathered a large number of well-known public equity funds, private equity funds, world-class investment institutions, long-term individual investors, and the "national team" of Central Huijin.
2. Make good use of the listing status and accelerate the development of the main business
After a company goes public, it is the real marathon, and it is necessary to make good use of the capital market to strengthen its main business, rather than a one-off transaction of IPO funds. To this end, it is necessary not only to have a clear strategy and focus on what the company should do well in the long term; but also to regulate governance and accumulate a good market reputation. At the same time, we must also be good at learning from the successful experience of other companies, focusing on research and making good use of various capital market tools, such as public additional issuance, private placement, allotment, convertible bonds and other financing methods, as well as mergers and acquisitions and reorganizations around the main business. . The company should choose the best plan based on the actual situation and the opinions of intermediary agencies.
In terms of large-scale mergers and acquisitions at home and abroad, the company is composed of the Securities Department, Investment Department, Business Department, Finance Department, Quality Control Department, Human Resources Department, Operation Department, and Equipment Department. The integration work has enabled the integration of M&A targets, which has greatly improved the success of M&A and enabled the company to achieve an organic combination of internal development and external expansion.
The use of equity incentives by listed companies has a natural advantage, and good use is conducive to gathering talents and overtaking. Aier Ophthalmology has successively implemented equity incentives three times in succession, and the target has reached 3,000 people, allowing core talents to share the results of the company's growth. After that, the company launched an upgraded version of equity incentives-the "Partner Plan", which became a pioneering work in the medical industry. A large number of doctors flocked in. At present, the number of ophthalmologists is close to one-eighth of the country. The strong talent strength and sound training system have broken the core bottleneck and provided a strong backing for the company's national chain.
3. Establish a united front and expand the "circle of friends"
One of the three magic weapons of our party's success in revolution and construction is to establish a united front. Similarly, listed companies must continue to develop, in addition to serving customers well, they must also be good at integrating various resources and developing "friend circles" in various lines. For example, all types of investors are key "united front targets." Over the years, a large number of investors or their family members have become hospital customers and have a deeper understanding of industry trends and company technology and services. Over time, a trusting and lasting benign interaction has been formed between listed companies and investors.
For the smooth development of listed companies, government departments, regulatory agencies, suppliers, listed company associations, various media, investor protection centers, hospital employees, and partners are all very important. Listed companies must strive to become "model students" in order to gain more support from all parties. Aier's performance is derived from its own efforts and benefited from the help of all walks of life. Therefore, since Aier Ophthalmology went public, it has simultaneously disclosed the "Social Responsibility Report" for 11 consecutive years while disclosing its annual report, reporting the company's contribution to the society.
4. Keep pace with the times and be good at innovation, making the company's image more "three-dimensional"
No matter in various industries, companies must adapt to the changes of the times. As public companies, listed companies must establish a close and harmonious relationship with mainstream media, and communicate the company’s characteristics, innovations, and highlights from multiple angles, so that more investors can understand And attention.
At the same time, listed companies must learn to use new media to enhance brand penetration, including Douyin, official accounts, and self-media. Always care about, subject matter everywhere. For example, we made a 10-second short video on Valentine's Day: Dad asked his daughter: My boyfriend has been talking to you for five or six years, why didn’t you buy a house? The daughter replied confidently: He has bought Aier Ophthalmology stocks!
Through this life-like scene, the audience will naturally think of the company's good and continuous growth over the years, with a lot of clicks.
A listed company is an organism, and regular reports are far from enough. It is the corporate culture that determines the company's long-term development, which can be vividly demonstrated through the use of new media. During the current spring epidemic, more than 2,400 medical staff from Aier Ophthalmology Department handed over the letters to fight the epidemic. This is not accidental, because the two founders of the company also wrote blood books 35 years ago, requesting to go to the front line of Yunnan Laoshan to fight the enemy bravely! We published "The 16-year-old undercover Aier Ophthalmology employee leaked the shocking secrets of the chairman and the president" in our media, revealing that this "retrograde" spirit comes from the company's cultural genes, and investors have expressed their deep impression.
In short, the registration system is being implemented step by step, and the concept of investor protection has become more popular. Honesty is the passport of those who are honest, and advancement is the guiding light for those who advance. Looking forward to the group of listed companies galloping fast and steadily on the new track, so that high-quality development becomes the main theme of the healthy growth of China's economy!
——Aier Ophthalmology Wu Shijun
