The registration system is a new track for listed companies!
A series of promotional articles on the special action for investor Protection of “Honest and trustworthy as a respected listed company”
The registration system is a new track for listed companies!
Aier Ophthalmology Wu Shijun
Listen to the thunder in silence.
May 15th is the second "National Investor Protection Day”. Under the 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 1st, establishing a securities issuance and registration system in our country's capital market. Perhaps it is the epidemic that has attracted the attention of the society. The market generally lacks sufficient preparation and in-depth consideration for the rapid advancement of the registration system and the depth of its impact.A few days ago, the reform of the GEM registration system has been announced, and the incremental and stock reforms will be promoted simultaneously.Such a large scale is to accumulate experience in the implementation of registration system reform in the whole market.The registration system ultimately rests on protecting investors.Whoever protects the rights and interests of investors, investors will trust them, and capital resources will flow to them, and the survival of the fittest in the capital market will be further aggravated.
The reform of the title is 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, pays attention to the protection of investors' rights and interests, greatly increases the cost of violations, and has taken a qualitative step in marketization and legalization.At present, there are fewer than 4,000 listed companies, and it is entirely possible that there will be tens of thousands in the future.It is foreseeable that the registration system is the new normal, and it is becoming more and more common for companies to go public or delist; 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 comprehensive and transparent.
It can be seen that the registration system is a new track for the competition of listed companies. Listed companies and investors are the relationship between fish and water. If the water is protected, the fish is protected.How can you lead the way, how can you be like a fish 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.Regulatory agencies do not make substantive judgments on the quality or price of securities.Under the registration system, the conditions for the issuance of securities have undergone qualitative changes, from the “continuous profitability” emphasized by the approval system to “continuous operating ability”, from “profitability” 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 issued on February 4, 2020 also follow the spirit of the registration system, eliminating the requirement for two consecutive years of profitability, and the reserve price for pricing has also been reduced to 20% off.The full implementation and step-by-step implementation of the registration system should be said to be both positive and safe, reflecting the consistent thinking of gradual reform.
In fact, as long as an enterprise has the ability to continue to operate, it will eventually have the ability to continue to make profits. This is a relationship between process and result.However, many new economic models require financing precisely before they become profitable, and the registration system solves this problem.Therefore, issuers are required to fully disclose information, so that investors cannot look at the flowers in the fog, or even mislead the market through “beauty”.
In order to ensure the landing of information disclosure, the securities law has stipulated a corresponding disciplinary system, and supervision has not only increased but also increased.The fines for fraudulent issuance, market manipulation, internal transactions, etc. have been increased to five or even ten times, and a new special chapter has been established, the civil litigation system has been improved to protect the interests of investors, and a class action system with Chinese characteristics has been introduced, allowing investor protection agencies to accept the commission of more than 50 investors and represent them in litigation, “express withdrawal, implied participation”, reducing the difficulty of litigation and increasing the willingness to defend rights.With the emergence of professional “autumn chrysanthemum”, such rights protection lawsuits will increase significantly in the future, and listed companies cannot harbor any sense of luck.
2. The strength should be hard-core, and the operation should be standardized
The huge progress of the registration system is based on market-oriented selection, the ability of listed companies to protect investors is selected, the flow of capital and resources to high-quality enterprises is guided, and the real economic development and economic upgrading and transformation are promoted.The Science and Technology Innovation Board, the Growth Enterprise Board, the second tier of the New Third Board, the main board, and the small and medium-sized boards will all open successively. The number of listed companies is continuing to increase. Only with good performance and transparent standards, listing is no longer difficult. Gone are the days when listing status was rare and habitable.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 take advantage of the situation, with new thinking and new actions.
On the one hand, it is necessary to keep the original intention and follow the right path to ensure that the company operates in compliance and returns to investors.Rolling up your sleeves and cheering on is not equivalent to indiscriminate and brute force.Listed companies should be deeply in awe. "Fear” means not engaging in crooked ways. "Respect" means fully respecting investors from the bottom of their hearts and creating rich returns for the majority of investors.For example, Aier Ophthalmology has been rated as A-level information disclosure by the Shenzhen Stock Exchange for many years. The cumulative cash dividends have exceeded twice the funds raised by the IPO, and the company's market value has reached 20 times the initial listing.On the other hand, we should actively develop a harmonious shareholder culture and advocate voting by hand.For example, the annual general meeting of shareholders of Aier Ophthalmology is like a carnival for investors. They come to the meeting site from all over the world to make suggestions 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 should also pay more attention to investor relations (IR), build it into the company's competitive advantage, and constantly win more votes of confidence from investors to increase the company's market value and shareholder value, thereby boosting the realization of the company's strategy.For example, the fixed increase of a large number of listed companies in 2017 failed because no one subscribed.Even in this case, Aier Ophthalmology successfully issued and introduced strategic shareholders such as Hillhouse Capital.The key stage of financing has promoted the company's strategic development.Therefore, respecting investors is a win-win situation for investors and companies, and it should be a rational choice for listed companies. If you are still passive and conservative, you 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, with all staff and in the whole process.
1. Practice long-termism and work together with investors
Listed companies should treat investors as simple and sincere as Forrest Gump, and never forget their original intentions.No matter how the market changes, always stand with investors.Since Aier Ophthalmology has been listed for more than ten years, it has experienced several irrational and violent fluctuations. The controlling shareholders and the chairman of the company have decisively increased their holdings in the first place, and demonstrated their confidence to the market with practical actions.With the outbreak of the new crown epidemic this year, the company has grasped the fight against the epidemic with one hand and communication with the other. It has closely communicated with investors through conference calls, online Q&A, open letters, etc., and analyzed the development laws of the industry and the company's business situation in depth and objectively, effectively resolving investors' anxiety.As the company's market value has gradually recovered, it has recently hit a record high, effectively safeguarding 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 deep into the front line and learn about the development from the hospital management; in order to advocate long-term investment, the founder of the company last year gave 100 shares to individual shareholders with 600 shares for 6 consecutive years (more than 300 of them met the conditions); in order to advocate value investment and facilitate investors at home and abroad to grasp important information at the first time, the company launched a bilingual interpretation of regular reports and major matters in Chinese and English.
Lu Yaozhi knows horsepower.In the past ten years since its listing, Aier Ophthalmology has maintained a compound annual growth rate of more than 30%, operated transparently and standardized, and won the favor of the capital market.In the company's investor team, a large number of well-known public equity funds, private equity funds, world-class investment institutions, long-term individual investors, and the Central Huijin “national team” have gradually gathered.
2. Make good use of the listing status and accelerate the development of the main business
After a company goes public, it is a real marathon and long-distance running. It is necessary to be good at using the capital market to strengthen the main business, rather than a one-shot sale of funds raised by an IPO.To this end, it is necessary to have a clear strategy and focus on what the company should do well in the long term; it is also necessary to regulate governance and accumulate a good market reputation.At the same time, we must be good at learning from the successful experience of other companies, pay attention to research and use various tools of the capital market, such as public additional issuance, targeted additional issuance, allotments, convertible bonds and other financing methods, as well as mergers and acquisitions and restructuring around the main business.The company should choose the best solution based on the actual situation and the opinions of intermediaries.
In terms of large-scale mergers and acquisitions at home and abroad, the company consists of the Securities Department, the investment department, the business department, the Finance Department, the Quality control Department, the Manpower Department, the business Department, and the equipment Department to form the “Alliance of Eight countries”. During due diligence, the future integration work is taken into account, and the M&A target is empowered and integrated, which greatly improves the success of mergers and acquisitions, and enables the company to achieve an organic combination of connotation development and extension expansion.
The use of equity incentives by listed companies has a natural advantage, and sufficient use is conducive to gathering talents to overtake the curve.Aier Ophthalmology has implemented three consecutive equity incentives, reaching 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 Program”, which has become a major initiative in the medical industry. A large number of doctors have poured in, and the current number of ophthalmologists is close to one-eighth of the country.Strong talent strength and a 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 for our party's success in revolution and construction is the establishment of a united front.Similarly, for listed companies to continue to develop, in addition to serving customers well, they must also be good at integrating resources from all aspects and developing a “circle of friends” in all lines.For example, all kinds of investors belong to the key “united front objects”. 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 technologies and services.Over time, a trusting and lasting healthy interaction has formed between listed companies and investors.
The smooth development of listed companies is very important to government departments, regulatory departments, suppliers, associations of listed companies, various media, investor protection centers, hospital employees, partners, etc.Listed companies must strive to become "model students" in order to gain more support from all parties.Aier's performance comes from its own efforts and benefits from the help of all walks of life. Therefore, since the listing of Aier Ophthalmology, while disclosing its annual report, it has simultaneously disclosed the "Social Responsibility Report" for 11 consecutive years to report on the company's contribution to the society.
4. Keep pace with the times and innovate to make the company's image more "three-dimensional”
No matter in various industries, enterprises must adapt to the changes of the times. As a public company, a listed company must establish a close and harmonious relationship with the mainstream media and convey the company's characteristics, innovations, and highlights from multiple angles so that more investors can understand and pay attention.
At the same time, listed companies must learn to use new media to enhance brand penetration, including Douyin, public accounts, and self-media.You don't have to worry about it all the time, and there are topics everywhere.For example, we made a small 10-second video on Valentine's Day.：
Dad asked his daughter: My boyfriend has been talking to you for five or six years, why haven't he bought a house?
The daughter replied confidently: He bought all the shares of Aier Ophthalmology!
Through this life-oriented scene, the audience will naturally think of the company's good and continuous growth over the years, and the number of clicks is very large.
A listed company is an organism, and regular reports are not enough. It is the corporate culture that determines the company's long-term development, and the use of new media can vividly show it.For example, during the epidemic this spring, more than 2,400 medical personnel from Aier Ophthalmology handed out invitations and went to various places to fight the epidemic.This is not accidental, because the two founders of the company also wrote a blood book 35 years ago, requesting to go to the front line of Laoshan, Yunnan to kill the enemy bravely!We published “Undercover Aier Ophthalmology's 16-year-old employees leaked the shocking Secrets of the chairman and president” in the self-media, revealing that this "retrograde" spirit comes from the cultural genes of the company, and investors have been impressed.
In short, the registration system is accelerating its step-by-step implementation, and the concept of investor protection is more popular.Integrity is the pass for those who are honest, and forward is the guiding light for those who are moving forward.I look forward to the group of listed companies galloping fast and steadily on the new track, so that high-quality development will become the main theme of China's healthy economic growth!