With the development of financial markets and the advancement of national economic construction, the high-quality development of listed companies has become an important driving force for China's economic transformation and upgrading, and related topics have also received widespread attention.
On the morning of September 28, 2023, Frost & Sullivan (Frost &The second New Investment Expo and the 17th Frost & Sullivan Global Growth, Innovation and Leadership Summit (referred to as 'Frost & Sullivan New Investment Conference') - a sub-forum on high-quality development of listed companies - were grandly held at the Shangri-La Hotel in Pudong, Shanghai. This forum was co-hosted by Frost & Sullivan, TradeGo, Roadshow China, and LeadLeo.
Keynote Speech
Chairman and Chief Executive Officer of SULLIVAN TELE-TREND CLOUD TECHNOLOGY, TradeGo Wan Yong
Wan YongyiA speech titled "The Current Situation and Changing Trends of IPOs and Secondary Market Data in Hong Kong and US A-Stock Markets in 2023" was delivered, along with a sharing of IPOs and secondary market data for Hong Kong and US A-Stock Markets in 2023. He said, Under the influence of multiple factors such as an interest rate hike environment and slow post-pandemic recovery, globally since this yearIPO activities remain sluggish, with the number of listings and total fundraising amounting to a significant decline compared to the same period last year. Continuous leadership of innovation and entrepreneurship companiesThe A-share IPO market; he then pointed out, Compared withThe valuation levels of the A-share, US stock, and Hong Kong stock markets are even lower: The average price-earnings ratio of the Hang Seng Index since the beginning of the year is only about 10 times. Hong Kong stocks are often referred to as value havens, and this is indeed the case; Finally, He analyzed the innovation hotspots in the three regions from perspectives such as share repurchase, trading mechanisms, securities transaction stamp duty, and new channels for virtual asset investment.
Partner of Beijing Jingtian Gongcheng Law Firm Fu Siji
Fu Siqi withA speech was delivered on the theme of "Research on Legal Issues of Listing and Financing," detailing the latest rules and guidelines for overseas listings. He pointed out that the logic of filing review and supervision under the new regulations is similar to that of the A-share market, and it is necessary to guard against activities such as sudden share purchases, interest transfers, and entrusted shareholding that are "not suitable for the grand occasion." Regarding red-chip and VIE projects, the main focus is on the formation process of red-chip structures. Additionally, in the fields of network security and data security, although listing in Hong Kong does not require pre-review, if a platform company involves a large amount of personal information, it is entirely possible that during the filing process with the China Securities Regulatory Commission (CSRC), the Cyberspace Administration of China (CAC) will conduct a substantive review of the platform's compliance with information collection, use, and storage regulations. Companies should also attach great importance to this during the preparation for listing and in their responses to regulatory audits.
EY Audit Partner, Head of Retail and Consumer Goods Zheng Mingju
Zheng Mingju withHe delivered a speech themed 'Financial Focuses of Corporate Listing', detailing the common financial concerns during the listing process, including restructuring, revenue recognition and cost accounting, R&D expenses and intangible assets, expected credit losses on accounts receivable, etc. He stated that companies in the retail consumer goods industry derive their product sales revenue from a large number of customers located in different regions, and the timing of revenue recognition under different transaction models is not entirely the same. Their settlement methods and revenue recognition bases are complex, and it is necessary to analyze whether the accounting treatment for specific transactions such as point redemption, coupons, and prepaid cards complies with industry practices and one's own business model.
Executive Director of CITIC Liyung Securities Co., Ltd. Liu Jieling
Liu Jieling withShe delivered a speech on the theme of 'Recent Mainland Market Listing Supervision Trends and Their Implications'. She stated that there were news about red and yellow lights at the beginning of this year, although they have not been implemented yet, in fact, some consumer sector companies have already gone public in Hong Kong. Additionally, Hong Kong has relatively good control over review times, and in response to recent changes in mainland supervision, there will also be some regulatory trends in Hong Kong, marking an adjustment to the main board listing requirements. She elaborated on the developments in the Hong Kong 'Listing Rules', including Chapter 8A on different classes of shares, Chapter 18A on biotech companies without revenue, Chapter 18B on SPACs, and Chapter 18C on technology-specific companies, as well as the latest dynamics.
Partner and Managing Director of Frost & Sullivan Greater China Region Lu Jing
Lu JingyiDelivering a speech titled 'Key Areas of IPO Research', he conducted a detailed analysis of the expectations of companies during the IPO phase and the key topics of research, including how to shape and present investment stories, how to support company valuation, and how to identify and highlight competitive advantages. He stated that designing investment stories should fully consider four aspects: strategy, strengths, brand, and fundraising management, creating a comprehensive business resonance! He introduced that Frost & Sullivan's Brand Value (FSBV) helps businesses conduct quantitative diagnosis of their brand value by starting from ten dimensions including macro industry, niche segments, brand background, brand innovation, brand quality, and brand social responsibility.
Founder at the roadshow,CEO Chen Ying
Chen Ying withShe delivered a speech themed 'How AI Empowers Investor Relations in the Second Half of Capital Competition.' She stated that if capital competition is also divided into two halves, the first half is a seller's market and the second half is a buyer's market. Hong Kong stocks have already entered the second half, while the second half of the A-share market has just begun. In the second half of capital competition, listed companies' IR has also shifted from passive to active, from relationship management to resource management, and from cost centers to resource centers. She further pointed out that although the IR strategies and priorities of companies at different stages vary, what is common is that IR must not be a cost center but a resource center. Resources, of course, need to be invested in and reserved, and they will appreciate value. They can be liquidated in excess when needed by the company (such as during low-cost direct financing).
Orient Fortune Securities StrategyChief Analyst of Military Industry Qu Yiping
Qu Yiping withHe delivered a speech titled "Global Macroeconomics and Asset Allocation Outlook for 2024," pointing out that the core market trends from 2023 to date can be summarized as "state-owned assets moving away from medium- and special-asset valuations, and public funds shifting towards TMT artificial intelligence." According to the second-quarter reports disclosed by public funds in Q2 2023, the TMT sector continued its upward trend in the first quarter, increasing its position by 2.65%, raising the overall position from 21.29% to 23.94%. Additionally, he believes that "game-playing" is actually fully in line with the Fourth Industrial Revolution. The first industrial revolution saw a 1000-fold efficiency improvement, the internal combustion engine era an additional 100 times, and the electrical era another 10 times. Subsequent growth rates have become increasingly difficult. The current AI-powered generation (AIGC) revolution can achieve a very high work efficiency improvement for 60% of industries, including a 2 to 4-fold increase in the tertiary sector.
Founding Partner and President of Shanghai Valu Enterprise Management Consulting Co., Ltd. Chai Ying
Chai YingyiHe delivered a speech titled 'Public Company Public Opinion Management and Response', stating that media actually pay more attention to IPOs than listed companies. He believes that there are some common issues among the group of proposed listed companies that urgently need to be addressed, including resource scarcity, self-perceived mental state, external pressure, regulatory attitude, and lack of systems. During the IPO phase, it is necessary to prevent negative feedback and ensure issuance review, while after listing, it is essential to remember that the media is an important bridge for external communication and a channel for understanding external affairs. It is hoped that all listed companies will have this concept, which is to build themselves into media-friendly listed companies.
Roundtable Dialogue
Roundtable Dialogue·>Multi-directional integration of capital, resources and listed companies
The sub-forum on the high-quality development of listed companies"The Multi-Dimensional Integration of Capital, Resources and Listed Companies" kicked off the first high-level dialogue. The roundtable was moderated by Wan Yong, Chairman of SULLIVAN TELE-TREND CLOUD TECHNOLOGY and Chief Executive Officer of TradeGo. Guests included Xu Zhan, Managing Director of Huatai International Investment Banking Department; Hu Chao, Founder of Haozan Asset Management; Liu Wei, Partner of Jingtian Gongcheng; and Xiao Hui, Partner of EY Audit Services.
Roundtable DialogueNew trends in investor relations empower enterprises for high-quality development
The sub-forum on the high-quality development of listed companies"The New Trends in Investor Relations Empowering High-Quality Corporate Development" kicked off the second high-level dialogue. The roundtable was moderated by Wang Kaiyue, Editor-in-Chief of "White Paper on Investor Relations of Chinese Listed Companies". During the roadshow, founders and CEO Chen Ying, Zhang Jie, Secretary of the Board of Directors of Midea Communication, Jiang Nan, Investor Relations MD of Fosun International, and Yang Xiaocheng, Co-founder and CEO of LeadLeo, participated in the discussion as guests.
The high-quality development sub-forum of listed companies successfully concluded amidst wonderful presentations and collisions of ideas.
