6month17day,Live ReportThe online salon event 'Face-to-Face with Big Names', hosted by Big Data, was live-streamed simultaneously on more than a dozen channels. Frost & SullivanFrost & SullivanPartner and Managing Director of Frost & Sullivan Greater China Region, Co-founder of LeadLeoCEOMr. Yang Xiaocheng was invited to the live broadcast room to have a wonderful live dialogue with Mr. Wan Yong, the Executive President of TradeGo.
The content shared covers the significance of in-depth research on global companies planning to go public or already listed, empowering capital operations and corporate development, as well as addressing various aspects of company development. Mr. Yang Xiaocheng, combining years of in-depth industry research experience, has analyzed various industry research issues that enterprises may encounter during the listing process in a simple and profound manner.
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Frost & Sullivan: a global leader in growth consulting, A leading enterprise in the field of domestic investment strategy consulting
Frost & SullivanFrost & SullivanFrost & Sullivan, commonly referred to as 'Frost & Sullivan&rdquo), is a global leader in enterprise growth consulting.
1961Founded in Wall Street, USA, globally62years of history. Globally owned45An office, approximately3,000Famous consulting advisors and analysts provide comprehensive investment, financing, and various other professional consulting services for enterprises, including due diligence services, valuation services, assessment services, strategic consulting, management consulting, planning consulting, technical consulting, financial consulting, industry consulting, etc. Covering sectors such as pharmaceuticals and healthcare services, consumer services, transportation and travel, internet technology, retail, aerospace, financial services, etc.20Large industries. From a global perspective, we help clients accelerate their business growth, enabling them to achieve growth, technological innovation, and leading benchmarks within their industry.
Frost & Sullivan is also an absolute leader in providing industry advisory services for corporate listings in Hong Kong for the past three years.IPO listingThe average market share exceeds55%, and participated in more than200Set sail for overseasIPO listing.
Frost & Sullivan is located in1998Entering the Chinese market in 2018, it has helped nearly a thousand companies successfully list on the Hong Kong and overseas stock exchanges, making it a leading enterprise in the field of investment strategy consulting in China.2014till2022In the year, Frost & Sullivan has maintained its leading position as the market research advisor with the largest share in the Chinese companies going public in Hong Kong and overseas for consecutive years; moreover, in recent years, Frost & Sullivan reports have also been widely cited by industry leaders.AProspectus documents, primary market research reports, and other capital market disclosure documents of listed companies such as stocks and Sci-Tech Innovation Board companies. In the past eight years, we have served more than1,000Home, occupies various industries going overseasIPO listingThe absolute leadership position of Market Industry Advisor. Frost & Sullivan has set up offices in Greater China.7The offices are located in Beijing, Shanghai, Hong Kong, Shenzhen, Nanjing, Chengdu, and Taipei.
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Yang Xiaocheng: Over fifteen years of capital market service experience, Led and participated in the listing, acquisition, and merger projects of dozens of domestic and overseas enterprises
Mr. Yang Xiaocheng Partner and Managing Director of Frost & Sullivan, Co-founder andCEOMr. Yang has over fifteen years of experience in capital market services, responsible for the international capital market department of Frost & Sullivan, providing clients with investment and financing consulting, valuation, financial advisory and other services.
Mr. Yang has led and participated in the listing and acquisition mergers and acquisitions of dozens of domestic and international companies. Before joining Frost & Sullivan, Mr. Yang worked at BOC International Securities Co., Ltd. and Deloitte Touche Tohmatsu.
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Three Core Issues in Industry Research
Who are you?
Entrepreneurs and bosses may have misunderstandings about the positioning of their companies. The perspective from within a company is different from that of investors, leading to cognitive gaps due to different identities. This is commonly referred to as the 'founder blind spot.' Founders often view the overall situation of the company from an internal perspective through product and technology, while outsiders see it very differently. Therefore, what we mean by who you are is not just who you think you are, but also letting the outside world know who you are and knowing for yourself who you want to become in the future.
Where are you from?
Simply put, it refers to the current state of the company. For startups, what kind of technology does it possess, what products are available, what is being sold, and what position does the company currently hold in the market, whether it is in an emerging market or a relatively traditional industry? If in a traditional industry, does the company have any disruptive or significant innovations that could change the current state of the industry, thereby empowering traditional industry technologies?
Many companies have great imagination in their business and products, but they fail to convey this well when introducing themselves, sometimes even having a negative impact, ultimately resulting in unsatisfactory company valuation and recognition.
Where are you going?
Speaking of the future, whether there will be major upheavals and transformations in the industry, especially in the capital marketIPO listingFrom a market perspective, it is even more important to talk about the future. The valuation of a company not only reflects its current net profit but also reflects different views on the future of the industry. If one is optimistic about the company's future, the current valuation will be higher, and valuation standards such as price-to-earnings ratio or price-to-sales ratio may also increase.
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Application scenarios of business research
1Internal Insights of Enterprises
Know yourself and your enemy, and you can fight a hundred battles and win a hundred percent. Through in-depth analysis, from comprehensively understanding the industry situation, clarifying one's own positioning, to formulating development strategies, this approach helps enterprises gain insights into their internal conditions, thereby providing comprehensive and strong support for their future development.
Source: Frost & Sullivan
Classical Case Sharing: Frost & Sullivan assisted aXA technology company focused on optical emitters, it has identified the right track to achieve overtaking on a curve, achieving a double harvest in both business and valuation. During its five years of service, from initial financing to company development, and to listing on the Sci-tech Innovation Board and entering the capital market, the company has achieved a sixfold growth.
2)IPO listingand capital operation
①In-depth industry research supportIPO listingMultiple aspects of the process, including prospectus writing and Q&A, fundraising report writing, experimental data verification, andESGAnd annual report updates, etc., to help the company tell a good investment story.
Source: Frost & Sullivan
②Through four major modules: pre-listing leading-edge communication, listing prospectuses and industry reports, post-listing inquiries and response materials, and company valuation roadshow materials, we provide one-stop research services for the company from pre-listing to post-listing.
Source: Frost & Sullivan
③Frequently Asked Questions about Industry-Related Queries that May Be Encountered During the Listing Process:
（1Regarding market size issues: explain how the boundaries of the company's market are defined, and what specific factors are considered; what methods and logic are used for market size estimation, and whether it is scientific and reasonable.
（2Regarding market share: What are the major enterprises in the industry, what is their operating revenue and market share for similar businesses; are the market data of other competitors fair and reliable?
（3Regarding comparable company issues: What technical advantages does the company have compared to its competitors, and how is this quantitatively analyzed? Disclose the market competition situation in different downstream application fields.
（4Regarding the issue of leading position: Regarding expressions such as 'the first in China' and 'No.1 in China', please provide relevant evidence; considering the background of the honors and awards received, patents, etc., analyze whether this is conducive to investors' understanding of the company's technological advancement.
Source: Frost & Sullivan
Classical Case Study Sharing: Through the product sales forecast analysis method of biopharmaceutical companies under research and development, based on in-depth industry research and enterprise surveys, a model is built for prediction. Variables are verified, adjusted, and the prediction results are controlled within an acceptable reasonable error range.
Source: Frost & Sullivan
3) Confirmation of the enterprise's market position
In-depth industry research supports the confirmation of a company's market position, including recognition and reputation, brand image, influence, compliance, and more.
Source: Frost & Sullivan
Some of Frost & Sullivan's service cases: such as Peiji Laohongpu, Xicha, and China Feihai.
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Wonderful Q&A
1How is a new industry defined, and what are the differences between new consumption and traditional consumption?
Yang Xiaocheng: New consumption is a broad concept, and the difficulty does not lie in its definition. Take new-style tea drinks for example; milk tea can currently be defined as traditional consumption. However, in terms of innovation, it is now referred to as Chinese new tea drinks, Chinese new consumption, Chinese new chains, etc. These are just names; they are not difficult to come up with, and we can brainstorm them at will. But the difficulty lies in how we make the public accept it. This acceptance needs to be supported and defined by authority, methodology, models, etc., to distinguish between new and traditional.
2,AIGCImpact on industry research?
Yang Xiaocheng : AIGCIndustry research is not a shock, but rather a significant empowerment.AIThere are currently two major issues in creation that need to be addressed: one isAIIt is not responsible for the company's data, models, algorithms, content, etc. Secondly, the underlying content and algorithms are not clean enough, and the underlying data is rather messy. When searching for the same thing, content creators may agree with each other, but which content is truly worth citing? There is currently no good solution to this problem. LeadLeo is currently developing some knowledge-based data labels in this area, including standards and definitions for which content can be traced back, cited, and adopted, thereby empowering industry research;AIGCThe future will be a trend of integration and collaboration with humans.
3, when a company undertakes multiple When a business can be attributed to several sub-industries, how are its industry attributes assessed?
Yang Xiaocheng : The industries to which one belongs each have their own advantages and disadvantages. The first type is smaller-scale ones, where we need to analyze the company's proportion in different market segments or industry types. If a company has a high proportion of a certain main business, then we will focus on that business and use it as a gateway to other market segments. For example, automotive chips may be found to have applications in agricultural machinery or construction equipment, as well as other future market prospects. The second type is group companies, such as state-owned enterprises and central enterprises, which have multiple business lines. At this time, we will select and highlight those businesses with more development prospects, combined with existing traditional but stable cash flow-providing businesses, one for the present and one for the future, to form an integrated investment story.
4What relevant suggestions are there from an industry research perspective for companies planning to list or those that have already listed or are already a listed company?
Yang Xiaocheng : Companies that have already filed for listing or are listed companies cannot be changed, and their current situation can only be highlighted through live broadcasts or roadshows. For companies planning to file for listing, the operational aspect is relatively higher. First, we can invest more manpower in sorting out the company's business lines in the early stages, thereby creating a better-positioned investment story. Second, we can test the waters by conducting online and offline roadshows to see how market investors react. For example, if you are currently talking about a new consumption concept and the market doesn't recognize it yet, the feedback might be average. Then we have the opportunity to adjust; if the feedback is good, we can continue to strengthen this aspect. Moreover, we can also test the recognition level in the secondary market or preheat it ahead of time, because there is currently some pressure on Hong Kong stock market issuance. Does the company have a certain level of popularity in the market, or can it make the market more aware of its situation? If the company has a certain level of popularity, it may receive more attention and is more likely to obtain funds from the market, which is conducive to the company's smooth issuance.
