New Third Board Reform Helps New Economy |

940 listed companies are shortlisted for innovation in 2018

New Third Board, System Reform Helps New Economy

People's Daily Newspaper reporter Xu Zhifeng

Recently, national stock transfer companies released a list of innovation layers in 2018, and 940 companies were formally selected. Statistics show that innovative companies have achieved rapid development through listing new three boards, and their operating quality has been steadily improving. The direct financing capability has been continuously improved and the financing cash flow has been improved. improve.

Innovative companies listed in the overall rapid growth

What is the innovation layer of the New Third Board? The new Third Board listed company has more than 10,000 companies and it is a 'massive' market. After the market scale has been expanded, the listed company is in the development stage, the size of the capital stock, the number of shareholders, market value, business scale, financing needs, etc. There are obvious differences, and it is necessary to carry out layered management, and through differentiated institutional arrangements, to implement classified services and hierarchical supervision. It is precisely because of this that in 2016, New Third Board launched a tiered management pilot approach to set up three sets of differentiated innovations. At the layer level, the market is divided into an innovation layer and a basic layer. In late December 2017, the national stock transfer company further reformed and perfected the tiering and trading system and adjusted the standards for the access and maintenance of some innovation layers. According to the latest list released this time This year, there are a total of 940 companies that meet the innovation standards.

After being turned into a loss in 2015, Youbao Online, known as the 'Vendor on the Internet,' continued to maintain a growth rate of 2.46 times and 42.91% in 2016 and 2017; 738 times, net profit reached 890 million yuan in 2017. According to the data recently released by the National Stock Exchange Company, the innovation layer company achieved leapfrog growth in the past three years, and the average annual compound growth rate of revenue and net profit for three years from 2015 to 2017 Respectively, it reached 30.47% and 24.37%, respectively, 1.45 and 13.37% higher than that of the GEM. The accumulative growth rate of net profit of the 541 companies over the past three years exceeded 100%, accounting for 57.55%, of which 470 companies had net profit for 2017. More than 20 million yuan, has developed into a certain scale of high-growth enterprises.

The good development of innovative companies is closely related to the direct financing function of the New Third Board. As of May 23 this year, more than 90% of innovative companies have obtained equity financing in the New Third Board market, with a total financing amount of RMB 125.019 billion. A stable, high-quality, innovative layer company has obtained large-value equity financing in the New Third Board, among which are China's UCAR in the share-economy sector, Huaqiang Fangte in the entertainment industry, Hero Entertainment, Bio-pharmaceutical companies Yingtai Bio, Junshou Bio, and high-end manufacturing companies. Western Superconductors have received financing of over one billion yuan.

According to the person in charge of the company's stock transfer company, in view of the fact that the listed company is massive, multifaceted, with differentiated features and market demand escalating, the New Third Board market has clearly defined the market as the starting point for the overall promotion of issuance, trading, and information disclosure. The overall thinking on reforms such as supervision and other aspects was reformed in December 2017 on stratification, transaction and information disclosure systems. From the perspective of market practice, the three system reforms are moving in the expected direction.

New Third Board has the institutional advantages of connecting to the new economy

Many enterprises in new economic industries are in the initial phase, with large investment and low output. Many still have losses. Some even have main business revenues of zero. How to provide necessary financing for enterprises with technological advantages and good prospects for development? Supporting, all parties in the financial industry have been exploring. Looking at the operation in recent years, the New Third Board has the advantages of connecting sophisticated industries with the basic institutional advantages of connecting to the new economy. Many innovative new economic enterprises have leveraged on the new three boards to achieve new developments. .

Take biopharmaceutical as an example. The industry has the characteristics of high investment and long-term cycle. In the R&D phase, it often requires a large amount of capital investment and no profit. However, after the profitability of a company, nonlinear and explosive growth will occur. The characteristics of high risk and high returns determine It mainly relies on equity financing. According to preliminary statistics, there are 31 new biopharmaceutical enterprises in the New Third Board innovation layer, 30 of which have received equity financing, and the average financing amount is 203 million yuan, which is the highest for all industries. Many companies have obtained at the loss stage. Large-scale equity financing, effectively promoted the company's continuous research and development.

The situation of Xin Sanban Company's Renhui Biology is quite typical. This company has been involved in the research and development of diabetes drugs since its inception. It has been losing money for 16 consecutive years, and its revenue was zero when it was listed in 2014. After the listing, the end of 2014 to 2015 6 A total of four stock issuances were completed in the month, total financing was 399 million yuan, 85% of the raised funds was used for expansion projects and research and development. Efficient capital raising and use helped Renhui Biology to improve its R&D environment. The company's main product for R&D was 2017 Formally listed on the market for sales, to achieve zero breakthrough in main product revenue.

According to the person in charge of the company's stock transfer company, the basic system design of the new 3rd board can well match the needs of the new economy companies. For example, it supports the stocking of stocks in companies, public transfer, and ongoing financing; Relying on the recommendation of the host brokers and continuous supervision to establish marketization Selection mechanism; implementation of internal stratification within the market, exploration of differentiated service systems, introduction of 'new three board + H-shares' model, etc. These institutional arrangements embody the distinctive features of the new Third Board and are highly compatible with the new needs of new economic enterprises and venture capital.

As of May 25 this year, there were 11,325 new Sanban listed companies, hi-tech enterprises accounted for 61%, strategic emerging industries and enterprises accounted for 25%, involving a new generation of information technology, integrated circuits, medical health, smart equipment, energy conservation and environmental protection, New energy smart vehicles, new materials, artificial intelligence, software and information services, and technology service industries, etc., accounted for 44% of the country's key and highly developed industries. Over the past five years, 5,836 listed companies have completed 9,237 stock issuances. 4.342 billion yuan, among which, the high-precision industrial listed companies have financed more than 4,000 times, the amount of financing reached more than 1600 billion yuan, and 1,208 unprofitable companies have successfully achieved stock financing.

Serving the Development of Small and Medium-sized Enterprises Needs to Recharge

The performance of small and medium-sized enterprises fluctuates greatly and their development prospects are uncertain. It is necessary to objectively understand the characteristics of the development of these enterprises. The ability of financial markets to serve the development of small and medium-sized enterprises needs to be further enhanced.

According to statistics, the net profit growth rate of 3,027 companies in the new 3rd board listed companies exceeded 50% in 2017, but there were also 3,442 companies whose performance fell by more than 50%. Overall, the performance fluctuations are in line with the development characteristics of small and medium-sized enterprises during the development period. The research and development period of the industry is longer, typically like the bio-pharmaceutical industry. It often requires a lot of money and no profit in the R&D phase.

The person in charge of the company's stock transfer company believes that with various new technologies and new forms of business emerging, some industries may face the impact of emerging industries, and other long-term companies are in the stage of strategic upgrade and transformation, which may affect short-term profits. Subjects should observe the fluctuations of the performance of small and medium-sized enterprises and create a good investment environment to promote the long-term development of innovative and entrepreneurial SMEs.

In addition, although the financing capacity of Xinsanban listed companies has been improved, the task of increasing the proportion of direct financing of SMEs is still arduous. According to the data, the financial expenses for the new 3rd board listed companies increased by 40.15% year-on-year in 2017, of which the increase rate for medium-sized enterprises and small enterprises reached 65.24 respectively. In terms of % and 42.07%, financial expenses accounted for more than 0.2 percentage points of total revenue, indicating that the indirect financing costs of SMEs still have a large space to reduce. The task of the financial market serving small and micro enterprises in raising the proportion of direct financing is still arduous.

The person in charge said that in the next step, the new board will focus on the innovative mindset of service-oriented, entrepreneurial, and growing small, medium, and micro enterprises. In line with the “incremental reform and optimization of stocks”, it will focus on the reforms introduced at the end of 2017. On the basis of implementation and evaluation of measures, the Group will promote the fine stratification of the new Third Board Market, provide differentiated system supply for many listed companies, and comprehensively enhance core functions such as market price discovery, resource allocation and risk management.

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