"Small Quick" To Increase The Transitional Period Arrangement And Launch GEM Companies Eager To Try

The concern about the "small fast" growth period of the gem has finally been released.

On the evening of June 19th, the Shenzhen Stock Exchange issued the notice to do a good job in the relevant work of refinancing simple procedures for listed companies on GEM (hereinafter referred to as the notice), making transitional arrangements for refinancing simple procedures of listed companies on GEM.

As early as June 12th, when the rules of the gem registration reform came out, the registration and management measures for securities issuance of listed companies on GEM (Trial Implementation) and the audit rules for listing and listing of listed companies on GEM (hereinafter referred to as the refinancing method for GEM) made provisions on the summary procedure for issuing shares to specific objects by listed companies, and the listed companies and their sponsors should The board of directors authorized by the annual general meeting of the listed company shall submit an application document within twenty working days after issuing the listing.

But at that time, many listed companies had convened the annual general meeting of shareholders in 2019 or approved relevant motions of the shareholders' meeting.

Therefore, the Shenzhen Stock Exchange has made a transitional arrangement and pointed out that enterprises that need to adopt small quick refinancing mode can not be restricted by this year's annual general meeting of shareholders this year if the conditions of issuance are satisfied.

"The gem refinancing approach" issued in June 12th, the small rapid refinancing needs to be approved by the annual general meeting of shareholders, but now the annual shareholders' meeting has passed, and a large shareholders meeting has been set up for holding a notice. Wang Jiyue, a senior investment bank, pointed out that the arrangement for the transition period also opened the door for these enterprises.

Before the announcement of the Shenzhen Stock Exchange, there were already listed companies who had a quick increase in the number of tasting new products. The thousand Yuan medicine June 18th evening announcement issued the company's 2020 year plan to issue shares to specific objects by summary procedures, becoming the first to eat crabs since the registration system reform.

Small quick transition arrangement

As early as in 2014, the Shenzhen Stock Exchange launched a small fast financing channel, which stipulates in the Interim Measures for the management of securities issuance of listed companies on GEM, "the listed company's fixed increase not exceeding 50 million yuan and not exceeding 10% of the net assets at the end of last year can be used for summary procedures".

However, due to the small amount and low efficiency of issuing, the popularity of the financing tool in the gem group is not wide.

Until mid June of this year, the gem reform and pilot registration scheme came out, and the small quick increase rule was further optimized. For example, the amount of small quick refinancing has never been more than 50 million yuan and does not exceed 10% of the net assets at the end of the latest year. It has been relaxed to no more than 300 million yuan and does not exceed 20% of net assets. In the past 12 months, the company that has issued more than 10% of its net assets can also be applied. To use small and fast mechanism for many years.

Under the registration system summary procedure, the exchange receives 2 working days, and the audit opinions are directly issued within 3 working days, and is registered with the SFC. The SFC completes the registration process within 3 working days, and the payment is completed within 10 working days after completion of registration.

This means that small scale quick refinancing of listed companies can greatly raise the efficiency of financing and solve the problem of cash flow.

According to Wind data, in the first quarter of this year, the performance of GEM companies was hit by factors such as epidemic situation. Net profit fell by 26.20%, and operating income dropped by 10.57%. The cash flow of some enterprises is also facing great difficulties. The reporter noted that in 2020 1-3, the net cash flow generated by 805 GEM companies which had comparable data and disclosed quarterly information was -94.59 million yuan, compared with 937 thousand and 200 yuan last year.

Specifically, 805 companies, 475 GEM companies in the first quarter of this year, net cash flow is negative, accounting for up to 59%, the most cash flow outflow enterprises are still goods distribution, in 2020 1-3 months, the net cash flow of operating activities amounted to -10.74 billion yuan.

There are already "early adopters".

In twenty-first Century, the economic news reporter learned from several investment banks and listed companies that the relaxation of the rules has made many listed companies eager to try.

A Southern China GEM board director told reporters on twenty-first Century economic report: "it is really convenient, for example, the amount is raised to 300 million yuan, 3 working days can be registered or registered ten days after the payment can be made, it is very attractive, we will prepare relevant matters at the right time."

However, when the small quick refinancing scheme was released, some listed companies thought the authorization might not be possible because of the need for the listed companies to authorize the board of directors to approve the application documents at the annual general meeting.

The circular points out that a listed company that has issued a notice of the annual general meeting of shareholders before June 19th may authorize the board of directors to issue a specific stock to a specific object by issuing a notice of the annual general meeting of shareholders, which will not exceed 300 million yuan and does not exceed 20% of the net assets at the end of the last year. The authorization will be invalid on the date of its annual shareholders' meeting in 2020,.

"This transitional arrangement is very necessary, because this rule comes out on the 12 th of June, and there must be new and old decisions. Many enterprises have held shareholders' meetings before that." Southern China another GEM listed company secretaries interviewed pointed out.

After the relaxation of the rules of small quick refinancing, enterprises can not wait to "taste the fresh".

Last week, Qian Yuan medicine issued a plan for issuing stocks to specific objects with summary procedures. It pointed out that no more than 35 specific objects would be raised, and the amount raised would not exceed 140 million yuan, with a maximum number of 30 million shares issued for 2 investment projects and repayment of bank loans.

Specifically, Hangzhou thousand source Bao Ling Pharmaceutical Co., Ltd. produces an annual output of 300 million pharmaceutical solid preparation production line technical transformation projects, with a total investment of 80 million 379 thousand yuan, and intends to invest 65 million yuan. The total drug investment for Hangzhou thousand Yuan Bao Ling Pharmaceutical Co., Ltd. is estimated at a total investment of 53 million 908 thousand and 800 yuan, and the estimated use of the proceeds is 50 million yuan; another 25 million yuan is used to repay bank loans.

As early as the evening of June 9th, Qian Yuan medicine issued the notice on the convening of the annual general meeting of shareholders in 2019, announced the 8 bills to be deliberated. In order to ensure the implementation of the rapid increase in small amount, thousand Yuan medicine issued another announcement "increasing the provisional proposal for the annual general meeting of 2019 and the announcement of the supplementary notice of the annual general meeting of 2019".

Qian Yuan medicine said that it would supplement the motion on "meeting the conditions for issuing shares to specific objects by summary procedures" at the annual general meeting held in June 23rd.

"Qian Yuan medical scheme does not belong to the transitional arrangement in the notice, but it belongs to the new regulation of refinancing under the registration system. It is deliberated at the annual general meeting, instead of the interim shareholders meeting in the notice, so it was hung up in June 18th. A senior industry insider pointed out.

?