In The Past 20 Years, IPO Materials Have Been Produced In A State-Of-The-Art "China'S Best Printing Shop" Rongda Technology Has Been Listed In A "Spot Check"

Rongda technology, which has printed numerous IPO materials of listed companies, is also trying to open the door of China's capital market.

Beijing Rongda Technology Co., Ltd. (hereinafter referred to as "Rongda"), which is known as "China's best printing shop", recently disclosed its prospectus. The company plans to list on the main board of Shanghai Stock Exchange and issue 114 million new shares, raising RMB 600 million.

As far as investors are concerned, the printing shop is still just a printing shop, but in fact, the service provided by Rongda is far beyond the scope of "printing". In the legend of investment banks, Rongda must have a place“ It has become the default rule of the domestic investment banking circle to print the prospectus to Rongda and "never work as an investment bank without staying overnight at Rongda".

"Not only can Rongda's employees help you adjust the format of your prospectus, they can also find mistakes that no investment bank can find. In recent years, Rongda has started to separate this part to do consulting business. " Some Beijing area head securities investment bank personnel said to the 21st century economic report reporter. Rongda has established super high stickiness with securities companies through its unique service ability in subdivided fields.

Take 2020 as an example, according to the data of the company's prospectus, a total of 950 enterprises have applied for listing in the whole year. Among them, 932 companies, 614 companies and 717 companies purchased Beijing Rongda IPO application document preparation and consultation, IPO manuscript sorting consultation and IPO data checking services, respectively, with market share of 98.11%, 64.63% and 75.47%. It can be said that 90% of the Prospectuses of A-share listed companies are related to Rongda.

The printing shop is no more than a printing shop, but in fact, the service provided by Rongda is far beyond the scope of "printing". Visual China

"Home of securities dealers" in investment banking circle

In the Jincan hotel at 66 Nanxiaojie, Xizhimen, the logo of Rongda Express Printing, an offline "print store" of Rongda, is hidden. In this humble Hotel, countless securities investment bank personnel stay up late in this hotel to revise and check IPO application documents.

Although the location is hidden, from the distance, Jincan hotel is only less than 3 kilometers away from the meeting place of China Securities Regulatory Commission (CSRC), that is, the meeting place of China Securities Regulatory Commission. Even if you ride a bicycle, about a quarter of an hour is enough to make you rush to the CSRC to submit materials. The unique location advantage is enough to attract investment bank personnel to patronize. In fact, after the pilot registration system reform in the domestic capital market, Rongda did the same thing again. It set up a store in the same location 3 kilometers away from the Shanghai Stock Exchange to provide services for the IPO projects of the science and technology innovation board.

"In Rongda, you can meet all your basic needs in life. Before going in and out of the store were either investment bankers who came to print or came to deliver meals. Rongda can also provide catering. If you spend more money, you can get a suite in Jincan hotel. You can change the materials day and night. If it is cheaper, Rongda also has its own private rooms. You don't have to go out to eat, drink and laza. Entire print shop 7 × It operates 24 hours a day, and there is no need to go home before reporting materials. " There are small and medium-sized securities companies registered in the western investment bank said.

In addition to the full range of life services, under the huge business volume, Rongda's professional level in IPO material production is unique. In fact, in the past 20 years, many competitors such as Shimei have attempted to enter this lucrative market with great ambition, but they have failed to shake Rongda's position in the world.

"Some things just need to see more to feel. For example, the IPO materials handled by ordinary employees of Rongda in one year may exceed the number of projects handled by some investment bank personnel in their entire career. The experience is not at the same level, so we can pick out the mistakes that the investment banks can't see. " The head of the securities investment bank said.

Because of this characteristic, Rongda Express Printing also boasts itself as the "home of securities dealers", and makes a logo specially printed on the handbag. On the bustling financial street, the handbag with the logo of "home of securities dealers" and Rongda is the most accurate identification of investment banks.

"Every few steps along the Financial Street in Beijing, you can see employees carrying the bags of" home of securities dealers ". The materials piled up at the entrance of the conference hall of the Securities Regulatory Commission on the 17th floor of block B of Fukai building are also filled with bags of" home of securities dealers. " The above small and medium-sized securities investment bank personnel said. This also shows the absolute advantage of Rongda in the field of financial professional document printing.

In recent years, taking advantage of the capital market reform, Rongda has ushered in another performance breakout point. The scale of profit continued to rise. According to the information in the prospectus, from 2018 to 2020, the company will achieve operating revenue of 113 million yuan, 183 million yuan and 335 million yuan respectively, and the net profit attributable to the parent company in the same period is 23 million yuan, 37 million yuan and 114 million yuan respectively.

In 2020 alone, Rongda provided IPO filing and consulting services for 932 listed companies, accounting for 98.11% of the total number of Listed Companies in the current period, a slight decrease of 0.17% compared with that in 2019. At the same time, 614 and 717 companies have provided IPO manuscript sorting consultation and IPO data checking services, accounting for 64.63% and 75.47% of the total.

It is worth mentioning that Guojin Securities Co., Ltd. is responsible for the recommendation of Rongda's listing this time. In this regard, some market participants said that "who will coach Rongda and Guojin?" Although it is a joke, we can see the professional influence of Rongda in the investment banking circle.

Meeting the challenge of paperless by consulting service

Although the leading companies in the niche sector can enjoy the most profits in the industry chain, they are often trapped in the ceiling of performance growth.

Rongda is now facing this challenge. In recent years, due to the impact of the new crown pneumonia epidemic and the implementation of the electronic IPO letter, Rongda express stores are no longer busy“ Now the cubicle in the store is basically not satisfied with sitting. " Some investment banks told reporters.

Among them, the trend of paperless IPO and electronic IPO is a direct challenge to Rongda.

In March 2019, the listing audit system of Shanghai Stock Exchange's science and technology innovation board was officially launched. Unlike the past, the science and technology innovation board implemented the whole process of electronic application, from project application, acceptance, feedback, feedback, review, etc., all paperless. The sponsor only needs to submit relevant electronic materials through the sci tech Innovation Board Audit System of Shanghai Stock Exchange to complete the declaration. Since then, the GEM market, which has continued the pilot work of registration system, has also learned relevant experience, and has realized electronic or paperless processing from application, acceptance to inquiry and reply.

"At present, electronic, online, paperless has become the general trend. With the impact of new crown pneumonia, supervision has greatly promoted online office." There are senior investment banks in Beijing said.

IPO gradually "paperless", for a company mainly engaged in the printing of listed materials, naturally not good news. At the beginning of the launch of the science and technology innovation board, some market participants also said, "there is no more Rongda under the registration system."

However, according to the prospectus of Rongda, the IPO consulting business of Rongda is rapidly "on the top". Under the "Dongfeng" of registration system, it is expected to make up for the performance impact brought by the paperless IPO.

According to the data of the prospectus released by Rongda, the printing business is already an additional business of the company, and the core of the company's profit is more reflected in the professional consulting ability.

Taking 2020 as an example, Rongda's income from investment banking related business support and services was RMB 242 million, including five sub businesses: preparation and consultation of application documents, consultation of manuscript arrangement, consultation of data verification, consultation of investment project planning, production and consultation of letter documents. During the reporting period, the company's investment banking related business support and service revenue increased year by year, accounting for 72.34% of the company's total revenue by 2020.

Among them, the revenue of the preparation and consultation of application documents and the collation of manuscripts reached 96.83 million yuan and 84.66 million yuan respectively, accounting for more than 25% of the total revenue. Consulting services directly related to the IPO stage of the enterprise accounted for half of the performance of Rongda.

According to the reporter of 21st century economic report, at present, in the offline stores of Rongda Express Printing, the company's employees are divided into several types of work, such as consultant, format review, consultant, producer, etc. the personnel allocation has been obviously inclined to consulting service. At present, the proportion of producers has decreased to 30% of the large project group, which is significantly lower than that in the past.

With the continuous shrinking of the proportion of producers, the contribution of printing to Rongda's income is declining rapidly. According to the prospectus, Rongda only achieved 62.45 million yuan of printing revenue in 2020, accounting for 18.64% of the company's current total revenue. In 2018, the revenue of printing business of Rongda was 51.91 million yuan, accounting for 45.81% of the total. According to the data disclosed in the prospectus, Rongda has completed the transformation from a "print shop" to an IPO third-party consulting company.

In terms of the use of IPO funds, Rongda said it would invest 223 million yuan in consulting service capacity improvement projects, accounting for 37% of the total funds raised.

Software business scale is still small

Electronic and paperless operation also gave birth to Rongda's creation of smart investment banking software.

In June 2018, China Securities Regulatory Commission (CSRC) issued the notice on the establishment of scientific and technological management system for working papers of independent financial consultants for major asset restructuring of listed companies, requiring securities companies to establish a working paper management system to implement electronic management of working papers.

According to Rongda, after the policy was released, the company organized a team to develop a manuscript management system for securities companies, fund companies and other financial institutions. At present, it has been purchased and applied by financial institutions such as CSCI Securities Co., Ltd., Haitong Securities Co., Ltd., JPMorgan securities (China) Co., Ltd.

At present, Rongda has developed six products including cloud collaboration, Erlang Shen, Xiebao, smart cloud, investment banking management system and manuscript management system, covering information disclosure and retrieval, manuscript management, collaborative office and document management. Rongda even extended its business to the construction of internal control management system of securities investment banks.

On the whole, Rongda's investment in software business has also made a small return. In 2020, the company achieved more than 30 million yuan of revenue, accounting for 9% of the total revenue. In the future, Rongda also plans to invest 147 million yuan of IPO funds into the construction project of software research center.

It is worth mentioning that although Rongda has invested a lot in software system development in recent years, there are still many voices in the market that query the company's lack of scientific and technological achievements.

From the perspective of cost, from 2018 to 2020, the amount of employee compensation and welfare of Beijing Rongda are 28.6977 million yuan, 44.2648 million yuan and 91.5891 million yuan respectively, accounting for 55.94%, 63.04% and 72.38% of the operating cost respectively, which is the most important component of the company's operating costs and still reflects the characteristics of a strong human intensive enterprise.

On May 17 this year, Rongda also changed the listing application board from gem to Shanghai stock market main board. As for the reasons for the change of the declaration board, the company explained that "the current industry positioning, profitability and future development strategy of the company are more in line with listing on the main board of Shanghai Stock Exchange".

In addition, on the evening of July 4, the China Securities Association announced the latest batch of spot check list of 19 first-time enterprises' on-site information disclosure quality, and Rongda was also "unfortunate" among them.

"Rongda was selected on the third day of acceptance. I think it may be that the company's business is relatively special, and the supervision thinks it is necessary to be cautious." The senior investment bank in Beijing said.

In the spot check list of information disclosure quality of first-time enterprises released in January this year, there was a high proportion of enterprises withdrawing application materials and terminating IPO audit. In the future, it remains to be seen whether Rongda, which has handled the listing materials of numerous companies, can ensure that its application materials pass the standard.

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