Chapter 478: Lame Genius
Although he felt something was wrong, since Sun Hanhan would have a brain twitch from time to time, Luo Yang didn't investigate further.
After having lunch in the cafeteria, Luo Yang took a nap until 1:30 and then rushed to Yuanfan Group.
Jiang Fan is no longer handling daily affairs at Sunshine Electronics. After the beginning of the year, Jiang Yuanshan began to operate the listing of Yuanfan Electric Vehicles and established a project committee for the preparatory work for the listing. Jiang Fan served as the secretary-general of the committee and moved his office to the top floor.
Although it is just the beginning of the year, the project committee for preparations for listing has already been busy.
After all, it is not an easy task for a company to go public, especially for a domestic A-share listing, which was around 2012, and the relevant procedures were quite strict.
Luo Yang sat in Jiang Yuanshan's office for more than half an hour. During this time, Jiang Fan came in several times to report on his work, but he just greeted him and did not sit beside him and listen to their conversation as he did in the past.
"I didn't expect Fanfan to be so presentable when he's busy."
"If you want to learn something when you first start, you must be serious about it."
Jiang Yuanshan is also very satisfied with his daughter's recent work status: "I told her that this time we hired an experienced team with high salary to operate Yuanfan Electric Vehicle from scratch. I hope she can use this learning opportunity to lead a team."
"If I had known there was such a good opportunity, I would have sent a team over to learn from it."
Luo Yang smiled and said: "Even if we can't learn the whole process experience, at least we can learn the requirements of the Securities Regulatory Commission for company listings, and strictly require our subsidiaries to follow the listing conditions from the start."
"Yes, after taking stock of the past week, I also feel quite emotional."
Jiang Yuanshan admired his son-in-law's point of view: "If we had known the relevant requirements a few years ago, we would have implemented them according to the standards long ago. There would be no need to fix the loopholes now. If you don't check carefully, you won't know that there are many loopholes until you check carefully!"
Lao Jiang’s words are not an exaggeration at all.
For many companies that started earlier, the founders had only junior high school or high school education, let alone a bachelor's degree, and there was no corporate management system to speak of. As they grew from small workshops, they switched to a family management model.
If it weren't for the ISO98 and other standards that were introduced after 9000, many companies would not even have a decent management system.
Not to mention the corporate culture.
"There are quite a few listed companies in Shanghai and Shenzhen now, right?"
Luo Yang was also a rookie and was very curious: "Are the requirements so strict?"
"It is precisely because we have passed the primary stage that the requirements are now very strict, especially for A-shares."
Jiang Yuanshan exhaled a puff of smoke and said, "Comparatively speaking, the GEM and even the Hong Kong stock market are relatively simpler."
What Lao Jiang said is absolutely right. After the Shanghai and Shenzhen stock markets have passed the initial stage, the qualification review for new companies applying for listing is now quite high.
For companies under the old management model to go public, there are many things that need to be rectified in terms of qualifications and conditions alone.
It would not be an exaggeration to say that it is full of holes.
Apart from anything else, there are several eligibility requirements that need to be met.
The first is the corporate entity qualification. Only joint-stock companies have the basic conditions for listing.
In accordance with the requirements of the China Securities Regulatory Commission, limited liability companies need to undergo shareholding reform and change into joint stock companies.
Fortunately, Lao Jiang had already planned to list Yuanfan Electric Vehicle, and in the early days he distributed shares to Xiao Yujun, Jiang Fan and others.
The second is the operating status. Companies applying for listing must have been in continuous operation for more than three years, their business scope must be legal and compliant, and there must be no major changes in their main business and directors and senior management in the past three years.
In addition, companies applying for listing have corresponding hard indicators for registered capital and financial status.
First of all, the registered capital is no less than 3000 million yuan, and the company's publicly issued shares account for more than 25% of the total number of shares of the company; if the company's total share capital exceeds RMB 4 million, the proportion of publicly issued shares shall be more than 10%.
其次就是财务状况，申请上市的公司财务状况在最近的3个会计年度的净利润3000万以上；发行前的股份总额至少3000万以上；在最近的一期没有弥补亏损；最近一期的资产占净资产的比例20%以上；最近的3年会计年度的经营活动产生的现金流量累计至少5000万，或者最近的3个会计年度营业收入3亿以上。
In addition, there are three related standards.
Companies applying for listing should have their own assets, personnel, finances and business independence;
The company applying for listing has established decision-making bodies such as the general meeting of shareholders, board of directors, and board of supervisors in accordance with the law, and has formulated corresponding rules of procedure, so that the company can operate in accordance with institutional norms.
The company's directors, supervisors and senior management have not been subject to serious administrative penalties or criminal penalties.
Companies applying for listing should prepare a feasibility study report on the investment project of the raised funds, explaining the construction status and development prospects of the proposed investment project.
The use of the company's raised funds should have a clear direction and, in principle, be used for the company's main business.
Investment projects with raised funds shall comply with the national industrial policies, investment management, environmental protection, land management and other laws, regulations and rules.
All of the above conditions must be met, none of them can be missing.
What the listing preparation project committee is doing at this stage is to meet all these conditions.
Not only do we have to satisfy, but we also have to do it well, do it beautifully, and leave no loopholes.
"After the relevant requirements and standards are finalized, I'll have someone compile a copy for you."
Jiang Yuanshan was also generous in helping Luo Yang: "You started late, but the company still has time to make rectifications according to the standards. As long as you stick to it, you can save a lot of time and energy when you go public in the future."
"Thanks dad."
Luo Yang's gratitude is sincere.
"By the way, will Fanfan be so busy in the future?"
"Going public is not a matter of one or two days. The whole process can take as little as a year or as long as three years, depending on whether it goes smoothly or not."
Jiang Yuanshan replied with a smile: "With such a long time span, Fanfan has enough time to take care of Sunshine Electronics' affairs."
"Why does it take so long?"
Luo Yang was absorbing knowledge like a sponge at this moment. He was quick with his words and hands. While asking questions, he poured tea for his father-in-law.
"What do you think?"
Before the preparatory work project committee was set up, Jiang Yuanshan didn't know a lot. After the professional team was hired, he learned a lot of new knowledge through daily communication. Now it is definitely enough for him to show off in front of his son-in-law.
It’s not his fault that he showed off in front of Luo Yang.
Because Luo Yang is a freak.
Ever since Luo Yang shamelessly called him dad last year, the two of them would meet and chat almost every week when he came back to Yang City.
Not to mention once a week, at least two to three times a month.
Although the topics of conversation were all over the place, the father-in-law and the son-in-law were both businessmen after all, so the content was mostly business-related.
During the conversation, Luo Yang had unique insights into the direction of industrial development, the domestic economic development situation, the international economic development situation, new business concepts, new ideas, and new creativity.
Even in actual business case analysis and project operation, it has first-class level
Many times it can give Jiang Yuanshan a lot of inspiration.
However, he was very lacking in some common knowledge, so much so that Jiang Yuanshan was a little confused. How could such a business genius not even know these most basic things?
To use a very vivid metaphor: Luo Yang is not even familiar with the basic knowledge of mathematics in junior high and high school, but he can solve world-class problems such as the Riemann hypothesis and the Goldbach conjecture. Can you imagine it?
So it’s quite fulfilling to have the opportunity to show off my knowledge in front of Luo Yang.
"There are six major stages for a company to go public, namely, establishing an equity company, pre-listing guidance, stock issuance planning, review and resolution, marketing and issuance, stock listing and follow-up."
Jiang Yuanshan adopts a plagiaristic approach, copying the knowledge arguments of a high-paid professional team.
"In the first half of the year, Yuanfan Electric Vehicle will complete the establishment of an equity company, clarify the form of establishment, and formulate a restructuring plan."
Lao Jiang held a cigarette in one hand and talked freely: "At the same time, the company needs to hire intermediary agencies such as capital verification, asset evaluation, and financial auditing, prepare the materials needed for listing in advance, and then submit the materials and hold a shareholders' meeting."
“In addition to the professional counseling team, why do we need to hire so many external agencies?”
Luo Yang was shocked and said, "Dad, how much money will it cost to operate the IPO this time?"
“It depends on whether the enterprises are willing to work hard.”
Jiang Yuanshan sighed and said, "Previously, we estimated that the total cost would be between 5000 million and 6000 million. If everything goes well, it might be a little less. If..."
He didn't finish the second half of the sentence.
Luo Yang also understood that if things did not go smoothly, even if he spent so much money, the product might not be able to go public.
This is normal. There are more than one million large-scale enterprises in the country, and a large number of companies apply for listing with the China Securities Regulatory Commission every year. However, before Luo Yang was hit by a dump truck, there were only more than 4,000 listed companies in the Shanghai and Shenzhen stock markets.
After talking about this, the atmosphere at the tea table suddenly became quiet.
"Dad, fifty or sixty million is not a small amount of money."
Luo Yang spoke first to change the subject: "Many companies with hundreds of millions or even billions of dollars in revenue cannot come up with so much cash all at once!"
"What do you think?"
Jiang Yuanshan also got over the possible failure, and said with a bit of pride on his face: "Yuanfan Group has a solid foundation. Even if the operation fails this time, it won't be a big deal. But you may not know that many listed companies are one-time deals. If they fail, they will die!" For a company, death means bankruptcy.
At this moment, Luo Yang suddenly thought of another industrial cluster in Yang City: cables.
In the past few years, many companies were planning to go public, but as of now, only three have been listed, and the rest have stopped planning.
You should know that at this point in time, the scale of the entire cable industry cluster has reached about 400 billion, among which there are more than a dozen companies with a scale of tens of billions, but they cannot enter the A-share market.
"Dad, are there any other expenses involved? Can you tell me?"
Always talking about unsuccessful cases would easily ruin the mood, so Luo Yang changed the subject again.
"Pre-IPO guidance also costs money, because the company needs to hire a securities company to provide guidance before IPO. The guidance period is more than one year, during which the main focus is on discussing and analyzing the proposed IPO plan."
Hire a securities company to provide guidance and circle the people, and it will cost money.
Since the topic was brought up again, Jiang Yuanshan continued the conversation.
"During the guidance period, the stock issuance planning, review and resolution should be carried out simultaneously."
Lao Jiang took a sip of the tea and continued, "The company's top management determines the issuance structure, issuance purpose, issuance scale, and distributor structure; then determines a stock valuation based on the interests of investors, drafts a prospectus, and prepares legal and financial documents in advance; prepares various application materials, and the organization meeting decides on the application materials; announces the company's valuation and the company's development positioning; responds to the supervisory agency's suggestions, and publishes the prospectus."
“It’s so complicated.”
"It sounds complicated, but it's actually just that simple."
Jiang Yuanshan smiled and said, "As the saying goes, it's easy for those who know how to do it. This is what I do for a living. It's not difficult at all to leave these things to professionals."
Yes, Jiang Yuanshan’s words reminded Luo Yang of the 10000-hour rule.
In his book Outliers, writer Gladwell points out: "The reason why geniuses are considered extraordinary in people's eyes is not because they are born with superior talents, but because they have made continuous efforts. 10000 hours of training is a necessary condition for anyone to go from ordinary to world-class masters."
What you think is incredible and complicated is nothing but practice in the eyes of skilled workers!
"The last step is marketing and issuance. After the review is passed, the stock will be issued. The company must publish the investigation report and prepare for Q&A sessions and project roadshows in advance, provide a detailed introduction to the company's issuance to research analysts, and clarify the scale and price range."
Without paying attention to Luo Yang's distraction, Jiang Yuanshan continued, "After the stock is listed, the price will be marked. The company must allocate equity to ensure a stable transaction. After the issuance, the company's operating conditions and sales performance must be regularly publicized."
Having said this, Jiang Yuanshan paused.
"A brokerage firm?"
This word suddenly popped out of Xiaobai Luoyang's mouth.
Old Jiang looked at his son-in-law in surprise.
In fact, there is a lot of fragmented information in Luo Yang’s mind, but the key words cannot be connected together to form effective information.
Jiang Yuanshan spoke a lot in a very eloquent manner at the beginning, which was equivalent to doing the work of connecting the dots, helping Luo Yang to connect a lot of fragmented information.
Then the last piece of the puzzle came out of Luo Yang's mouth.
“Yes, the securities firm that undertakes the issuance is very important.”
After all, my son-in-law is a business genius, so it is not surprising that he can recognize the importance of securities companies.
At the critical moment, interfering information emerged again.
"Dad, I heard that roadshows are also very important?"
Luo Yang searched the knowledge in his mind and sorted out the words.
After a long while, he slowly said: "Under normal circumstances, there are many factors that determine a company's stock price, such as performance, product vitality, new technological breakthroughs, and future prospects. These can be perfectly expressed in the roadshow, thereby supporting the confidence of subscribers and the stock price."
"what?"
When Jiang Yuanshan was giving a long speech before, Luo Yang was very quiet.
Even if they said a few words, they were mostly questions and exclamations.
The few sentences just now are a discussion of certain points, and they are meaningful.
Jiang Yuanshan asked with great interest: "Yuanfan Electric Vehicle, what positive news do you think can be expressed in the roadshow to support the issue price?"
“I think there are still a few positives.”
I calculated the time in my mind. Under normal procedures, the process of determining the issue price of Yuanfan Electric Vehicle before its listing will probably take until next year. By then, there will be a few concepts that can be hyped.
Thinking of this, Luo Yang curled up the corners of his mouth.
At this time, Jiang Fan happened to come in with a stack of documents, all of which required Jiang Yuanshan's signature.
"Chairman, this information is..."
It is not the company's daily affairs, but each document related to the pre-listing preparations needs to be explained clearly, otherwise Jiang Yuanshan would not sign it easily.
"Wait a moment!"
Old Jiang raised his hand to stop Jiang Fan's explanation.
"Luo Yang, continue with your previous topic."
This stack of information is more than ten minutes long, and it would take at least half an hour to explain and comment on it. Jiang Yuanshan was afraid that if he paused in the middle, Luo Yang would lose his inspiration, which would not be worth it.
"Dad, do you remember the new project I told you about a year ago?"
Luo Yang smiled and said, "It's the college student entrepreneurship project based on mobile Internet."
"Bike sharing?"
Jiang Fan was young after all, and after Luo Yang's guidance, he immediately recalled the term.
"Snapped!"
Luo Yang snapped his fingers.
"Yes, it is the shared bicycles. The initial launch will be on university campuses. If all goes well, it will probably be launched in May this year."
He gave Jiang Fan a thumbs up and continued, "After all, the campus is small, so bicycles are enough for shared bikes. But once this project is expanded to society, bicycles will no longer be the only option. Perhaps electric bikes can also be used?"
Jiang Fan didn't hear the previous conversation and was a little dazed.
Jiang Yuanshan's eyes lit up.
Wow, he created some good news out of nowhere!
"This project based on the mobile Internet will surely be very popular. By then, there will definitely be several similar companies on the market. Whether it is mine or not, they will all need bicycles and electric vehicles. This will be good news for the entire electric vehicle industry."
Luo Yang's explanation was directed at Jiang Fan.
After he finished his additional explanation, he continued, "Dad, there is also battery life. Aren't you working on new energy batteries? Why can't this be used as a gimmick?"
Oh, this is possible.
Jiang Yuanshan touched his chin and nodded with a smile on his face.
Jiang Fan had been following the professional team this week and had a general idea of the entire process of going public, so he understood what Luo Yang said.
My husband and father were discussing the issue of setting the share price of Yuanfan Electric Vehicle before its listing.
"A road show is all about telling stories, right?"
“Even if there is no breakthrough for the time being, who knows if there will be a technological breakthrough next month, in the second half of the year, or next year?”
"Everyone just wants to hype up a concept. Anyone who takes it seriously is a fool!"
"."
He said he was excited and kept saying dirty words.
Jiang Fan was fascinated by what he heard and looked at Luo Yang with admiration.
There was a strange expression on Jiang Yuanshan's face.
Really hammered.
My son-in-law can solve the Goldbach conjecture but he doesn't know calculus.
A lame genius?
Robbery, leave your monthly ticket!
(End of this chapter)
