Investment Zheng Yong: Gem Gate is the patent margin 40% reflects the strong pricing power

The listed company to a certain degree of dependence on large shareholders, does not affect its independence, is mutual financial weekly investment banking laboratory researcher Vera/Wen 2002, Nanjing University Finance Department graduate Zheng Yong, and schoolmates walked a different road-South! South！ Not only that, Zheng Yong the only requirement for the job is to enter the securities industry.　　Zheng Yong first came to the National maritime securities, after 3 years of investment banking experience, 2005 job-hopping to the Shenzhen local securities merchants. As a sponsor representative, holding the outside looks "Kim Yong", Zheng Yong frankly "pressure is very big". July 1 Noon, 41 floor, Jiangsu Building, Shenzhen, scorching outside the window. Financial Weekly reporter and Zheng Yong face-to-face, talk about its sponsorship of the project, gem listed companies quality judgments, the maintenance of the group survival and other topics.　　Zheng Yong that the growth of listed companies in the gem is reflected in the scientific and technological content, sales gross profit is one of the important indicators to measure the level of science and technology. A degree of reliance does not affect the independence of financial Weekly: How many projects have you done together since you were in investment banking? We note that your "09 Changhong debt" Project is very successful. With 3 billion yuan of the refinancing, Sichuan Changhong in the capital market quiet 10 years after the long time to win the market attention.　　Can you tell us something about the operation of the project? Zheng Yong: I 2005 into the investment securities, a start is to do the share reform, made 11 shares of the project after taking over the non-public distribution of Jianghuai cars, this project to do very quickly, after that is the 2007 I registered sponsor representative. This is also done in the middle of the crystal source of the private distribution of electrons.　　Behind the successful sponsorship of the project also has Sichuan Changhong, Nanjing Medicine and so on. As I personally, Sichuan Changhong is a more unique project. The project won the 2009 Best convertible Bond Project named "New Fortune". However, this project is very tortuous, we first made a private release for it in 2007, but it was not approved for various objective reasons. To be honest, Sichuan changhong at that time the profit level is general, the design conforms to the refinancing condition and conforms to its future development the financing product, to the sponsor organization, really is a huge challenge. So back we spent nearly a year to do the separation of Sichuan Changhong trading convertible bonds, this project is the new "warrants management interim measures" before the last one to separate trading convertible bonds, to achieve "one issue, two financing."　　The project will be October 2008, until July 2009 only to get the release approval, China Merchants Securities Palace Shaolin Chairman and other high-level personally involved in the project work, our team also kept communication with the relevant departments, paid a lot of efforts.　　Financial Weekly: Our long-term study of the first company, found that many of the SME board and the company has a focus on customers, the majority of shareholders rely on, and major shareholders associated with more transactions, such as the Shenzhou Thai Yue "binding" mobile, such a company how do you think? Zheng Yong: A certain degree of dependence will not affect the independence of the company. Dependence is not one-sided, such as the Shenzhou Tai Yue to move "rely on", the opposite move alsoIn the short and medium time inseparable from the Shenzhou Tai Yue, this interdependence is recognized.　　Some investors think it is a good thing that the listed companies are "alongside the wealthy". Financial Weekly: The issue of related transactions is a key point of management review.　　What's your point of view? Zheng Yong: This piece, the CSRC is concerned that large shareholders and listed companies use linked transactions to regulate profits.　　Related transactions to maintain fair, the regulator will let the sponsor to check, and then come up with the basis of verification.　　The primary concern of the SME Board Development Strategy Financial Weekly: How many items do you have at present?　　Zheng Yong: At present, the project in hand is still doing early counseling, just reported the star Lake Technology Non-public distribution. Financial Weekly: admitted to the sponsor representative, was thought to hold on the "Kim Yong."　　I understand that some sponsor representatives are only responsible for signing, the specific work is entrusted to the people to do, is this true? Zheng Yong: So far, China Merchants Securities has not. Sponsor representatives generally in the investment Bank headquarters quality control department must intervene after the project, before the kernel, it must to the project site for due diligence, the formal kernel will answer the kernel members of the questions.　　After the application for materials to the SFC, signed by the 2 sponsor representatives to communicate with the SFC. Financial Weekly: What are the best places to focus when making a starter project?　　What is the primary concern of individual investors when reading related prospectuses? Zheng Yong: Gem companies should focus on business and technology, because the gem is mostly High-tech companies. The company should pay attention to the future development strategy and financial analysis, especially "corporate strategy" and "Management discussion and analysis" this piece is very important. Now there are a lot of super raise phenomenon, so the future development strategy should pay attention to.　　However, for all the listed companies, the history of this piece is very important.　　Sponsor system should someone into a financial weekly: you just mentioned the gem technology, let me think of the recent frequent "patent door", how do you see? Zheng Yong: Gem is the life of the door is a patent, growth is also reflected in the scientific and technological content. For a company's technology content, I mainly look at its margin level, if there are more than 40% of gross margin, it shows that the company's pricing ability, high technology content. I have encountered several gem projects, technology content, gross margin is high, but did not apply for a patent.　　In fact, many small companies are unwilling to apply for a patent because they are incapable of defending themselves. Financial Weekly: A sponsor representative of the recent "patent door" incident was punished, the sponsor representative of the case of PE corruption has also been exposed.　　Has the investment banking industry come to the stage of lack of collective integrity? Zheng Yong: I also think that the current punishment for the sponsor representative is too light, such as being stopped for 12 months of sponsorship, for their personal impact, their wages will not be less to take. The sponsor system should be someone out.　　Personally, as long as it is not a meeting of the project, if you can not provide evidence to prove that they did perform the sponsorship responsibility, you should directly cancel the sponsor Representative qualification. Weekly Financial report: newly listedThe company's two-tier market performance is not very good, some companies even listed on the first day is "break".　　However, some investors believe that the first half of the IPO speed too fast, affecting the level two market, is this? Zheng Yong: I don't think the IPO has affected the two-tier market, but the two-tier market has affected the IPO. Like 2006-2007 Great bull market, the rally led to the IPO, and the 2008 bear market fell, slowing the IPO rate.　　The pace of issuance has slowed markedly in June this year, and companies are reluctant to issue shares when the two-tier market is bad. Financial Weekly: You as an outstanding sponsor of investment securities Representative, for investment banks, what is a profound understanding?　　What is the toughest thing about investment banking? Zheng Yong: There is a gap between Chinese and foreign investment banks. The real investment bank is to do sales, contact buyers and sellers. The focus of China's investment banks is to win management reviews. The hardest thing about investment banks is to communicate with the relevant departments. I think investment banking has a social responsibility. I do small and medium-sized projects inside, there are 60%-70% of the enterprise fundamentals are really good, but the bank financing channels for small enterprises is not smooth, they are really short of money, really need to finance through the capital market to the project.　　Listed financing in fact, is to promote the development of these high-quality private SMEs. (Financial weekly reporter Wang Jiangtao also contributed to this article)