In recent years, our company has gradually shifted from strategic consulting to listing escort. During this period, I also came into contact with a lot of capable and ambitious entrepreneurs, who wanted to ask me about some details of the listing process.
However, when preparing to launch the IPO, I will always be asked a question, now that the company is making money, can I divide the profits on the company's account and then go to financing?
Whenever I hear this question, I feel sorry for this entrepreneur, because they may be mistaken by their own greed. Because a company is already profitable before going public, it means that the founder must be someone who is not short of money. Since you are no longer short of money, why should you rush the money in the branch account?
What's more, going public is the process of the company embarking on compliance and openness, and everything you do is traceable. If you're an investor and they cut all the profits before you invest in that company, how do you feel?
What's more, do you think the SFC is a vegetarian? On March 15 this year, they issued new IPO rules, which will strictly allow for this kind of pre-listing liquidation dividends.
Recently, the official website of the Shanghai Stock Exchange announced the news that Zhengzhou Hengda Intelligent Control Technology Co., Ltd. (hereinafter referred to as Hengda Intelligent Control) and its sponsor withdrew their application for issuance and listing, and the listing on the Science and Technology Innovation Board failed. In fact, the main reason for its failure to go public is "clearance dividends".
According to the prospectus of Hengda Intelligent Control, the company's revenue from 2020 to 2022 will be 1.454 billion yuan, 1.85 billion yuan, and 2.428 billion yuan respectively, and the net profit attributable to the parent company will be 420 million yuan, 523 million yuan, and 733 million yuan respectively. The net profit margin is as high as about 30%, which can be said to be a very good data. In the past three years, Hengda Intelligent Control has earned a total of 1.676 billion yuan.
Making money is a good thing, and making money and going public is to further expand the company's business. But the company played a clever game, and it gave almost all of the profits to the shareholders. The dividend amounts from 2020 to 2022 will be 350 million yuan, 300 million yuan, and 750 million yuan respectively. A total of 1.4 billion yuan in dividends was distributed in three years, accounting for 83% of the total profit.
It should be noted that the company's net profit in 2022 will be 733 million yuan, but it will pay a dividend of 750 million yuan, which is an inverted dividend!
To put it bluntly, I don't want to leave a mouthful of soup for shareholders. It's not that you look down on the stockholders, it's that you don't treat the stockholders as human beings at all.
After dividing 1.4 billion yuan, he turned around and wanted to take 2.5 billion yuan from the stock market, which really regarded A-shares as his own ATM, and he could withdraw as much as he wanted.
The key is that they will also mention the use of financing to supplement liquidity, how can this be embarrassing to say? Since the company has insufficient liquidity, then don't pay dividends. While paying dividends and wanting to take money from A shares to replenish liquidity, even if this kind of company is listed, it may not bring much value to shareholders, but may wipe out shareholders. It also deserved the failure to go public.
In fact, there is still a problem with the failure of Hengda Intelligent Control's listing, that is, the problem of related party transactions.
The reason why Hengda Intelligent Control can make money stably is related to its "father" Zheng Coal Machine. It is a subsidiary of Zheng Coal Machinery, a listed company.
Hengda Intelligent Control also has a cooperative relationship with Zhengmei Machinery and its other two companies, with sales of 475 million yuan, 596 million yuan, and 816 million yuan from 2020 to 2022, accounting for 32.69%, 32.23%, and 33.60% of revenue respectively. With such a large proportion of key transactions, it is difficult not to have an unclear interest relationship, and the Shanghai Stock Exchange will definitely inquire about it.
Hengda Intelligent Control was actually accepted by the Shanghai Stock Exchange on September 25, 2023, and on October 26 of that year, the Shanghai Stock Exchange conducted an inquiry, but Hengda Intelligent Control has not responded, and finally could only withdraw the application in disgrace and failed to be listed.
In fact, Hengda Intelligent Control's clearance dividend is not an exception, and too many companies want to divide their profits before listing.
The company's revenue from 2019 to 2021 is 14.990 billion yuan, 15.084 billion yuan, and 15.546 billion yuan, and the net profit attributable to the parent company is 872 million yuan, 880 million yuan, and 840 million yuan respectively. The total profit for three years was 2.592 billion yuan, but the company paid dividends of 3.537 billion yuan. Looking back, I thought of A-share financing of 3.742 billion yuan, which was somewhat excessive.
On the road of excess, there is only more excess, not the most excessive, Gulf Chemical from Qingdao plans to raise 3 billion yuan, of which 300 million yuan will be used to supplement liquidity. But do you know how much money Gulf Chemical paid dividends in the last three years before going public? A total of 3.3 billion yuan.
That's right, you read that right, the dividend amount is more than the fundraising amount, but it is to divide it and then open your hand to the market.
Up to now, CIIC and Gulf Chemical have not reported the failure of the listing, but the possibility of listing success is not very large.
I also advise those entrepreneurs who want to go public, it is best to have a bigger pattern, share some of the dividends of the company's growth with shareholders, and don't just think about wool, and in the end you may not be able to go public!
This is the best era, but also the worst era, with capital thinking and new business model integration, the whole world is your stage!
In the world of new business, there is no eliminated industry, only the subverted out of the enterprise, and now all business competition will focus on "model innovation and capital operation".
A company or a boss, if there is a shortage of innovation ability and capital thinking, is destined to lose in advance.
Remember: without innovation, there can be no imagination; Without imagination, how can we be competitive; If you want to break through, you must subvert the original business model and reconstruct a new business model!