Listing is the dream of the vast majority of entrepreneurs, theoretically, as long as the company reaches a certain level of revenue and net profit, it is very likely to be successful.
At present, there are more than 5,000 companies in the A-share market, including high-tech companies and companies related to people's livelihood, such as those who sell soy sauce, open breakfast shops, and sell edible oil. This shows one thing, no matter what industry we are in, as long as we can be the industry leader, we have the hope of becoming a listed company.
On March 2, 2023, Marco Polo, a leading domestic ceramic tile seller, also wanted to go public, and submitted an IPO application and was accepted by the Shenzhen Stock Exchange. On April 17, 2023, the Shenzhen Stock Exchange inquired about Marco Polo.
On May 16, 2024, a year after the inquiry, the Shenzhen Stock Exchange made a decision to suspend Marco Polo's review. As this is the first to be reviewed after the release of the new listing rules, all parties in the market are very concerned.
So the question is, what does it mean to suspend the review? Why was Marco Polo so considered?
To put it bluntly, the suspension of review is the suspension of listing, and it is not said to be over, but it is difficult to list in the near future. Any company is not happy to hear such news, because the company has been preparing for this for a long time, and when they are ready to go to the Shenzhen Stock Exchange to ring the bell, the result is that the listing is suspended, how disappointed should this be?
Although industry insiders said that the suspension of review is common in the listing process, it is definitely not the best option in the listing process, and may even fail to go public.
What was the reason for Marco Polo's adjournment?
There are three main problems, which are also easy to encounter in the process of listing other companies, and entrepreneurs must pay more attention.
First, the industry is sluggish, and the performance growth rate is declining. Listing is more important to the industry, if the industry is in the stage of rapid development, then it is relatively easy to go public. However, if the listing is in the downward stage of the industry, then it will face all kinds of inquiries, and it is not surprising that the review will be suspended.
Marco Polo is quite famous in our country, mainly selling ceramic tiles, and is also considered to be the industry leader, but the ceramic tile industry is too tightly bound to real estate. What is the situation in the real estate industry today, everyone knows that the ceramic tile industry is not much better.
According to Marco Polo's prospectus, the company's revenue from 2021 to 2023 will be 9.36 billion yuan, 8.66 billion yuan, and 8.92 billion yuan respectively, and the net profit attributable to the parent company after deducting non-profits will be 1.46 billion yuan, 1.36 billion yuan, and 1.24 billion yuan respectively. Compared with 2021, the company's revenue in 2023 decreased by 4.7%, but net profit decreased by 15.1%.
Do you think that by 2024, the company's revenue and net profit will be better? No, in the first quarter of 2024, the company's revenue and net profit attributable to the parent after deducting non-profits decreased by 16.0% and 15.4% year-on-year.
Since Marco Polo has seen revenue growth in 2023 against the trend, the Shenzhen Stock Exchange asked it to say what is the reason for the growth? And give a plausible explanation.
In addition, whether it is Marco Polo or the companies in the entire industry, most of them are declining in performance, and how to ensure the legitimate rights and interests of investors in the performance of endless ups and downs? Shareholders are likely to become receivers, and with such an obvious downward trend, the Shenzhen Stock Exchange can only choose to suspend its listing.
This kind of real estate surrounding enterprises is only suspended, and if it is a real estate enterprise, it is directly not allowed to be listed.
Second, surprise incentives and surprise dividends. Before the listing, Huang Jianping, the founder of Marco Polo, did not appear in the list of shareholders, but held the shares through equity holding. However, A-shares are not allowed to be held on behalf of the shares, and Marco Polo can only take compliance in order to be listed, and Huang Jianping's shareholding path is clear. He personally holds 42.12% of Marco Polo's shares, directly or indirectly, and owns 95.55% of the company's voting rights.
Before the company's IPO, the company's employee platform was increased by 199 million yuan, and the capital increase price was 9.94 yuan per share. However, the company's issue price exceeded 26 yuan per share, which means that these people who get equity incentives can make a lot of money as soon as they change hands. And among these motivated people are the boss's son, the boss's brother-in-law/brother-in-law, etc.
In addition to the surprise equity incentives, Marco Polo, who made money, also paid dividends. In 2021, the dividend will be 500 million yuan, and in 2022, the dividend will be 323 million yuan, accounting for 30.24% and 21.3% of the net profit of the year, respectively. To be honest, this dividend ratio is quite reasonable. But it just hit the muzzle of the new listing rules. Marco Polo, who was originally going to raise 4.018 billion yuan, of which 860 million yuan was used as working capital, revised the financing amount and reduced the demand for working capital, and the financing amount became 3.158 billion yuan.
Although Marco Polo changed the amount, it has left a bad impression on people, and the Shenzhen Stock Exchange does not dare to release it at will.
Third, there are many bad debts. As a leader in the ceramic tile industry, its customers cover almost most of the domestic real estate companies, and Evergrande is one of the customers. Now, Evergrande is in a lot of difficulties, and the money owed to Marco Polo may never be repaid, and this money will become a bad debt. It is understood that from 2021 to 2023, the company's accounts receivable will be 2.863 billion yuan, 2.817 billion yuan and 2.648 billion yuan respectively, of which the bad debts will be 619 million yuan, 790 million yuan and 1.049 billion yuan respectively. Evergrande alone owes 510 million yuan, and the provision ratio is 100%. This also means that Marco Polo does not expect to receive any of the 510 million yuan from Evergrande.
The above three major problems have become obstacles on the road to Marco Polo's listing. However, this is also a manifestation of the Shenzhen Stock Exchange's responsibility for shareholders, so as not to let those companies without imagination go public to make money.
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!