Reporter: OU Shaojun
The sudden outbreak of the COVID-19 pandemic has had a great impact on the real economy, especially the tertiary industry. As an important part of direct financing, IPO (Initial Public Offering) is beneficial for enterprises to enhance their financial strength and reduce financing costs, which is also the reason why all parties attach so much importance to IPO, and it is also the primary task that enterprises must pay attention to the listing. Today we would like to introduce the person – financial analyst DING Guisheng, who strictly controls the IPO process of listed companies, accelerates the efficiency of IPO review of companies with technological innovation, and greatly improves the resilience and inclusiveness of the capital market to withstand risks.
Ding Guisheng graduated from Wollongong University in Australia in 2009, successfully obtained double bachelor’s degrees in accounting and international trade, and then continued to study for a master’s degree in finance. With his professional knowledge in this field, he is looking forward to making great achievements in Chinese financial industry. After graduation, he joined China Aviation Fuel North China Co., Ltd. as the business director, and accumulated a lot of operating experience in listed enterprises through years of work. In 2019, he ended his nearly ten-year career as a supervisor. He joined the internal quality control department of Minsheng Bank as a senior financial analysis manager, mainly responsible for cooperating with various IPOs of listed companies. China Minsheng Banking Corp., Ltd. is the first national commercial bank set up by private capital in the Chinese mainland, which was established on January 12, 1996. Since joining the company, DING Guisheng has reviewed more than 40 IPOs of listed companies and refinancing projects of listed companies, involving many professional fields including pharmaceutical biology, agriculture, software information technology, equipment manufacturing and other industries.
In 2019, DING Guisheng participated in the IPO review project and analysis of a well-known pharmaceutical technology company in Guangzhou, and assisted the company in successfully listing in START Market (Sci-tech innovation board). There are many problems in the initial offering of the company, such as the division of R&D expenses, whether the enterprise technology meets the requirements of the START Market, and the assets or sources of funds of shareholders during the previous capital increase and equity transfer of the issuer. DING Guisheng consulted the prospectus, annual report and other public information of famous listed companies in the same industry to understand the gross profit margin level of comparable companies in the same industry, and made a comparative analysis with issuers. He also verified and confirmed the authenticity of the issuer’s income by checking contracts, visiting, confirming letters, and drawing. Calculate the collection and settlement of the issuer’s direct materials, direct labor, manufacturing expenses and other costs. In addition, DING Guisheng analyzed the competitive position and technical level of the issuer’s products in the in vitro diagnosis industry by consulting the prospectus, research report and statistical data of government departments of the same industry. Under the review of DING Guisheng and his team, the pharmaceutical company successfully passed the review and successfully went public, which promoted the gathering of financial resources in the field of science and technology, promoted the transformation of research achievements and innovative research and development capabilities, and led the development of the industry.
In 2021, he also reviewed the registration of a pharmaceutical research company in START Market for IPO. During the review, he found that the company had the following problems: first, the scale of lending and orders increased rapidly. In order to meet the capital demand by the increase in purchasing demand and the expansion of operation scale, bank financing was used to solve the shortage of funds. In 2017, in the process of applying to banks for entrusted payment loans, the company has not actually performed the relevant procurement contracts provided to the lending banks. Secondly, subordination issues between issuer and related party. There are more transaction matters between the issuer and related parties, mainly including the issuer providing research and development services to related parties, leasing premises, purchasing materials and services from related parties, and issuer borrowing funds and paying salaries on behalf of related parties, accepting guarantees from related parties and other matters. DING Guisheng analyzed the reasons and circumstances of subordination and found that subordination is not subjective intentional, or malicious. After that, he obtained the industrial and commercial information, transaction contract, pricing basis, and internal approval documents of related parties. After careful analysis, he confirmed that the transactions between the issuer and related parties were authentic and fair, and all of them performed the necessary review procedures, which did not constitute a substantial obstacle to this issuance. The company finally plans to raise 484 million yuan, laying the foundation for the continuous growth of the performance scale.
Thanks to the excellent work of Mr. DING Guisheng and the groups, by the end of 2019, Minsheng Securities ranked fifth in the industry in terms of underwriting and sponsorship revenue for IPO listings, injecting even more vitality into its already competitive IPO business. At the same time, in 2019, Minsheng Bank ranked ninth in the industry in terms of the number of IPO enterprises sponsored by the company, eleventh in terms of sponsorship income, and fourth in terms of IPO intermediaries of Chinese A shares in 2021. In addition, it also won the honorary titles of Best Investment Bank in China in the 12th New Fortune in 2019, Junding Award of Investment Bank in China Securities Industry, and he won Top Ten Investment Bankers in Top Ten Investment Banks.
In order to improve the efficiency of IPO review, DING Guisheng has been committed to the development of intelligent IPO review system in recent years. The system has realized the intelligence of IPO filing and review work, and promoted the technical innovation of financial review related aspects. It has been applied and provided technological assistance in the listing review of the START Market since its trial run. The results bred from years of conducting financial digital analysis software innovation and the tremendous benefits brought about in reforming the IPO review model have led to DING Guisheng being recognized by many industry experts and winning several major domestic technology awards.
DING Guisheng said that after IPO, it is conducive to promoting enterprises to establish a standardized and transparent corporate governance structure and strict internal control system, accepting public supervision, improving corporate governance level and enhancing enterprise competitiveness. He will continue to work on the IPO review project, utilize intelligence to improve the asset structure of the company, improve the company’s own resilience to risk, and help the company to recover from the impact of the COVID-19.