[Written in front] On July 22, 2019, a gong on the banks of the Huangpu River witnessed the birth of the Science and Technology Board, and the Chinese capital market entered a new era.

On April 29, 2020, the number of listed companies on the science and technology board exceeded 100, and the construction of the science and technology board entered a new stage.

The surging news will launch a series of reports on the “Baige Controversy Science and Technology Innovation Board” from now on. The reform measures, market performance, and far-reaching impact of the 283 days since the opening of the GEM have been reviewed and interpreted in stages.

This journal is an exclusive interview with Chen Nanxiang, executive vice chairman of China Resources Microelectronics (688396).

The main business of China Resources Microelectronics includes the design, production and sales of power semiconductors, smart sensors and smart control products, as well as the provision of open wafer manufacturing , Packaging and testing and other manufacturing services, is China’s leading semiconductor company with integrated design chain, chip manufacturing, packaging and testing and other industry chain integrated capabilities.

Backed by China Resources Group, China Resources Microelectronics has a place in the highly competitive semiconductor industry. According to statistics from the China Semiconductor Association, China Resources Microelectronics ranked 10th in China’s domestic semiconductor companies in terms of sales in 2018. It is the only IDM-based company in the top 10, and it is also the largest in China. Power device companies.

The data shows that the company has integrated China Semiconductor pioneers such as Huake Electronics, China Huajing and Shanghua Technology. The company and its related operating entities have built and operated China’s first 4-inch wafer production line and the first 6-inch wafer production line, and undertaken a number of national key special projects.

On February 27, 2020, China Resources Microelectronics was listed on the Science and Technology Board. At this time, it was more than eight years since the company ’s predecessor was delisted from the Hong Kong stock market. Chen Nanxiang revealed that the company’s initial listing plan was to list in Hong Kong stocks first, and then switch to A shares. After the birth of the science and technology board, the company carefully studied, not only felt the great efforts made by the regulatory authorities in institutional innovation, but also considered The understanding of the word “科” was in place, and finally decided to abandon the original listing plan and directly choose to list on the Science and Technology Board.

On the science and technology board, China Resources Microelectronics won more than one “first”:A red chip went public, the first Hong Kong dollar face value, the first to enable the “green shoe mechanism” … While pioneering history, the company also ushered in a huge change.

Chen Nanxiang said: “After the science and technology board was listed, we forced the internal organizational change of the company by listing, this change is from inside to outside. We are right Internally speaking, China Resources Microelectronics will enter CRM2.0 this year. In general, it is a new organizational structure, new platform, new mechanism, and new mission. “


div> Recently, China Resources Microelectronics handed over the first annual report and the first quarterly report after landing on the Science and Technology Board, and the performance has fluctuated to a certain extent. The annual report shows that China Resources Microelectronics achieved operating revenue of 5.734 billion yuan in 2019, down 8.42% year-on-year (compared to the same period last year); and realized net profit attributable to shareholders of listed companies of 401 million yuan, down 6.68% year-on-year. The performance of the first quarterly report in 2020 increased significantly. During the period, operating income was 1.382 billion yuan, a year-on-year increase of 16.53%; net profit attributable to shareholders of listed companies was 114 million yuan, a year-on-year surge of 450.35%.

Chen Nanxiang admitted that the microelectronics industry experienced a cyclical global contraction in 2019, and the company was unable to avoid it. How to enhance the ability to resist cyclical fluctuations? Become a big challenge in front of China Resources Microelectronics.

According to Chen Nanxiang, China Resources Microelectronics will make structural adjustments to its current business, increase the company ’s product business, reduce its dependence on manufacturing services, and actively develop Market segments other than consumer electronics, and strive for a higher market share.


The following is the transcript of the conversation between the surging news reporter and Chen Nanxiang:

The surging news reporter: China Resources Microelectronics was previously listed on the Hong Kong stock market, and later went through privatization and delisting. Why did you choose to go to the science and technology board to go public?

Chen Nanxiang: Originally, we had been arranging relisting after we delisted from Hong Kong, and we hired CICC as our relisting consultant. At that time, we evaluated the listing in Hong Kong or other overseas capital markets, and finally found that it was first listed in Hong Kong and then converted to domestic listing, which is the form of “H + A”, so we are doing in this direction , Has also begun to prepare. At the time of preparation, the science and technology board was born. Then we observed for another period of time, and finally decided to abandon our original listing path and plan and choose to directlyBoard to market.

This mainly considers a few points. First, it was meaningful for us that the general secretary personally announced this matter. Second, the Shanghai Stock Exchange showed high efficiency and innovation when preparing the science and technology innovation board. We are also very concerned about this. Third, no matter where we go public, we are actually looking for a more market-oriented platform to make our enterprises face the challenges of marketization. If it is an efficient and internationalized capital market, it will be very beneficial to our market-oriented development. Therefore, we decided to “gamble” and go to the domestic science and technology board to go public.

Actually, as I said just now, we feel that looking at the detailed rules published by the Shanghai Stock Exchange, it is the first domestic exchange, and dare to make it clear that the science and technology board is oriented What kinds of industries, such as new-generation technology, information technology, etc., have clearly defined the industry, I think the Science and Technology Board understands the word “科” very well and has done very detailed things. It just happened that China Resources Microelectronics belongs to a new generation of information technology, so in the end we came to the market.


Peng Mei News Reporter: China Resources Microelectronics is the first red-chip company on the Science and Technology Board, which should be said to be quite special. Did you encounter any difficulties or questions during the listing process?

Chen Nanxiang: We are indeed the first red chip, which is more indicative, in fact, from the time we get the Shanghai Stock Exchange to the approval, it is It will be longer than other companies. After the Shanghai Stock Exchange approved it, we went to the China Securities Regulatory Commission to complete the registration, and the waiting time was longer than others. A big reason is because we are red chips. There are indeed more challenges for us.

For example, the face value of our company ’s stock is in Hong Kong dollars, which involves a lot of work. Our company is registered in the Cayman Islands and the main body of the company has always been in Hong Kong. The earliest face value of our stock was actually US dollars. Later, because it was in Hong Kong, it was changed to Hong Kong dollars. In fact, we can also change to Renminbi. But at that time, we internally hoped to announce the first anniversary of the establishment of the Science and Technology Board by the General Secretary. To achieve listing, there is no time to change the face value of the stock. Retaining the face value of the Hong Kong dollar on the Science and Technology Board is a major challenge.

In addition, the applicable laws are also different from the situation of other companies, because we are registered in the Cayman Islands. Are the laws of the archipelago mainly based in China? There are many things involved. Actually including the initial red chip for usThere have been many discussions on whether a listing is a stock issue or a CDR issue.

So I am also very grateful to the Shanghai Stock Exchange, our sponsor broker CICC, and the China Securities Regulatory Commission for making such an innovative attempt, otherwise, we simply Can’t walk down.


Peng Pai News Reporter: Since the listing of the Science and Technology Board, has there been any change within your company? What does it mean for you to go public on the Science and Technology Board?

Chen Nanxiang: There are some changes, and they are very big. We have forced the company ’s internal organizational changes by listing on the Science and Technology Board. This change is From inside to outside. We tell internally that China Resources Microelectronics will enter CRM2.0 this year. In general, it is a new organizational structure, new platform, new mechanism and new mission.

The new organization is the organizational change that forced us to do internally after the Science and Technology Board went public. We are doing it very quickly. China Resources Group has already approved it in the first quarter of this year. Now that we have established four major business groups, these adjustments have been completed.

The new platform means that we have changed from an unlisted company to a listed company, the transparency in the domestic market has increased, and the governance structure must also meet the requirements of modern enterprises. This is very valuable for us to expand international partners and expand market customers.

The new mechanism, China Resources Microelectronics is a “Double Hundred” enterprise pilot unit approved by the State Council The industrial fund has now become our shareholder, and we are now making plans for employee stock ownership plans, which are moving forward.

With the new mission, I have always described China Resources Microelectronics as the fuselage of an aircraft. How high, how far, and fast can the aircraft fly? Just look at the two wings of the plane. Two wings, one is the Runke Microelectronics Industry Fund we established in Shanghai, and the other is the capital market platform. These two “wings” can enable the company to achieve leapfrog growth.


News reporter: Your company ’s stock price also fluctuates after it is listed. This phenomenon is also more common on the Science and Technology Board. What do you think of this fluctuation in the secondary market?

Chen Nanxiang: Secondary marketThe stock price is high and low, indeed, as you said, it has certain fluctuations in itself. You see the pricing of our company. When it first went public, according to the inquiry system of the Science and Technology Board, the final price was 12.80 yuan, but to the secondary market, we opened on February 27 and it was 50 yuan. This is not the case. The price we set is the price traded by investors in the market. We cannot evaluate the volatility of the secondary market, nor can we control it. But in terms of our company, we want to manage well, not rely on hype.

But on this topic I still want to say that a healthy capital market should be composed of rational investors. I have worked in the United States for many years. The proportion of retail investors in the US stock market is not high. Most of them are invested through institutions. However, there are relatively few institutional investors in the domestic market. When we moved from the primary market to the secondary market, there were more institutional investors. Now that we have reached the secondary market, there are more individual investors, and there are not enough institutional investors. This is a structural issue, so I also hope that you will view the stock price of China Resources Microelectronics in a rational manner.


Peng Mei News Reporter: There are now 100 listed companies on the Science and Technology Board. You are now one of them. Looking back at the science and technology enterprises that have not been listed yet, do you have any suggestions?

Chen Nanxiang: I ca n’t talk about it, but I think that a good company and rational investors are originally twin brothers that complement each other and shareholder Fancy your company, invest in you, your company must work hard, do its due diligence, and then the company’s performance will grow and return to shareholders, which can form a virtuous circle. But conversely, shareholders only care about the stock price of the company, and the company only cares about financing. It doesn’t matter if you get the money back, it won’t work. Shareholders trust the company to buy your stock, and you have to give back this shareholder’s trust.

Before going public, think clearly that listing is a double-sided blade, which can be used by the company to raise capital, help the development of the enterprise, and become a public company. There will be some advantages, but on the other hand, it will also bring greater responsibility and operating pressure. If an enterprise does not go public, it is to compare itself with the door closed. Once listed, they are all listed semiconductor companies. Who is growing fast? Who’s share price premium is relatively high? Shareholders use their “foot” to vote, and the industry is under pressure to benchmark. Therefore, companies that want to join the Science and Technology Board in the future should think clearly and be prepared. If they just want to get a sum of money, it will be unreasonable in the future.