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GEM Starter And Refinancing Policies LED Industry to Accelerate The Pace of Mergers And Acquisitions Landing

GEM-listed companies have plagued refinancing issue was finally resolved at the policy level .

May 16 , China Securities Regulatory Commission released the revised " IPO and listing on the GEM approach in the" date and the " Interim Measures for securities issued by companies listed on GEM ," newly formulated , and the date of promulgation .

Previously, two approaches have been more than a month to seek the views stage.

" highlights the GEM market positioning , to help meet the financing needs of more SMEs, workable. "It is a common perception of the community in two ways .

GEM as well as lowering the threshold for starting a more prominent way to refinance small , fast, flexible, innovative content become the highlight of this reform.

Since the creation of the GEM listed company size , quality gradually improved, supporting the role of emerging industries of strategic enterprises increasingly obvious , the GEM on a number of listed companies in emerging industries to LED, new energy, environmental protection , new materials based industry . But the high threshold GEM consecutive profitable emerging industries have also hindered the more corporate login GEM.

And now, have hindered LED and other emerging industries company listed high " threshold" is crashing down , emerging industries is expected to usher in a new wave of companies listed on GEM tide .

GEM -listed companies have also carried out by means of mergers and acquisitions and refinancing , fast bigger and stronger.

According to the announcement of the first GEM approach , listing threshold from " the last two years of continuous profitability , the last two years the cumulative net profit of not less than 10 million yuan , and growing ; , or the most recent year profit , and net profit of not less than 500 million, the most recent year of not less than 50 million yuan revenue , revenue growth of the last two years no less than 30 percent , " reduced to " the last two years in a row earnings , net of accumulated a lot the last two years at 10 million yuan ; , or the most recent year earnings , revenue last year of less than 50 million yuan . "

This means that income above a certain scale , profitable business can be only one year in GEM, reporting companies are no longer limited to nine industries.

The new approach will be implemented by the economic environment and the large number of market volatility can not be achieved profitability for two consecutive years to pave the way LED enterprises listed on GEM .

Since last year, several LED companies terminated the IPO review , many of them can not keep two consecutive years of earnings results and helpless pause IPO.

"New regulations for listed companies especially want good growth but the results affected by fluctuations in macroeconomic and industrial development of emerging industries large enterprises is undoubtedly a big plus. "There brokerage researchers believe that had already initiated because the performance is not up to listed companies may " comeback . "

These experiences have been reported IPO , due to " declining performance " and terminate IPO companies, is also seen as the most likely result of the New Deal and renewed ambition landing GEM groups brokerage organization .

" Engineering LED" Reporters learned that IPO withdrawals LED business did not give up , there are still listed on the wishes of the GEM is considered the most choice . After the New Deal came out , there are already LED brokerage business consulting related to the case .

As for the industry is most concerned with the capital markets to refinance GEM , GEM Measures issuance conditions , including refinancing , the recent 2002 Earnings ; recent years required to implement the cash dividend ; end of the latest balance is higher than 45% , etc. a total of six conditions .

" Most of the GEM -listed companies are emerging such as the LED industry is growing fast , if not long-term refinancing is not conducive to long-term development of enterprises. "There are LED listed company secretaries that now LED industry is in a period of consolidation , mergers and acquisitions in need of funding support , the introduction of re- financing options can be described as timely .

Marketing Director Gui Haoming SW Securities Research in a research report also said that in the GEM companies have emerged in a number of share opportunities in various segments of the backbone enterprises. And this is leveraging the capital markets to raise funds through the IPO to accelerate the development are inseparable. Rational and efficient system of refinancing of these enterprises can be described as a menace , is expected to achieve a new leap forward .

Since last year , LED industry rising tide of consolidation , mergers and acquisitions frequently.

" Cost-effective LED lighting products already have a strong advantage , the outbreak of the lighting market is determined, the results of this year 's main business is to test LED can achieve market expectations. " Huatai Securities researcher Zhou Yi believes that the current LED companies rarely have a value of more than $ 1 billion in business, how quickly you need the LED industry bigger and stronger and more mergers and acquisitions , restructuring, shares.


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