Aiming at hot emerging industries and deploying them in the form of acquisitions, investment and construction


  -the odds of success for cross-border development of listed companies are geometric


   reporter Wang Baohui

  Recently, Zijin Mining, Lansi Technology, Tongli Risheng, Zhongxing Mushroom, Jihong Stock and other listed companies have successively announced cross-border development and are targeting hot emerging industries.

Why are listed companies keen to enter popular industries?

How to avoid "flicking" and "following the trend" cross-border reorganization?

  Support the diversified development of enterprises

  Since the beginning of this year, the valuation of the new energy sector on the A-share market has been rising.

Industries such as lithium batteries and photovoltaics related to new energy are favored by capital.

Ningde Times, Guoxuan Hi-Tech and other companies have invested in the construction of lithium power projects.

As late entrants, listed companies such as Zijin Mining and Lansi Technology have entered the new energy market with "small steps".

Non-ferrous metals giant Zijin Mining plans to spend nearly 5 billion yuan to acquire overseas lithium mines, consumer electronics company Lens Technology enters photovoltaic glass, and elevator business company Tongli Risheng intends to acquire Tianqi Hongyuan, which has a new energy business.

Over 20 listed companies have cross-border deployment of lithium batteries.

  Why do listed companies enter the hot industry across borders?

"From an operational perspective, hot industries may be industries with better future development prospects and faster growth, which have a greater advantage over their own industries." said Yang Delong, chief economist of Qianhai Kaiyuan Fund, from listed companies From the perspective of the stock price, generally entering a popular industry will attract investors' attention, and the stock price will also rise sharply.

Therefore, some listed companies like cross-border operations, cross-border mergers and acquisitions, and cross-border investment, but also to attract market attention.

  From the perspective of corporate development strategy, cross-border operations make up for the shortcomings of a single business to a certain extent.

"For large companies or group companies, because they have strong strength and sufficient volume for cross-border development, relying on their unique advantages including capital and talents to support the diversified development of enterprises is also an important factor. This is a relatively normal phenomenon.” said Dong Dengxin of the Institute of Financial Securities, Wuhan University of Science and Technology.

  Be alert to cross-border business risks

  Cross-border development of listed companies also has potential risks, especially in areas where the layout is completely unrelated, and there are greater operational risks.

  "Each line is like a mountain. Even if they belong to the mining industry, lithium mines are different from copper and gold mines, and quartz glass and photovoltaic glass are different. Some companies can no longer be considered as transformations, but are restarting. A combination of two different industries. , Not only may corporate cultures conflict with each other, it is also difficult to form synergy in resources and the market, and face certain operating risks.” said Zheng Lei, chief economist of Baoxin Finance.

  Petroleum exploration and development company (Baode Co., Ltd.) recently announced that the company intends to terminate the purchase of a controlling stake in the famous family wine industry by paying cash.

In October of this year, Jihong shares, which uses cross-border e-commerce as the largest revenue source, issued an announcement stating that it decided to terminate the acquisition of the equity of Guizhou Diaotaigong Liquor.

In addition, Zhongxing Mushroom, whose main business is edible fungi, also issued an announcement to terminate the acquisition of equity in Guizhou Shengjiao Wine Industry.

At this point, the merger and acquisition of these listed companies' cross-border liquor has ended.

  "Past cases have given us some enlightenment. We still need to be cautious when doing cross-border development, not blindly." Dong Dengxin said that if a listed company wants to cross-border development, it should first have a scale, sufficient size and ability, and then have enough control ability, otherwise It is gambling and speculation.

Generally speaking, when a listed company seeks to develop, it should also focus more on its main business, making the main business bigger, stronger, and more refined, and strive to become the best in the industry.

  What is the odds of cross-border wins for listed companies?

Shen Meng, executive director of Chanson Capital, said that first of all, cross-border investment depends on comparative advantages, that is, whether listed companies have obvious advantages compared with their competitors in the new target industry.

If there is no obvious advantage, the possibility of failure is greater.

  Secondly, it depends on the opportunity cost of cross-border investment, that is, after selecting a certain target project, it may give up other income opportunities.

Popular projects often have high investment and long periods, and their earnings performance may also change with the heat, while some less popular projects may have better returns in the same period.

"Therefore, if you just follow the trend and get involved in hot industries, although the short-term effect of stimulating stock prices in the secondary market, long-term performance may not be in the interests of the company and shareholders." Shen Meng said.

  Standardize the information disclosure mechanism

  With the continuous improvement of my country's multi-level capital market, the space and methods for cross-border development of enterprises have become broader and diversified.

A powerful capital platform, rich financing tools, and a higher strategic vision provide a practical and reliable path for listed companies to merge upstream and downstream industry chain companies.

  However, successful cross-industry companies have their own specific circumstances, and not all listed companies are suitable for cross-industry.

Experts in the industry said that investors must analyze the fundamentals of cross-border companies before deciding whether it is worth investing.

  Jiang Ping, a professor at the School of International Economics and Trade of the University of International Business and Economics, said that there are hot investment opportunities in the market, and many companies want to get a share of the pie.

However, companies also need to proceed from their own circumstances. If their internal cash flow is sufficient, operating conditions are good, and the efficiency of book capital investment is low, they can consider cross-border strategies to expand the scope of business development.

At the same time, the external environment or related policies must also be considered.

If the external environment changes drastically, companies must comply with comprehensive environmental decision-making.

  Xue Fang, a researcher at the Credit Legislation and Credit Evaluation Research Center of Capital Normal University, said that the capital market ecology of honesty, trustworthiness and promises needs to be jointly maintained.

After a listed company crosses the border, the first thing it faces is the information asymmetry between different entities, industries, and industries. The production of credit commitments is an important system for the self-discipline of the capital market industry, and it is a scale to examine the cross-border behavior of listed companies and keep their promises.

It is necessary to give full play to the role of the joint credit reward and punishment mechanism of the capital market, so that those who are honest and trustworthy can enjoy the convenience of green channels, preferential policies, and so on, so that those "flicking" cross-border companies are subject to joint punishment.

  Sunlight is the best antiseptic.

The cross-border development of listed companies strictly follows the requirements of the regulatory information disclosure system and fulfills their information disclosure obligations in a true, accurate, complete and timely manner. This is an effective system guarantee to avoid "flickering" and "following" cross-border restructuring.

Especially in the process of cross-border investment, timely information disclosure can detect signs of "flickering" in time and effectively standardize "follow the trend" cross-border behavior.

As a public company, listed companies need to make necessary disclosures to shareholders, investors and regulatory agencies on the reasonableness of their transaction prices, enhance the transparency of transactions, and eliminate insider trading.

  Investors should invest cautiously to prevent the risk of chasing high quilts.

Yang Delong said that historically, there are very few companies that can successfully cross-border operations.

Investors should not blindly pursue cross-border companies. They should analyze the fundamentals before deciding whether to invest.

Wang Baohui

Keywords: