How Do Listed Companies Make Good Use Of Financial Tools In The Period 67 Of Shenzhen Supervision? Grasp The Scale, Too Much Is More Than Enough

As a tool to improve the use efficiency of idle funds, trust financing, securities investment and other financial management methods are used by more and more listed companies in recent years. For example, recently, some listed companies choose short-term and relatively stable financial products before the formal implementation of dividend, which can not only avoid idle funds, but also prepare for annual dividend.

The reporter of 21st century economic report observed that listed companies are generally more cautious in using financial tools, but in recent years, the risk preference of entrusted financial management of listed companies has increased slightly. Although self owned funds are still the main source of funds, the proportion of raised funds has increased. In addition, the number of companies participating in securities investment has also increased. Affected by the price fluctuation in the secondary market, some companies have large risk exposure. In recent years, the impact of some listed companies' large-scale financial management and securities investment "explosion" events has deepened the market's concern about the "financial risk" of listed companies.

How to meet the development of the main business, improve the efficiency of the use of funds and fully ensure the safety of funds, is an important test of the level of governance and risk prevention and control of listed companies.

Increase in uncertainty of the exchange rate

According to statistics, a total of 1346 non-financial companies in Shenzhen have conducted entrusted financial management in 2020, accounting for 56.77%. By the end of 2020, a total of 958 non-financial companies in Shenzhen stock market held unmatured entrusted financial products with a total amount of 411.942 billion yuan.

In terms of investment type, bank financial products have become the first choice of entrusted financial management of listed companies with the advantages of high security and good liquidity. By the end of 2020, among the unexpired financial products held by Shenzhen stock exchange companies, the amount of bank financial products was 321.241 billion yuan, accounting for 77.98%; The second was securities companies and trust financial products, with the amount of RMB 33.826 billion and RMB 30.523 billion, accounting for 8.21% and 7.41% respectively; Funds, private placement and asset management and other types of financial products account for a relatively small proportion.

In recent years, breaking the rigid cashing and speeding up the process of market-oriented reform has been the focus of asset management industry. The new regulations on asset management issued in 2018 make it clear that the asset management business shall not promise to guarantee the principal and return, and the transition period will expire at the end of 2021. At present, the newly issued principal guaranteed financial products in the bank financial market have been greatly reduced, and the bank financial products have gradually transformed into net value products. Recently, the CIRC and the people's Bank of China jointly issued relevant notices to further standardize bank cash management products, clarify the scope of investment, investment concentration, product duration, etc. Under the background of accelerating the transformation of bank financial products, companies may face greater risk of income uncertainty when they purchase bank financial products in the future.

At the same time, the judicial level also provides the corresponding legal protection《 The minutes of the people's Republic of China clearly stipulates that the minimum or just confirmed clauses in contracts signed by trust companies, commercial banks and other financial institutions are invalid. In practice, the cases that the people's court does not support the principle and income protection clause are also common. A typical example is Hunan Expressway. The ruling of Hunan high court shows that the supplementary agreement signed by Hunan Expressway and Anxin trust that Anxin trust will return the trust funds every quarter changes the rights and obligations established in the original trust contract, and the commitment arrangement to guarantee the principal and income should be invalid.

Increase the proportion and guard against the risks from the real to the virtual

In fact, in the case of abundant cash flow and normal operation of main business, moderate financing can improve the efficiency of capital operation. On the whole, the scale of entrusted financial management is still relatively small compared with the assets of the company. The proportion of the balance of unexpired entrusted financial management funds in the total assets and net assets of the listed companies at the end of the period increased from 2.27% and 6.40% in 2017 to 4.18% and 9.40% in 2020 respectively, but the proportion showed a certain growth trend.

At present, the financing funds of Shenzhen stock exchange companies are still mainly self owned idle funds, and some companies use the raised funds to purchase financial products. In Shenzhen Stock Exchange at the end of 2020, nearly 20% of the companies holding unexpired entrusted financial products have completed IPO or refinancing in 2020. Among them, 168 companies' entrusted financing funds are all or partly from the raised funds.

It is true that after the implementation of direct financing, due to the use of funds is not achieved overnight, there is a certain demand for cash management of idle raised funds in the short term. However, the progress of the projects raised by the raised funds of some companies is seriously lower than expected after financing. In the follow-up, it is simply to change the investment direction at one time to supplement the working capital and purchase financial products for a long time.

A typical example is a communication equipment company in Shenzhen. In 2016, the company raised 3.513 billion yuan in non-public offering of shares, and planned to invest 1.565 billion yuan in the construction of flexible OLED display module industrialization project. Due to industry changes and the company's own reasons, the project was terminated in February 2018. The company used 1.035 billion yuan of the project to repay bank loans and permanently replenish working capital, At the same time, the progress of other raised investment projects of the company is also lower than expected, and the company plans to use no more than 1.6 billion yuan of raised funds to continuously purchase financial products.

In addition, with the rising of the A-share market in recent years, some companies are keen on securities investment, even leading to the "waste" of the main business. In 2020, a software and information technology service company in Shenzhen had a revenue of only 209 million yuan and a net profit of 29 million yuan, a decrease of 55.85% compared with that in 2019. However, the company's securities investment is frequent. In 2020, the cumulative stock purchase and sales of securities investment are 237 million yuan and 502 million yuan respectively. The income generated is only 7.5797 million yuan, and the weighted rate of return is only 1.23%. Behind the large amount of securities investment, the number of R & D personnel and the amount of investment show a downward trend. In recent three years, the stock price of the company has decreased by 57.31% compared with the industry.

For example, an Internet industry company recognized an investment income of 4.504 billion yuan at the end of 2020, accounting for 94.35% of the current net profit, but in the first quarter of 2021, the company suffered a loss of 509 million yuan due to the stock price decline of the participating company.

Grasp the scale of financial management to prevent and control "excess" risk

Financial management behavior of listed companies is one of the companies' outward investment. The final investment direction of funds is often financial products, which is highly professional and accompanied with certain risks. Therefore, the current securities regulatory rules are to guide listed companies to carry out financial management reasonably without affecting the main business. After careful consideration, if the company still decides to implement financial management behavior, it should also formulate a more strict management system. When carrying out financial management, it should also perform strict decision-making procedures, continue to pay attention to the situation of financial institutions and financial products, and fully fulfill the obligation of information disclosure.

Up to now, only 396 companies in Shenzhen stock market have disclosed the special system of entrusted financial management or cash management, accounting for 30% of the number of entrusted financial management companies. In order to improve the efficiency of the review, most companies expect that the maximum amount (i.e. the maximum balance) of entrusted financial management or securities investment will not exceed 12 months in the future, and formulate financial management plans to clarify the product type, capital source, authorization time limit and investment period. However, in practice, the financial management plans disclosed by some companies can not avoid some "off the beaten track", such as "purchase of low-risk financial products with high security and good liquidity", and immediately purchase short-term private placement products and securities investment funds with higher actual risks after fulfilling the procedures, and have not disclosed the purchase progress of relevant transactions, Even in the periodic report, the chapter of "high risk entrusted financial management with significant single amount or low security, poor liquidity and breakeven" is directly skipped.

At the same time, there are still some companies' risk assessment is not prudent enough, only focus on the historical income of financial institutions and financial products, and do not fully evaluate the compliance operation ability of financial institutions and the specific investment direction of financial products. For example, three companies in Shenzhen Stock Exchange have purchased private fund products managed by an asset management company in Shanghai, and the agreed investment scope includes bank acceptance bills and the usufruct of such bills and bank deposits. However, the trustee is suspected of transfer, concealment, embezzlement of fund assets and forgery of transactions, resulting in significant losses of listed companies. The relevant listed companies have said in the announcement that they have formulated corresponding risk control measures to reasonably control the risk.

Some companies use entrusted financial management to transfer benefits. For example, a listed company of HNA disclosed that the ultimate borrower of some financial products purchased by it is the controlling shareholder or its related parties, involving four transactions with a total amount of 13.7 billion yuan.

Therefore, in recent years, regulatory authorities have made strict regulations on financial management of Listed Companies in terms of internal control, decision-making procedures and information disclosure. If the gem clearly does not encourage companies to use their own funds for securities investment, entrusted financial management and derivatives trading in the "internal control" section of the guidelines for the standardized operation of listed companies, and the company still decides to carry out the above-mentioned investment, it shall formulate strict decision-making procedures, reporting systems and monitoring measures. It is understood that the regulatory authorities will further study and improve the decision-making mechanism and disclosure requirements of listed companies' financial management, strictly prevent from being divorced from the real to the virtual, and guard against the financial risks of listed companies.

Industry insiders believe that it is not unreasonable for listed companies to use idle funds for financial investment, and proper use is undoubtedly an important tool to improve the efficiency of capital use. However, the company should grasp the yardstick, adhere to serving the main business development of listed companies as the starting point, take into account the security and efficiency of funds, pay attention to the risk of industry policy changes and market fluctuations, carefully evaluate the risks of financial institutions and financial products, fully fulfill the obligation of information disclosure, and strictly prevent illegal acts of usurping the interests of the company in the name of financial management. If the corporate governance and risk prevention and control are not in place, that is to say, blindly carry out financial management, or even engage in illegal activities in the name of financial management, it may be too much, contrary to what you want, and even lead to disaster.