Summary of Key Points
The Beijing Stock Exchange (BSE) has seen its first private placement (PP) financing through the simplified procedure. Haineng Technology completed the entire process from application to approval in just half a month, raising nearly 89 million yuan to invest in an intelligent manufacturing base. This case highlights the advantages of the simplified procedure, which is designed for small, fast transactions. More than a dozen BSE companies have since followed suit. Meanwhile, policies continue to improve: at the beginning of July, the China Securities Regulatory Commission (CSRC) proposed doubling the upper limit for quick financing on the BSE from 100 million yuan to 200 million yuan, further lowering the barriers to financing and supporting BSE companies in growing and strengthening.
1. The First Simplified PP on the BSE: Completed in Half a Month – Efficiency at an Unprecedented Level
Haineng Technology’s PP process was exceptionally fast. The application was accepted on July 3, registration was submitted on July 8, and approval was granted on July 18, all within just 15 days. In contrast to the usual several-month review periods for regular PP transactions, this speed is truly remarkable. The company raised 89 million yuan from four institutional investors (such as Caitong Fund), which was all invested in the “Haineng Keystone Scientific Instruments Intelligent Manufacturing Base” project. This means the company received the funds at the fastest possible pace to build production lines and expand its capacity.
More importantly, Haineng Technology is the first BSE company to utilize this simplified procedure since the new financing policy was introduced in February this year, directly proving its practicality. Zhou Yunnan, founder of Beijing Nanshan Investment, praised the simplified procedure, saying, “This is exactly what makes it so effective!”
2. Why Is the Simplified Procedure So Popular?
The core appeal of the simplified PP procedure lies in its focus on small amounts and speed:
- Small Amounts: The previous upper limit of 100 million yuan has been increased to 200 million yuan, which better meets the needs of BSE companies. Many BSE companies raise relatively small amounts of capital through IPOs and later require additional funding in smaller increments.
- Speed: The review process is simplified, eliminating the need for repeated communications and additional documentation, resulting in shorter cycles and lower costs (e.g., reduced legal and auditing fees).
For companies in need of funds, being able to obtain them quickly is of paramount importance. For instance, if a company like Haineng Technology needs to build a new base, getting the money one day earlier means it can start production and generate revenue one day sooner.
3. Continuing Policy Relaxation: Doubling the Upper Limit for Small-Figure Financing
In early February this year, the Shanghai, Shenzhen, and BSE markets introduced measures to simplify financing processes, with the aim of making it easier for companies to obtain funds. At the beginning of July, the CSRC took another step forward by proposing to raise the upper limit for quick financing on the BSE from 100 million yuan to 200 million yuan (subject to the condition that the financing amount does not exceed 20% of the company’s net assets).
For example, if a BSE company has net assets of 1 billion yuan, it could previously raise up to 100 million yuan; now it can raise 200 million yuan. This policy clearly provides more funding options for BSE companies, encouraging them to expand.
4. More Than a Dozen Companies Following the Lead: Simplified PP Becoming a New Option for BSE Companies
Haineng Technology’s success has inspired other BSE companies. Over a dozen firms, including Sanyuan Gene, Jikang Technology, and Hechang Polymer, are pursuing simplified PP financing. Most of these companies require small amounts of capital, such as Yabaoxuan, which plans to raise 80 million yuan—perfect for the simplified procedure.
Zhou Yunnan explained, “BSE companies often raise limited amounts through IPOs, so their need for additional financing is urgent. The simplified procedure addresses this issue by providing a fast and cost-effective solution.”
5. Haineng Technology’s Performance: Short-Term Losses but Long-Term Growth
Although Haineng Technology suffered a loss of 285,000 yuan in the first quarter of this year, this is nearly half less than the same period last year (a loss of 519,000 yuan), and its revenue increased by 19.69% to 66.42 million yuan. More importantly, the company’s performance for the entire year was impressive: revenue grew by 16.6% to 362 million yuan, and net profit increased by 222% to 42 million yuan. This indicates that its business is thriving, although the first quarter is typically a quieter period (e.g., due to fewer orders in the scientific instruments industry).
The funds raised this time will be used to expand its intelligent manufacturing base, aiming to seize growth opportunities. It’s like giving a boost to a company that is already on the rise.
Conclusion
The simplified PP procedure provides a fast financing channel for BSE companies, and ongoing policy improvements have made it even more accessible. For investors, this means that BSE companies can obtain funds more quickly, which could lead to better long-term performance. After all, companies need capital to grow and strengthen their operations.