Series of promotional articles on the investor protection special action of "Being an Honest and Trustworthy Listed Company" (Part 7)
Release time：
2020-06-18
Strengthen the protection of investors' right to know and continuously improve investor relations management
Secretariat of Baosteel Group's Board of Directors
1、 Changes in the New Securities Law
At the end of 2019, the Standing Committee of the National People's Congress of China deliberated and passed the revised Securities Law of the People's Republic of China (hereinafter referred to as the New Securities Law), which was officially implemented in March this year. After the introduction of the bill, the company conducted in-depth learning and exploration, and felt that the new securities law has put forward higher requirements in terms of "information disclosure" and "investor protection".
In the new Securities Law, a separate chapter is dedicated to "Information Disclosure", which introduces a new concept of "Information Disclosure Obligator". The scope and standards of information disclosure are expanded and enriched, with a focus on highlighting the status, obligations, and responsibilities of directors, supervisors, and controlling shareholders in information disclosure. The basic rules of information disclosure are improved, and the regulatory direction and focus of information disclosure are clarified. The regulatory system and authority for information disclosure are reshaped, and a three-dimensional standardized model for information disclosure of listed companies is established to fully utilize the overall effectiveness of information disclosure rules.
At the same time, the new securities law also sets up a special chapter on "investor protection", significantly improving the level of investor protection: distinguishing between ordinary investors and professional investors, and making targeted arrangements for investor rights protection; For the first time in Chinese law, the investor suitability system has been clearly defined, and the securities representative litigation system - the "implied addition and explicit withdrawal system" - has been clarified. The punishment level for illegal behavior has been significantly increased in the "legal responsibility" chapter, and the multiple of punishment has basically increased from 1-5 times to 1-10 times. When the securities market adopts the policy of "lenient entry and strict regulation" in the future, effective punitive measures should be taken to achieve the policy goal of strict regulation.
These changes reflect the determination of regulatory agencies to constrain the behavior of management of listed companies, strengthen information disclosure of listed companies, and protect the vast number of investors.
2、 The Practice of Companies under the New Securities Law
The introduction of the new securities law has shown the capital market legislative progress that is in line with the national conditions and has practical significance. While studying regulations seriously, the company is also reviewing its own operational practices, hoping to continuously improve its level of information disclosure and investor relations management.
1. Disclose acute events in a timely manner to protect investors' right to know
Baosteel Group has always adhered to the principle of "openness, fairness, and impartiality" in information disclosure for many years, and upheld the concept of "telling investors the real story", conscientiously and rigorously carrying out information disclosure work. The company strictly follows the requirements of the interim announcement and regular report format guidelines for information disclosure. The disclosed information content is brief, clear, easy to understand, and timely reflects the true situation of the company in a targeted manner. It does not falsify or conceal information, helps investors to timely understand the latest situation of the company, and increases the transparency of the company.
In March of this year, a production accident occurred at a certain base of the company. On the night of the accident, news broke on Weibo, videos circulated on WeChat, and various discussions and speculations flooded the internet. Faced with this urgent incident, the company attaches great importance to it: internal departments have sorted out the relevant situation overnight; Based on this and in response to external market concerns, Dong Mishu drafted a temporary announcement and submitted it to the company's management for review. The next morning, the company submitted a temporary announcement for release, allowing investors to understand the specific impact of this event through the company announcement before the stock market opens. This timely and accurate information disclosure effectively quelled the spread of market rumors, while ensuring investors' right to know and maintaining the stability of the company's stock price.
2. Increase voluntary disclosure in regular reports to enhance investors' reading experience
While doing a good job in routine information disclosure, the company considers from the perspective of investor reading, puts itself in the shoes of others, and starts from two aspects: "improving reading experience" and "highlighting key content". It continues to increase voluntary information disclosure in the preparation of regular reports. Starting from the 2013 annual report, a new section titled "Company Highlights" has been added, extracting and refining the core content of the annual report and placing it in the primary chapter for investors to understand; Starting from the 2014 annual report, "One Chart to Understand Annual Report Performance" will be added to the front page of the annual report, introducing the company's operating performance in a concise and straightforward manner with a single chart, allowing investors to understand the annual operating situation at a glance and quickly understand it; In the 2019 annual report, a summary of the interaction and communication between the company and investors was added in response to external market concerns.
In the future, the company will continue to review the preparation of regular reports, optimize and improve the reading experience for investors based on their concerns, and help the company's regular report information to be better understood and promoted in the capital market.
3. Adhere to high-quality investor relations interaction
Since 2020, due to the impact of the epidemic, although companies have resumed work and production, there are still many restrictions and inconveniences for gatherings, exchanges, and contacts. How to carry out a series of investor relations activities after the release of this year's regular report, and ensure high-quality communication and exchange between the company and the capital market, has become an urgent problem that the company's secret office team needs to solve.
In order to balance epidemic prevention and control with investor communication, the company ultimately chose the method of "video live streaming+conference call" to hold its annual performance conference. The company's secret office works closely with external service providers to confirm the details of the video live broadcast; At the same time, test the venue and network security in advance to ensure the audio-visual effect of the venue.
At the end of April, the company held a performance conference in the form of a live video broadcast, attended by Chairman Zou Jixin, General Manager Hou Angui, and Financial Director and Secretary of the Board Wang Juan. This performance material closely focuses on the market's attention, providing in-depth explanations from aspects such as performance interpretation, Baowu merger, environmental protection, and industry outlook. In the interactive communication session, the company's management answered multiple questions regarding long-term strategy, mid-term operations, short-term performance, and other aspects. The entire meeting lasted for 2 hours, with a compact process and a huge amount of information, and received unanimous praise from the attendees.
This is the company's first attempt at video live streaming to release performance, and has achieved good results, with a significant increase in coverage compared to the previous live mode. According to statistics, on the day of the performance release, the online live streaming received 1036 clicks. As of May 8th, the cumulative number of views on the online live streaming page was 8000.
In addition, live streaming has also enhanced the participation of company employees in performance releases, giving them the opportunity to immerse themselves in listening to the company's management's thoughts on the industry and the company. Many employees have given good evaluations of this.
With the implementation of the new securities law, the reform of China's capital market is advancing in depth, and the investment concepts of the future capital market will also become mature and diversified. At that time, cyclical basic material companies like Baosteel are expected to receive more reasonable valuations due to their excellent performance and high red scores. The company will continue to strengthen information disclosure and investor relations work, improve and optimize corporate governance; Be ready to take action and respond to the times, and welcome the spring of company valuation as soon as possible.
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