Learn and comprehend the requirements of the new securities law to effectively improve the level of corporate governance
Phoenix Media's Report on the Implementation of the New Securities Law
This revision of the "Securities Law" summarizes the practical experience of my country's securities market reform and development, supervision and law enforcement, and risk prevention and control over the years, and makes a series of new system reforms on the basis of in-depth analysis of the securities market's operating laws and development stages. It has laid a foundation for the long-term and stable development of the capital market, and also put forward higher requirements for listed companies. Since the beginning of this year, Phoenix Media has carried out work in the following areas around the implementation of the new "Securities Law".
1. Deeply understand the essence of the new law and ensure that corporate governance keeps pace with the times.
The company actively organizes the company's directors, supervisors and senior management, relevant department personnel, and relevant controlling shareholders to participate in the training of the new "Securities Law" organized by authoritative institutions, to learn how to improve the securities issuance system, improve the securities trading system, improve the acquisition system of listed companies, and strengthen information disclosure. Important changes in requirements, strengthen investor protection, significantly increase the cost of securities violations, strengthen regulatory enforcement and risk prevention and control, etc., understand the intention of regulation, master the latest regulations, and strive to know the law, understand the law and use it.
Through the study and training, the relevant personnel of the company feel both pressure and hope. The pressure comes from the increasing requirements for corporate governance by regulations, and the cost of violations of laws and regulations has increased significantly. The implementation of the registration system will inevitably lead to companies facing polarization, and many companies may be marginalized; Companies rated as Grade A for information disclosure by the Shanghai Stock Exchange have a good foundation. As long as they can comply with regulatory changes in a timely manner and improve corporate governance and internal control, they will have the opportunity to stand out among many listed companies and use the capital market to achieve better results. develop. At present, the company has optimized and adjusted the rules and regulations such as the "Company Insider Management System" in accordance with the requirements of the new law.
2. Improve the quality of information disclosure and provide sufficient basis for value judgment.
One of the cores of the registration system is that under the effective supervision of legal regulations and regulatory authorities, market players make adequate, timely and verifiable information disclosure. This revision of the Securities Law lists information disclosure in a separate chapter, which highlights and strengthens the relevant requirements for market information disclosure. The main contents include: expanding the scope of information disclosure obligors; improving the content of information disclosure; emphasizing that investors should fully disclose the value judgments made by investors and information necessary for investment decisions. These regulations will generally help improve the quality of listed companies, further leverage the functions of the capital market, and create a better environment for all participants. The Shanghai Stock Exchange also issued the "Notice on Conscientiously Implementing the New Securities Law and Doing a Good Job in the Information Disclosure of Listed Companies" in February this year.
In addition to ensuring truthfulness, accuracy, completeness, timeliness and fairness, Phoenix Media's information disclosure strives to be concise, clear, easy to understand, and easy for investors to read and understand. In the process of disclosing the annual report, actively disclose industry information, including the company's business model, competitive advantages and sub-segment operating data, etc., to provide sufficient information for investors' value judgment; Tubes are broadened to supervisors. When making voluntary disclosures, the company adheres to the principle of prudence, especially when responding to questions from investors on the SSE E interactive platform, the company can be objective and rational, and prevent hot spots.
3. Strengthen the management of investor relations and effectively maintain the interests of investors.
The company always attaches great importance to the management of investor relations, and maintains smooth communication with various investors through various means such as securities company strategy meetings, investor meetings, invited investors for research, teleconferences, and the SSE E interactive platform. After the promulgation of the new law, the company's attention has been further increased. Especially during the epidemic, investors are very concerned about the development of online education and the impact of the epidemic. We have overcome difficulties and increased our efforts to communicate with investors. Through CICC, China Merchants Securities, Well-known securities companies such as Founder Securities have organized a number of conference calls to fully communicate with institutional investors. Since the beginning of this year, they have answered a total of 29 questions of various types through the SSE e-interactive platform, and answered the concerns of small and medium investors in a timely manner. After the disclosure of the 2019 annual report and the 2020 first quarter report, we organized a performance briefing on the SSE platform in a timely manner to fully communicate with investors on important matters such as business development and cash dividends.
The company has always insisted on rewarding investors with a high percentage of cash dividends. Since the company's listing, it has implemented a total of 4.581 billion yuan in cash dividends, accounting for 106.09% of the raised funds, ranking among the top among listed companies. In the past two years, the company's cash dividend ratio has been close to 60%, which has been recognized by the majority of investors.