Research On Scheme And Implementation Of Enterprise Listed With Options On Science And Innovation Board

In March 2019,the Shanghai Stock Exchange issued the "Questions and Answers of the Shanghai Stock Exchange Science and Technology Innovation Board Stock Issuance and Listing Review".The document states that companies to be listed on the Science and Technology Innovation Board are allowed to formulate option plans before the initial public offering application,and exercise the options after the listing.On June 13,the same year,the Science and Innovation Board was officially opened,marking that the Science and Innovation Board has become one of the policy pilots with options listing.Compared with the main board,the science and innovation board focuses on the hard technology industry,focusing on the high-tech industry represented by semiconductor,information technology,medical care,etc.As a typical technology-intensive and knowledge-intensive science and innovation industry,the company’s demand for high-end technical talents in the market prompts it to enhance its competitiveness in the talent market through the implementation of equity incentive plan.The most significant advantage of the equity incentive method with option listing is that it puts the employees’ exercise of the option after the company is listed,which not only reduces the uncertain risk that employees need to exercise the option when the company is not listed,but also reduces the capital pressure of employees by stages after listing.In addition,listing with options is A common equity incentive method used by foreign enterprises in overseas operations,and foreign employees are more inclined to hold shares directly rather than indirectly.With the opening-up of the Science and Technology Innovation Board policy,more and more overseas enterprises choose to return to A-share listing,and the implementation of option listing on the Science and Technology Innovation Board is more in line with the shareholding habit of foreign employees.This paper takes Verisilicon,the first Sino-foreign joint venture with concurrent option listing on the Science and Technology Innovation Board,as a case enterprise.Centering on the theme of listing with option,based on the new regulations of the Science and Technology Innovation board system and the development status of the semiconductor industry,this paper studies the effect of Verisilicon with concurrent option listing.As a Sino-foreign joint venture red-chip enterprise,it is of theoretical and practical significance to study the dismantling of overseas red-chip structure and listing on the Science and Technology Innovation Board with options.This paper studies the case enterprise from two aspects of theory and practice.First of all,this paper introduces the core original shares of the case enterprise from three aspects:ownership structure,business situation and the industry position of the company,analyzes the motivation for listing with options,and introduces in detail the 2019 stock option incentive plan involved in listing with options and the supplementary 2020 restricted stock option incentive plan.And briefly summarizes the main points of the regulator’s inquiry on the listing of Verisilicon with options.Secondly,the paper selects the specific data from 2019 to 2021 disclosed in the announcement of Verisilicon to analyze vertically the impact of its implementation of equity incentive plan on attracting and retaining talents and innovation performance.In addition,Shanghai Silicon Industry and Ming Microelectronics,both in the semiconductor industry,are selected as comparable companies for horizontal comparison to analyze whether their equity incentive plans have produced more significant promoting effects.Moreover,the financial indicators are compared with the average of 134 semiconductor enterprises in the same industry to study the similarities and differences between them and the overall development trend of the industry.In this way,we can find out whether the equity incentive plan improves the financial performance of the enterprise.Finally,some suggestions are put forward for the possible deficiencies in implementing the equity incentive plan.The research results of this paper show that the main purpose of Verisilicon listing with options is to attract and retain excellent technical personnel,promote the continuous growth of performance and accumulate capacity for a new growth cycle.By studying the scheme content with option listing and comparing its implementation effect horizontally and vertically,it can be seen that the equity incentive method of Verisilicon is conducive to attracting and retaining core technical personnel,promoting the work enthusiasm of R&D personnel,binding the interests of employees and the interests of the company together,and providing long-term intellectual support for the R&D of the company’s core technology.At the same time,it also promotes the improvement of innovation performance of enterprises,increases R&D investment,realizes technology accumulation and progress,steadily increases the number of patent applications,and smoothly carries out strategic R&D projects.In addition,it plays a positive role in improving corporate profitability,debt paying ability and growth ability.Operating revenue and net profit maintain stable growth.By studying the scheme design and implementation effect of Verisilicon listing with options,this paper hopes to provide reference for other red-chip enterprises planning to go back to China to list their equity incentive plans.