After more than four years of long efforts and waiting, Zhengzhou Hongsam Digital Science and Technology Co., Ltd. was Public Listed on the NEEQ (National Equities Exchange and Quotations) on January 24, 2014. The listing recommendation report shows that Hongsam's main business is the research and development, production and sales of digital inkjet inks and digital printers, and its products are exported to more than 60 countries and regions in the world. Why does a printing consumables manufacturer go through several years of hard work to enter the capital market? Did it obtain the required funds after listing on the NEEQ? Mr. Qin, chairman of Hongsam, was interviewed by a reporter from China Press Publication Journal on this matter.

China Press Publication Journal: Why did Hongsam list on the NEEQ? Is it mainly for financing? What businesses does it want to expand? 

Chairman Mr. Qin: In the field of digital printing, China is relatively backward internationally. In order to catch up with the international technology level of hardware, software and consumables, Hongsam has made a lot of efforts since its establishment. The NEEQ, as a third national capital market similar to the Nasdaq market in the United States, is more in line with HONGSAM's development stage and financing needs. The NEEQ is also a financing platform that can truly reflect HONGSAM's technology and management level. Therefore, HONGSAM chose to list on the NEEQ.

China Press Publication Journal: How did Hongsam learn about the NEEQ? What preparations did Hongsam make before listing on the NEEQ?

Chairman Mr. Qin: HONGSAM is located in Zhengzhou High-tech Zone. The High-tech Zone has launched the NEEQ listing since 2007. The government of Zhengzhou High-tech Zone has introduced a series of powerful combined policies to lead qualified enterprises to actively participate in the NEEQ, and have carried out activities such as contacting securities companies, strengthening training, and seminars and explanations. They have carefully cultivated and selected qualified enterprises to enter the reserve listing team and provided nanny-style services for the listing of enterprises.
 
HONGSAM started the listing work on the NEEQ since 2009. At that time, Dr. Cheng Xiaoming of Western Securities gave us a lot of guidance. HONGSAM, securities companies and intermediary institutions have made preparations for 4 years. During this period, the national policy of expanding the NEEQ to the whole country has not yet been issued. However, HONGSAM actively prepared, with the assistance of securities companies and intermediary institutions, to improve the corporate governance structure, and always demanded itself as a company with standardized operations, so that HONGSAM actually approaches and reaches the level required by listed companies.

China Press Publication Journal: After listing on the NEEQ, has Hongsam obtained financing through the NEEQ? If it has not yet obtained financing, are there any investment institutions interested in Hongsam?

Chairman Mr. Qin: Listing on the NEEQ has created a good financing platform and valuation reference for HONGSAM. We will seek financing activities such as private placement according to HONGSAM's development stage and actual needs to enrich HONGSAM's development strength. At present, HONGSAM has initial contact with investment institutions, and specific work needs to be further carried out.

China Press Publication Journal: Will Hongsam transfer to A-shares after resuming IPO on February 10? What plans does Hongsam have for financing in the future?

Chairman Mr. Qin: HONGSAM is not considering IPO at present because it needs several years to show HONGSAM's development potential and achieve performance and benefits in order to give shareholders a better return. In addition, for companies listed on the NEEQ, it is not necessary to transfer to the A-shares or IPO. There are such famous companies as Microsoft and Google in the Nasdaq market. Therefore, the introduction of the market maker system in the second half of the year should be able to overcome the current circulation, valuation and financing problems of the NEEQ. To this end, HONGSAM is currently mainly seeking steady development, and will then make plans for IPO work based on its own needs and the functions of the NEEQ.

The first batch of 12 companies listed on the NEEQ in Henan Province are all from Zhengzhou High-tech Zone. They are all emerging technology companies with strong growth potential and development potential, which fully reflects the high-tech and high-yield characteristics of the NEEQ. They are all leaders in subdivided industries, and the contradiction between market expansion and financing difficulties is more prominent.

China Press Publication Journal: When Hongsam was listed on the NEEQ, did the government provide subsidies for listing? How much was the subsidy? Can it cover the listing costs? How much is the listing cost?

Chairman Mr. Qin: From the share reform to the listing, HONGSAM received a total of 1.6 million yuan in subsidies from the Zhengzhou High-tech Zone. HONGSAM paid about 1.4 million yuan in direct expenses to the listing brokers and intermediary institutions, and the government subsidies can cover the basic listing costs. Of course, HONGSAM has to make a lot of cooperation and efforts for it.