_Awards Why the winners won: IR Magazine Awards – Greater China 2020

Best practice interviews with Greater China’s finest IR teams

Why the winners won: IR Magazine Awards –Greater China 2020

Awards

Why the winners won:
IR Magazine Awards –
Greater China 2020

Best practice interviews
with Greater China’s
finest IR teams

Best practice IR had to be reimagined last year as the Covid-19 pandemic shut down travel and in-person events. Companies were forced to experiment with new, digital ways to stay close to investors.

The winners at the IR Magazine Awards – Greater China 2020 tried a range of new approaches, from online site visits to results webcasts and virtual roadshows. It required some trial and error, but they managed to maintain strong relationships with the buy side and sell side while also learning new skills. ‘We have to find something positive among the difficult times,’ explains one award winner. Watch the videos on the following pages to hear how Greater China’s best IR teams handled an unprecedented year.

The virtual awards took place on December 10, 2020. Companies could win in two categories: the awards-by-research categories were decided by a survey of portfolio managers, buy-side analysts and sell-side analysts who cover companies based in mainland China, Hong Kong or Taiwan. The awards-by-nominations categories see companies submit examples of best practice in areas like the annual report, ESG reporting, corporate transactions and investor events. A panel of IR experts decides the winners.

China Unicom (Hong Kong)

Best overall investor relations (large cap)
Best investor relations officer (large cap): Jacky Yung
Best in sector: communications
Best in region: Hong Kong

Alongside Covid-19, a key theme of conversations with investors over the last year has been the roll-out of 5G, says Ivan Wong, director of IR at China Unicom (Hong Kong). He says investors want to hear about the company’s investment plans and how they will affect the capital-allocation strategy. They also want to understand how super-fast broadband may impact other industries, from tech to education and healthcare. Wong talks about what makes a great IR team, too. Given the fast-paced nature of communications today, he says IROs need to be proactive in keeping investors and senior management up to date about any developments.

Sinic Holdings (Group) Co

Best overall investor relations (mid-cap)
Best investor relations officer (mid-cap): Venus Zhao
Best in sector: financials
Best in region: China

Sinic Holdings used a variety of digital tools to stay in touch with investors during 2020, says Venus Zhao, general manager of capital markets and corporate communications at the real estate developer. She mentions virtual meetings, webcasts, website updates and chat groups, among other channels. During the year, a key topic of conversation was the performance of the housing market in China, which rebounded strongly thanks to local government support. Zhao also discusses Sinic’s 2019 print annual report. The document makes use of a ‘unique paper-cut and three-dimensional pull-up design’ to symbolize the company’s aspirations, she explains.

China Resources Cement Holdings

Best in sector: materials

At the initial stage of the Covid-19 crisis, construction work was halted in China for two months, explains Elaine Lam, manager of IR at China Resources Cement Holdings. But demand rebounded strongly and actually hit record levels by the third quarter, she says. During the year, a key challenge was maintaining a high level of engagement while switching to virtual meetings and events. Regular business updates helped to provide transparency about the situation on the ground. The firm also used virtual tours to replace physical site visits. Lam says the switch to online engagement has accelerated digital trends in IR and will have a lasting impact on the industry.

China Gas Holding

Best in sector: utilities

During 2020 China Gas Holdings focused on providing timely and transparent communications to the market, says Frank Li, assistant to the president and general manager of the capital management center. While the year was not easy for anyone, Li says the switch to virtual IR did have the benefit of allowing more frequent interaction between the company and its shareholders. He also discusses how China Gas has been using social media and messaging services to reach investors, especially retail holders. Channels like WeChat and Facebook are powerful ways to reach private shareholders, he adds.

Pacific Basin Shipping

Best annual report (small cap)

While 2020 presented a lot of challenges for IR teams, it also offered the chance to explore new methods of communication, says Emily Lau, general manager for IR at Pacific Basin Shipping. The company learned how to hold virtual events and trained up management to be comfortable presenting in front of a camera. ‘We have to find something positive among the difficult times,’ Lau says. One of the benefits of virtual outreach is that you can stay in touch with a wider group of investors around the world, she notes. The company had a positive experience with a virtual roadshow for the US and may continue with this even when it is possible to travel again.

Lenovo Group

Best crisis management
Best use of multimedia for IR

Bryan Hsu, director of IR at Lenovo Group, says he conducted only two trips during 2020. Before the pandemic, he visited Shanghai, and then much more recently he returned to the same city. ‘Chinese investors, these days, would prefer to resume their physical meetings,’ he says. The crisis led investors to ask more questions than normal, notes Hsu. They wanted to discuss the shift to working and studying from home, as well as any supply-chain issues in the PC market. In the video, Hsu also discusses how Lenovo reacted to allegations of accounting fraud early last year, which the company denied.

BOC Aviation

Best IR during a corporate transaction

In April last year – amid huge global concern over the Covid-19 outbreak – BOC Aviation conducted a $1 bn bond issue. ‘We were the first aircraft-operating leasing company in the world to come out to raise money in the debt capital market, so we really needed to present ourselves to investors in a way we hadn’t previously in the 12 or 13 years that we have been raising money,’ says Timothy Ross, head of investor relations. Investors needed comfort that the company had plenty of liquidity and the backing of its major shareholder, he explains.

PAX Global Technology

Rising star: Calvin Pei

The pandemic has changed the way investors consume information about companies, with more focus falling on the website and social media, says Calvin Pei, assistant vice president of corporate finance and strategy at PAX Global Technology. As a result, it’s important IR teams adapt their approach to be more digitally savvy. Last year PAX Global integrated new elements into its IR program to increase transparency, says Pei. The company used a video stream to show its post-results briefing. It also began sending out a monthly IR newsletter. In addition, while many companies scrapped financial forecasts, PAX released three-year guidance to give more confidence to the market.

Remaining award winners

Awards by research

Best overall investor relations (small cap) – Prosperity REIT and Sunlight REIT (joint winners)
Best in sector: consumer discretionary – Galaxy Entertainment Group
Best in sector: consumer staples – China Resources Beer (Holdings) Company
Best in sector: energy – CCS Supply Chain Management Co
Best in sector: healthcare – WuXi Biologics (Cayman)
Best in sector: industrials – Kerry Logistics Network
Best in sector: technology – Delta Electronics
Best in region: Taiwan – Nien Made Enterprise Co

Awards by nomination

Best annual report (large cap) – CLP Holdings
Best annual report (mid-cap) – Kerry Logistics Network
Best ESG materiality reporting (large cap) – CLP Holdings
Best ESG materiality reporting (small to mid-cap) – Kerry Properties
Best investor event – ENN Energy Holdings
Best IR website – Far East Consortium International