Coming to Hong Kong from Beijing sixteen years ago with a view to developing his career here, Liu Tianni had already foreseen at that time Mainland enterprises would try to list in Hong Kong in a flock. Both Hong Kong’s financial sector and local financial public relation industry knew little about the Mainland market, therefore he grasped tight the golden opportunity to serve Mainland corporations who wished to float their shares in Hong Kong. Liu Tianni, chairman of Wonderful Sky Financial Group (1260), said when he was interviewed by our website, that he established the group in 1996 and successfully assisted Sichuan Express (0107) to complete initial public offering in Hong Kong in the very same year. Because of this success, Liu himself and his group consolidated their status in the local financial public relation industry. Since then, Wonderful Sky Financial has secured 150 long-term corporate clients.
Looking sixteen years back, Mainland firms possessed only superficial knowledge of Hong Kong’s capital market and media while local market also failed to have thorough understanding in corporate culture as well as government operations in Mainland China. If his group could become one who provides high-quality financial public relation services to Mainland companies and who ran with the same direction as the market trend, Liu believed success would eventually be in sight. Liu sank deep into delightful recollections of the important and earliest IPOs the group involved in when he was talking about the precious and unforgettable pieces and slices in his group’s early years. These earliest IPOs signified milestones for the Wonderful Sky and were instrumental to the group’s development, Liu said. The most memorable IPOs to Liu include China Shenhua (1088), Chalco (2600) and Agricultural Bank of China (1288). These three corporations were leaders in Mainland’s coal, copper and aluminum, and banking sectors respectively. Agricultural Bank of China’s
IPO even raised the largest amount of funds in the world at that time, catching attention from across the globe. Due to the success of these three initial public offerings, Wonderful Sky was better equipped to fight for getting more customers in relevant sectors.
To the group’s clients, collaboration with Wonderful Sky represents a symbiosis. To Wonderful Sky, clients are the masters and it provides diversified financial public relation services to customers. Financial public relation services providers who pay attention to clients’ needs do not only engage in works related to financial public relations and duties as bored as what the tedious things craftsmen do. Liu frankly admitted financial public relation industry is a ‘creative industry’ as financial public relation officers have to brainstorm very often so as to formulate ideas for clients. These officers also have to understand finance as well as the media and must have professional knowledge in public relations, financial printing and international road shows, he said, adding these officers do much more than ordinary public relation officers do. All the financial public relation officers working for Wonderful Sky are experts on China’s cultural studies with a far sight into China’s market. These experts have deep insight into psychological aspects of management from different Mainland enterprises, thoroughly understand current situations of various sectors in China, and keep in mind the behavioral data of various consumption groups in different sectors of China.
Liu compared his group to Huang Pu Military Academy, which strives for training local talents. The group is now steering towards the goal of becoming ‘The United States Military Academy at West Point’ in financial public relation industry, nurturing professionals of an international standard. In fact, financial public relation providers are managing a seamless production chain. In the upstream, during the process of preparing for an IPO, the group provides with clients public relation and financial printing services. After the IPO has kicked off, the group provides investor relation and international road shows services to customers in the downstream aiming to take care of the ‘IPO production chain’ in an all-encompassed manner. Wonderful Sky makes well use of sharing of internal resources to produce highly effective outcome with low costs. Liu believes gross profit margin will only increase and increase as time goes by.
It is unreasonable for a business to see gross profit margin to decrease with time, he said. According the prospectus of Wonderful Sky, the group’s average gross profit margin in recent years hovered between 50% and 60% while operating income and net profit recorded compound annual growth rates of 55.3% and 49.1% respectively. These data unveil the group possesses quite an excellent ability to create wealth. No wonder management of the group managed to issue positive profit alert to its shareholders as a ‘gift’ two months after the group began floating its shares.
Wonderful Sky Financial Group started floating its shares in Hong Kong on 30 March 2012 at the offer price HK$1.39 per share. Liu listed a number of shining aspects for his group. First, Wonderful Sky Financial, a financial public relation service provider focusing on H-shares, is the first financial public relation company listed in Hong Kong. Second, Wonderful Sky offers diversified financial public relation services related or not related to IPO. Third, the group has 150 corporate clients from Mainland China, a point that can strengthen the group’s position in Mainland’s financial public relation market. Lastly, the group is in possession of a well-experienced management team and therefore corporate governance standard will remain high, which in turn will help drive up the group’s stock price.