Sou Hu Cai Jing·2025-09-30 12:49Core Viewpoint - Investor Relations Management (IR) is a critical function in publicly listed companies that is often overlooked, serving as a litmus test for corporate governance during crises [1][3]. Group 1: Importance of Investor Relations - IR is defined as a strategic management behavior that aims to transparently present a company's operational status and future prospects to investors, facilitating two-way communication to maximize stakeholder value [1]. - Many companies treat IR as a regulatory requirement rather than a strategic pillar for long-term development, leading to governance deficiencies that become apparent during crises [1][3]. Group 2: Current Issues in Investor Relations - A report from the China Securities Investor Service Center highlights significant issues in IR management, including a lack of proactive communication from companies, with nearly 60% of individual investors stating that communication was not initiated by the companies [3]. - Over 25% of individual investors reported that companies are unwilling to engage with small investors, indicating a communication imbalance [3]. - A case involving Beijing Hanjian Heshan Pipeline Co., Ltd. revealed systemic violations in financial accounting and disclosure practices, with a 30% reduction in net profit for 2019 due to an erroneous early revenue recognition [3]. Group 3: Consequences of Poor Investor Relations - The collapse of market trust can directly impact a company's financing capabilities, and hidden risks will eventually surface, triggering a chain reaction [5]. - Internal governance issues can lead to a company's market value being underestimated, further exacerbating the situation [5]. - Companies that neglect investor communication will face severe consequences in the capital market during times of crisis, as highlighted by the analogy of a solid flood barrier that becomes a lifesaver during trust crises [13].