Case Study On IPO Performance Change Of Hengzhi Environmental

China has been ushered into a period of comprehensive economic expansion,which spurred by scientific and technological advancement.China’s manufacturing industry continues to upgrade and transform its economy.The emergence of the Science and Innovation Board not only resolves the financing problems of small and middle-sized science and innovation enterprises and provides them with more ways to raise capital,but also makes a great contribution to the establishment and improvement of a multi-level capital market.However,after the establishment of the Science and Innovation Board,the performance of some science and innovation enterprises,which were widely believed to have the characteristics of high growth and high-tech,changed before and after the IPO,which undoubtedly reduced the efficiency of the Science and Innovation board and also damaged investors’ confidence in the Science and Innovation Board.Hengyu Environmental Protection is one of them.In July 2020,Hengyu Environmental Protection was chosen as a major player in organic waste cracking by investors,and was consequently added to the Science and Technology Innovation Board.In the year of a drastic decrease in business performance,Hengyu Environmental Protection was included in the list after its share price plummeted.Various signs show that Heng Yu environmental protection before and after the IPO performance change face phenomenon.On the one hand,how to boost the share price and enhance the business results of the company as the former favored "blue chip stock" has become an urgent problem for enterprises to solve;On the other hand,under the relatively loose and differentiated listing requirements,how to reduce the excessive "packaging" of scientific and technological innovation enterprises to meet the listing requirements has become a problem that regulators need to consider.Based on this,this thesis uses the first "ST" stock on the Science and Technology Innovation Board,Hengyu Environmental Protection,as a case study.Firstly,this thesis employs literature research to review and summarize the pertinent literature on the phenomenon of the face change of IPO performance,including its evaluation.The face change of IPO performance is illuminated by the relevant theory and policy background analysis,which considers the influencing factors of IPO performance.Secondly,the case study object of Hengyu Environmental Protection is chosen and the introduction of the case company is conducted,comprising a company overview,an IPO process,and the status quo of Hengyu Environmental Protection after the IPO.After that,the qualitative and quantitative analysis technique is then employed to evaluate the operating performance prior to and following IPO.First,the basic financial ratio analysis,Dupont analysis and factor analysis are introduced to explore the changes in Operating efficiency before and after IPO.In view of the characteristic that Hengyu Environmental Protection is a listed company on Innovating in Science and Technology board,the attributes of science and technology innovation of Hengyu Environmental Protection before and after IPO are analyzed.The entropy method is used to assess the full of the operating performance of Hengyu Environmental Protection before and after the IPO,and the conclusion is that the performance of Hengyu Environmental Protection before and after the IPO has changed.Thirdly,by the indepth analysis of the results of Hengyu environmental protection before and after the IPO face;Finally,on the basis of this case,from the external supervision,system construction,corporate governance three aspects to prevent the science and technology innovation board enterprises IPO performance change suggestions.The following conclusions are drawn from this thesis:(1)Excessive use of Earn-out administration to meet listing criteria is the root cause of the change in the IPO performance of Hengyu Environmental Protection;(2)Defects in the review standards of the Science and Technology Innovation board are the inducements to the change of IPO performance;(3)High concentration of customers brings business risks to enterprises;(4)The failure of corporate governance has buried internal hidden dangers for the change of IPO performance;(5)It is difficult to maintain product competitiveness for a long time due to insufficient investment in research and development,and the revenue generating capacity of enterprises decreases after IPO.In addition,in order to effectively alleviate the change enterprises on the Science and Innovation Board,suggestions of this kind are hereby proffered: improve the monitoring excessive earnings management by companies,strengthening audit institutions’ supervision,enhancing accounting standards and regulations,and punishing excessive earnings management and other infringements-these are the steps to be taken.By utilizing media and other supervisory bodies,the quality of information disclosure can be enhanced.Gradually enhance the listing standards and system of the Science and Technology Innovation Board to guarantee the excellence of IPO enterprises on the Board.Attendance to the technological advancement of businesses,augmenting the degree of scientific and technological progress,and guaranteeing the prosperous growth of enterprises-these are the fifth priorities.