Study On The Refinancing Strategy Of Chengde Xinxin Vanadium-Titanium Co., Ltd.

Chengde Vanadium-Titanium Co.,Ltd. is a state-owned holding enterprise which takes smelting and processing Vanadium-Titanium(VT) magnetic iron ore as its main business, the main products include VT serial products and low Vanadium alloy steel. The company was listed in Shanghai Stock Exchange in August, 2002, and designated as one of the 180 index sample shares by Shanghai Stock Exchange on July 1 , 2003.The first successful capital operation played an important role in adjusting the structure of products, seizing the market opportunities, keeping and strengthening the competitive advantage. With the rapid growth of VT products in market demand, it is necessary for enterprise to finance continuously through capital market so as to accelerate the update of product and upgrade the competitiveness in an all-round way. Based on the modern financing theory, actual policies of capital market in our country and the actual conditions of the company , the necessity of refinancing and the development strategies were explained, the market demand of VT products in the following years was forecasted by the Time Series Analysis Method. On the basis of prediction, the content of refinancing, the scale of investment and the expected earnings of the project were confirmed. The several refinancing ways adopted commonly by the listed companies were analyzed and compared according to the request of refinancing project. Issuing convertible corporate bond-a financing way with smaller risk and lower cost was chosen and confirmed. The chosen financing way was evaluated by Analytical Hierarchy Process(AHP).The key to issuing convertible bond is to confirm a proper scheme of issue. Therefore, the principles and basis of drafting key clauses, items to which enterprises should pay close attention before issuing related to scheme were point out in the thesis, these opinions are maneuverable. Finally, the risk of issuing convertible corporate bond was studied and analyzed, some measures and suggestion for evading risk were put forward.