Financial Analysis And Evaluation On Growth Of Companies Listed On NEEQ

With the development of market economy, the contribution of the small and medium-sized enterprises for the economic development of our country is becoming more and more prominent. The small and medium enterprises in china are in face of the problems such as the big effect of the impact of economic fluctuations; low management level and financing difficulties, resulting a bottleneck period of their development. To get rid of this situation, small and medium-sized enterprises have to make the transition from traditional manufacturing to scientific technology innovation. On the path of this transformation, the small and medium-sized enterprise must learn to use the capital market to promote their development. For the innovation based small and medium-sized enterprises, direct financing is more practical and appropriate compared with indirect financing methods such as bank credit.With the launch of the transfer system of the small and medium-sized enterprise, the lamination of Chinese capital market is perfecting gradually. These small and medium-sized enterprises which have a certain scale have gained good opportunities for development.The financial analysis of the small and medium-sized companies which have already been listed on the national shares transfer system will help the main players of the market, especially the investors to increase the understanding of listed companies,to have a preliminary judgment of the company’s continued viability, technology innovation investment, and development potential. The growth evaluation of the listed company based on the financial analysis, which will help the investors determine whether this market has development prospect, letting the market players have sufficient preparation to face the problems which have exposed.In this paper, the writer turns national equities exchange and quotations listed companies for the study, and on the basis of introducing the listed company’s overview and features, makes financial analysis on account of its capital structure, profitability, investment in research and development, and market potential, etc. We find that listed companies have lower asset-liability ratio, and the majority of companies have few bank borrowings, strong asset liquidity, but a larger proportion of inventory and receivables; their profitability are very different, which have higher net profit but lower gross profit, and high enterprise management cost pressures. Compared with companies listed on GEM, we find that the national equities exchange and quotations listed company’s own development potential and financial risks, which is they have very different with the listed company on GEM about the development on company size and profitability, but they have smaller burden and higher quality of assets. As long as they take an active part in their own market segments, they can achieve the business objectives.This article makes the growth classification evaluation on some of the already listed companies, using comprehensive evaluation method from industry characteristics, level of operations, research and development capabilities, financing results to construct the evaluation system which is suitable for national equities exchange and quotations listed companies, and propose specific measures for further development of the national equities exchange and quotations listed companies to expect that the enterprises can improve their strength and market competitiveness, and finally promote good corporate development. In terms of growth, aiming at the characteristics of this national equities exchange market, the enterprises which has been directed to issue become the focus of the study. This article does overall analysis on them and a few more studies on frequently issuing enterprise case, in order to evaluate growth of enterprises. Because the evaluation of the growth should be a long process, but the national equities exchange and quotations has just set up soon, the historical data of listed companies cannot meet the needs of the research. The results of the study only reflect in the short term status, and the future growth also needs long-term observation.