A Study On The Performance Of NEEQ Listed Companies With The Private Placement

Small and medium-sized enterprises are the main body of China’s creation of social wealth,and they are also the basis for promoting "mass entrepreneurship and innovation".They play an important role in improving employment,promoting economic transformation,and the development of science and technology.The National Equities Exchange and Quotations(NEEQ)focuses on providing direct financing platforms for innovative,entrepreneurial,and growing SMEs with low thresholds.It promotes SMEs’ independent innovation and development and transformation,and is an important part of China’s multi-level capital market.The private placement as an important way for the financing of listed companies in NEEQ has won the favor of SMEs with its unique flexibility.In 2017,a total of 2725 new private placements were issued,with a total amount of 133.625 billion yuan.With the continuous maturation of the NEEQ,the advantages of targeted issuance have gradually emerged,and many companies have successfully obtained financing through targeted issuance of new three boards and achieved rapid development.Based on this background,this paper uses the case analysis method to research and analyze the performance of listed companies in the direction of increased issuance of NEEQ.After the selection of Eking Technology,which is a representative enterprise,this paper analyzes the impact of private placement of listed companies on the current state of business operations and their future performance from the perspective of financial indicators and non-financial indicators.In the analysis of financial indicators,this paper uses the indicators of profitability,solvency,operational capacity and growth potential as the basis for analysis,and analyzes the overall performance of the company through Z-value analysis and radar chart analysis.Because the company’s operating performance is not only reflected in the perspective of financial indicators,in order to be able to more comprehensively analyze the impact of Eking Technology’s directional increase in issuance after the listing of NEEQ,this paper will focus on corporate governance,innovation capabilities,and brand building.Financial indicators complement the research content.Through the performance of vertical and different periods and comparative analysis of horizontal and industry,the impact of this case on directional issuance was obtained,and the relevant reference and inspiration gained from the case were further summarized.The study found that the private placement has a clear effect on the improvement of the company’s profitability and growth capacity,and it also has a certain degree of impact on debt repayment ability and operating capacity,and has a certain role in promoting the rapid development and transformation of the company.At the same time,through the analysis of non-financial factors,private placement has important positive effects on corporate governance,R&D and innovation capabilities,strategic acquisitions,and brand building.Combining the actual situation of the case and the status of NEEQ,this paper believes that this case has achieved the "Capital&Technology" wheel-driven development model through a more reasonable private placement plan,which has a certain reference value for other SMEs.Then the paper made some corresponding recommendations for SMEs and Regulators.