A Study On Inflences Of SJ Electric Company's Transfer On Its Financial Condition Quality

As one of the important components of China's multi-level capital market,the New Third Board Market is characterized by “low threshold and easy application”when compared with the main board market.Therefore,many high-tech companies,which do not meet the listing conditions of the A-share market and still need a lot of development funds,have all chosen to list the new three-plate market for the first round of financing and use it as a platform for the advancement of the A-share market.In the small and medium-sized micro enterprises listed on the New Third Board Market,some high-quality companies are also seeking their own IPO roads and continuously launching attacks on the main board market.This thesis selects SJ Electric Co.,Ltd.as the case study,which has successfully switched from the New Third Board to growth enterprise market(GEM).The present study also intends to explore the pros and cons of the financial performance of this company by analyzing the quality of financial conditions before and after the transfer as well as its influencing factors.Then,the lessons are summarized and then some references are provided for other new board companies to undergo the IPO.For the case study,we firstly present the background,motivations and qualifications of SJ Electric Transfer.Then based on the framework of financial status quality analysis,we evaluate and contrast five aspects,including the quality of the assets before and after the transfer,the quality of the capital structure,profit quality,cash flow quality and financial information quality.After a series of comparisons and evaluation analysis,the similarities and differences between SJ Electric's financial quality before and after the switch are discussed.The research findings are as follows.After the transfer,SJ Electric saw rapid capital growth and an ever-increasing asset scale;the inventory turnover rate was accelerated;the company's production capacity together with research and development capabilities were continuously improved;the debt-to-equity ratio was reduced and the solvency increased;the increase in net profit from sales and the timely return of cash resulted in changes in financial quality.However,the study alsofound that the financial quality of the SJ Electric after the transfer of the board still had the following shortcomings: the turnover of receivable accounts was low;the funds had not been effectively used;the financial leverage had not been fully played,and the foreign investment space remained to be treated and expand.Therefore,SJ Electric Company should take corresponding measures to improve the financial quality.