A Case Study On Performance Of IFLYTEK CO.LTD.'s Private Placement

The demand for capital of China's listed companies has become more and more prosperous along with the constant improvement and development of the capital market.The "Securities Law" and "Measures for Issuing Securities of Listed Companies" were announced in 2016 and opened the door for private equity refinancing.Due to loose terms of issuance,rapid approval,and relatively low issuance costs,listed companies are more inclined to private placements.After nearly 10 years of development,private placement is one of the most important refinancing methods in the Chinese capital market.As the number of Chinese listed companies that choose private placements in the capital market continues to increase and their scale continues to expand,in the process of rapid development,specific analysis of the effect of private placement on listed companies should be conducted.This article describes the background and related systems of private placement in China,and conducts case analysis on the private placement of IFLYTEK CO.,LTD.'s 2011,2013 and 2015 cases.It uses the event description method to explore the short-term announcement effect of HKEx's private placement and Analysis of the proceeds of projects invested by private placement and raised funds,comparative analysis of changes in the company's economic value-added over the years using the EVA analysis method,to assess whether the three private placements have had a good impact on the performance of IFLYTEK CO.,LTD's information technology..Finally,based on the conclusions of the case analysis,this article proposes relevant recommendations for the supervisory level and listed companies.