Research On The Utilization Efficiency Of IPO Over-raised Funds Of Honz Pharmaceutical

Since the establishment of China's GEM,it has provided an effective financing platform for innovative and high-growth SMEs.In response to the over-raising phenomenon,the Shenzhen Stock Exchange has revised and implemented the legal provisions on the use of over-raised funds.While how small and medium-sized enterprises use these funds to generate good returms is still a hot issue worthy of attention.Therefore,the study analyzes why GEM companies use over-raised funds inefficiently,as to propose countermeasures to avoid the irrational investment behavior.In this paper,from the perspective of over-raised funds investment to low-efficiency performance and adverse effects,Honz Pharmaceutical Co.,Ltd.is used as a research case to analyze in detail the investment and non-efficiency behavior of Honz Pharmaceutical's over-raised funds.The article is divided into the following six parts:The first part is the introduction.This chapter mainly expounds the research background and research purposes of the whole article,and carries out literature review.The second part is about related concepts and theoretical basis.The third part is the background introduction of the case,which introduces the over-raising phenomenon and basic characteristics of China,s GEM market.The fourth part is the case description.Introduced the main business and shareholding structure of Honz Pharmaceutical Co.,Ltd.,which explained the company's background,the size and investment of its over-raised funds.The fifth part is a case study,which illustrates the performance,causes and economic consequences of Honz Pharmaceutical's inefficient use of over-raised funds.The sixth part is the research suggestion and conclusion.Through case analysis,this paper argues that the unreasonable use of over-raised funds by companies on the GEM will result in lower ROE.This not only wastes resources,but also increases the company's follow-up business risks.In order to avoid these adverse consequences,it is recommended that the legal provisions on the use of over-raised funds should be further improved,and the regulatory authorities should strengthen the supervision of companies in the information disclosure process.In addition,from the perspective of companies,the level of governance within the company in terms of fund management should be improved.