| With the opening of Sci-Tech innovation board in July 2019,three NEEQ enterprises have successfully launched in the new board,which will usher in a wave of NEEQ enterprises to the board.The multi-level capital market structure has been established in China for a long time,but there is still a lack of interconnected mechanism.Therefore,the measures for supervision and administration of unlisted public companies and measures for information disclosure of unlisted public companies released by the CSRC in November 2019 marked a prelude to the reform of the NEEQ.This move will establish the "green channel" that has been called for by the market for a long time,and it can be predicted that the number and efficiency of NEEQ enterprises will be greatly improved after one year.By February 2020,a total of 107 enterprises come from NEEQ had successfully transferred to the board,and the process of transferring to the board is accelerating.Enterprises are keen on switching board based on the purpose of improving stock liquidity,enhancing financing capacity and improving corporate image,but the ultimate goal is still to maximize the interests of shareholders.Gem is currently the board with the largest number of enterprises on the New OTC Market.With the opening of the Sci-Tech innovation board,more and more enterprises will be transferred to GEM and Sci-Tech innovation board in the future.In addition,the data availability should also be considered in the selection of case enterprises.In 2015,the Hezong Science & technology realized the transformation of the board,which itself also belongs to the high-tech industry,and is consistent with the enterprise industry required by the STAR Market.In this context,this paper takes the enterprise that transfer to the GEM in 2015 as the case study object,and on the basis of its 2012-2018 annual reports and other public information,compares and analyzes the financial performance and value creation ability before and after the transfer by using the dupont system formula and the economic value added method.This paper also makes a review of the historical evolution of the whole NEEQ,and discusses the motivation of NEEQ enterprises for board conversion and three theoretical board conversion methods:IPO board conversion,backdoor board conversion and direct board conversion.Based on the historical data,it is found that almost all enterprises are through IPO this traditional way to achieve the board.Through the study of the case,it is found that although the sales capacity,net profit and total assets of the Hezong Science&technology after the board conversion have been greatly improved,it does not match the increase in financing capacity and capital input.Generally speaking,the financial performance of enterprises has not been improved,and the value creation ability has a downward trend.In addition,the net profit and EVA value of the Hezong Science&technology showed a reverse trend in the three years before and after the plate was turned,and then changed in the same direction in the third year after the plate was turned(2017).Finally,this paper explains the causes of these phenomena from the perspectives of capital structure,capital use efficiency and enterprise risk control,and puts forward Suggestions to the enterprises that want to switch to the board for prudent operation and detailed plan.After the board transfer to enterprises to actively adjust the financing structure,improve the risk control system,improve the efficiency of the use of funds Suggestions;The paper proposes to improve the"lifting board"system for China's switching board system,and accelerate the exploration of the system construction of switching board among GEM,STAR Market,Small and Medium Enterprise Board and Main Board Market.Through this case study,this paper hopes to bring some thoughts to the future operation of Hezong Science & technology and pay attention to the improvement of its performance growth and value creation ability.At the same time,with the opening of the STAR Market and the market reform of the NEEQ,after being listed on the selected floor for one year,you can directly apply to the stock exchange for the board transfer without the examination of the CSRC.We can expect that,after a year,there will be a large number of enterprises to apply for the board,and the success rate will be much higher than before.Through the analysis of the case enterprises,this paper hopes to give these enterprises to attach importance to their own value creation ability in the post-board operation. |
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