A Case Study Of Xingye Technology's Private Placement

Private placement,as one of the financing methods of China's A-share market,has the characteristics of short issuance time,strong pertinence,and low issuance costs.It is conducive to listed companies' rapid access to funds,improved capital structure and operating performance,frequently used in mergers and acquisitions reorganization and project financing.Since the "Administrative Measures on the Issuance of Securities by Listed Companies" was promulgated in 2006,private placements have been widely used in the capital market.The popularity of private placements has increased,and has even developed into a mainstream method of refinancing equity in the capital market.But does the private placement will increase the inflow of the company's economic benefits and improve the comprehensive capabilities of the company as announced by the company's major shareholders? In particular,the relevant laws and regulations of China's capital market have not been perfected,and there are still many defects.In the case of asymmetric information,large shareholders may use the guise of private placements to seize private benefits for their own interests,to transfer the interests of small and medium shareholders,to disrupt the order of the capital market,and to reduce the efficiency of resource allocation.Xingye Technology Listed Company is a leading company in the tanning industry.The non-public offering plan disclosed in 2015 is called to enhance the company's automation and informatization capabilities and enhance market competitiveness.Therefore,a private placement of funds is planned to be used for industrial intelligent technological transformation projects and Swiss Mori leather production line construction project.But is the fact the same as the Industrial Technology Announcement? Has the performance and business capability of Xingye Technology been improved after the private placement? This article takes this private placement event as the research object,discusses the motivation behind the private placement of Xingye Technology from the aspects of the private placement timing,pricing base date selection,and cash dividend distribution policy,and analyzes the economic consequences caused by the private placement.The research results show that the major shareholders of Xingye Technology carry out benefits by lowering the issue price before the fixed increase and large cash dividends after the fixed increase.From the financial indicators and EVA indicators,although Xingye Technology's net profit increased after the private placement,this paper found through layer-by-layer analysis that this is supported by the decline in the price of foreign cattle hides.The bright data hides a lot of "luck" After excluding foreign influences,the performance of Xingye Technology has shown a downward trend after it has been determined to increase.From the perspective of non-financial indicators,after the private placement,the company's projects were terminated and the progress was slow,and the technology research and development investment and market share gradually decreased.After the private placement,from the perspective of financial performance or non-financial performance,the economic benefits of Xingye Technology have deteriorated.Therefore,this article concludes that the private placement of Xingye Technology has a benefit transmission behavior and damages the self-development of listed companies.Finally,the paper puts forward corresponding suggestions from different perspectives of listed companies,regulators,and small and medium investors based on the results of case analysis,hoping to have certain reference significance for preventing the transmission of benefits in targeted issuance.