Case Analysis Of NEEQ Targeted Additional Financing

As the cornerstone of the national economy,small and medium-sized enterprises occupy a very important position in the economic system of our country.However,due to the problems of imperfect governance structure,imperfect internal control system and opaque financial information,the domestic economic situation has become more and more severe in recent years,and the financing difficulty of SMEs in China has increased year by year.To this end,China has established a small and medium-sized enterprise share transfer system,namely the NEEQ.As the most important way of financing,it is necessary to make a deep discussion on the NEEQ directional additional issuance.Weitai Co.,Ltd.is the first state-owned NEEQ listed enterprise in Xinjiang with the park development as its main business,and also the NEEQ listed enterprise with the highest market value in Xinjiang so far.Selecting it as the research object will help to improve the financing ability of SMEs in Xinjiang,expand the production scale of SMEs in Xinjiang,so as to accelerate China's economic development and realize China's dream.In this paper,literature analysis,case analysis,comparative analysis and other methods are used to study the NEEQ directional issuance cases of Weitai.Taking the development status and financing mode of the NEEQ market as the starting point,it is concluded that the motivation of the NEEQ directional issuance financing of Weitai is to expand the production scale,optimize the financing structure,reduce financial risks and reduce the concentration of equity.Then through the analysis of capital structure,solvency,net cash flow,financing cost,equity structure,capital use and other aspects,we find that the NEEQ directional issuance optimizes the capital structure of Weitai,improves the solvency of the enterprise,brings a lot of cash flow to the enterprise,and temporarily alleviates the shortage of enterprise funds.To reduce the operation risk and financial risk caused by the break of capital flow reduces the equity concentration of Weitai to a certain extent.But there are also problems such as too high financing costs.Through the analysis,it is found that the financing of Weitai shares in the NEEQ market by means of directional additional issuance reduces the degree of information asymmetry of the enterprise,improves the financing ability of the enterprise,integrates the upstream and downstream industrial chains through selective introduction of specific investors,enhances the overall strength of the enterprise,and all the monetary funds from directional additional issuance financing are included in the working capital.To some extent,it alleviates the urgent demand of Weitai stock for working capital and improves the efficiency of capital use.But at the same time,there is also a risk that the capital chain will be broken due to the high financing cost and the proportion of institutional investors will lead to the decline of risktaking ability of enterprises,which can only alleviate a large amount of cash demand of enterprises in the short term and have a limited impact on the equity structure.On the basis of the analysis of the advantages and risks of theNEEQ directional issuance of Weitai stock,this paper concludes that the NEEQ directional issuance financing improves the financial quality of Weitai stock and enhances the liquidity of capital,but there are some limitations.According to the conclusion,some suggestions are put forward from the following aspects: reducing the financing cost of NEEQ directional issuance;strengthening the liquidity of NEEQ market;improving the profitability of enterprises.