Research On Profitability And Risk Of Hui Lyu 5 During The Relisting

Re-listing has always been a hot topic,in November 2018 issued new rules on re-listing,January 2019 Chang You 5 became the first a-share delisted successfully re-listing,is currently the only successful re-listing of enterprises.Since then,the concept has come to the fore,but few companies have applied for a new listing,and the one that is making the most progress is Hui Lyu 5.This article will take Hui Lyu 5 as the research object,through analyzing the financial conditions that Hui Lyu 5 needs to meet in order to apply for re-listing,excavate the business operation ability that Hui Lyu 5 meets the financial index of re-listing,as well as the potential problems Combined with the practical process of the case,the author summarizes the relevant experience and lessons,and provides the effective practical experience for the enterprises which are preparing and planning to be re-listed.The research results of this paper will provide a feasible reference for the operation and governance of delisting companies,thus providing a practical reference for the implementation of the re-listing link in the domestic delisting system Rather than let the possibility of a re-listing remain purely theoretical.Let the stock market advance and retreat,showing a virtuous circle of survival of the fittest;let the exit channel be more unimpeded;let the enterprises that really work hard and have the ability of continuous operation to improve their performance return to the capital market;To enable high quality enterprises to use the shell resources of delisting companies to enter the stock market,thus effectively solving the debt problems left over by delisting companies,and the settlement of a large number of small and medium-sized shareholders;to thoroughly implement the complete channel of delisting,then it will play a driving role in perfecting the delisting system of domestic stock market.In this paper,the case study method is used to analyze the compliance of Hui Lyu 5 to the relevant indicators and the verification focus by analyzing the verification focus of the re-listing system In view of the verification key to the Hui Lyu 5 business profitability and the ability to continue to carry on the concrete analysis,then to reflect the risk to give the proposal.First,starting from the re-listing system,first,it combs out the requirements of various rigid financial indicators for enterprises in the re-listing system,and combines the comparative analysis of the financial indicators for initial public offerings The purpose of verification is analysed through the literal requirements of the indicators in order to distil the deep-seated verification priorities embodied in the re-listing system.Therefore,it is concluded that the key to the re-listing of enterprises is to check the profitability of the business and the ability to continue operation.Secondly,through the compliance analysis of financial indicators in the system,we can understand the basic financial situation of Hui Lyu 5 Then around the system of verification focus on Hui Lyu 5 business profitability and continued operation of the ability to carry out a specific analysis.Financial risks identified in the course of the expenditure study and recommendations are made.Through the case study,this paper concludes that the Financial Verification Requirements for the re-listing system are very strict,and the requirements for initial public offerings are converging The focus of its financial verification is reflected in the profitability of the business and the ability to continue operating two aspects.Hui Lyu 5 basically met the re-listing system in all the financial verification indicators,good profitability,the ability to continue operating profits,compared with the industry in the normal level of listed companies.In view of what we have seen and thought in the research process,this paper puts forward two suggestions: First,in view of the risks we face,Hui Lyu 5 should further improve its profitability and further expand its market,ensure a steady and continuous volume of business to hedge the cyclical risks caused by the characteristics of the industry.Second,the plan to re-listed enterprises,we must start from the nature of the enterprise,practical operation,standard operation,improve their market competitiveness,thus improving profitability.