| This paper selects Yili’s private placement in 2021 because the study of private placement in China often focuses on financial and manufacturing industries,less attention is paid to the dairy industry.There will be a certain significance to study Yili’s private placement when there still exists potential in the dairy industry.In addition,as an enterprise with a high dividend policy,does the high dividend distribution policy have an impact on its private placement decision and performance?At the same time,although Yili’s private placement decision is based on project financing,does the instability of the epidemic affect the private placement performance?The study of Yili’s private placement under the epidemic enriched the literature related to the motivation and performance of private placement,and provided references and suggestions for domestic listed companies to conduct private placement.At the same time,this topic plays a certain role in promoting the sustainable and healthy development of private placement and the development of domestic securities market.Based on the industry background,Yili’s decision of private placement is under the long-term trend of Chinese consumers’ consumption upgrading,the total domestic demand for dairy products and the structural demand for differentiated and functional dairy products,plus the per capita consumption of dairy products in China still has a large room for improvement compared with foreign countries.At the same time,this private placement is the third private placement of Yili since its listing.Its operating revenue has reached the level of 100 billion,but the digital management level of upstream and downstream needs to be improved,and the innovation of the whole industrial chain is needed to build long-term competition advantages in the future.Therefore,it carries out diversified products and digital transformation through private raising funds,and uses part of the funds to pay off its debts to improve the company’s ability to resist risks and improve corporate profitability.This paper uses a variety of methods to analyze the performance of Yili’s private placement.In terms of market performance,this paper uses the event study method to analyze the short-term and long-term market performance of Yili after the private placement.The conclusion shows that the private placement has limited effect on the stock price improvement of Yili because of the time cost of these projects will improve investors’ uncertainty.Subsequently,this paper analyzes the company’s financial performance through financial index analysis and factor analysis and finds that the private placement has an optimization effect on Yili’s asset and liability structure,and the company’s debt paying ability is enhanced.Meanwhile,the company’s dairy production capacity will be expanded,its sales capacity and R&D capacity will be further enhanced,and its market share is expected to be further improved.Therefore,this private placement project will effectively improve the company’s core competitiveness,conducive to the company in the fierce market competition to maintain competitive advantages.Finally,based on the study of Yili’s private placement,this paper believes that the company’s private placement is effective on the whole,but the short-term advantages have not been highlighted.On this basis,this paper extracts suggestions for other listed enterprises.First,enterprises should make full use of the advantages of private placement to enhance the company’s capital strength and optimize the capital structure.Second,listed companies should grasp the future development trend of the industry under latest trend of macroeconomic condition.Third,encourage the private placement of institutional investors to make decisions that are more in line with the long-term interests of the company and shareholders. |
