The Research On Financial Problems About The IPO Failure Of Jianhua Corporation

IPO exerts key impact on the entrance of capital market for corporations. In order to raise funds, corporations have no choice but to implement IPO. Among myriad of corporations with IPO application, some make a huge success, while some fails. Undoubtedly, IPO is the key step when companies want to board their capital markets Although companies which are going to public necessarily take serious consideration about it, some still fail to be listed. So we should think carefully and analyze the deep reason behind this phenomenon, in that we can avoid the mistakes made by the previously corporations in the subsequent preparation.Firstly, this paper analyzed and summarized the characteristics of the opportunities and challenges which the company encountered in the development under the environment of the world economy, and then introduced the Chinese securities market. We made a detailed overview of China's securities market, IPO and its development process, including the nine suspension of the IPO, nine reuse of IPO and current verifying process of IPO. Secondly, this paper analyzed and researched the failure of Jianhua Corporation from the perspective of, financial analysis, based on SWOT method. Thirdly, this paper proposed some improving suggestion after summarized past experience and lessons concerning IPO. Suggestions proposed by this paper are based on the perspective of profit risks, debt risks, operational risks and development risks.In order to promote Jianhua Corporation's next IPO success, this paper, with the concrete analysis of the case, believe companies in the IPO process, not only should take the specific situation of the enterprises themselves into consideration, but also shoud adjust their own state of mind, analyzing the advantages and disadvantages of the external and internal environment, and then according to their own needs to decide whether they are ready for going to public. Moreover, corporations also have to identify the timing of the listing, accurately predict the development of the country's future policy, and adjust strategic deployment in time in order to cope with the following challenges and opportunities.