Nanshan Aluminum Issued Convertible Bond Financing Performance Analysis

After more than 20 years of development,China's convertible bonds have gradually become one of the main methods for refinancing because of its integration of debt and options.Coupled with the current tightening of private placement,the private placement is squeezed.Under the circumstances,the convertible bond market will be further expanded.It is of practical significance to study the financing performance of convertible bonds under the circumstances that the current financing needs of listed companies are strong and their market size is gradually expanding.After an enterprise refinances,the performance of financing is closely related to the efficiency of its use of funds,profitability,and growth.This paper selects a case with a higher cumulative conversion ratio,a longer duration of existence,and no other financing during the existence period as its goal.Taking into consideration the principle of timeliness,the case of this article,the Nanshan Convertible Bond,was determined.The distribution of Nanshan Convertible Bonds,the causes of their issuance,earnings management before issuance,and the comparison of performance before and after issuance is analyzed.The analysis process is based on horizontal comparisons and considering the consideration of vertical comparison,with reference to the relatively large difference in asset size of the nonferrous metals industry,the three comparative companies were determined on the basis of the total asset scale of the previous year and used as a reference for horizontal comparison in the specific analysis.This article finds the special features,including the highest coupon rate in the convertible bond market at that time,and the option to issue convertible bonds at high stock prices.These special points are combined in this article with convertible bonds.The issue conditions and the company's specific situation were analyzed accordingly.At the time of performance analysis,a large number of financial indicators fell in a diving style in the year they were issued.Through reading relevant documents and analyzing the situation in the previous year,the “reversal effect” of the Nanshan Convertible Bond issued by Nanshan Aluminum was explained.Research found that the issuance of convertible bonds has significantly improved the profitability of Nanshan Aluminum,improved the industrial chain layout of Nanshan Aluminum,and maintained a high level of competitiveness in comparison with comparable companies,but at the same time there was an inappropriate distribution scale.The issue requires the improvement of the issuing entity in the future.The behavior of the issuer performing earnings management before issuance also imposes requirements on the flexibility of the auditing standards and the ability of investors to make decisions rationally.