Study On The Impact Of Bond-to-Equity Swap On Financial Performance Of Nanjing Nangang Co.,Ltd.

With the continuous development of China's economy,China's enterprises have borrowed from the development model of the West to the perfect counterattack of industrial transformation,from the backward production capacity to the high-end manufacturing,and the rapid expansion of domestic enterprises under the influence of reform and opening up and market economy.However,due to the continuous impact of the economic crisis,the profitability of Chinese enterprises has been declining,and the high leverage has made the debt burden more serious.The company's operating conditions are facing a severe test.In order to reduce the leverage ratio of enterprises and improve the economic situation,debt-to-equity swaps have been introduced again in a market-oriented manner.This round of debt-to-equity swaps features marketization and legalization,and adopts different measures to reduce the leverage ratio of enterprises.As a pillar industry in China,the steel industry has always been in a high leverage.Debt-to-equity swaps have a significant effect on boosting supply-side structural reforms and helping companies to leverage leverage.This paper takes Nanjing Nangang Co.,Ltd.(hereinafter referred to as “Nanjing Steel”)as the case study object.After summarizing the research status of debt-to-equity swap and relevant theories,it analyzes the debt-to-equity swap of Nangang.As a leading enterprise in the steel industry,Nangang has become the first private enterprise to carry out debt-to-equity swaps,which has good reference for other private enterprises.This paper first explains the background and research role of the research.Then I will elaborate on the references between China and the world.Secondly,it introduces the related concepts of debt-to-equity swaps and the development of debt-to-equity swaps,and analyzes the situation of debt-to-equity swaps in China.This paper analyzes the motives and specific implementation plans of the debt-to-equity swap of Nangang,and analyzes the changes before and after the implementation of the debt-to-equity swap from the perspective of investment and financing,financial indicators and radar analysis.The impact of stocks on corporate financial performance.Finally,draw conclusions and revelations,sum up the role of this round of debt-to-equity swaps in the case,and give inspiration through the problems arising from this round of debt-to-equity swaps in enterprises,and provide reference for other private enterprises that carry out debt-to-equity swaps.Through analysis,it is concluded that the transformation of debt-to-equity by Nangang has the most obvious effect on the reduction of corporate leverage.Through debt-to-equity swaps,the company's asset-liability ratio has decreased,the scale of liabilities has been further reduced,operational capacity has increased,and financial risks have decreased.The debt crisis has been resolved.In addition,the implementation of debt-to-equity swaps has improved the corporate governance structure,reduced financing costs,and rationalized investment.However,in the long run,the sustainable development of enterprises is inseparable from the profitability of enterprises,and the profitability must be realized by the innovation of science and technology,the involvement of new fields and the transformation of enterprises.