Financial Consequences Of New Third Board Enterprises’ Transfer

With the rapid development of China’s economy,the social capital market system has gradually improved.At present,China’s capital market has a multi-level structure,the GEM as the second level,the new three board and the regional equity transaction.The market is the third and fourth level structure.As a key part of China’s capital market,the New Third Board market is an important financing trading platform for innovative SMEs.More and more companies are listed on the New Third Board.The long-term development of the company is inseparable from the support of funds.In order to meet the increasing financing needs of enterprises,and to obtain a better financing environment,More companies are looking for opportunities to turn to higher-level capital markets.In order to meet the needs of enterprises and make China’s capital market more closely linked,the State Council officially promulgated a document on the issues related to the share transfer system in December 2013.The promulgation of this document has improved the transfer mechanism of China’s capital market.By the end of 2018,a total of 49 companies across the country had successfully transferred,especially since 2017,the number of companies that have transferred to the board has grown rapidly.If the company completes the transfer board,it indicates that the company has a good development prospect,but after the listing,the impact of the transfer on the financial performance has become an urgent issue for the transfer enterprises.Based on this,the research problem of this paper is the transfer of the new three-board enterprises.Board research on the impact of financial performance.Focusing on the core research issues,this paper takes Kyland Technology as a case study,aiming at exploring the motivation of the new three-board enterprise’s turning board,and whether the financial performance has changed after the turn board,as well as the reasons for the change,so as to provide experience and reference for the follow-up new three-board enterprise’s turn board.Firstly,it elaborates the new three-board turntable system from the theoretical level.Secondly,the case study part is based on the case of Kyland Technology turn board listing.It analyses the financial performance of the company after turning the board.Finally,it finds out the case study of Kyland Technology.Sum up the enlightenment and suggestions for the new three-board turntable enterprises.The research findings in this paper are that the operating capacity and solvency of Kyland Technology Co.,Ltd.have been improved to varying degrees,while the profitability and growth ability have been slightly reduced.This paper analyzes the problems existing after the company’s transfer from the perspective of the inefficient use of large amounts of raised funds after the company’s transfer,and proposes corresponding solutions.The innovation and application value of this paper: In the past,there are few specific cases to analyze and study in the study of turn board.Through the case analysis of Kyland Technology turn board,this paper hopes to give inspiration to other follow-up new three-board turn board enterprises in maintaining their business performance and value creation ability.