Research On Financial Performance Of Oriental Yuhong Convertible Bond Financing

Financing can inject fresh blood into the business development of an enterprise,and choosing a suitable financing method for the enterprise itself is one of the key factors to ensure its sustainable and stable business development.Convertible bonds（convertible bonds）,as a financing tool integrating stocks and bonds,have been developed in China for only thirty years and lacked more attention for a long time in the past.In 2017,the China Securities Regulatory Commission issued the Regulations on Amending the Implementing Rules for Non-public Issuance of Shares by Listed Companies,which tightened the fixed increase from the policy and encouraged and guided enterprises to choose convertible bonds for financing,since then the total number of listed and issued convertible bonds in China has increased to a large extent.The total number of listed convertible bonds and the scale of issuance have both increased to a large extent.What circumstances are suitable for convertible bond financing,what impact convertible bond financing will have on listed companies and how to optimize the company’s performance are yet to be studied.The indepth discussion of convertible bond financing is of great theoretical and practical significance to Chinese enterprises’ investment and financing strategies,the innovation of financial instruments and the development of domestic financing market.In this paper,the first convertible bond issued by the construction waterproofing industry after the promulgation of the new refinancing regulations,Yuhong Convertible Bond,is selected as the research object,and the motivation and impact on the financial performance of Oriental Yuhong convertible bond financing is analyzed.First,this paper introduces the research background,research purpose and significance,and research content and methodology;then,it organizes the domestic and international literature to have a preliminary understanding of the motivation of convertible bond financing and its performance level,and summarizes the relevant concepts and theoretical foundations to have a deep understanding of the characteristics of convertible bond financing;in the case introduction section,this paper elaborates on the background of rainbow convertible bond financing,the issuance overview,and the oriental In the case introduction section,this paper details the background,issuance profile,and many of the motivations for the selection of convertible debt financing by Rainbows;in the financial performance analysis section,this paper focuses on the financial performance of convertible debt financing from two aspects:basic financial performance analysis and economic value added（EVA）-based financial performance analysis,which leads to insights on the selection of convertible debt financing for listed companies:when selecting a financing method,companies should base on their own situation and make rational choices.When choosing financing methods,enterprises should make rational choices,taking into account factors such as financial indicators,original capital structure and previously used financing methods;enterprises should strengthen the awareness of financing risks,make the financing choice of convertible bonds prudently,and be fully prepared to deal with various risks they may face in the future;suggestions:after obtaining funds,companies should stabilize their business level and improve the efficiency of capital use;in the operation of enterprises,they should At the same time,against the background of the convertible bond market boom,the supervisory layer should not lose its position and should further strengthen the audit and supervision work,supervise the information disclosure of financing enterprises and the use of funds,promote information disclosure and enhance investors’ confidence.