Research On The Motivation And Financial Performance Of Biokangtai Convertible Bond Financing

With the increasing perfection and maturity of China’s capital market,there are more quantity and types of financing products in the market,among which convertible bonds have gradually become one of the main ways for enterprises to raise funds and obtain cash flow.As a new refinancing method in the domestic financing market,convertible bonds not only have the dual characteristics of equity and creditor’s rights,but also have the fixed income and appreciation potential that some financing methods do not have.Now it has become the focus of investors’ refinancing.From 1996,when the government decided to carry out the pilot financing of convertible bonds,to 2001,when the CSRC issued the implementation measures for the issuance of convertible bonds,the domestic convertible bond market has gradually developed in a standardized way.Although the development of convertible bonds in China is later than that of foreign capital markets,and the rules and systems are not mature enough,with the continuous improvement of laws,regulations and policies and systems related to financing methods in the domestic financing market,the threshold of equity financing has been further raised,and the market position of convertible bonds has been improved.Based on the consideration of capital cost,financial risk and other factors,investors have issued convertible bonds with high comprehensive indicators,thus accelerating the development of the domestic convertible bond market,and the number and scale of convertible bonds issued have also grown rapidly.Faced with many ways of financing,more and more enterprises choose to issue convertible bonds.With the upward development of the financial market,the domestic research on convertible bond financing of listed companies is becoming more and more abundant,but most of them are concentrated in some traditional industries,and there is less in-depth research on convertible bond financing in the biological products industry.Therefore,this thesis selects BIOKANGTAI,a biological product enterprise that issued convertible bonds in 2018,as a research case,and analyzes the motivation of the issuance of BIOKANGTAI convertible bonds and the impact of its financial performance.From the point of the article structure,this article first in this thesis expounds the scholars of the convertible bond financing research,on the basis of the related concepts and theories,combed the concord bond issue terms,issuing process,from the capital structure,industry scale,market demand,equity income four internal factors and national policy,the convertible bond market,industry three external factors to explore the cause of convertible bond financing,and measure the corresponding financing cost.Second using event research method of BIOKANGTAI issue announcement before and after the stock price analysis,to explore the choice of convertible bonds this way for financing will bring good market effect,from the company’s assets and liabilities structure,debt repayment and profitability of four aspects has carried on the comprehensive analysis,and EVA into the BIOKANGTAI bonds on the company’s financial performance.Finally,the following conclusions are drawn: the financing process of BIOKANGTAI is relatively smooth,and the short-term solvency is greatly improved,which alleviates the debt repayment pressure;the raised funds can enrich the cash flow,improve the operating conditions,and enhance the profit of the company;the capital structure is more flexible and flexible,and the future development prospect is optimistic.It also puts forward suggestions on the selection of financing instruments,issuance terms and market supervision,so as to provide experience for other enterprises to issue convertible bonds,so as to improve the efficiency of convertible bond financing,and then promote the vigorous development of China’s capital market.