Research On Private Placement And Economic Consequences Of Zhengbang Technology Under "pig Cycle"

Pig cycle refers to the phenomenon that pork prices fluctuate periodically due to the influence of supply and demand and other factors in the process of pig breeding.The pig cycle generally lasts for 3-4 years,and its price has obvious upward and downward periods.Enterprises usually choose to expand production capacity during the upward period of the pig cycle,and reduce inventory and eliminate excess production capacity during the downward period of the pig cycle.Pig breeding enterprises need to take pig cycle into account when deciding financing demand,financing mode and financing time.Among many financial instruments,private placement,with its characteristics of less restriction threshold,flexible issuance and short financing time,meets the financing needs of pig breeding enterprises in the production and operation of pig cycle,and is sought after by pig breeding enterprises.Jiangxi Zhengbang Technology Co.,Ltd.is a listed company that focuses on the production and sales of feed,pigs,veterinary drugs and pesticides,and provides comprehensive services such as products,breeding technical services and plant protection technical services for farmers and growers.It is the first private IPO company in Jiangxi.In the upward period of the pig cycle,the total operating income and net profit attributable to shareholders of listed companies reached record highs from 2019 to 2020.However,in 2021,The pig cycle is in a downward period,with the price of international agricultural products rising,the cost of pig breeding remains high,and Zhengbang technology turns from profit to loss,and is in financial difficulties.The enterprise has experienced a complete upward and downward cycle of pig prices,and has repeatedly expanded its production through private placement financing.An in-depth analysis of the choice of Zhengbang technology financing tools and the economic consequences of private placement has certain theoretical and practical significance for expanding the financing tools of listed companies and promoting the survival and development of pig breeding companies.Based on the literature retrieval and review of the financing choice of pig breeding enterprises and the related analysis of private placement of listed companies under the pig cycle,this thesis expounds the financing difficulties of pig breeding enterprises in China,and analyzes the financing difficulties of Zhengbang technology under the pig cycle.This paper selects the case of private placement of Zhengbang technology in 2020,discusses the advantages of Zhengbang technology in choosing private placement as a financing tool under the pig cycle,and briefly describes the background and process of Zhengbang technology’s private placement.Through the analysis of announcement effect,financial effect before and after Zhengbang technology’s private placement and the comparative analysis of Zhengbang technology’s private placement in the past,It reveals the economic consequences of Zhengbang technology’s private placement at different stages of the pig cycle.Finally,it draws some enlightenment for listed companies in cyclical industries to use private placement for financing.