| Convertible bonds entered the domestic securities market in 1992 with a short development history.At this stage,the convertible bonds of our country have experienced a spiral of development.Because of the vigorous development of capital market in the 21 st century,related laws,regulations and supervision methods tend to be complete,the scale of financing in our country,especially the market scale of convertible bonds,has been growing steadily.Especially after the new financing regulations in 2017,equity financing channels have been affected,making it more difficult for enterprises to obtain equity financing.At the same time,the convertible bond subscription method from capital subscription to credit subscription.Therefore,convertible bond financing in our country is popular among enterprises.In 2022,the number of convertible bonds in existence has reached 5,009,and the total amount raised by issuing convertible bonds in 2022 has reached 133,372,800 yuan.This indicates that the volume of convertible bonds can not be underestimated,and the development of convertible bonds has reached a high speed.As for the characteristics of convertible bonds,because convertible bonds have the dual characteristics of equity and debt,in particular,we can regard this financing method as a special option.Due to the long life of convertible bond financing,low interest rate,not easy to dilute equity in the short term and can effectively protect shareholders’ rights and interests,this financing method has become one of the financing options for more enterprises.In this paper,the representative of the Internet service industry Lang Xin Convertible bond(corresponding listed company is Lang Xin Technology Group Co.,LTD.,stock code: 300682)as a case,in combination with literature research,case analysis and financial data analysis,this paper studies the motivation,performance and risk of the company issuing convertible bonds,comprehensively displays the opportunities and challenges of a company issuing convertible bonds,and provides a reference for more enterprises to raise funds by issuing convertible bonds to the public.Firstly,this paper analyzes Langxin Technology’s demand for convertible bond financing from the perspectives of internal rate of return,tax shield effect,dilution effect and earnings per shareholder.In the effect study,this paper uses event analysis to study the short-term benefits of issuing convertible bonds,and then uses EVA model and Tobin’s Q value to analyze the long-term value of issuing convertible bonds.Finally,Z-value and other methods are used to analyze the risks of issuing convertible bonds.After analyzing the convertible bonds issued by Langxin Technology,this paper draws the conclusion that after the issuance of convertible bonds,Langxin Technology has optimized the capital structure,reduced the financing cost,protected the shareholders’ equity,made its capital more abundant,and made its core industry development get more adequate financial support.Besides,the short-and long-term economic effects of the issuance of convertible bonds are good.So Lang new technology to issue convertible bonds this move is a correct financing choice.But equally,there will be financial risks and external risks in the process of issuing convertible bonds.Taking this as a reference,for the issuance of convertible bonds,it is a good financing measure to raise convertible bonds at the right time in combination with the company’s own preconditions.But at the same time,after the financing of convertible bonds,enterprises need to maintain their own business stability,do a good job in risk response measures,always pay attention to external information,and adjust strategies according to the actual situation,so that they can live better. |
