Research On The Financial Performance And Synergistic Effect Of Dafu Technology’s Private Placement

With the continuous development of China’s capital market economy and the diversification of market financing,private placement has gradually become an important financing channel for listed companies,and the number of companies refinancing with private placement is also increasing rapidly.The main reasons for the increasing popularity of private placement are its lower issuance cost,more flexible and easy-to-use pricing mechanism,and lower barriers to market entry.In the context of economic globalization,private placement of listed companies can not only be used as a way of financing,but also can be used for asset restructuring,mergers and acquisitions and enterprise resource integration.Therefore,private placement has become a focus topic in China’s capital market.The application of private placement by enterprises in western developed countries has been quite mature.In comparison,although some domestic researchers have studied this common financing method,their papers are basically empirical studies,and there is still a long way to go for the case study of private placement.The study of private placement can not only provide reference for other listed companies,but also provide a basis for supervision by the capital market regulatory authorities.In addition,this paper selects the 2016 case to study its long-term effect by analyzing the data for many years,so as to compare with the short-term effect and draw a more comprehensive conclusion.Therefore,this paper mainly adopts the form of case study,based on the relevant theoretical background,selects Dafu Technology as the case study object of private placement,and analyzes the financial performance and synergistic effect brought by the private placement of Dafu Technology,and explore whether there is an internal connection between them.First of all,this paper synthesizes the research of domestic and foreign experts and scholars,combs and summarizes the research results of the main motivation,financial performance and synergistic effect of private placement,and briefly expounds the theoretical basis and mode of private placement.Secondly,based on the relevant theoretical background,this paper carries out a case study on the private placement of Dafu Technology in 2016.As a national high-tech enterprise,Dafu Technology is trying to expand the layout of the industrial chain in recent years.Dafu Technology carried out private placement in 2016 for the purpose of raising project funds.This paper expounds and analyzes the main motivation,fundraising situation and fund use of this private placement.Subsequently,this paper analyzes its financial performance with reference to the financial indicators such as profitability and solvency of Dafu Technology from 2014 to 2022.Finally,the synergistic effect of private placement is analyzed from the perspectives of operating effect and market effect.Based on the above research,this paper finds that the private placement has a certain positive driving force for the financial performance of Dafu Technology in the short term,but the long-term side effects are large.The performance of synergistic effect and financial performance is very similar,and it is also a short-term positive and long-term negative situation.Therefore,it also proves that there is a certain internal correlation between synergistic effect and financial performance.The above case proves that although private placement is a very good means for listed companies to obtain financing,if it is not planned scientifically in advance and used unreasonably,it may make enterprises carry heavy debts and inhibit their normal development.