Theory and Practice of Capital Structure: Evidence from Hundsun Technologies

With the rapid development of the fintech industry, fintech enterprises with light assets and high R&D investment have gradually formed capital structure strategies that are significantly different from those of the traditional manufacturing industry. This paper takes Hundsun Technologies (600570.SH) as the research object, focuses on its long-term "zero leverage" strategy (interest-bearing debt ratio is close to zero), abstracts financial data from 2015 to 2023, calculates key indicators (such as ROIC and WACC), and analyzes the macro environment. Combined with financial statement analysis and data regression analysis, this paper discusses the internal motivation and economic performance of the choice of capital structure. It is found that the low (zero) leverage strategy of Hundsun is a rational choice due to the combination of industry characteristics, corporate strategy and policy market environment. High R&D investment and technical barriers can effectively compensate for the loss of capital efficiency caused by cash redundancy and low interest-bearing debt ratio. This strategy can improve financial conservatism in the short run, but may cause potential loss of capital allocation efficiency in the long run. Therefore, this paper suggests that the management of the firm should dynamically evaluate the value of leverage instruments, appropriately introduce structured debt and realize the synergy between technology and finance. Investors should focus on operational cash flow sustainability and technology iteration responsiveness when evaluating technology companies, rather than a single financial leverage indicator.