Financial Performance Evaluation Of Focus Media's Backdoor Listing

Backdoor listing refers to the process of making non-listed companies qualified for listing transactions by means of asset restructuring to meet the financing needs of non-listed companies through the capital market.China's capital market has been developed for nearly 30 years,with the gradual maturation of the system,the number of investors constantly increases,more and more enterprises wish to be listed on the Chinese stock markets.However,due to the large number of enterprises that await to be listed,it has to take a few years for the enterprise to be listed through IPO in Chinese Stock Markets,which costs much of time and finance.Therefore,many companies have to take the second best,that is,back-door listing.As a special listing way,back-door listing plays an extremely important role in the realization of listing in the stock market and financing from it because of its distinct asset quality and business performance,therefore,it is highly pursued by the market.In December 2015,Focus Media successfully achieved a listing on the Shenzhen Stock Exchange by a back-door listing through Qixi Holdings,it became the first company to be listed on the Chinese stock market through the backdoor listing after being delisted from the US NASDAQ.The backdoor listing has influenced every aspect of the financial performance of Focus Media.It is of a great referential significance to analyze and evaluate the financial performance of Focus Media in backdoor listing and to deeply summarize the experience and lessons in its backdoor listing.The paper firstly introduced the background,purpose and significance of the study,and points out what is innovative in this paper.At the same time,it has defined the related concepts of backdoor listing,and expounded the theoretical basis related to backdoor listing and the way of analyzing and evaluating its financial performance.Then it introduced the cases and elaborated the background and motivation of Focus Media's backdoor listing and the content of plan of backdoor listing.At the same time,it analyses the backdoor of both sides and the motivation of backdoor listing.For Focus media,the biggest motivation is to reduce the waiting time for listing and relieve financial pressure to seize the commanding heights of the golden period of industry development.Then it uses the performance evaluation method of state-owned capital to analyze and evaluate the financial performance of Focus media before and after backdoor listing from four aspects:development ability,financial efficiency,asset operation and debt paying ability.Then it puts forward some suggestions to improve the financial performance of the company.Finally,the article concludes that the backdoor listing of Focus Media has a positive impact on the overall financial performance of the company,promotes the growth of the company's business income,is conducive to the accumulation of long-term capital,and strongly supports the company's expansion strategy.However,in some aspects of financial performance,such as the efficiency of asset operation,which is mainly evaluated by the turnover rate of total assets,backdoor listing has limited impact on the company.