The Research On The Failure Case Of Beijing Bks Media Technology Inc. Backdoor Listing

China capital market is becoming more mature,more and more enterprises want to enter the capital market issuing stocks to raise the funds.China's long-term issuance system is the Approval system,which is more complex,makes IPO long waiting time and strict audit.Meanwhile Backdoor listing is gaining attention and favor because of its convenience.However,since the CSRC revised the“Administrative measures on the reorganization of major assets of listed companies”in 2016 and the “Opinions on further improving the quality of listed companies”issued by the State Council in October 2020,which proposed that the Registration system will be fully implemented.Backdoor listing has become more difficult,under this background,study the causes of the Backdoor listing failure and put forward suggestions,will promote the development of China's capital market.The research object is a good sports industry enterprise called Beijing Bks Media Technology Inc.Once listed in the New Third Board and delisted,tried IPO but didn't pass the coaching period,then tried Backdoor listing ST Yedao and Hongyu co instead,but failed both two times.Based on the theory of Backdoor listing,this paper studies the reason why both two Backdoor listing failed,and puts forward some suggestions.The main contents are as follows: Part1 Introduction,which elaborated the background and significance of the research,summarized the relevant literature home and abroad.Part 2 Case description,summarized the motivation and trading scheme of two Backdoor listing.Part3 Case study,summarized the reasons why Backdoor listing failed,through financial data,ownership structure and other public information.There are four reasons:(1)Bks ignored the trend of regulatory tightening to registration reform.(2)Management had dishonest lending disputes so that the company was questioned by the Securities and Futures Commission during the Backdoor listing audit.(3)Improper selection of Shell company for Backdoor listing.(4)Weak internal control,terrible organizational structure,lack of information communication and effective supervision,caused an extraordinary increase in accounts receivable.Part4 Conclusion and Recommendation,with following four conclusions:(1)The timing of the Backdoor listing and the degree of attention to national policies affect the difficulty and success rate of Backdoor listing.(2)The bad management image affects the Backdoor listing audit.(3)The enterprise needs careful shell resources value appraisal work.(4)The enterprise needs reasonable internal control,to avoid majority shareholder irregularities control during Backdoor listing.In view of the problems exposed by Bks,here are suggestions:(1)Deepen the understanding of the regulatory system.(2)Strengthen the moral construction of enterprise management.(3)Investigate comprehensively and select high-quality shell companies,including careful selection and good value assessment.(4)Strengthen the internal control system.