Research On Financial Performance Of HL In Jiangsu By Way Of Back-door Listing

As the constant improvement and development of socialist marketing economy,private economy has become the significant parts of national economy.According to the statistics, private enterprises have been keeping the rate of 30% in annual output value, far more than the national economic growth.In the incremental parts of the economical development of China, private economy make up 70% to 80%.While private enterprises develop faster and faster, they are facing all kinds of crises at the same time arising from the shortage of fund. Difficulties in financing have become the biggest obstacles to prevent private enterprises from developing.The main ways of financing of our country’s private enterprises are application to banks for loans and equity financing.SOCB(State-owned Commercial Bank)occupies a leading position through financial market, and that is why private enterprises with non-state-owned economy struggle more to maintain the support from the banks than the state-owned enterprises. In capital market, the majority of listed quota have been assigned to representative large-sized enterprises, therefore, a large quantity of excellent private enterprises can’t get it.As a result, private enterprises enter the capital market by means of back-door listing.Back-door listing is an indirect way of coming into the capital market and it shows the advantages of short period cycle, high efficiency and low cost. It avoids demanding requirements for coming into the stock market and totally caters to the private enterprises’ desire to finance from the stock market.Then,what kind of influences on finance will the private enterprises bring about after their back-door listing?How enterprises take full advantage of back-door listing and make sustainable development after back-door listing?People seldom do researches on this throughout the historical documents, so we need to give some further consideration.HL in Jiangsu is the most outstanding private enterprise in clothing industry, and it has its representation in back-door listing.Therefore, this paper selects the case of HL as the object of study.First of all, this paper states the current situation and background of the research of back-door listing, and it points out its significance.Later,it defines the theoretical bases in this paper. Meanwhile, this paper defines the relevant concepts and theories of the back-door listing, and make a summary of literature home and abroad.Next, this paper introduces the basic status of HL by way of back-door listing. Then it analyses the effects on financial performance of HL afterback-door listing. At last, this essay presents thoughts on how to improve HL’s financial performance on the basis of concrete analysis in this case.This paper is established in the successful case of HL. It analyses the effects on financial performance by way of back-door listing and enriches the width and depth of the research on back-door listing.It not only provides beneficial suggestions on how to raise fund, improve financial performance and achieve sustainable development in terms of back-door listing, but it also offers more practical experience for more private enterprises, which promotes healthy development of private enterprises.