Case Analysis Of The Guo Xuan-tech Company Backdoor Listing

Listing can bring many economic benefits for enterprise development, for example: expand financing channels, enhance brand awareness, achieve shareholder wealth appreciation etc.,therefore, many listed companies to pursue and strive for this goal, for the financing difficulties of private enterprises is even more. However, China's IPO strict requirements, the approval process is complex, some private enterprises can not reach the mandatory requirements of IPO, so the backdoor listing will become another way to achieve the listing of enterprises. IPO audit of the capital market as well as the suspension of multiple shell resources also makes backdoor listing behavior more active. Although many companies successfully listed through the backdoor, but there are cases of backdoor failure, or after the success of the backdoor due to poor integration of subsequent resources and failed to improve the performance of the company and other issues. Backdoor listing in the actual operation, involving a number of key links, such as the choice of what kind of shell, the use of what kind of backdoor mode, backdoor listing after the performance of the company can improve the performance, these are worthy of our study and further thinking.Guo xuan-tech is the leader in private enterprises, in their own development and rapid development of the industry, choose backdoor listing, in order to achieve expansion of financing, improve brand awareness, and promote the purpose of faster development.Therefore, this paper chooses Guo xuan-tech backdoor listing as the research case, sorted by theory, clarifies the definition of backdoor listing, and analyzes the motivation, transaction mode and financial performance of the Guo xuan-tech backdoor listing. Through the case study, summarizes the reasons for the backdoor listing. Secondly, this paper analyzes the factors that are considered when selecting shell companies; and use the event study,analytical techniques for accountants and economic value added to obtain the conclusion that the financial performance of Guo xuan-tech is improved, from short-term performance,long-term performance and corporate value. Finally, this paper summarizes some suggestions from the aspects of the shell company's choice,the "real shell” or "net shell",and the later integration of resources, hope to provide some experience for other companies backdoor, so that the proposed backdoor enterprises not only concerned about the short-term backdoor benefits, but also more concerned about the late integration of resources in order to ensure the sustainable development of enterprises backdoor listing.