YouZu Interactive Company Backdoor Listing Case Research

Online game industry is a cross-border product of Internet industry and cultural industry.Owing to the great support from government policies and the rapid development of the Internet in recent years,online game production value in China has occupied the world first.The online game enterprises also play a decisive role in the development of online game industry.In order to enhance the core competitiveness of enterprises,broaden the financing channels and seize market share,online game enterprises prefer to rely on capital market.There are two ways for Chinese enterprises to go public: one is the initial public offering(IPO),another one is the backdoor listing.But in the current situation,it is difficult for online game enterprises to go public through IPO because of the strict government policies;besides with the characteristic of light assets,it is more likely for online game enterprises to go public by the way of backdoor listing.Capital market is optimistic about the online game industry.Just because of above-mentioned background,it is meaningful to deepen the research of the online game enterprises going public by the way of backdoor listing.YouZu Interactive company as the first backdoor listing company in the online game industry,it can provide reference and experience for enterprises who intending to go public.This paper mainly analyzing a case of YouZu Interactive company backdoor listing.This paper also introduces the general situation and the program of backdoor listing of YouZu Interactive company and Meihua umbrella company,and analyzes the motivation of backdoor listing,according to the study of YouZu Interactive company backdoor listing.It concludes the experience of YouZu Interactive company backdoor listing by the way of evaluating the effect of it: Online game industry is of good situation in recent years and YouZu Interactive company has good performance.All these are the basis of the success of backdoor listing.YouZu Interactive company adopts the backdoor operation mode of designated placement and does not involve cash in business which avoids the financing problems.Meihua umbrella company becomes net shell and transfers its possession,which accelerates the process of reorganization and avoids the risk brought by non-performing asset effectively.This backdoor listing follows rules and the price is reasonable whentrading,which allows intermediary agency play a part in backdoor listing which help avoid the risk of those less standard actions of trade.In order to further regulate the action of backdoor listing,CSRC(China Securities Regulatory Commission)has issued the "Measures for the Administration of Major Assets Reorganization of Listed Companies" on September 1,2016,which aimed at combating the behavior of avoiding backdoor listing.CSRC also expresses support for eligible backdoor listing.Based on the research and conclusion,this paper argues that companies should improve its strength in order to be successful,select backdoor operation mode reasonably to lower the cost and risk,obtain suitable shell resources to reorganize based on its own scale and strength,and strengthen the use of intermediary agency.