Case Study On The Motivation And Paths For NJTC Re-listing A-shares

In the early days,the construction of the domestic capital market system was imperfect.Many companies' performance deteriorated after listing,no longer meeting the exchange's requirements for listing transactions,and a large number of delisting companies appeared.However,with the deepening of capital market reforms,a re-listing system was established at the same time on the basic of a strict delisting system.The introduction of the re-listing rules kicked off the re-listing in 2012.With the continuous revision and improvement of the re-listing rules,more and more delisting companies have embarked on the road of re-listing A shares.NJTC was one of the representatives of the delisting of China's A-share market.Due to financial loss,it was forced to be delisted by the exchange and transferred to the old third board market in 2014.However,it successfully re-established the A-share Listing after its internal adjustments,and it has become the first share of the re-listing system.This thesis uses case analysis research methods,and it was based on existing research at home and abroad,combined with relevant theories,taking the case of the re-listing of A-shares of NJTC as the research object,and combing the A-share re-listing path in detail,and focusing on Based on the re-listing path,it deeply analyzes the reasons for its re-listing,the choice and characteristics of the re-listing path,and the financial performance after the re-listing using this path.The motivation for the re-listing of NJTC is mainly to serve the transformation of business strategy,broaden financing channels and increase the valuation of enterprises.In addition,the current loose domestic re-listing environment and the promotion of the reform of state-owned assets by China Merchants Group make NJTC urgent Want to re-list A shares.In order to chose the right path for re-listing,they compared the advantages and disadvantages of the path of major asset reorganization and non-major asset reorganization,combined with its external conditions and internal basis,and then re-marketing analysis for NJTC.At the business level:Strip off loss-making projects and optimize the business structure;At the capital level:Carry out investor equity adjustments and syndicated loan financing;At the debt level:Implement debt-to-equity issuance and clean up huge debts after delisting;At the strategic level:Implement internal reforms To actively develop the market.After the re-listing,the NJTC's financial performance,through the financial index research method,found that NJTC's debt repayment ability,profitability,operating capacity and growth capacity have been significantly improved after re-listing.Based on the results of the case analysis,this thesis proposes the following enlightenments for the motivations and paths of delisting stocks that are to be relisted or are being relisted: For companies planning to relist:Correct the motive for relisting in the market,and actively carry out bankruptcy reorganization;Build a sound fundamental development and enhance business competitiveness;Choose a reasonable path based on the company's own characteristics.For the capital market regulators,:Improve the re-listing system to make up for legal vacancies;Strict supervision of re-listed stocks,strengthen continuous supervision.To enrich and improve the issue of relisting of delisting stocks in China's capital market.