Baichuan Energy Backdoor Listing Case Study

Energy industry is an indispensable pillar industry in national economic development,and clean energy is one of the best.Natural gas,as a high-quality and efficient clean energy,has the characteristics of capital-intensive and technology-intensive,but now it is facing difficulties in financing.In the initial stage,the industry usually relies on the government's subsidy policy,and in the later stage,it also seeks other financing modes.However,the coexistence of high risk and high return hinders the indirect financing.By contrast,capital markets offer more sustained capital flows.However,the process of listing through the formal IPO mode is still very complicated.Enterprises often miss many good business opportunities and the best expansion time in the long waiting period.The backdoor listing process is simple and time-consuming,which gradually becomes the primary way for many private enterprises and emerging enterprises to list.This paper uses the research method of case analysis,first introduces the current domestic and foreign scholars' views on the motivation,performance and risks of the backdoor listing behavior,and then gives a general case description,motivation analysis and risk analysis of Baichuan Energy Backdoor Wanhong Group.At the same time,through the use of financial indicators research method and non-financial performance method,Baichuan Energy is further analyzed and expanded,and the conclusion is that Baichuan Energy has a positive effect through backdoor Wanhong Group.The analysis of the cause of borrowing is mainly discussed from the perspective of internal development and external macro environment.From the perspective of internal development,the backdoor behavior can expand the way of the current fundraising of Kuanbaichuan Energy,and can provide more and more stable financial flow support,so as to promote the expansion of the company's scale at a faster rate;from the external environment From the point of view,the time,success rate and difficulty level of the backdoor listing are more advantageous than IPO listing,and there is also support from national policies.In addition,synergies can be formed.In the part of evaluating the performance of backdoor,it is mainly from the perspective of financial and non-financial performance.In the part of financial performance evaluation,from three angles of solvency,profitability and operation ability,the data of two years after backing are selected and compared with those before backing to prove that backing has a positive effect on Baichuan Energy;in the part of non-financial performance evaluation,it is described from the perspective of stock price,brand awareness,obtaining financial support and improving governance structure,respectively.It is concluded that the backdoor event has a significant positive effect on the above four aspects of Baichuan energy.In the part of backdoor risk,we mainly analyze the risks faced by Baichuan energy backdoor after completion,including the risk of realizing profit forecast,the risk of higher valuation of implanted assets,the risk of operation of implanted assets and the risk of implementing investment projects of raising matching funds.At the same time,it analyzes Baichuan Energy's measures to deal with risks.For example,the profit forecast follows the principle of prudence in the preparation process,rationally evaluates the value of assets in the transaction process,exerts advantages and operates rationally.Finally,the role of Baichuan Energy Backdoor Wanhong Group in listing is studied and analyzed,and the following conclusions are drawn: choosing the right time,broadening financing channels,having a positive effect on the change of financial capacity of the company and playing a synergistic effect;and combining with national policies,the future direction of its industry development is prospected.