Case Study On The Spin-off Listing Of Tongfang And Technovator

In order to rapidly expand the scale or diversify operations in the short term,many companies had previously carried out mergers and acquisitions reorganization activities.In the enjoyment of the benefits of mergers and acquisitions for enterprises such as rapid entry;access to synergies;overcoming the company's negative externalities,mergers and acquisitions also brought many drawbacks to the company.In order to weaken or even eliminate the negative impact of mergers and acquisitions,split-listing,one of the means of capital contraction,has to take off between Chinese companies.After the spin-off,the parent company reduced the management burden and the subsidiary company has more autonomy in management.The two parties will focus on their own main business and increase market share.The spin-off listing can raise sufficient funds for the development of the subsidiary,allowing it to increase investment in R&D,develop new technologies and new products,and enhance the competitiveness of the company;the spin-off listing provides the subsidiary with a stock circulation opportunity.The number of shares held by the subsidiary can be increased or decreased according to the trend of stock price changes in the capital market;after the spin-off,the circulation of the subsidiary's stock has brought about an increase in the reputation of the company,which has attracted the attention of potential customers and increased the number of companies.Operating performance.Split-listing,a brand-new capital operation method,has important value and significance for both companies and capital markets.In 2011,in order to achieve its strategic goals,Tongfang's shares were separated from Fangtai,and listed on the Main Board of the Stock Exchange,which has improved the market and financial performance of Tong Ted.As the first successful case of splitting the Mainland A-share listed company into an overseas stock exchange,the study of Tongfang share spin-off and Fang Taide listing can provide reference for companies wishing to adopt the same approach to enhance corporate value in the future.This article first elaborates the research background and research significance,and sorts out the relevant literature of foreign and domestic scholars on the causes and performance of the spin-off listing.Then it introduces the related concepts and theories of spin-off listing,and then combines the case with Tongfang's shares.Ted went public and analyzed in depth the changes in the market and financial performance of Fang Ted after spin-off,and analyzed the causes behind these changes.In the aspect of market performance,the company analyzed the trend of stock price changes of parent companies and subsidiaries,evaluated the market share of subsidiaries and changes in the overall competitiveness of the company.The analysis showed that the stock price rose in the short term after the parent company issued the announcement of splitting and listing,and increased at the same time.The subsidiary's market share has enhanced the overall competitiveness of the company.In terms of financial performance,the company studied four changes in its ability to subdivide after listing—growth ability,profitability,operational ability,and solvency.The analysis showed that the growth ability and profitability of the subsidiary have been enhanced,but Due to the large-scale expansion of assets and the use of debt financing after the spin-off,the subsidiary's long-term performance and solvency are not good,but compared with the average level of the industry,its operating capacity and debt repayment ability are higher than the industry average.,indicating that the financial performance of the subsidiary after the spin-off listing has performed well.In the end,this article has made experience in extracting the causes,performance changes and causes of Tongfang's share listing and Ted listed,and has raised concerns about the internal control and development of Fangdide after the spin-off and the related party transactions.The parent company should carefully select the target of the spin-off listing and at the appropriate time split it out for listing.The spin-off listing can be regarded as a one-time capital operation.After the subsidiary is listed,it must improve its own internal control system and do a good job of corporate governance.At the same time,we must pay attention to our own business development,formulate reasonable future plans,and avoid abnormal related party transactions,and give full play to the benefits of spin-off listing.