Analysis On The Financial Effects Of Yonyou's Spin-off Listing With Chanjet

In 1920 s and 1930 s,numerous countries in the West have achieved rapid development economically via reform.Companies have also seized such opportunity and have begun its progress with the assistance of outside environment.To gain a firm foothold in the fierce competition over economic market,companies have spared no effort to explore a customized development strategy.In order to be adapted to the development of the times,most companies have attempted to realize their pluralistic development by merger and acquisition(M&A)constantly.Therefore,it is necessary for companies to carry out the strategy of diversity with the purpose of guarding them against all possible risks and complying with the market.Nevertheless,companies have had difficulties in keeping balance between promoting diversified operation and developing their various business evenly in the intense market competition.After all,different businesses differ in their main development directions and have their own characteristics.Take such difficulty into consideration,many companies who want to improve as a whole have begun to develop professionally.Companies have determined to split marginal business,and have endeavored to maximize their main business through financing to ensure the core interests of the bloc.The spin-off listing have been quite mature in Europe and the United States.In the contrast,companies in China have a poor knowledge of this business pattern.It remains in the initial stage in the domestic market economy system.To ensure the successful process of coming into the market,many spin-off companies may choose to go public in Hong Kong with the convenience provided by the computer information technology.Chanjet to Hong Kong spin-off listing,which is of transcendental significance for many companies.This paper aims at setting a research plan from two aspects to analyze the financial effect result from the operation that Yonyou spited Chanjet to be listed.Only in this way can we better understand the significance and influence of the spin-off listing.This paper starts with the background information,significance,research status domestic and overseas of the spin-off listing,and then explain its idea and pattern.The author also lays a theoretical foundation for the following case analysis.In the beginning of the case analysis,the author briefly introduced the development of Yonyou and Chanjet.In this part,takeing the development program and business breakthrough of Yonyou as the starting point,the author explored the deep motivation behind its spin-off listing Combining the era backgrounds of “Internet plus”.The author analyzed changes in equity relationship before and after the spin-off listing through a contrastive analysis of its annual report.At the meantime,the author analyzed Yonyou's operation of capital and businesses before the spin-off listing logically.Apart from the back ground information of the spin-off listing,the paper also takes into consideration capital structure,shareholder wealth and financial performance to explain the influence of the spin-off listing of Chanjet.In the section of capital structure and financial performance,the paper utilized related financial indicator data of the two years before and three years after the listing event,and draw a diagram with the financial indicator data of Yonyou,Chanjet and ERP software industry to have a visualized analysis.With the line chart and the annual report,the author did a research on the results and reasons for the change after the spin-off listing.CAR model was taken in the section of shareholder wealth.To analyze the influence upon the competitors of Yonyou,the author selected a time range of one week before and after the announcement.In the end,the paper made a detailed conclusion of the listing events of Yonyou through a comprehensive analysis above.The negative results obtained from the analysis of financial effects,to sum up,mainly due to the lack of cost control in the process.Besides,the paper also elaborated on other potential positive impacts and development potentials brought about by this spin-off listing.the paper came up with some constructive suggestion for companies who wants to be listed in Hong Kong based on the successful experience of Yonyou by cases analysis and discussion.Additionally,considering the negative financial effects,the paper also brought forward opinions of focus on long-term performance and maintaining recognition in capital market.