Research On The Performance Of Jia Hua Energy Backdoor Listing

Financing channels are the "hematopoietic system" on which an enterprise depends for its survival.More and more enterprises obtain enough funds through listing.Due to the high threshold and time-consuming of IPO,some companies which want to go public but can not go public in the short term turn to the backdoor.Relative to the IPO,the backdoor listing still has the advantages of quick approvals process and being simple.Owing to this,backdoor listing is favoured by a lot of companies.This article mainly uses the case study method,taking Jiahua Energy being successfully backdoor listed by Hua Fang Textile as a case.On the basis of reviewing the research on backdoor listing at home and abroad,combined with the relevant theory,this paper discusses the background,motivation,transaction process and implementation plan of the case in detail.It studies the performance of Jiahua Energy's backdoor listing from the aspects of market performance,financial performance and non-financial performance,and evaluates whether this backdoor has achieved the expected result.Finally,it discusses how Jiahua Energy further enhances the performance after the backdoor and induces the enlightenment to the listed company which wants to be backdoor.Jiahua Energy backdoor listing performance is good.In terms of market performance,backdoor listing has made the price of stock market a significant rise in the short term,and the stock has produced excess returns.The market has given a positive response to this event.In terms of financial performance,the company's operating conditions have been improved.The backdoor restructuring by both parties satisfied the financing needs of Jiahua Energy in opening up new markets and greatly enhanced the financial position of the Company.Both of these commitments exceeded their commitments in 2014-2016.In terms of non-financial performance,the market share of Jiahua Energy has been continuously expanding,the performance of research and development investment and social responsibility are all good,which has a positive impact on the performance of Jiahua Energy.Backdoor is just a good start.To achieve long-term development,enterprises need to establish long-term development plans,optimize the governance structure,establish a comprehensive risk management system and strengthen the enterprise integration after the backdoor listing.At the same time,this article which analyses the Jia Hua Energy's backdoor listing can still bring some enlightenment to other companies that want to backdoor list.For instance,they can improve the preparatory work for the backdoor listing,select the shell resources and actively play the role of intermediaries.