HLZJ Back Door KNKJ Listing Case Analysis

There are two main ways to enter the capital market in China:IPO and backdoor listing.However,at present,China’s capital market development is still not perfect.The securities regulatory department has adopted a strict approval system and cumbersome approval procedures to limit IPO requests.Therefore,backdoor listing as a way to help the company’s curve to go public has gradually attracted people’s attention and attention.From the case of the first case of backdoor listing in China in 1994 to the backdoor boom in 1997 and the subsequent IPO suspension,it has continued to promote the development of backdoor listing.The backdoor listing not only helps more listed companies to increase their financing channels,but also achieves the purpose of listing.At the same time,it is also an effective way to re-integrate resources to avoid suspension of trading.As a leading enterprise in the apparel industry,HLZJ successfully entered the capital market with the shell resource KNKJ through the backdoor listing method in the overall downturn of the apparel industry,and became the largest apparel company of A shares.Therefore,this paper selects HLZJ’s backdoor listing as a case,and makes theoretical references for the strategic upgrade of other apparel enterprises and the future industry development.This paper analyzes the case of HLZJ backdoor listing through theoretical research.Firstly,it sorts out the domestic motivations of backdoor listing and the performance changes before and after listing.Secondly,it introduces the backdoor from the aspects of backdoor listing and shell resource definition,synergy theory and competitive advantage theory.The theoretical basis of the listing;fully introduce the whole process of the backdoor,the shell and the backdoor listing;and analyze the motivation,operational characteristics,short-term effects and long-term performance changes of the backdoor listing.Finally,through the above analysis,it is concluded that how to better determine the listing method,the choice of shell resources,the integration of resources,and the enlightenment of the company’s development strategy and the listing valuation system should be reasonably formulated in the future development of the company.The effect brought by the backdoor listing not only makes HLZJ become a leading enterprise in the industry,enhances the overall competitive strength,but also promotes the development of the local economy and has a huge social effect.The backdoor listing method has added vitality to the development of China’s capital market and made positive contributions to social and economic development.