TBEA Co.,Ltd's Motivation And Performance Of Spin-off Of XINTE ENERGY Co.,Ltd

Asset reorganization is the behavior of enterprises to re-allocate resources.It is divided into expansion reorganization and contraction reorganization according to different reorganization methods.Since the second half of the 20 th century,in order to achieve diversified operations and expand the scale of operations,many companies have adopted expansion restructuring to achieve rapid growth of the company.However,large-scale rapid expansion has also caused a series of negative consequences for the company's operations.In order to reduce negative synergy effect,spin-off and listing as one of the shrinking asset restructuring methods has attracted widespread attention.At the end of the 19 th century,there were as many as 1,700 companies participating in spin-offs in developed countries in Europe and the United States.The use of spin-offs in foreign markets has gradually matured.The relevant policies for spin-offs in the domestic market are not complete and there are many market restrictions.Since 2000,BEIJING TONGRENTANG Co.,Ltd successfully spun off Tong Ren Tang Technologies Co.Ltd's listing,it has received market attention and has gradually been used.There has been relatively little research on the spin-off of listing.Therefore,this article uses TBEA Co.,Ltd's spin-off of XINTE ENERGY Co.,Ltd's listing as an example and based on the motivation of the spin-off listing,in order to provide a reference for the proposed spin-off listing companies.This article selects the case where TBEA Co.,Ltd,the first listed company in the transformer industry,spin-off of its subsidiary XINTE ENERGY Co.,Ltd and listed on H shares.It adopts a literature research method and a case study method,from the perspective of short-term market effects and long-term value creation.Study the performance of spin-offs.Firstly,define the concept of spin-off and listing,and summarize the theoretical foundations related to motivation and performance.Secondly,the basic situation of parent and subsidiary companies is briefly introduced,the process of spin-off and listing is combed,and the main reasons for the spin-off and listing are analyzed for this case.Finally,the event research method,financial indicator analysis method,and non-financial indicator analysis method arecombined with the economic value added to correlate the motivation of the spin-off and listing with the performance of the spin-off and listing,and the short-term market effect and long-term value creation of the spin-off and listing.Two aspects are evaluated to analyze the performance of the spin-off.For the evaluation of short-term market effects,the article studies the changes in stock prices and cumulative excess returns;for the evaluation of long-term performance value creation,the article combines financial indicators,non-financial indicators and economic value added to study changes in the company's various capabilities happening.Finally,this article analyzes the correlation between drivers and performance,and concludes that the stock price of the parent and subsidiary companies has increased significantly after the spin-off and listing,and the cumulative excess return is positive,which has achieved a good short-term market effect.The development of new energy business has promoted the creation of its long-term value,the company's financial capabilities have improved,the economic value-added has increased year by year,the research and development capabilities and management efficiency have also improved,and the overall drivers and requirements for spin-offs achieved the desired effect.Based on the above conclusions,relevant suggestions are proposed to the company that is going to spin off: The spin-off and listing should be in accordance with the company's future development strategy,choose the appropriate assets and listed sectors for spin-off and listing,clearly identify the funding requirements for spin-off and use the funds reasonably.At the same time,equity incentive plans can be used to improve management efficiency and further improve the company's operating performance.