A Case Study On The De-listing Of Huaze Cobalt Nickel Based On The Hollowing Out Perspective Of Major Shareholders

Due to the long time to go public and the strict approval of the IPO.Many enterprises choose to enter the capital market by way of backdoor listing,including private enterprises.With the high tide of shell listing in 2014 receding,more and more shell listed companies due to poor performance has been specially dealt with,ST companies frequently,some shell listed companies even face the problem of de-listing.Why did the shell listed company change its performance in just a few years?Revealing the problems in the process of enterprise shell listing is conducive to better playing the role of capital market shell resources,improving the effect of shell listing as a listing method,and promoting the healthy development of capital market..In this paper,case study is used to study the case of Huaze cobalt nickel de-listing using the theory of entrustment agent,information asymmetry and control.The study found that:(1)the pre-market preparation of the shell exposed the shell party Shaanxi Huaze impure listing motivation.Shaanxi Huaze shell listing in the first three years of the operating performance is obviously not in line with the market price of nickel metal,but also significantly higher than the performance of enterprises in the same industry,there is a clear surplus management behavior.Shaanxi Huaze in the shell listing process into the shell resources of the assets there is a serious overestimation;High gambling agreements led to the successful listing of Shaanxi Huaze,Shaanxi Huaze majority shareholders have absolute control of listed companies to provide convenient conditions for hollowing out behavior.After the successful listing,the operating performance failed to meet the requirements of the gambling agreement,the majority shareholders need to make share compensation,the majority shareholder's equity will be diluted and thus shake its control position.The majority shareholder's equity is basically cashed out by pledge,there are not enough shares to compensate,the majority shareholder has not disclosed this.Obviously,the major shareholders in signing the gambling agreement is not ready to fulfill the agreement,the company's internal control mechanism is also a sham;(3)the majority shareholder of the listed company mainly through fictitious related party transactions to transfer funds on a large scale,arrange for the listed company to provide guarantees to the related party,pledge to hold the listed company stock cashing out and other ways to empty the listed company.Major shareholders also cover up their illegal activities by making false disclosure of information to the outside world,and(4)the hollowing-out by large shareholders not only deprives listed companies of their ability to continue to operate,but also causes serious damage to small and medium-sized investors,but also disrupts the capital market and undermines investors' confidence.Based on the characteristics of Huaze Cobalt Nickel,this paper analyzes the pre-market preparation of the shell before listing through the pre-listing enterprise data,industry data,and post-listing financial indications and stock price performance,and digs into the conditions,means and consequences of the major shareholders hollowing out the listed companies.Based on the analysis of this paper,this paper puts forward some suggestions to strengthen the supervision of the shell listing process,optimize the equity structure of the family listed company,and improve the family company governance and internal control.Finally,through the case summary analysis and point out the shortcomings of the article.