Research On The Motivation And Performance Of Gotion High-tech Backdoor Listing

Nowadays,the economy is developing rapidly but it has brought out the grave problems of energy shortage and environmental pollution,so people began to develop new energy to solve these problems.At the same time,China has always regarded the new energy industry as the economic overhaul since the 13 th five year plan was released.Under this background,the development of new energy related fields is booming and the market attention continues to rise.However,new energy enterprises will face the problem of insufficient funds caused by scale expansion in their growth,and listing and financing is their primary choice to obtain financial support.Because China’s IPO has the problems of high threshold and long cycle,and it takes so much time and money from enterprises.On the contrary,backdoor listing costs less time and money,so more and more enterprises choose backdoor listing.As an emerging industry,new energy has less experience of backdoor listing,and its theoretical research is also insufficient.Therefore,this paper creatively research the new energy companies’ s action about backdoor listing,maybe can provide some recommendations for other new energy companies.The case chosen in this paper is a successful backdoor listing case between "Dongyuan electric appliance" and "Gotion High-tech" in 2015.The the starting point of this paper is about the transaction process of the event and the change of equity of both parties as the starting point,then analyzes the enterprise’s motivation,at last focuses the performance changes of Gotion High-tech after backdoor listing from multiple angles.Firstly,this paper is based on M ＆ A theories such as diversification and synergy to pursue research.Then using the event study to analyze whether backdoor listing can bring short-term market beneficial results to companies.Then the financial index analysis method and the EVA method are used to research the long-term impact brought by backdoor listing,mainly include the long-term financial performance and enterprise value.Finally,it analyzes the non-financial performance of enterprises,which can better explain the motivation for enterprises to choose backdoor listing,and interpret the logical relationship between them.After the above analysis,it is found that the market react to this event quickly and fiercely,and the CAR of Gotion High-tech has been greatly improved in the window period.All of this shows that backdoor listing can bring obvious positive effect to the short-term market performance of companies.In terms of long-term financial performance,Gotion High-tech has excellent financial indicators in the three years after its backdoor listing,with a significant increase in profitability,development ability and solvency,and a small increase in operating capacity.Moreover,after the successful backdoor listing of Gotion High-tech,EVA increased rapidly and the enterprise value increased.However,in the fourth year after backdoor listing,the effect of backdoor listing began to decrease.Also,the non-financial performance after backdoor listing well met the Gotion High-tech’s motivation of backdoor listing.In brief,backdoor listing can improve the short-term and long-term financial performance of enterprises as expected,but enterprises should pay attention to the decline of marginal utility in the later stage.After a series of case analysis and research conclusion,there are some advice for other enterprises which plans to borrow shells: first,shell resources should be properly selected and high-quality shell resources should be selected as far as possible;Second,choose the right time of M ＆ A and reduce the cost of M ＆ A;Third,we should strengthen the integration of enterprise resources and avoid the integration risk;Fourth,companies have to constantly pay attention to their own financial situation before and after backdoor,only in this way can companies avoid potential financial risks;Finally,as the economy developing rapidly,the new energy industry has great development potential and bright prospect but numerous competitors and fierce market competition,so that new energy company should pay attention to technological innovation.