Research On The Motivation And Performance Of Huapont Life Sciense’s Spin-Off Of And Listing Of Kaisheng New Materials

In recent years,asset restructuring has become an effective means of resource allocation in the capital market.According to the different ways of asset reorganization of enterprises,asset reorganization can be divided into expansion-type asset reorganization,contraction-type asset reorganization and internal transformation asset reorganization.Expansion-type asset reorganization includes merger,capital increase and share expansion,merger of enterprises,purchase of assets,etc.,while contraction-type asset reorganization covers split establishment,internal division of enterprises,and asset divestiture.After the third wave of mergers and acquisitions in the United States,spin-off and listing have entered the stage of history as a representative method of shrinking asset restructuring.Compared with the United States,spin-off listing appeared relatively late in my country,but with the development of my country’s capital market and the continuous improvement of the securities legal system,more and more companies choose to carry out asset reorganization by spin-off and listing.A-share companies in Shanghai and Shenzhen will spin off their subsidiaries to list,which will not only broaden the investment and financing channels of A-share companies’ subsidiaries and obtain a secondary equity premium;it will also play a leading role in a certain demonstration and encourage more listed companies to invest Cultivate new high-growth subsidiaries.Finally,it will be spun off and listed on capital markets such as the Growth Enterprise Market and the Science and Technology Innovation Board,so as to achieve a virtuous circle of high-quality assets.This article combines case studies and empirical studies to spin off its subsidiary“Shandong Kaisheng New Materials Co.,Ltd.”(herein-after referred to as“Kaisheng New Materials”)with“Huapont Life Sciense and Health Co.,Ltd.”(hereinafter referred to as“Huapont Life Sciense”)listed cases as the research object to analyze the motivation of Huapont Life Sciense’s spin-off of Kaisheng New Materials and the impact of spin-off and listing on the performance of both parties.First,the historical background,the process of the split and the reasons for the split are explained in order to fully restore the split.Secondly,focus on analyzing the performance of the two parties before and after the spin-off from the three dimensions of the capital market,main financial indicators and non-financial indicators,and use the price-earnings ratio valuation method to make a comprehensive performance evaluation.Finally,according to the analysis results,the research conclusions are drawn:first,spin-off and listing can improve corporate financing capability and valuation;second,spin-off and lising can improve the enthusiasm of management;third,spin-off and listing can enhance the company’s value in the short term.