Analysis Of The Motivation And Effect Of Shengyi Technology’s Spin-off Of Shengyi Electronics

In the 1960s,the various advantages brought by diversification made foreign companies embark on the road of mergers and acquisitions,and the trend of mergers and acquisitions has prevailed since then.However,with the gradual deepening of the degree of enterprise diversification,the advantages brought by it become less obvious and even have a series of negative effects.In this context,the shrinking asset restructuring method of spin-off and listing came into being and reached its peak in the 1980 s.Through the spin-off and listing,the diversified group has solved the problems of resource allocation efficiency and management efficiency caused by excessive diversification.The parent and subsidiary companies focus on their respective core businesses and achieve a win-win situation.Compared with foreign countries,my country’s capital market has a relatively short history of development,and has always maintained a prudent attitude towards spin-off and listing,and relevant research is also in its initial stage.Until December 2019,Securities Regulatory Commission issued the "Several Provisions on the Pilot Program of the Spin-off of Subsidiaries of Listed Companies for Domestic Listing",which improved the relevant systems for domestic spin-off and listing,and spin-off and listing were also accepted by more and more enterprises and investors..In recent years,the global chip shortage problem has become more and more prominent,and the electronic information industry in various countries has invested in expanding production and increasing research and development efforts.The competition in the traditional low-end electronic components market has become fierce,and electronic component companies are trying to find a new way.Shengyi Technology is the first company to successfully achieve a domestic spin-off and listing.By analyzing the reasons for its spin-off and listing of Shengyi Electronics,and comparing the changes in its financial effects and market effects before and after the spin-off,it is concluded that its successful spin-off and listing are related.The experience can provide reference for other companies with domestic spin-off and listing plans.This thesis mainly adopts the literature research method and case study method for the case analysis of the spin-off and listing of Shengyi Technology.First,it sorts out and summarizes the relevant literature on spin-off and listing at home and abroad.Secondly,using the case study method,it briefly expounds the development status of Shengyi Technology and Shengyi Electronics,and sorts out the development history of the printed circuit board industry;The reasons for the spin-off and listing of Shengyi Technology were analyzed,and finally the effect of the spin-off of Shengyi Technology was comprehensively analyzed from the perspectives of finance,financing and market.Changes,and then draw the impact of the spin-off and listing on Shengyi Technology and Shengyi Electronics.This thesis makes an in-depth analysis of the motivation of Shengyi Technology’s spin-off of Shengyi Electronics for listing,and concludes that it is mainly for rationalizing the business structure of Shengyi Technology,broadening the financing channels of Shengyi Electronics,improving the incentive mechanism of Shengyi Electronics and improving the overall company.The market value of these four purposes is carried out for spin-off and listing.Comparing the changes of relevant financial indicators before and after the spin-off of Shengyi Technology and Shengyi Electronics,it is concluded that the company’s operating performance has improved significantly after the spin-off and listing,the growth and operating capabilities need to be strengthened,the financing risk has been greatly reduced,and economic growth has been achieved.value increase.Finally,the conclusion is drawn: the spin-off and listing straighten out the business structure of Shengyi Technology and enhance the core competitiveness;broaden the financing channels of subsidiaries and expand the production scale;effectively motivate the management and improve the company’s operating efficiency;increase the Information transparency improves the overall market value of the company.By summarizing the successful spin-off and listing experience of Shengyi Technology,the following suggestions are put forward for other companies planning to spin-off and listing in China: spin-off and listing should be based on the company’s development strategy and select high-quality spin-off targets;spin-off and listing should choose an appropriate implementation path;After the spin-off and listing,it should operate independently to avoid abnormal related transactions;after the spin-off and listing,the parent and subsidiary companies should continue to pay attention to achieve long-term healthy development.