Research On The Performance Of Xiamen Tungsten Spin OffXtc New Energy

With the development of the capital market and the increasingly fierce competition in the market,many companies have mostly adopted expansionary restructuring in order to expand their business scale and achieve diversified operations.However,the massive and rapid expansion has caused negative synergies in the diversification mode of some companies.In order to eliminate the negative synergy effect,many companies have adopted a new contracting asset operation mode of spin-off.In China,spin-offs started late,but in recent years,with the gradual improvement of capital market,the establishment of SSE STAR market and the implementation of regulations on spin-offs,listed companies in China have started to explore the field of spin-offs.In February 2021,the spin-off of Bio-Tech and Bio-Electronics was listed on the SSE STAR market,making it the first successful case of "A to A" spin-off in China.Since then,there has been a clear shift in the destination of A-share listed companies to spin off their subsidiaries for listing on the A-share market.As of September 2022,17 A-share listed companies have spun off their subsidiaries to list on the A-share market,and more than half of them have chosen to list on the SSE STAR market.At present,there is not enough research on the spin-off of A-share listed companies to list on the SSE STAR market in academia,therefore,this thesis selects the case of Xiamen Tungsten spinning off Xtc New Energy to list,which is necessary to supplement the case study of the spin-off on the SSE STAR market,and it has some theoretical and practical significance to study whether the companies can meet the pre-spin-off expectations after the spin-off and what impact the spin-off has on corporate performance.Based on this,this thesis selects the case study of Xiamen Tungsten’s spin-off of Xtc New Energy as the object of study and analyzes the impact of spin-off on corporate performance in depth.First,we review the domestic and international literature on the definition,motivation and performance of spin-offs.The concept,types,models,related theories and performance evaluation methods of spin-offs are explained.Second,the process of Xiamen Tungsten’s spin-off of Xtc New Energy is reviewed,introducing the two parties of the spin-off,the type and model selection of the spin-off,the process and results of the spin-off,and exploring the motivation of the spin-off with the spin-off motivation theory.Then,the event study method,financial indicators,and non-financial indicators are used to analyze the results of the impact of the spin-off on the performance of the parent and subsidiary.Finally,relevant conclusions and insights are drawn.After the study and analysis,the following conclusions were obtained: for the parent company Xiamen Tungsten,the spin-off brought excess return,improved earnings,debt service,operation and growth capacity,and had a positive impact on the financial performance of the parent company.For the subsidiary Xtc New Energy,the spin-off reduced information asymmetry and had a positive short-term market reaction.After the spin-off,Xtc New Energy focused on the development of battery business and solidified its leading position in the industry.It has broadened the financing channels and significantly improved the financial difficulties.It has also motivated the management and employees,achieved better performance results and significantly improved the company’s performance.Based on the conclusion,relevant insights found in the study are summarized from three perspectives: parent company,subsidiary and regulator,with a view to providing reference for other companies’ spin-offs.