Research On Value Creation Path And Effect Of Xiamen Tungsten Co.,LTD Spin-off XTC New Energy Materials(Xiamen)co.,Ltd.

With the development of the world economy,problems such as bloated organisational structures and inefficient management caused by the diversification of enterprises have become increasingly prominent.As a new mode of corporate restructuring,spin-offs can not only help companies to optimise their industrial structure,but also contribute to sustainable development.As early as in the 1980 s,Western scholars began to study it and formed a more complete theoretical system.China’s spin-offs,on the other hand,have been slower to develop,with fewer relevant cases and studies.It was only in December 2019 that China promulgated the "Certain Provisions on Pilot Domestic Listing of Spin-off Subsidiaries of Listed Companies",a formal policy provision on spin-offs,which has provided strong support for the flourishing development of spin-offs in China,and by the end of 2021,93 A-share listed companies had announced that they intend to spin off their subsidiaries for A-share listing or are in the process of doing so.Therefore,studying the impact of spin-offs on corporate value creation will not only explain the enthusiasm of companies for spin-offs after the introduction of the policy,but also provide some lessons for companies intending to spin off their listings.This article selects one of the first successful "A to A" listings in China-Xiamen Tungsten’s spin-off of XTC New Energy Materials(Xiamen)Co.,Ltd-as the subject of this study,and explores in depth the background,process and results of its spin-off.This paper firstly summarises the theories and studies related to spin-offs at China and abroad to provide a theoretical basis for the analysis in the later part of the paper.Secondly,after the introduction of the company profile,the whole process of the spin-off of XTC New Energy Materials(Xiamen)Co.,Ltd is reviewed;thirdly,the path of value creation through the spin-off of XTC New Energy Materials(Xiamen)Co.,Ltd is analysed in detail;finally,from the perspective of value creation,a comprehensive assessment of the realisation of value creation after the spin-off of XTC New Energy Materials(Xiamen)Co.,Ltd is conducted using various methods such as financial index analysis and the F-score model.The market reaction and changes in market capitalisation after the spin-off of the parent and subsidiary are studied through the event study method,Tobin’s Q and BHAR method,so as to better assess the impact of the spin-off on the value creation of the enterprise group.After studying the case companies,this paper draws the following conclusions:(1)After the spin-off,the financing capacity and debt-servicing capacity of XTC New Energy Materials(Xiamen)Co.,Ltd have been improved,and the financing effect has been well realized.(4)After the spin-off,both the parent company,Xiamen Tungsten,and the subsidiary,XTC New Energy Materials(Xiamen)Co.,Ltd,have responded well to the market in the short term,while the value of the Group has increased significantly in the long term,indicating that the spin-off has achieved value creation for the Group.