Research On The Financial Performance Of BJEV’s Backdoor Listing

With the depletion of energy and the increasing problem of environmental pollution,countries have begun to pay attention to the development of new energy industry,and the new energy vehicle industry has also emerged.During the "14th Five-Year Plan" period,China clearly stipulates the time to achieve carbon peak and carbon neutrality,and encourages traditional car companies to develop new energy vehicles.Driven by the support of national policies and market demand,China’s new energy automobile industry has developed rapidly,and its sales volume has ranked first in the world for six consecutive years.In order to make the rapid development of enterprises,future operations need the support of large funds,enterprises tend to enter the capital market to obtain financing,China’s current way to enter the capital market is mainly divided into IPO listing and backdoor listing.BAIC Motor is a well-known traditional automobile manufacturer in China,and in 2018,BAIC New Energy,a subsidiary of its group,landed on the market through backdoor Frontier Electronics and became the first new energy vehicle in the Chinese market.This thesis selects the case of BJEV’s backdoor listing,analyzes the reasons for the company’s backdoor listing by understanding the background and path of its backdoor listing,analyzes the changes in financial performance before and after the backdoor listing through data indicators,explores whether the change achieves the purpose of backdoor listing,helps the development of enterprises,and provides reference for other new energy vehicle enterprises to enter the capital market.This thesis focuses on "BAIC BJEV’s backdoor listing motivation and changes in financial performance before and after listing",reviews the whole process of BJEV’s backdoor listing,and analyzes the motivation of BAIC BJEV’s backdoor listing based on relevant theories.This thesis aims to explore the changes in the short-term financial performance of BJEV’s backdoor listing with the help of the event research method,based on the AHP-gray correlation analysis method and using the 2016-2021 financial statement data of BJEV The trend of long-term financial performance before and after backdoor listing was discussed,and the financial performance of BJEV was analyzed horizontally according to the factor analysis method.Finally,the main research conclusions are as follows:(1)After the backdoor listing of BAIC New Energy,the market reaction was relatively negative in the short term,while the long-term financial performance showed different decreases in addition to the improvement of growth ability;(2)The thesis found that the reason for the poor performance after listing was mainly that the selected shell company did not have a synergy effect with the case company,and the continuous expansion after backdoor listing brought great pressure on the company’s solvency and operating ability;(3)This thesis finds that BJEV’s practice of selecting a company under the same control as a shell company is worth referring to,which can promote the success rate of listing.In addition,although the backdoor listing standards are becoming more and more stringent,compared with the approval of IPOs,backdoor listing is still a way to think about for companies that are not very capable themselves.