Research On Motivation And Performance Of Shengyi Technology Spin-off Listing

The spin-off listing is in line with the natural development law of the life cycle of enterprises,and it is the inevitable trend of the capital market to develop to a certain stage.In the mature capital market,the spin-off and listing is one of the widely used capital management methods.Capital management mode represents the different capital operation modes of enterprises in different stages of development.But the purpose of enterprises using various capital means is the same —— to enable the company to achieve high-quality development.The spin-off listing is the company will split its subsidiary or business sector independent development in the form of Limited-Liability Company,the introduction of external capital for effective allocation of resources,improve the subsidiary core competitiveness,implement internal incentive mechanism,straighten out the overall and split individual corporate governance institutions,improve the enterprise valuation in the capital market.In recent years,in order to meet the needs of the overall environment,China’s capital market,since the end of 2019,the CSRC issued Several Provisions on the Pilot Domestic Listing of Subsidiaries under the Spin off of Listed Companies,as well as the registration system of Sci-Tech innovation board and the Second-board Market,which realized the spin-off listing of domestic listed companies.Since the introduction of a series of policies,the speed of spin-off and listing of domestic companies in China has been significantly accelerated.Since the introduction of the policy up to now,hundreds of enterprises in China have the intention of spin-off,and some enterprises have been on the road of spin-off and listing,among which more than 20 enterprises have been successfully spin-off and listed in China.Under the permission of the company’s internal strategic development and external policies,Shengyi Technology became the first "A split A" case company in China to successfully split its subsidiary and landed on the science and Technology Innovation Board.This paper takes the listing of Shengyi Technology as a case study,and analyzes the motivation and performance of its spin-off listing in China.Firstly,literature research,combining relevant theories,external market policies and internal strategy,analyzes the motivation of spin-off listing;Secondly,financial performance analysis,non-financial performance analysis and short-term market reaction analysis to determine the impact of the spin-off listing.Finally,starting with the common problems in the spin-off listing,we put forward corresponding suggestions on the spin-off listing,and draw conclusions based on case analysis.