Analysis On The Motivation And Economic Consequences Of Sunshine Guojian’s Spin Off To STAR Market

As the country actively carries out reforms in the field of pharmaceuticals,and reduces the prices of various drugs through centralized drug procurement,which has led to great changes in my country’s pharmaceutical market,the affected pharmaceutical companies cannot "lay on the credit book" as in the past.It is necessary to increase R&D investment to find new products for the company’s revenue growth.On the other hand,with the gradual growth of my country’s pharmaceutical industry,major pharmaceutical companies have joined the team of R&D innovative drugs.However,due to the long R&D cycle and large capital requirements,the company urgently needs external financing to support drug R&D.At the same time,coincident with the implementation of my country’s high-tech strategy,the Chinese government has actively issued policies to benefit the development of high-tech enterprises.On November 5,2018,General Secretary Xi Jinping announced the establishment of the STAR Market.Restrictions on domestic spin-off listings have been opened.Since then,more and more hightech companies have chosen to spin off their subsidiaries to be listed on the STAR Market.As of January 20,2021,more than 60 companies in the A-share market have issued announcements about their spin-off and listing,and 20 companies listed on Hong Kong stocks It is planned to spin off a subsidiary and list it on A-shares.The case company in this article is Sunshine Guojian.This thesis adopts the methods of literature research,case study and event study.By selecting Sunshine Guojian spin off to STAR Market listing as a case,combined with the existing theory,this thesis uses the case study method to study the motivation and economic consequences of Sunshine Guojian’s spin off.Firstly,according to the theory,this thesis expounds the definition and mode of spin off listing,the motivation of spin off listing and the evaluation index of economic consequences.Secondly,it briefly introduces the background of3 SBIOINS and Sunshine Guojian,analyzes the motivation of spin off and summarizes its spin off process.Thirdly,from the perspective of corporate governance,resource allocation and external environment,this thesis studies the impact path of spin off listing on Sunshine Guojian,and summarizes the factors of its spin off success.Then,it analyzes the impact of spin off on parent and subsidiary companies from the perspective of company operation,market response and innovation and R &D ability.Finally,combined with the previous analysis,this thesis draws the research conclusion,and puts forward relevant enlightenment according to the advantages and problems of Sunshine Guojian’s spin off listing.Through the analysis and Research on the case of the listing of science and innovation board caused by the spin off of Sunshine Guojian,this thesis draws the following conclusions:(1)The split listing broadens the financing channels and alleviates the pressure of enterprise funds;(2)Spin off is good for the short-term market value of the company,but it has limited impact on the long-term;(3)Spin off and listing improved the corporate governance structure,and the R&D efficiency of subsidiaries was improved;(4)Spin off and listing enables parent and subsidiary companies to focus on their main business and improve the overall competitiveness of the group.On this basis,according to the advantages and existing problems of the case,the following enlightenment is summarized:(1)Formulate and implement the spin off plan based on the overall strategy of the group;(2)Maximize the use of spin off dividends to enhance the core competitiveness of enterprises;(3)Open the capital market and optimize the spin off system,so that enterprises have more choices in spin off;(4)Optimize the information disclosure mechanism and fully disclose the true capabilities and risks of enterprises.