Research On The Motivation And Economic Consequences Of CDR Listing Of Ninebot Limited

The launch of the Chinese Depository Receipt(CDR)in 2018 opened up a new path for red-chip enterprises to list on A-share.In 2019,the Science and Innovation Board was established and the registration system was piloted,allowing red-chip enterprises to retain the VIE structure and issue CDR to land directly on the Science and Innovation Board.Under this opportunity,Ninebot Limited became the first "VIE+CDR" listed company in China in 2020,which has important reference significance for other red-chip enterprises that want to return to A-share listing.Therefore,this thesis conducts an in-depth study on the case of Ninebot Limited issuing CDR listing,to enrich and improve the subject of red-chip enterprises returning to the domestic capital market by issuing CDR.This thesis uses the methods of literature research,case analysis and financial index analysis to study the motivation and economic consequences of Ninebot Limited issuing CDR listing.First of all,it combs the relevant research results of red-chip enterprises in terms of return motivation,return path,return economic consequences and depository receipts,defines the concepts of red-chip enterprises,Chinese Depository Receipt(CDR)and VIE structure,and explores the theoretical basis of this thesis.Secondly,the overall overview of Ninebot Limited and the CDR listing process are described in detail.Taking this as an entry point,the internal and external motivations of Ninebot Limited’s listing on A-share in the form of CDR are explored.Thirdly,the economic consequences of Ninebot Limited’s CDR listing are comprehensively evaluated from three perspectives:financial indicators,non-financial indicators and market value changes,and the potential risks of Ninebot Limited issuing CDR listing are pointed out.Then,the enlightenment of the case of Ninebot Limited to red-chip issuing CDR listing is analyzed.Finally,the thesis is summarized and prospected.The research shows that the case of Ninebot Limited issuing CDR and listing on the Ashare market is generally successful.In terms of financial indicators,after the CDR listing of Ninebot Limited,its profitability,operational capability,debt repayment capability and growth capability have been continuously enhanced;in terms of non-financial indicators,after the CDR listing of Ninebot Limited,its corporate strategic layout has been steadily promoted,its R&D and innovation capabilities have maintained the leading position in the industry,and the role of equity incentives has been strengthened;in terms of market value changes,compared with the market value at the time of issuance,the market value of Ninebot Limited reached a new height after the CDR listing,its stock yield performed well,and its price-to-sales ratio was also lower than the industry average.Through the above analysis,this thesis draws the following enlightenment:first,red-chip enterprises should clarify their return motivation,choose an appropriate return path,pay attention to domestic policy orientation and choose the appropriate listing time;second,regulators should improve the construction of CDR system,strengthen the supervision of VIE structure,steadily promote the registration system reform,and create favorable environment and conditions for the return of red-chip enterprises;third,investors should invest rationally and prevent risks.