Case Study Of TCL Technology’s Spin-off Of Tonly Electronics To List

In 2020,the new regulations on domestic spin-off and listing were issued,which is as likely as breaking the ice for the domestic capital market.The favorable policy environment is no less than injecting a shot in the arm to the A-share market.The cluster effect under optimism promotes quite a number of domestic enterprises to change and get ready for the spin-off and listing.In the face of the rising phenomenon of spin-off and listing in the capital market,it is necessary and of practical significance to study the cases of successful spin-off and good operation results,so as to provide theoretical and data support for enterprises trying to upgrade through spin-off and listing to achieve business strategy optimization,business transformation.Since the development of spin-off listing in China started relatively late,while the spin-off operation mode in Hong Kong market is relatively mature,this paper chose TCL Technology as a case to provide enterprises with the positive effects of spin-off listing in the short and long term,and provided a referencial and executable perspective and method.In this paper,case studying and literature researching were used to explore the operational context and capital logic of the spin-off of Tonly Electronics from TCL Technology according to the strategic adjustment of TCL Technology.TCL Technology has been listed in Hong Kong stock market after spin-offs twice.The first spin-off has accumulated experience for this company.In the context of the capital market environment and the laws and regulations at that time,TCL Technology chose to carry out another spin-off in Hong Kong stock markets based on various factors.This paper takes the external and internal reasons for the spin-off of Tonly Electronics to study the impact of it thoroughly.From the perspective of financial impact,the spin-off of Tonly Electronics mainly produced market value creation,financial performance impact and non-financial performance impact.The author chose the asset pricing model of event study method to analyze the change of market value of TCL Technology after the spin-off Tonly Electronics to list,and found that spin-off has a positive reaction to TCL technology.Then,the financial statement analysis method was used to study all kinds of financial indicators and investment and financing activities of TCL Technology,and a booming trend was showed after the spin-off in the following seven years.From the perspective of financing,TCL Technology’s spin-off of Tonly Electronics to list was a wise strategy.Finally,from the non-financial perspective,the positive effect of spin-off listing on the incentive of the subsidiary’s management and the diversion of suppliers and clients was analyzed layer by layer from the dimensions of customer market,operation and human resources in the BSC model.Based on the motivation and the impact analysis,this paper finally extracted the relevant conclusions,enlightenment and prospects of the case of TCL Technology spin-off of Tonly Electronics.