| With the rapid development of China’s economy,the capital market has also entered a new stage of development,forming a multi-tiered capital market structured by the Main Board,the Growth Enterprise Market,the Science and Technology Innovation Board,the New Third Board and the Regional Equity Exchange Market.Under this structure,each segment has a clear market positioning.As a platform to serve SMEs,the New Third Board has the advantages of low threshold for listing and short cycle for directed issuance,which has attracted many start-ups and to a certain extent solved the early financing needs of enterprises,making it a home base for SME financing.Since the full liberalisation of the NSSB in 2013 with the introduction of the market maker system to the reform of the Selective Layer,the system of the NSSB has become more robust and complete during this period,and the scale of listed enterprises has skyrocketed to an unprecedented 11,630 in 2017.However,the pace of construction of the NSSB has not kept pace with the dramatically rising number of enterprises,leading to problems such as illiquidity on the NSSB,which has limited the financing of some quality listed enterprises.By then,the country launched the STB and piloted the registration system,which opened up a new listing channel for these quality enterprises,so many NSSB-listed enterprises chose to transfer to the STB.This paper takes Titan Technology as the object of study.As one of the first companies to be listed on the STB,Titan Technology’s listing process has taken many twists and turns,with two transfers and over a year’s time,the process of which is worthy of in-depth study.In this paper,we apply literature research,case studies,quantitative analysis and comparative analysis to study Titan Technology’s transfer events,and finally arrive at the motivation and effect of the transfer.In the case presentation,the paper first introduces the background of the transfer,including the policy changes before the transfer,the market situation of the New Third Board and the current situation of the transfer.Then,a pre-analysis of the industry and company situation of the research subject is conducted to determine its competitive environment and conditions through the SWOT method,based on which the motivation of Titan Technology’s reboarding is explored.After that,the internal and external influencing factors leading to the company’s transfer to the board were identified by combining the problems of the New Third Board and the difficulties faced by Titan Technology in the process of development.The two transfer processes are also analysed,with a focus on comparing the different practices and summarising the successful experiences.Finally,the effect of the transfer is evaluated in five dimensions: capital market performance,financing performance,enterprise valuation and total market capitalisation,operating activities performance and financial performance performance.After analysis,the paper concludes the following: influenced by the lack of liquidity on the New Third Board,Titan Technology’s financing is limited and its corporate valuation is low,which constrains its development at the current stage and therefore aspires to be listed on the Science and Technology Board.From the perspective of the transfer process,highlighting the attributes of science and innovation is a necessary condition for enterprises to transfer to the Science and Innovation Board.In terms of the effect of the transfer,Titan Technology has performed well in the capital market after the transfer,with enhanced financing capacity and improved financing efficiency,while the enterprise valuation and total market capitalisation have increased.In terms of the performance of operating activities,the company’s innovation and research and development increased,the market share of its own brand products increased and its operating growth status was stable.In terms of financial performance,this paper uses Du Pont analysis to conclude that the company’s solvency has increased and profitability and operating capacity have decreased after the transfer.The analysis of EVA indicators shows that the shortterm EVA has increased after the transfer but the long-term performance is poor.On the whole,the transfer has brought some positive effects to Titan Technology,but there are also some negative effects.Finally,this paper concludes with five suggestions for the companies to be transferred to the board: strengthen the ability of science and technology innovation,improve the quality of information disclosure,choose a professional sponsor,strengthen the management of fund raising and choose a suitable board to transfer to. |
