The Motivation And Effect Of Changchun High-tech Spin-off Bcht Biotechnology

Since the 1990 s,with the increasingly serious problems such as unbalanced business development,cross-subsidy,resource waste and low management efficiency of diversified enterprises,more and more foreign enterprises have begun to realize the business focus of the parent company and the sustainable development of subsidiaries through spin-off and listing.Spin-off listing has experienced a tortuous development in China.It was not until China Securities Regulatory Commission issued Several Regulations on the Pilot Domestic Listing of Listed Companies Spin-off of Their Subsidiaries on December 13,2019 that domestic enterprises officially launched the spin-off of subsidiaries in China at the policy level.In addition,the listing system of Science and Technology Innovation Board and GEM board was further improved.In2020,the domestic capital market ushered in A boom of A split A listing.Changchun High-tech is one of the first batch of spin-off listed on the Science and Technology Innovation board.This thesis takes the case of Changchun High-tech spin-off of its subsidiary Biochem to be listed on the Science and Technology Innovation Board as the research object,and systematically analyzes its motivation and effect.Firstly,the thesis summarizes the policy evolution,development status and industry status of Chinese listed companies spinoff subsidiaries.Secondly,read through domestic and foreign literature,summarize the motivation and effect of spin-off listing;Once again,the basic situation of Changchun high-tech splitting Big Biology is summarized,and the main reasons for Chinese listed pharmaceutical companies to split subsidiaries are discussed.Then,the motivation is analyzed from the perspective of parent company Changchun Gaoxin splitting and subsidiary Biobiotics listing.Then,combined with the parent company split motivation and subsidiary listing motivation to analyze the corresponding effect;Finally,the thesis draws the following conclusions:(1)Changchun High-tech hopes to achieve business focus,improve the overall market value and increase financing through the spin-off;Bioco expects to fully explore the value of the company,expand financing channels,enhance core competitiveness and improve corporate governance through listing.(2)In terms of the effect brought by the spin-off event to the parent company Changchun High-tech,after the spin-off of the subsidiary,Changchun High-tech increased the revenue of the core subsidiary and the cash rate of the core profit rapidly increased by increasing the R&D investment of the core business;Accumulated excess returns were obtained during the first announcement of the spin-off,and the company’s market value doubled compared with that before the spin-off.The amount of capital raised by the company has increased 6.5 times compared with that before the breakup,and the capital structure has also improved.(3)In terms of the effect brought by the listing event to its subsidiary Biogas,the stock price of Biogas was better than that of other companies in the same industry in the short term,but the market reaction was negative in the long term;With the expansion of financing channels,the solvency has been greatly improved;By increasing research and development investment,enterprises improve the core competitiveness;By introducing institutional investors and minority shareholders in the capital market,Biocor has diversified its ownership structure and launched two equity incentive plans to strengthen corporate governance.Generally speaking,the parent company and subsidiary companies after the split basically achieved the expected goal of splitting and listing.Finally,the thesis puts forward corresponding suggestions to the parent company and the subsidiary company respectively.The innovation of this thesis is that it discusses the motivation and effect of parent company spin-off and subsidiary listing respectively,and realizes the one-to-one correspondence between motivation and effect,which can enrich the theoretical research on motivation and effect of spin-off listing.In addition,the thesis adds the case study of the spin-off listing of domestic pharmaceutical listed companies,and provides effective reference and suggestions for the enterprises with the intention of spin-off listing.