Study On The Motivation And Effect Of CSPC’s Two Spin-Off

At the end of 2019,domestic policies opened up the spin-off listing,which greatly promoted the spin-off of domestic enterprises.However,some domestic and foreign enterprises have successfully carried out spin-off before,and CSPC is one of them.CSPC has carried out two spin-offs successively.The first spinoff subsidiary was listed on the New Third Board in 2016,and then the second spin-off subsidiary was listed on the Growth Enterprise Market in 2019,which is a rare case that can successfully carry out two spin-offs at present.In view of the fact that the new regulations have not been implemented long ago,many enterprises have not successfully completed the spin-off,the domestic spin-off listing cases are relatively rare,and the two successful spin-off cases are more unique.Therefore,this paper aims to study why enterprises have to carry out two spin-off,whether there is a connection between the motivations of the two spin-off,and what effect the two spin-off of enterprises have achieved.Provide ideas for enterprises that currently want to conduct multiple spin-offs.Firstly,this paper briefly introduces the main body of the two spin-offs and Outlines the specific process of the two spin-offs,and has a preliminary understanding of the two spin-offs.Secondly,the paper makes a specific analysis of the motivations of the two splits.Although the common purpose of spin-offs is to promote the improvement of corporate value,the specific motivations of different spin-offs are also different.This paper holds that the first separation of the traditional Chinese medicine business of CSPC is based on the purpose of realizing the dual business development,while the second separation of the functional food business of CSPC is to deepen the development of the group’s innovative medicine business and help subsidiaries find new profit growth points.At the same time,there is a connection between the motivations of the two spin-offs of CSPC.According to the aforementioned research on the motivation,this paper also takes the motivation as the entry point and analyzes the effect one by one.It is found that the two spin-offs of CSPC have indeed realized the equal development of both businesses,further highlighted the innovative pharmaceutical business of the Group,enhanced the core competitiveness of the Group,and helped the subsidiaries seize the external development opportunities.In addition,the spin-off of CSPC contributed to both the short-term value improvement of the Group and its subsidiaries as well as the long-term value improvement of the Group.Finally,the paper also provides some implications for other companies that want to conduct multiple spin-offs through the research conclusions.