Study On The Capital Operation Mode Of Enterprises From Strategic Emerging Industries

Compared with the traditional industries, strategic emerging industries are characterized by high dependence on technology and strategic influence over the future economic development. China’s strategic emerging industries in the introduction stage, policies from the government are great support for the industries. And the fully competitive status is a opportunity for the enterprises because some of them could achieve expansion and scale advantage by the way of capital operation, and that’s the thesis attempts to research.The main problem of this thesis is that how the enterprises from strategic emerging industries use technology capital in their capital operation, in order to make sure the resources are effectively configured. Meanwhile, this thesis discusses the capital operation mode for strategic emerging industries so some enterprises can learn from it. Case study method is used to this thesis convincing. Tongfang Corporation is chosen as the case for its significant capital operation strategy and outstanding performance in capital market. And the theories are proved strictly by facts.This thesis is divided into five chapters. The first chapter is the introduction of the background, main problem and research methods. The second part is the literature review. This chapter establishes the theoretical basis of the study, and makes a detailed review about related theories. The third chapter is the description of the case company, mainly about its basic situation, the recent performance in the market, and its future prospects for development. The focus is the capital operation mode of the case company. Tongfang Corporation, short for Tongfang, combines technology capital and financial capital in operation, and channels financial capital from capital market to university research institutions, to promote the rapid transformation and application of scientific results. The company tries holding, mergers and acquisitions, spin-off and other capital operation method, forming its core competitive advantage in which technology leads capital and capital supports technology. The forth part is the detailed analysis of the company. The main content is to analyze several specific capital operations, using element capital theory as the main tool, in order to summarize the three-layer value creation mode of Tongfang. The first layer is that technological achievements of universities develop into main business of the company and get the greatest benefit in the product market. The second layer is that some mature subsidiaries become listed to get the maximum value of the equity in the capital markets. In the third layer, the company chooses to sell some non-core businesses, and puts the added value into the transformation of technological achievements, to achieve a virtuous cycle of capital and ongoing value-added. The last part is the conclusions and recommendations. It’s expected that this study can provide reference for enterprises from strategic emerging industries to foster core competitiveness and add enterprise value.