Zhongnan Real Estate Backdoor Listing Case Analysis And Research

In China, once a company appear on the market, it can become a direct financingplatform. But as the listing qualifications are limited, there emerges the backdoor listing,which is a kind of merger and acquisition that enables the listing qualifications to beoptimally allocated. Besides, the backdoor listing can quicken the steps to make strategicadjustments to the market economic structure. It also acts as a high road for the enterprisesto expand its capital by helping solve a series of problems the enterprise meets during itsdevelopment, such as the shortage of funds. However, many backdoor listing schemes fail.After the successful shell loaning, the enterprise still faces remnant problems such as,contingent liabilities and fund black holes. Therefore, it remains a great challenge forenterprises to carry out the back door listing smoothly and standardize their operation toenable all the non-public private enterprises to develop rapidly.This paper analyzes and researches the case of Zhongnan Group goes public by usingthe shell resources of Dalian Jinniu Company, Ltd. On the basis of elucidating merges andacquisitions, the theory, concept and capital operating pattern of the backdoor listing, thispaper thoroughly analyzes the case of Zhongnan Group going public by using the shellresources of Dalian Jinniu Company, and thus gains experience. During the case study, thispaper first introduces the motives and two sides of the transaction: Zhongnan Real EstateCo., Ltd and Dalian Jinniu Co., Ltd. It also introduces Zhongnan Real Estate Co., Ltd’sfinancing choice, backdoor listing scheme and the characteristics of its capital operation.Then it evaluates the effectiveness of Zhongnan Real Estate Co., Ltd’s backdoor listing interms of its effects and performance. Finally, it suggests the key to a successful backdoorlisting lies in reasonably choosing the shell resources and the merger patterns, conductingsubstantial asset reorganization and giving the agency its full play in the backdoor listing.The paper Starting from solving the problems that private companies should payattention to in its financing, this paper centers on analyzing the case of the successfulbackdoor listing of Zhongnan Real Estate Co., Ltd to explore ways and key points ofconducting a successful backdoor listing and the synergistic effects before and after thebackdoor listing and performance and provides guidance for non-listed companies todevelop in a strategic way through backdoor listing.