Liaoning Chengda's Performance Study On The Listing Of “Chengda Bio”

Asset reorganization is an important means for enterprises to allocate resources in capital market.In accordance with the differences in reorganization,asset restructuring can be divided into two types expansion and contraction.Expansion of the restructuring includes mergers,acquisitions and others,and shrink-type restructuring,includs spin-off listing,separation,divestiture and others.With the rise of US mergers and acquisitions in the 1960 s,the expansion came into the people's vision.Many companies took advantage of mergers and acquisitions approach to make a rapid expansion of enterprise scale,and achieve pluralistic operation.However,these enterprises encountered many difficulties in subsequent management work,and failed to profit the expected synergies.As the result of the excessive expansion,the wave of mergers and acquisitions have brought a negative synergistic effect.Since the early 1980 s,contract-based restructuring aiming to spin-off listing became popular in Europe and the United States.Spin-off listing in Europe and the United States have been the mature approach to corporate restructuring of assets,however,until in 2000,the successful distribution of Tong Ren Tang gradually attracted attention from the domestic market.In contrast,China's capital market is still in the early stages of development,the mainstream of asset restructuring is still the merger and acquisition,spin-off listing of this restructuring is still in the exploratory stage.Due to the lack of sound domestic capital market system,the domestic market for the separation of conditions to be strictly limited,in this context,most of the domestic companies choose to spin off the listing model.However,this reorganization is entirely suitable for Chinese enterprises,in the case of China's weak capital market,spin-off market can really bring value to enterprises and public shareholders,these are worth discussing issues.With the 2013 National Equities Exchange and Quotations expansion,spin-off listing policy to further relax,more and more companies have more choices.Liaoning cheng da spin-off Liaoning Chengda Biotechnology listed on the NEEQ which has a certain research value.This paper aims to analyze the impact of the spin-off listing on the performance of parent companies and subsidiaries,and provides experience for the selection of spin-off companies.Based on the combination of normative research and case study,this paper firstly combs the relevant literature of spin-off listing.Secondly,according to the development of domestic spin-off listing,the paper analyzes the latest access conditions for spin-off listing.Then,The financial situation of the parent and subsidiary companies before and after the spin-off,from the perspective of solvency,operating ability,profitability,growth ability and cash flow situation.Horizontal and vertical comparison,combined with the spin-off before and after the parent company's share price changes,and non-financial indicators to study the spin-off listing for the impact of corporate performance;Finally,through the analysis of the article concluded and proposed for the spin-off listing.Some of the thoughts and revelations.Liaoning cheng da spin-off Liaoning Chengda Biotechnology listed on the NEEQ which has certain positive effect,parent-subsidiary debt paying ability,profit ability and development ability are improved,but whether it is sustainable,further studies are needed.Through the case analysis,this paper holds that spin off listing this behavior for an enterprise to the performance of the influence of four,brought parent-subsidiary corporate earnings increase first,followed by the change of subsidiary shares for the parent company of excess return,the third enhances the parent-subsidiary corporate financing ability,the fourth increase the mother and child company's core competitiveness.In our country,spin off listing restructuring mode is still in the exploratory stage,spin-off listed cases,the author of this paper put forward to improve the system of spin,spin behavior combined with enterprise strategy,choose to have good development prospect of subsidiary,concern after the break-up associated transactions,for break-up integrate resources and focus on the follow-up effect of advice.