Research On The Performance Of The GEM Listing Conba Subsidiary Spin Off

Since the 1960 s,many companies have adopted a diversified expansion strategy to achieve resource aggregation and rapid growth.However,diversified expansion brought the competitive advantages for the company at the same time,also caused the problem of its bloated organization and low management efficiency.It was not until 1980 s that the foreign capital market began to think rationally about the diversified expansion,so the equity carve-outs came into being.But for equity carve-outs the use of capital market in China started late and the main board market restrictions on the subject,which make many domestic listed companies choose to go abroad or spin off subsidiaries listed in Hongkong,resulting in the equity carve-outs of domestic listed companies has been a blank state.But with the launch of the growth enterprises market(GEM)in 2009,and the CSRC announced some relevant provisions that allowed the listed companies meet requirements split subsidiary to the GEM listing in 2010,which provided the environment and opportunities,and provided a basis for the system.In February 2011,Conba became the first successful company to splitting the subsidiary listed on the GEM.This article is in this case as the object of study,using the method of literature research and case analysis combined.Firstly,this article compares the equity carve-outs with its related concepts,and combs the relevant hypothesis;Secondly,based on the summary of relevant information,this article briefly introduces the overview of Conba and its subsidiary company,and analyzes the process of the equity carve-outs,main motivations and compliance;Thirdly,through the use of financial indicators,factor analysis and non-financial indicators to study on performance of parent subsidiary company before and after partition.Through the study found that the equity carve-outs indeed to Conba and its subsidiaries with a positive effect in the medium term,provides a good start for the subsequent development of the company.However,the competitiveness of the subsequent development depends on the integration of the company after splitting,as well as the correct development plan to maintain;Finally,based on the above conclusions,this paper puts forward some Suggestions: Conba should improve the operational capacity and solvency,correctly determine the extended planning and the implementation of the plan to follow,targeted to adjust its short-term development strategy,establish a long-term strategy right;The subsidiary should ensure that the funds will be raised into the relevant research and development projects,and strengthen the management of the company’s assets,the development of appropriate development strategies;The CSRC should be based on the strict review of the reorganization of assets,give full play to the capital market value discovery function,let the company that really have the development prospects and competitive ability get into the long platform.