Research On The Motivation And Financial Performance Of Guanghui Auto's Backdoor Listing

In recent years,China's automobile circulation industry has developed rapidly.Driven by the national policy,enterprises have responded to the call to become bigger and stronger.Contemporarily,a variety of development problems have shown.The main reasons which restrained the development and expansion of the private enterprises are blamed for the shortage of funds,and the financing difficulties.Thus,to list became the best choice.There are two main options for market enterprises in China: IPO listing and backdoor listing.Though the fact that the China Securities Regulatory Commission has changed the backdoor listing standard from the nearing IPO standard to the equilibrium of IPO standard,which makes the standard of backdoor listing much higher,however,the passing rate of the backdoor listing is still higher than the IPO listing.Conclusionly,the market responded heatedly to it.What's more,the enterprises financed through backdoor listing,and the utilization of the funds linked closely to a company's financial performance,of which the research on it is of high value.Combining the case analysis of the backdoor listing of the China Grand Auto(CGA),it has been discussed what are the motivations of CGA to list,and the change of its financial performance has also been estimated in this dissertation.As is known,CGA is the leader of the automobile circulation industry,and its successful listing is very representative.Therefore,the case that CGA backdoored Merro Pharmaceutical Co,Ltd to list is naturally selected to study.We focused mainly on the motivations of CGA's backdoor listing and what are the financial performances before,during,and after backdoor listing.Firstly,we summarized the relevant literatures at home and abroad,then analyzes the motivations of CGA's backdoor listing.Finally,we analyzed the financial performance elaborately through accounting index method.Through a series of analysis,the following conclusions can be drawn: It is quite urgent for CGA to develop vigorously under the big background that Chinese Government requires the automobile circulation enterprises to grow bigger and stronger;Since the IPO listing had been besieged,the backdoor listing became the best choice for CGA to enter the capital market;The success of the backdoor listing achieved CGA's motivations one by one,and it has a positive effect on CGA.Finally,there are three appreciable advices can be put forward to make CGA succeed in backdoor listing and developed sustainably: Find a suitable shell resource.Integrate the follow-up resources reasonably by the means of backdoor listing.Make better progresses in the field of new energy vehicles selling.