Research On The Mode And Financial Performance Of The Backdoor Listing In H Company

With China's reform and opening up,the market economy continues to develop and improve,and private enterprises have gradually become an indispensable part of national economy.Many private enterprises have begun to list on the capital markets in recent years,through which they could fight for much more financing channels to achieve capital expansion and economy of scale.Compared with state-owned enterprises,if private enterprises choose Initial Public Offerings(IPO)directly,they will face a higher threshold and a long time complex approval process.Therefore,the backdoor listing open a new way for private enterprises to accumulate capital.On the one hand,the effective capital operation of backdoor listing can solve the financing difficulties of private enterprises to improve corporate governance structure and to establish the modern enterprise system;on the other hand,it can also help the shell companies to avoid the delisting risk and optimize the distribution of the market resource.Affected by the economic environment,the performance of the garment enterprises have been in a slump.However,the clothing sales company H,which relies on the main industry to gain profits after its backdoor listing,set a model of industry reform breakthrough.The author analyzes the backdoor listing case of H Company from five aspects to finish this paper.Firstly,the paper introduces the research background and significance,reviews the research results of the backdoor listing,including the aspects of the mode,the motivation and the financial performance and puts forward the research component and frameworks.Secondly,the author summarizes relevant theories of mergers and acquisitions as the theoretical basis of the backdoor listing.Then,on the basis of elucidating relevant theories,this paper defines the relevant concepts of backdoor listing.Combined with the economic and legal background of backdoor listing,the paper summarizes the present situation of backdoor listing activities,backdoor listing modes and financial performance evaluation methods.In the analysis of H case,the author firstly introduces the basic situation of H Company and the shell company and analyzes the specific operation process of this asset reorganization.Then the next chapter analyzes the choice and characteristics of the backdoorlisting mode,at last it evaluates the effectiveness of this asset reorganization in terms of the financial performance.Finally,the author makes a general summary of the paper.Through the case study,the author discovers that the choice of the shell company and the operation mode are distinctive,which are worthy of reference.Meanwhile,by utilizing the case study and financial index study,it is discovered that the H Company have excellent financial performance in both short term and long term,especially in profitability.Thus,the paper provides reference and proposals for other industries and enterprises.Centering on researching the case of the successful backdoor listing of H Company,this paper mainly discusses how to choose the shell company and design effective listing mode,and emphatically points out the impact of backdoor listing on business integration,financial performance and market competitiveness.At the same time,this paper aims to provide reference for the same industry or other industries in the backdoor listing process.