Motivation And Performance Analysis Of Huajian Group Backdoor Listing

At present,after 30 years of rapid development,China’s capital market has gradually transformed itself from an immature market into a market that has begun to take shape.In order to better expand financing channels,more and more companies want to be able to enter the capital market.Therefore,the use of capital markets to expand financing channels and increase financing capacity has become the choice of many companies.However,subject to various conditions,a company’s IPO can only be listed on the IPO directly or on the backdoor.Because IPO listing has strict entry thresholds and industry standards,some companies with strength are limited by various factors.At this time,the emergence of backdoor listings provides an effective way to solve the above problems.Since the successful listing of Shenzhen Baoan Yanzhong Industrial Co.,Ltd.in 1993,many companies in China have chosen to go backdoor.This backdoor listing can greatly reduce the time to market,and it can help to obtain a listing financing platform and enrich industry management.Fundamentally improve the company’s core competitiveness.Study the behavior of the enterprises before and after the backdoor listing changes the performance of the listing process through its influencing factors and performance changes,to discuss whether its performance after the backdoor listing changes,whether the market competitiveness is enhanced,and summarized The case where this case is worth learning and thinking helps us to summarize its laws and deepen our understanding of the capital market so as to contribute to the backdoor listing and performance research.This article selects Shanghai Huajian Group to use the shell-edge light industry as the research object,and uses a combination of theoretical analysis and case analysis to discuss this process.In the analysis of the Chinese company’s backdoor listing theory,the literature research method and normative research method are used.The case analysis method and financial performance evaluation method are used when discussing the backdoor listing and performance of Huajian Group.In the theoretical part,this article first describes the concept and characteristics of “backdoor listing” in theory,and briefly analyzes why more and more companies choose to go public.In the backdoor listing model,the four types of common listings are mainly described;that is,the asset replacement model,the cash purchase model,the private placement model,and the reverse acquisition.These four types of inventories are briefly discussed and summarized.Its application conditions;followed by a description of common corporate performance evaluation methods;and finally based on the academic research results,summarized the theoretical basis of the company backdoor listing,through the study of these theories can help us better understand the concept of backdoor listing.In the case section,the case company selected in this article,Huajian Group,through the analysis of changes in financial performance and market performance before and after its listing,using financial indicators,market value indicators and non-financial indicators to fully explore,found that backdoor listing Helps companies increase financial performance and increase share prices.And in the fourth chapter,the main reasons for the improvement of corporate performance.In the last chapter of this article,based on the research case’s own situation and personal advice given in combination with the actual: First,companies should select the appropriate shell company based on their own characteristics;Second,companies should choose the right way based on actual conditions;Finally,the company should Pay attention to the integration of resources before and after the backdoor listing and improve the efficiency of business operations.Through the research on backdoor listing and company performance of Huajian Group,this article believes that the main reasons for its backdoor listing are the desire to quickly go public,obtain financing from the capital market,increase brand value,and realize resource integration;after the Huajian Group is listed on the backdoor,the company The operating performance has improved and at the same time it has brought wealth gains to shareholders.The reason why this paper analyzes this is mainly because the company has chosen the right shell company,which has better widened the profit growth channel and the lower integration cost in the process of listing.This article suggests that when companies implement backdoor listing,they should select the appropriate shell company based on their own characteristics.They should also focus on the integration of the company before and after the listing in order to optimize the allocation of resources and increase the overall competitiveness of the company.