Research On The Overall Financial Performance Of China Merchants Expressway Network & Technology Holdings Co.,Ltd.

In the early days,China’s capital market was dominated by spin-off listing.This listing model caused a large number of non-fair related party transactions and internal unhealthy competition in the capital market.The overall listing as a solution that can effectively alleviate these problems has been repeatedly supported by relevant national policies and applied to many companies.In 2016,China Merchants Group promoted the first overall listing case of China’s highway industry in order to integrate resources under its highway segment and reduce inter-industry competition.China Merchants Expressway Network & Technology Holdings Co.,Ltd.(hereinafter referred to as “CMET”)achieved the overall listing by merging and absorbing North China Expressway through share swap.By analyzing the financial performance of this case,it can better reflect the impact of the overall listing,and then provide some inspiration and reference for the overall listing of other highway companies in China.The thesis takes the first overall listing case of the highway industry,namely the overall listing of CMET,as the research object.By studying the changes in the short-term and long-term financial performance of CMET before and after the incident,it reflects the impact of the overall listing on CMET and obtains relevant revelations,with a view to providing relevant decision-making suggestions for other enterprises in the industry that are preparing for overall listing.The first part is the introduction of this article,which introduces the research background,research purpose and significance of the overall listing of CMET,summarizes and evaluates the domestic and foreign research reviews related to the overall listing,and expounds the research methods adopted in this article and the main content of the paper and frame.The second part is an overview of related concepts and theories.It defines the two professional concepts of overall listing and financial performance involved in the following,introduces the common listing models and the financial performance analysis methods adopted later,and gives the overall listing theoretical basis.The remaining part is the core part of this article.First,the overall listing of CMET is analyzed from the perspective of China Merchants Group,the perspective of CMET and the North China Expressway,and the overall listing plan is introduced in detail;second,using the event research method and the accounting research method to conduct short-term and long-term financial performance analysis on the overall listing of CMET,respectively.The analysis results show that the overall listing of CMET has brought some positive changes to the financial performance of CMET,but it also has its deficiencies.The positive aspect is that the overall short-term financial performance of CMET has been greatly improved through this listing,and the solvency and profitability of long-term financial performance have also been enhanced.The shortcomings are reflected in the fact that the overall listing did not bring CMET improved operational and development capabilities,resulting in a sharp decline in the turnover rate of accounts receivable,and the growth rate of the total asset turnover rate is much greater than the growth rate of the total profit during the same period.Finally,five points of enlightenment are drawn from the results of financial performance analysis.The overall listing is conducive to improving short-term financial performance,the suspension will delay between the market reaction to the event,convertible merger mode enables enterprises to maintain good solvency,horizontal merger does not necessarily improve the company’s profitability and overall market should pay attention to asset management,respectively.