Analysis On Motivations And Performance Of The Backdoor Listing Of HeiLan Home Co.Ltd

Backdoor listing is a merger of using the listed shell resources to achieve a indirect listing.As China's IPO approval standards are strict,and approval process is tedious,a large number of companies with financing needs fail to IPO standards.But the backdoor listing approval process is relatively simple,the standard compared with the IPO is reduced,can save a lot of time and money.So the backdoor listing has almost become the best choice for companies that want to go public quickly.In 1994,the first case of backdoor listing appeared in mainland China.By the beginning of the backdoor upsurge in capital market in 1997,several IPO suspensions pushed the development of backdoor listing.With the development of China's market economy in depth,the backdoor has become an successful channel to achieve quick listing.It is also an important way for listed companies to evade the risk of suspension and break the bottleneck of development.At the same time,it also optimizes the allocation of market resources.On the basis of reading a large amount of documents and materials,this article using the method of combining theoretical analysis with typical cases focuses on the motivation and performance of HLA to successfully backdoor listing in the apparel industry under the background of overall downturn,and analyzes the success of the case.Because of its unique business model in the context of the downturn in the industry against the backdrop of growth,in order to seize the development opportunity of its urgent need to broaden the financing channels,but failure of the IPO also directly led to its pursuit of backdoor listing.At the same time,the low cost of backdoor listing,fast listing also meets the strategic intent of rapid expansion of HLA.Therefore,in the process of backdoor listing,HLA positions the shell company in the same industry as the non-ST company,and elects to use "real shell" to reorganize assets and inject assets on the original basis to achieve the effect of inter-bank consolidation.At the same time,financial performance analysis of HLA backdoor listing can be seen that the rapid development of enterprises led to a decline in its solvency,but the overall profitability and operating efficiency showed a substantial growth trend,and in After the completion of mergers and acquisitions for the company's shareholders made a very substantial cumulative excess returns.Finally,through the research and summary of the case of HLA backdoor listing,we can find that the appropriate backdoor listing method can also achieve the same effect as the listing of IPO.HLA negotiates with all parties for government support and balances interests to achieve multi-party winning is also key to its successful backdoor listing and sustainable development.The core success of the backdoor listing is to accurately locate the shell resources,the use of appropriate backdoor listing transaction mode,and pay attention to the integration of resources after the listing.