Research On The Capital Operation Performance Of The Spin-off Listing Of TsingHua TongFang Co.LTD

With the continuous development and improvement of China's domestic capital operation market,the spin-off of operations contrary to mergers and acquisitions has received more and more attention from managers.Since split-listing is one of the means of shrinking capital operations,this paper first sorts out the types of contractive capital operations.It focuses on the concept and types of “split listing,” and sorts out domestic and foreign scholars for the listing of spin-offs.Motivation and performance impact results.Afterwards,based on the case of Technovator co.LTD,Tong Fang Guo Xing electronics co.LTD and Tongfang health technology co.LTD,this article studied the causes and the results of spin-off listing of Tsing Hua Tong Fang co.LTD(TSTF).In the analysis of the splitting causes,this paper mainly adopts the financial ratio analysis method to analyze the profitability,debt ratio,a nd income ratio of various industries before TSTF undergo a series of spin-off activities.According to the analysis of the proportion of revenue and the financial ratio of the same party's various industries,the following conclusions are drawn: 1.The ov erly decentralized business scope is the reason that the profitability of TSTF is far lower than the industry average.One of them intends to improve profit ability through “back-to-nuclearization” of the business;2,the financial leverage is too high that get debt will get an increased financing cost,the spin-off can reduce the financing cost;3.As a means of market value management,spin-off listing can have a positive effect on stock prices.When analyzing the impact of the spin-off,in order to explore the specific influence mechanism of split-listing on the value of TSTF,in addition to the brief analysis using financial ratios,the paper also divides the core drivers of corporate value promotion into EVA from the perspective of return on invested capital,weighted average cost of capital,invested capital and sustainable growth rates,and an analysis of the case of split-off listing of from these four drivers.Finally came to the conclusion: 1.When the share of TSTF was dismantled,the stock price received a positive response.2.After the spin-off,the parent company's operating performance has been improved.3.The spin-off of listing as a means of capital operation has indeed improved the market value of the company.In addition,the promotion o f Tongfang's share-split value is mainly achieved through the “back-to-nuclearization” function of spin-off listing and the reduction of capital cost.The increase in the value of TSTF after the spin-off is mainly driven by the substantial increase in the return on invested capital.