The Research On Financial Performance Of Backdoor Listing By Shentong Express

On the one hand,with the rapid development of the capital market,various financing methods emerge one after another.As an important financing method,listing has favored by many enterprises because of its low financing cost and fast financing speed.The mainly listing method of the stock market is IPO and backdoor listings.However,due to the audit system adopted in China,the threshold for IPO issuance is much higher,and the review process is complicated,which makes it difficult for many emerging companies to match the IPO issuance conditions and cannot obtain the qualifications of IPO issuance.As a result,backdoor listing has provided a platform for many non-listed companies that cannot match the IPO conditions.On the other hand,the blossom of the Internet and e-commerce has allowed the express developing flourish,and the competition in the industry has become increasingly fierce.However,the original expansion as blind as a bat has been unable to adapt to the development of moden enterprises.Building a network-wide layout,integrating the upstream and downstream of the industry chain and seeking new profit growth points have become the main strategic goal of the express delivery enterprise.Supporting the strategic goal needs a large amount of funds.As a result,many companies listed through backdoor listing in 2015-2017 years.Based on the background of these two major environments,through the case study,the specific case of Shentong Express’s backdoor listing with the IDC,the article analyzes the overall characteristics of the backdoor listing of the express company’s and the motivation of Shentong Express’s backdoor listing with the IDC.The article analyzes the financial performance before and after listing and make a conclusion according to the performances by using the event study,the improved DuPont analysis method and the EVA analysis method.Taking this as a guide,it provides relevant countermeasures and factors for the similar enterprises to list in the future.Finally,this paper mainly make a conclusion:in terms of motivation,Shentong Express choose to use the backdoor listing to list because it has the characteristics of low threshold,simple procedure,quick review,etc.More importantly,it is more in line with the industry situation and operation of express delivery enterprises.In the terms of the performance,Shentong Express’s backdoor listing with IDC is generally successful,but it also has some problems,that is,management over-eoncerns short-term performance after listing and ignores long-term economic benefits.