Research On The Tongfang Health Spinning Off Tsinghua Tongfang

Since the Reform and Opening-up,China’s economy has developed rapidly.Under this background,Chinese enterprises begin to achieve their own benefits by mergers and acquisitions,restructuring and so on.In European and American countries and even Hong Kong,the way to expand corporate earnings is no longer limited to mergers and acquisitions.Splitting and listing has become more mature.In foreign countries,split listing has been able to increase company performance,centralize company business,expand shareholder wealth,diversify enterprise risk and prolong enterprise life.However,the development of spin-off and listing is relatively slow in those countries which started late.In China,the models of spin-off and listing are mainly divided into the following categories:(1)Separation of Domestic Listed Companies into A-share Listing.(2)Domestic Listed Companies Split to GEM Listing.(3)Separation of Domestic Listed Companies to H-share Listing.(4)Domestic Listed Companies Split to New Third Board Listing.In contrast,the company will have certain profitability and operational capacity requirements by splitting its subsidiaries into other trading markets.However,there is no requirement for the profitability of listed companies to be split and listed to the new third board,Only if it has a stable and sustained business capability can it.So whether it’s from the parent company or from the subsidiary company’s point of view,in order to broaden the financing channels of subsidiary companies,resist the possibility of malicious takeover,enhance the core competitiveness of the company,and enhance its popularity,listed companies are more willing to list subsidiary companies on the new third board.It is of great practical significance to study the effect of this behavior on the financial performance of parent and subsidiary companies before and after the split listing.On the basis of understanding the concept and theory of split listing,we can gradually understand the benefits of the new three listing boards to the causes,sort out the process of split-listing of the same party’s shares,and analyze the impact of split-listing on the health financial performance of the same party’s shares and the same party’s health.This paper uses the financial index analysis method,and colleagues use the EVA index method to supplement the research.Finally,it draws a conclusion,and puts forward corresponding suggestions from the perspective of listed companies and regulatory departments.The analysis of financial indicators shows that the split listing has a positive impact on the health solvency,profitability and growth ability of the same party’s shares and the same party.In terms of operational capacity,the positive impact is not obvious,and there are even signs of operational decline.But spin-off and listing can promote the healthy operation ability of the same party.At the same time,this paper also uses the EVA index method to verify the conclusion.The difference of this method is that it considers the cost of equity capital and evaluates the change of their performance under such circumstances.Combining DuPont’s analysis,this paper uses the method of serial substitution to compare the relevant indicators of the same party’s shares and the same party’s health with the industry,and to analyze the reasons for the differences.The difference between the return on net assets and the industry of the same party’s health and the same party’s shares after the split listing is mainly caused by the net selling interest rate,which also benefits from the promotion of the split listing on its profitability.It is concluded that,in accordance with the current laws and regulations of our country,the splitting and listing of companies with certain internal development prospects can not only widen the financing channels of the splitted subsidiaries,enable them to obtain more funds for individual development,but also enable parent companies and subsidiaries to concentrate limited resources to develop their core business.There are some incentives to enhance the company’s financial performance.To a certain extent,it can provide reference for listed companies that want to adjust the organizational structure of enterprises and seek better development of enterprises by splitting up and listing.