| It has been 22 years since the housing system reform in 1998.China’s real estate market has gradually returned to the rational and stable growth "Silver Age" from the "Golden Age" of rapid development.With the pressure of the industry’s top sales volume and the policy of "real estate is not speculation",enterprises with real estate as their main business have started the exploration road of strategic transformation.The property management industry,once labelled as "hard work and no money",is riding on the eastward trend of urbanization and the coming of the stock housing era.It has become a dark horse on the road of diversified development of real estate companies through the opportunities to transformation brought by the infiltration of "Internet Plus" and broad prospects.On June 30,2014,Colour Life Services Group Co.,Limited(Colour Life Services Group for short)was successfully carved out and listed(01778.HK).As the first share of property management industry in China,Colour Life Services Group opened the door of the Hong Kong stock exchange.It got a market value of more than 5.5 billion yuan which surpassed its parent company Fantasia Holdings Group Co.,Limited’s market value of 5.2 billion yuan only on the 3rd day of being listed.It has successfully led the property management industry to stand on the draught of capital,and set off the upsurge of the real estate giants to carve out the property management sector and get listed on the capital market.As the first Chinese mainland property management enterprise that has been carved out and listed successfully in Hongkong,Colour Life Services Group’s success experience and the mode of carve-out have provided a practical basis for the majority of scholars to analyze and study the carve-out of the property management sector,which is also helpful for the scholars in China to study the impact to the property management companies brought by the new method of carve outs.At the same time,it also provides a reference sample for other real estate companies to carve out the property management sector.This paper is based on the information asymmetry theory,financing theory,refocusing theory and corporate governance theory,and uses literature research,case analysis and event research methods to reveal the real motivation of Colour Life Services Group’s has been carved out,and explore the performance of this carve-out to Colour Life Services Group.The main conclusions of this paper are as follows.Firstly,the main motivation of the carve-out of Colour Life Services Group is to expand the financing channels of colorful life,and meet the needs of large-scale acquisition of enterprises and the construction of community service platform.Secondly,based on the information asymmetry theory,equity incentive theory and refocusing theory,the important motivations of Colour Life Services Group carve-out include: it is conducive to increase the overall value of the group,enhance the core competitiveness of parent and subsidiary companies,and optimize the incentive mechanism and supervision mechanism of management.Thirdly,based on the response of capital market,carve-out has brought short-term wealth effect to Colour Life Services Group and its parent company.Fourthly,after the carve-out and listing,the financial performance of Colour Life Services Group is short-lived and does not have sustainability.Carve-out and listing can only act as a catalyst for the business performance of enterprises.How to make rational and effective use of existing resources,continuously improve operational efficiency and create new growth points of performance is the key to improve business performance.Fifthly,based on the analysis of non-financial performance,it can be seen that the carve-out and listing has brought brand value improvement to Colour Life Services Group and greatly increased the remuneration of directors and executive. |
