Research On The Economic Effect Of Jangho’s Spin-off Of Sundart Group

Spin-off and listing is an important asset reorganization method It is an effective tool for listed companies to open new financing channels,realize the enhancement of shareholder value,reflect the true value of the company,promote the improvement of the company’s operating mechanism,and effectively motivate management and employees.In recent years,the accelerated construction and improvement of China’s capital market have made the spin-off and listing more favored by more listed companies.The China Securities Regulatory Commission recently issued regulations on the domestic listing of spin-off subsidiaries of domestic listed companies,clarifying the standards,procedures and conditions for spin-off of domestic listings,which will cause more domestic listed companies to pay attention to spin-off listings and make full use of them.Facilitate policies to invigorate the company.The spin-off of listed companies in China is of great significance to the construction of China’s capital market.This article first summarizes the relevant literature and theoretical basis of the spin-off and the relevant China’s policy guidance for the spin-off and listing.Based on this analysis of Jangho’s motive for the spin-off of the Sundart Group to go public in Hong Kong and the economic consequences of the spin-off and listing Finally,relevant suggestions are made at the company level and the government levelThe analysis of the economic effects found that:in terms of capital structure,it shows that the spin-off event has reduced the pressure on the capital created by Jangho and broadened the financing of Sundart Group Channels,and debt repayment ability has improved significantly.In terms of operating performance,changes in profit quality,profitability and growth capabilities before and after the spin-off indicate that the operating performance of Sundart Group has improved.In terms of corporate governance,the spin-off and listing made Sundart Group’s organizational structure and equity incentive mechanism more complete,and its management level improved,which also had a certain impact on the management efficiency of Jangho.In terms of market value,Jangho announced the resolution of the extraordinary shareholders’ meeting,obtained the letter of no objection from the Securities Regulatory Commission,and the stock price of Sundart Group rose to varying degrees on the day of listing,which brought a short-term increase in shareholder wealth.The rise indicates that the spin-off incident has increased shareholder wealth Observing the CAR changes during the announcement period of the EGM by the event research method on the announcement of the spin-off resolution,it was found that a positive CAR was obtained during the announcement period,and the corporate value was effectively increased.The spin-off and listing has a positive impact on the value creation of the company,but it mainly manifests as a short-term effect In addition,the subsidiary may also bear the risks from the controlling shareholder and the capital market,and the use of raised funds is less than expected,and economies of scale cannot be achieved And other risks.Therefore,enterprises need to scientifically formulate a spin-off plan based on their own development strategies,and adjust the development direction according to market orientation after spin-off to ensure the sustainable development of the enterpriseThe purpose of this article is to take Jangho to create the spin-off of the Sundart Group in Hong Kong as a research sample,in order to draw corresponding inspiration for the spin-off of listed companies,and to make relevant suggestions to enterprises and governments.