| Since 2005,Chinese photovoltaic giants have gone public in the United States one after another.However,as the economic situation changes,due to the low valuation of US stocks and financing difficulties,the profits of major companies have been severely compressed in recent years.At the same time,the domestic photovoltaic industry has risen strongly,and the valuation of listed A-share market photovoltaic companies has been rising.Under this circumstance,many photovoltaic Chinese-concept-stock companies have successively withdrawn from the market.However,affected by many factors,these delisted companies have not been able to officially enter the A-share market.How to relist on the A-share market is still worth discussing.JA Solar is one of the leading companies in the photovoltaic industry.After delisting from the U.S.stock market,it officially landed in A-shares market through backdoor listing in 2019.Although it has received a lot of attention at the beginning of the backdoor listing,it has also caused some doubts due to factors such as the excessive market value of the shell company and poor asset quality.JA Solar is the first Chinese-concept-stock company that successful return to A-share market after the policy is loosened,and the first Chinese-concept-stock company in the photovoltaic industry that successful return to A-share market.Its success has a strong reference for the return of other Chinese-concept-stock companies in photovoltaic industry.This article conducts a case study of TIANYE TOLIAN’s acquired as a shell by JA Solar.It focuses on the analysis of the reasons for choosing the backdoor as the return route,the rationality of the selection of shell resources,the characteristics of transactions,and the impact of listing.After research,it is found that JA’s success can be attributed to several aspects.First,it has grasped the policy loosened period,after delisting,combined with its own needs and market conditions and decisively chose to go public on the backdoor,and quickly completed the preliminary work such as equity reorganization,which shortened the return period.Time;the second is to choose a suitable shell resource.Although TIANYE TOLIAN’s initial conditions were insufficient,JA Solar used its stronger voice in the transaction to reduce the degree of dilution of the shares and also reduce the financial pressure to pay for the shell purchase;the third is the rational design of the backdoor program.Affordable transaction pricing and performance commitments have avoided the minefield of tightening backdoor policies in the past few years,which is also the key to its smooth listing.At last,through comparative analysis,it can be seen that the overall financing level,operating performance,and market competitiveness of enterprises have been strengthened after the return,but the capital chain has been tightened,and it is necessary to grasp the degree of financial leverage to prevent debt risks.It is also necessary to pay attention to preventing potential risks such as stock price fluctuations and difficulty in achieving performance promises due to policy and market impacts after listing.Based on the above research results,this article draws relevant enlightenments to other photovoltaic Chinese-concept-stock companies that want to return: First,companies need to comprehensively consider their own needs,capabilities and policy trends to judge the feasibility and necessity of backdoor listing,and choose the best listing path.Secondly,after determining the backdoor,we must do the relevant preparatory work,pay attention to selecting the appropriate shell resources,rectify our own listing motivation,and rationally design the transaction plan to ensure the smooth completion of the listing.After listing,it is necessary to actively utilize the various benefits brought by the capital market,use the financing advantages to upgrade the industry,improve performance,strengthen the talent team,and enhance the core competitiveness of the enterprise to prevent the occurrence of related risks. |
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