A Case Study Of Zhonggong Education's Backdoor Listing

The fierce employment competition and the continuous growth of the number of college graduates have created a huge market demand for vocational education and training industry.The country has issued a series of decisions and reform implementation programs,to provide policy support for the development of vocational education.In this context,the competition in the vocational education industry has become increasingly fierce.In order to broaden financing channels,enhance brand influence and enterprise strength,enterprises in the industry have taken listing as one of their development strategic goals.However,China's IPO listing conditions are strict,wasting long time,which will lead to many enterprises lose good development opportunities.So many enterprises seek to land in the A-share market by backdoor listing.This paper adopts the method of case study to analyze the backdoor listing case of OFFCN,which is composed of the following five parts.The first part summarizes the research background and significance of this paper,sorts out and summarizes the relevant literature of backdoor listing at home and abroad,,and forms a literature review.The second part introduces the related concepts and theories of backdoor listing,which provides a theoretical basis for the following analysis.The third part is the case introduction,which introduces the general situation of both sides of backdoor transaction and the transaction process of backdoor listing.The fourth part analyzes the case of backdoor listing of OFFCN from the perspectives of motivation,risk and performance.In the motivation analysis,it analyzes the motivation of OFFCN to buy the shell,the motivation of of Yaxia Automobile to sell the shell and the reason of OFFCN choosing Yaxia Automobile respectively.In the part of risk analysis,it specifically analyzes the shell resource selection risk that OFFCN may face in the process of backdoor listing,as well as the risk that it is difficult to complete the high performance promise and the industry policy change after it can be listed.In the part of performance analysis,the financial index method is used to analyze whether profitability,the debt paying ability,operation ability and development ability of OFFCN have been improved after listing,and the non-financial performance is studied by qualitative analysis method.The last part is the conclusion and inspiration.The research shows that OFFCN has basically realized the goals of backdoor listing,reduced the risk of backdoor listing,improved its financial performance,which is better than other listed companies in the same industry,and improved its business structure and strengthened its core competitiveness after backdoor listing.Finally,it puts forward reasonable suggestions on how to choose good shell resources,improve the backdoor plan and enhance the enterprise's own strength for educational enterprises that intend to go public on the backdoor.