Study On The Motivation And Effect Of The Equity Carve-outs Of The Xiamen Tungsten New Energy Company From Xiamen Tungsten Company For Listing

In recent years,with the rapid development of China’s economy,many enterprises have carried out diversified development strategies.It continues to develop its business sectors,but there are also problems such as uneven distribution of enterprise resources and low market valuation,and the equity carve-outs can effectively improve these problems,so the equity carve-outs is paying more attention to more and more enterprises.In March 2019,China began to allow domestic companies to be split off and listed on the science and Technology Innovation Board.In 2019,the CSRC issued the Provisions on the Pilot Listing of Subsidiaries of Listed Companies in China,and the relevant rules for equity carve-outs in China have been gradually improved.More and more companies begin to reveal their willingness to spin-off,and the equity carve-outs has gradually become a boom in the capital market,and it is imperative to study the equity carve-outs.Xiamen tungsten is one of the first enterprises to apply for equity carve-outs,and its subsidiary Xiamen tungsten new energy was successfully listed on the Science and Technology Innovation Board on August 5,2021.This paper selects it as a case of this paper for study,mainly focusing on why Xiamen tungsten chose to split the effect of Xiamen tungsten,and studies the motivation and effect.It can provide corresponding reference and experience guidance for the equity carve-outsof subsidiaries of listed companies in the future.On this basis,this paper starts from the background of the equity carve-outs of Xiamen tungsten,sorts out the relevant research literature of the equity carve-outs,constructs the analysis ideas of this paper,and expounds the definition and mode of the equity carve-outs and the relevant theories used,to lay a foundation for the following analysis.In the case introduction link,the relevant situation of the parent company Xiamen tungsten and its subsidiary Xiamen tungsten new energy was introduced,and the listing process of Xiamen tungsten,such as the asset restructuring,capital increase process and the audit process before listing,were sorted out.Then start the case analysis of this paper,on the basis of financing theory,core strategy theory and information asymmetry theory and Xiamen tungsten and Xiamen tungsten can relevant data motivation analysis,and then adopt the combination of financial indicators and non-financial indicators of the financing effect and management effect analysis,using the stock price changes and event research method analyzes the market effect.This paper draws the following research conclusions through the motivation and effect analysis.Xiamen tungsten choice will Xiamen tungsten new energy can split motivation has three aspects,one is the Xiamen tungsten lack of funds,unable to give more power,Xiamen tungsten new energy can rely on management cannot meet their financing needs,Xiamen tungsten new energy can also need money to strengthen the construction of the project new,so Xiamen tungsten choose will new Xiamen tungsten new energy can split to raise funds,to meet the financing needs.Second,the new energy battery material business of Xiamen tungsten is basically responsible for by Xiamen tungsten new energy.Xiamen tungsten new energy has the potential of independent operation,and the proportion of new energy battery material business in the main business of Xiamen tungsten is also gradually increasing,showing growth potential.The equity carve-outswill help Xiamen tungsten new energy to establish its own management,formulate appropriate strategies,improve the management ability of Xiamen tungsten new energy itself,and also help Xiamen tungsten to reduce the management pressure,Enable both parent and subsidiary companies to focus on their main business,and Xiamen tungsten can also enjoy the benefits brought by the business expansion of its subsidiary by enjoying the equity of Xiamen tungsten new energy.Third,the equity carve-outs will help to improve the information asymmetry,and then help Xiamen tungsten to enhance its market valuation.In the analysis of the financing effect,it is found that the liquidity,financing situation and capital structure of Xiamen tungsten before and after the split have been improved,and the financing effect is good.In the analysis of operation effect,it is found that the profitability of Xiamen tungsten has declined,but the operation,growth,research and development and management ability have been improved,and the positive effect on the whole.Found in the market effect analysis in the first split Xiamen tungsten new energy can be listed during the news did not get positive short-term market effect,after registration approval for positive short-term market effect,and long-term market value changes,Xiamen tungsten market valuation was improved,overall look also present positive effect.According to the conclusion of the study,this paper puts forward the corresponding enlightenment for the companies to be spin-off,market investors and regulators respectively.For the companies to be equity carve-outsand listed,they should choose high-quality companies for spin-off,spin off according to the enterprise development strategy and pay attention to the long-term operation after the spin-off.For market investors,they should pay attention to the information disclosure of the enterprises announcing the equity carve-outsand listing,and fully evaluate the real value of the enterprises.Regulators should actively guide high-quality companies to equity carve-outs,improve the information disclosure system and strengthen the supervision of equity carve-outsmatters.