Motivation And Effect Analysis Of Jingao Solar’s Return To A-Share

This paper studies the motivations and effects of photovoltaic companies returning to A-shares.Since the 1990 s,Chinese concept stock companies have started listing overseas.At the beginning of overseas listings,Chinese concept stock companies were very popular and their stock prices performed well.But later,due to differences in investor attitudes between China and the United States,the financing needs of Chinese concept companies were suppressed.After 2010,some Chinese concept stock companies were affected by short selling,resulting in long-term low stock prices.With the continuous improvement of Chinese capital market,many Chinese concept stock companies have begun their journey back.In recent years,the concept of green environmental protection has deeply rooted in people’s hearts,and the country attaches great importance to environmental protection and ecological construction.The new energy industry has developed rapidly.The photovoltaic industry belongs to the new energy industry,and with technological progress,it has transformed from an extensive development mode to an efficient and intensive development mode.Jingao Solar is a leading enterprise in the photovoltaic industry.In 2007,Jingao Solar was listed on the NASDAQ stock market in the United States.At the beginning of its listing,its stock price performed well,but it has been sluggish since then.When it delisted in 2017,Jingao’s shipment volume was among the top in the world,but its market value and price to book ratio were very low,indicating that it was not favored by American investors.Due to the undervaluation of the US stock market,the financing demand is not met,and the development of this enterprise is suppressed.Jingao Solar has embarked on a path of return.Based on this,this paper uses literature research,event study,financial indicators,economic value added and other methods to study the motivation and effect of Jingao Solar’s return to A-share,hoping to provide suggestions for other photovoltaic enterprises that want to return.This article first introduces the research background,elaborates on the concept and theory of the return of Chinese concept stocks,and then introduces the process of Jingao’s return to A-shares.Jingao was delisted from overseas in 2017,and after delisting,it quickly reached a restructuring agreement with Tianyetonglian.In 2019,it completed the A-share listing,and the entire process was very successful.The main reasons for Jingao’s return are the low stock price in the US stock market and the inability of the US stock market to meet its financing needs.The main reason for Tianyetonglian’s joint shell sales is poor operating conditions.The article analyzes the effect of Jingao Solar’s return to the market from multiple aspects,striving to comprehensively evaluate its performance,mainly from the aspects of short-term market effect,financial effect,and non-financial effect.In terms of short-term market effects,investors are more concerned about the return of Jingao Solar to the market;After the return of Jingao,its profitability continued to improve,and even in 2020 and2021,which were affected by the epidemic,its net profit increased,its operational capacity improved,and its economic value added continued to increase after the return;In terms of non-financial effects,the return to the market has increased the papularity of Jingao.Jingao has more funds to improve its vertical integration layout,and has the ability to carry out large-scale projects after the return,consolidating its industry leading position.Overall,the return to listing has improved the financial performance of Jingao,increased its market influence,and is conducive to the company’s development strategy.Finally,this article provides suggestions for Jingao itself and other photovoltaic companies.After its return,Jingao will also continuously improve its industrial layout,focus on technological and management innovation,and achieve long-term development of the enterprise.Chinese concept stock companies in the same industry can refer to Jingao’s return method,fully consider the domestic environment and the company’s own situation,and develop appropriate return plans.There are three main innovations in this article.Firstly,previous research has mostly focused on industries such as the internet.This article has studied the motivations and effects of photovoltaic industry companies returning to the market,which can enrich research in this area;Secondly,Jingao Solar is the first photovoltaic company to return to the A-share market.Jingao’s return case is very representative,and other photovoltaic concept companies that want to return can fully refer to Jingao’s return case and always pay attention to domestic policies.Thirdly,this article conducts a detailed study on the operational performance of Jingao after its return,which has certain reference significance for investors.