Case Study Of Huilu Ecology Backdoor Huaxin Shares Relisting

Re-listing is an integral part of the delisting system,which provides positive incentives for those companies that can restore their ability to continue operations and good corporate governance,as well as those that are forced to exit due to financial factors.To A certain extent,it promotes the "survival of the fittest" of the A-share market,and then accelerates the marketization process of the A-share market.However,the re-listing system is also very harsh for delisted companies,which is not applicable to those companies that are delisted because of fraud and other violations of laws and regulations,but to support those enterprises with outstanding main business,good fundamentals and sustainable development ability.Under the current audit system standards,the conditions for the re-listing of delisted companies are not very different from the initial public listing of enterprises.In terms of practical operation standards and financial indicators,Shenzhen Stock Exchange pointed out that when enterprises re-listing in the audit,you can refer to the IPO audit standards,carry out multiple rounds of inquiry,focus on strengthening the control of the quality of the audit business,and ensure that all processes are in line with the standards.However,re-listing and initial public listing are on two parallel channels,while re-listing does not have the problem of IPO channel congestion,and only needs to be put on record in the IPO.Without the IPO as a check link,there may be speculation and speculation.As the first company to be re-listed in A-shares after the implementation of the new delisting regulations,and the third company to be re-listed after China Merchants South Oil and China Machinery Reloading,Huilu has A special listing process,which is closer to backdoor listing,so its re-listing process can be deeply studied.Through the analysis of the rectification situation after delisting and the financial situation before and after re-listing of Huilu Ecology,it is found that the company returned to A-shares by means of re-listing of the delisted company through backdoor.In this process,Huilu Ecology adopted A series of measures such as bankruptcy reorganization and the reform of non-trading shares to meet the conditions for backdoor re-listing.It eventually went public six years later.This paper analyzes the impact of its re-listing on the company by analyzing the comparison of its financial performance and non-financial performance before and after listing,as well as the comparison with other companies in the same industry.The study finds that the effect of the backdoor re-listing of Huilu Ecological Company is not obvious in the short term,and the advantages of the company are not prominent compared with the companies in the same industry after re-listing.And the company’s listing has done little to improve the industry’s notoriously volatile revenue.In the capital market,there is no shortage of delisted enterprises like Huilu Ecology,which want to restore their operating capacity through the rectification measures after delisting and apply for listing again.Through the case study of Huilu Ecology,this paper concludes that if an enterprise wants to go public,no matter IPO or re-listing,it should start from the company itself to solve the historical problems and focus on the main business development and the long-term strategy of the company.At the same time,for the regulators,supervision and inspection should be strengthened to ensure the quality and legal compliance of the information disclosed by the re-listed companies.It is suggested that the agreed audit and registration process should be followed regardless of the listing channel to ensure the fairness and unity of the listing channel.