Research On The Impact Of The Spin-off And Listing Of The Agency Construction Business On The Performance Of Real Estate Enterprises

In order to ensure the sustained and healthy development of the national economy,the state’s control over real estate continues to tighten,and in 2020,the central bank clearly proposed the "three red lines" policy to restrict the expansion of highly leveraged financing in the real estate industry.In the face of the increasingly severe regulatory environment for real estate financing and fierce industry competition,real estate enterprises urgently need to cultivate new business growth points.As a new blue ocean in the real estate field,agency construction has the characteristics of high profitability and low risk,and is an asset-light business with property,but it has higher profitability than property,and has attracted more than 40 real estate enterprises to share the pie.In 2018,Country Garden’s spin-off and listing of properties received strong attention from the capital market,which has since triggered a boom in the spinoff and listing of real estate enterprises.The spin-off and listing of its high-quality businesses through asset restructuring not only allows the capital market to pay attention to the true value of high-quality businesses,makes it easier to obtain financing,but also facilitates the deepening of parent and subsidiary companies in their respective core areas.However,there are only two listed companies in the capital market,and the current situation of difficult financing for real estate companies and property turnover tends to be saturated,the spin-off and listing of agency construction business may become a new breakthrough for real estate enterprises to solve problems.This paper selects Zhongyuan Construction Industry as a case study and compares it with the management of the first greentown company of the agency construction to explore the performance impact and effect difference brought by the spin-off and listing.Firstly,in the literature review part,the related research achievements and theories of spin-off and listing have been summarized.Secondly,using the case study method,the agency construction business of Jianye Real Estate and Zhongyuan Jianye was first introduced,and then the four-stage restructuring and changes in the equity structure before the spin-off and listing of Zhongyuan Jianye were clarified,and finally the four motivations of the spin-off and listing of Zhongyuan Jianye were summarized: solving the financing dilemma of parent and subsidiary;Achieve centralized development of growth business;Increase the market value of agency construction business;Optimize governance and management efficiency.Then,from the three aspects of capital market response,financial performance and qualitative performance,this paper compares with Greentown Management to explore the performance impact and effect difference brought by the spin-off and listing to Zhongyuan Construction and the original parent company,and analyze the reasons for the difference.Based on the comprehensive performance change path,the main conclusion concluded: the capital market has a negative attitude towards the parent company’s spin-off and listing of Zhongyuan Jianye in the short term,believing that it will reduce the profit of the parent company,which is diametrically opposed to Greentown management,due to the difference in equity structure;The spin-off and listing significantly increased the personal wealth of Director Hu Baosen,and the total value of Jianye Real Estate and Zhongyuan Jianye held by him increased significantly;The spin-off and listing has raised a large amount of liquidity for Centaline Construction in a short period of time,optimized its solvency,and is always higher than Greentown Management;The spin-off and listing has improved the brand awareness of Centaline Construction in the field of agency construction,increased the coverage of the business in the Greater Central Plains region and the market share of the whole country,and helped to improve the performance growth ability,but the growth rate was not as fast as that of Greentown Management,due to the difference in the efficiency of equity capital utilization and the original market share base;After the spin-off and listing,Zhongyuan Construction has insufficient independent operation and management capabilities,and compared with the mature Greentown management,it lacks experience in accounts receivable management.In view of the difference in performance impact and effect,this paper concludes with four suggestions to provide experience reference for real estate enterprises trying to improve their corporate performance through spin-off and listing.