Research On Path Selection And Performance Of Spin Off Listing Of Pharmaceutical Enterprises

Split-listing is an important means for enterprises to restructure their contracted assets.It aims to alleviate the negative synergistic effect of enterprises in diversified operations by splitting some assets or business segments to the capital market independently,so as to enhance enterprise value and solve financing needs.In the 1980 s,spin-off listing became popular in western developed countries,but China came into contact with this concept relatively late,so the corresponding specific practice was relatively late.It was not until the spin-off of Tong Ren Tang in 2000 that it became popular and developed.However,at that time,the CSRC exercised strict supervision over the spin-off and listing of domestic subsidiaries.In this context,many domestic listed companies choose to spin off their subsidiaries for listing in Hong Kong.In December 2019,China promulgated the "Several Provisions on Pilot Domestic Listing of Split Subsidiaries of Listed Companies".The publication of this document fills the gap in the domestic spin-off listing system.Then,on January 5,2022,the CSRC promulgated the Rules for the Split Listing of Listed Companies(Trial),and the rules for the split listing were more clear.However,there are few case studies on spin-off listing in China,and most scholars focus on analyzing the motivation and performance of spin-off listing,without in-depth discussion on the path selection of spin-off listing.Therefore,this paper takes Chengda,Liaoning Province as a case study,analyzes its four spin-off listing processes,and deeply studies its motivation,path selection,effect and enlightenment,with a view to providing some reference.In this paper,literature research and case study are used to analyze the cases of Chengda’s listing after being split up.Firstly,the research background,significance,methods and contents of this paper are expounded,and the research results at home and abroad are summarized.After understanding the related concepts and theoretical basis of spin-off,starting from the background of the case,this paper summarizes the current situation of spin-off of pharmaceutical enterprises in China from two aspects: policy environment and path selection,and introduces the parent and subsidiary companies involved in this case and their spin-off process.Through indepth analysis of the case,this paper studies the motivation,specific path and financial performance of the subsidiary after the implementation of Chengda Biospin-off,and simply discusses the factors that affect its path selection.Finally,this paper draws a conclusion: after the spin-off,the subsidiaries get more funds and their solvency has increased,so the spin-off and listing will bring short-term financial performance to the company,but the long-term effect is really hard to see.Specifically,the reason why this effect can be achieved is inseparable from the success of the path selection of Liaoning Chengda,which is mainly based on the company’s own operating conditions and internal and external environment.Seizing the opportunity of spin-off listing is beneficial to the development of enterprises;Liaoning Chengda chose to list Chengda Bio on the New Third Board first and then IPO was the most suitable path under the policy at that time.Therefore,the split path of IPO after the listing of the New Third Board can be used for reference by other enterprises.In addition,five inspirations are drawn: first,the spinoff and listing should be adapted to the development strategy of enterprises;Second,enterprises should improve their independence and avoid horizontal competition;Third,the spin-off listed companies should pay attention to policy changes;Fourth,those who fail to meet the listing standards in the on-site market can be listed on the New Third Board before IPO;Fifth,the spin-off subsidiary should have considerable development prospects as far as possible.