Research On The Path And Effect Of SINOMACH’s Reorganization And Remarketing

In 2012,our country promulgated the "measures for the implementation of the listed again,to optimize the structure of capital market,but as of March 2022,the number of listed companies delisted from A-shares reached 147,with only three companies successfully relisted,of which the case company selected for this paper,SINOMACH Heavy Equipment Group Corporation(hereinafter referred to as SINOMACH Heavy),is one.As the second re-listed company in China,both its rare delisting method,the reorganization process it went through to meet the re-listing conditions,and the market reaction after returning to A-share can provide references for other companies facing delisting or already delisted.Based on the research of domestic and foreign scholars and related theories,this paper uses case study,event study and financial index analysis methods to study the reasons for SINOMACH’s A-share active delisting,the path of reorganization and re-listing,and the effects.The reasons for the voluntary delisting of SINOMACH Heavy Industries include: suffering from consecutive years of losses after initial listing,protecting the interests of small and medium-sized shareholders,and facilitating re-listing in the future.After sorting out the relisting path,we found that the company chose "bankruptcy reorganization + major asset reorganization" due to the consideration of operating value,debt settlement ratio,protection of creditors’ interests,and business structure.By comparing the practice of bankruptcy reorganization and non-bankruptcy reorganization,we found that the bankruptcy reorganization reduced the debt burden and divested the loss-making assets,which created a good environment for the normal operation of SINOMACH in the future,and the major asset reorganization on this basis aimed at broadening the scope of profitability and improving the business structure,rather than assisting other enterprises to avoid the IPO system and make a shell listing,which was in line with the relisting conditions.This is consistent with the conditions for relisting.Finally,we evaluate the effect of the re-listing of the case company and find that the short-term market response to the re-listing was not positive,but the re-listing did significantly improve the financial performance and operating conditions of the company and protect the interests of stakeholders,and the market response tended to improve in the long run.The above analysis leads to the insight that listed companies with poor operations can choose active delisting at the right time to lay the foundation for future relisting,and delisted companies should not ignore non-financial indicators when choosing the path to relisting,but delisted companies will face greater challenges after relisting than IPO-listed companies,so companies should have a correct attitude and rational view of listing and delisting.