A Study On The Path And Performance Of Net Ease’s Spin-off Listing

At present,in order to meet the needs of their own asset reorganization,some large companies adopt the way of spin-off or merger and acquisition,most of which take merger and acquisition as the mainstream.However,spin-off can separate the advantageous businesses of enterprises,give them more autonomy,and enable the parent company to focus on its advantageous businesses with more energy and resources,which is of great significance to the strategic layout of the whole group.This thesis takes Net Ease’s two spin-offs as the research object,focusing on the path adopted by Net Ease when it was spin-off and listed and its post-spin-off performance.Firstly,the background and significance of the existing spin-off listing are expounded,the theoretical significance,practical significance and innovation points of this thesis are explained,the research content and framework structure of this thesis is proposed,the definition of spin-off listing and performance evaluation is defined,and the relevant theories are systematically elaborated.By analyzing unicorns in different industries incubated by the same parent company and splitting them into different markets for listing,this thesis studies the reasons why Net Ease chooses different spin-off and listing paths from four aspects of listing policy,investor preference,price/earnings ratio and strategic plan,and provides valuable experience for subsequent spin-off and listing of Net Ease and other companies with spin-off intention.In the performance evaluation of the spin-off subsidiaries,it was found that the spin-off listing had a positive impact on the market value of Youdao in a short period of time,while after the spin-off listing of Net Ease Cloud Music,the company’s operating conditions and financial results became transparent,and the stock price of Cloud Music began to decline,making the market value gradually return to the real level.Subsequently,in the four dimensions analysis of Youdao and Cloud Music’s solvency,profitability,operating capacity and development capacity,the conclusion has been obtained with positive influence.In the performance evaluation of the parent company,the event study method is first used to evaluate the impact of the two spin-offs on the parent company’s market performance,and it is found that the market is far less positive towards the spin-off of Cloud Music than the spin-off of Youdao.The method combining financial indicators and EVA was used to analyze financial performance,and it was found that the spin-off and listing of Youdao and Cloud Music had a positive impact on Net Ease’s profitability and growth ability,but had little impact on its solvency and operation ability.However,the market value of Net Ease was enhanced after the spin-off and listing of the two subsidiaries.By summarizing the experience of Net Ease’s two consecutive splits,we find that we should choose the most suitable financing path according to the situation of the company and the characteristics of different capital markets.Spin-off listing should choose appropriate business segments,and focus on improving the independence of subsidiaries,and choose a reasonable way and path.