Home » Layout of new growth points Over 40 companies released plans for spin-offs and listings during the year

Layout of new growth points Over 40 companies released plans for spin-offs and listings during the year

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Original title: Layout of new growth points Over 40 companies released plans for spin-off and listing during the year

SAIC Motor recently announced that it intends to spin off its subsidiary Jie Hydrogen Technology to go public on the Science and Technology Innovation Board. It is worth noting that since this year, more than 40 A-share companies have announced plans to spin off their subsidiaries or related business segments for listing. From the perspective of the spin-off subsidiaries, most of them are concentrated in emerging industries such as new energy and biotechnology.

According to SAIC’s announcement, it plans to spin off its holding subsidiary Jie Hydrogen Technology into a joint stock company limited by shares and list it on the Science and Technology Innovation Board of the Shanghai Stock Exchange. According to reports, through this spin-off and listing, SAIC Motor will further realize its business focus, focusing on complete vehicles, parts, mobility and services, finance, and international operations. At the same time, JieHydrogen Technology will become an independent hydrogen energy and hydrogen fuel cell business listing platform of the company, and further increase the investment in the core technology of hydrogen energy and hydrogen fuel cell business through the listing of the science and technology innovation board, and realize the hydrogen energy and hydrogen fuel cell business The expansion and strengthening of the sector will enhance the profitability and comprehensive competitiveness of the hydrogen energy and hydrogen fuel cell business.

In addition to SAIC, since November, nearly 10 companies including China Energy Construction, China Great Wall, Tiandi Technology, Vanke A, Goertek, Nangang, Baosteel, and SF Holdings have disclosed plans or plans to spin off and go public. The progress. Specifically, most companies focus on laying out new tracks or looking for new growth points. Among the spin-off subsidiaries, the most frequent sectors are concentrated in new energy, pharmaceuticals, and biotechnology. For example, Goertek, a subsidiary of Goertek, is mainly engaged in the R&D, production and sales of MEMS (Micro Electro Mechanical System) devices and micro system modules. Baosteel Co., Ltd. intends to spin-off the listed Baowu Carbon Industry, and plans to become a listing platform for the new carbon-based materials business independent of the parent company. Vanke A’s Wanwu Cloud is mainly engaged in the property service business in the subdivisions of the real estate industry. CICC’s research report pointed out that from the perspective of industry distribution, among the current A-share spin-off cases, the parent company has the highest proportion in the pharmaceutical, biotechnology and life science industries, followed by real estate, technical hardware and other industries. More relevant cases. In the current case of splitting, it is not common for a diversified group company to split a single business under it.

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From the point of view of the spin-off and listing destinations, they are mainly concentrated on the Science and Technology Innovation Board and ChiNext. Industry analysts believe that due to the implementation of the registration system on the Science and Technology Innovation Board and the Growth Enterprise Market, the review process will be faster, so more companies are split into the two major boards for listing. Yang Delong, chief economist of Qianhai Kaiyuan Fund, analyzed and pointed out that in general, the business scale of subsidiaries to be split and listed is relatively small, and most of them belong to emerging industries, which are more in line with the listing requirements of the ChiNext and Science and Technology Innovation Board. Therefore, it is also conducive to further expanding the business layout of the parent company, which in turn helps to improve the overall profitability.

Spin-off and listing have undoubtedly become one of the important ways for companies to broaden financing channels and increase valuations. According to the analysis of Guohai Securities, from the perspective of the company’s growth cycle, as the company expands in scale and increases in market value, the company will inevitably encounter problems such as poor governance efficiency and lack of prominent competitive advantages. Attempting to go public through a spin-off is conducive to focus on core capabilities and resources to core businesses on the one hand; on the other hand, it is also conducive to the full discovery of the market value of new businesses to enhance the company’s intrinsic value.

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CICC believes that the current A-share multi-level capital market system has gradually developed and improved. The establishment of the Science and Technology Innovation Board, the Growth Enterprise Market and the Beijing Stock Exchange not only provide support from the capital market and the listing system for the spin-off and listing of companies, but also provide places and channels for investors to invest in innovative companies. As far as the parent company is concerned, the separation of unprofitable but high-growth subsidiaries to achieve a separate listing can effectively increase the valuation of the parent company. For investors, such potential spin-offs and listings may bring new investment opportunities.


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