Recently, A-share listed companies have frequently split their subsidiaries for listing. The reporter of China Securities Journal found that this week, seven companies including Sichuan Chuantou Energy Co.Ltd(600674) , Zhejiang Crystal-Optech Co.Ltd(002273) and Zhejiang Crystal-Optech Co.Ltd(002273) released the spin off listing plan of their subsidiaries for the first time, and most of the spin off subsidiaries were concentrated in emerging industries such as new materials, semiconductor manufacturing and new energy. Relevant companies expressed the hope to achieve the business focus of parent and subsidiary companies through spin off and listing.
Insiders said that under the new round of technology industry cycle, small and medium-sized enterprises usher in development opportunities. The separation and listing of high-precision and cutting-edge businesses by large enterprises will help them focus on industrial upgrading and improve their own scientific and technological innovation strength.
companies to be listed separately
Recently, listed companies have intensively disclosed the “a-split-a” plan. The reporter found that in the last week, Sichuan Chuantou Energy Co.Ltd(600674) , Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) , Zhejiang Crystal-Optech Co.Ltd(002273) , Sichuan Hebang Biotechnology Co.Ltd(603077) , Han’S Laser Technology Industry Group Co.Ltd(002008) , Tangshan Sanyou Chemical Industries Co.Ltd(600409) and Qingdao Tgood Electric Co.Ltd(300001) .
Taking Sichuan Chuantou Energy Co.Ltd(600674) as an example, on March 17, the company issued a plan for spin off and listing, saying that it planned to spin off its 50% holding subsidiary Jiaotong University Guangming to be listed on the science and innovation board Sichuan Chuantou Energy Co.Ltd(600674) said that after the spin off, Sichuan Chuantou Energy Co.Ltd(600674) equity structure will not change and still has a controlling stake in Jiaotong University Guangming. On March 15, Tangshan Sanyou Chemical Industries Co.Ltd(600409) issued the suggestive announcement on planning the spin off and listing of holding subsidiaries. The company plans to spin off Sanyou silicon industry and list it on the domestic stock exchange. At present, the spin off and listing plan is being formulated.
The destinations of spin off and listing are concentrated on the gem and the science and innovation board Night vision, a subsidiary of Zhejiang Crystal-Optech Co.Ltd(002273) and Yum power, a subsidiary of Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) and Han Zu optoelectronics, a subsidiary of Han’S Laser Technology Industry Group Co.Ltd(002008) all aim to be listed on GEM Sichuan Chuantou Energy Co.Ltd(600674) subsidiary Jiaotong University Guangguang and Qingdao Tgood Electric Co.Ltd(300001) subsidiary specially called to be listed on the science and innovation board.
In addition to the above-mentioned companies are still in the initial stage of spin off listing, many industry leading companies have recently disclosed the latest progress of spin off listing of their subsidiaries. For example, the leading provider of industrial Internet software Yonyou Network Technology Co.Ltd(600588) announced on March 7 that its subsidiary UFIDA automobile’s application for public offering of shares on the science and innovation board for the first time was approved by the Shanghai Stock Exchange.
It is worth noting that the spin off is not plain sailing Shenzhen Mtc Co.Ltd(002429) 3 on March 17, the announcement on terminating the spin off and listing of subsidiaries on the gem was issued, and the nearly two-year spin off and listing plan ended in failure Shenzhen Mtc Co.Ltd(002429) said that the controlling shareholder and actual controller of the company planned to transfer the actual control of the company in the near future. If the matter is successfully completed, the actual controller of the subsidiary zhaochi Guangyuan will also be changed, and zhaochi Guangyuan will not meet the conditions for the initial public offering of shares on the gem.
specialized special new attribute highlights
Everbright Securities Company Limited(601788) believes that there are three types of companies that have the power to spin off and list: first, the company has huge assets, diversified businesses, certain debt pressure, and its subsidiaries have strong profitability and are in the growth stage; Second, incubation platform companies; Third, companies with demands for the reform of state-owned enterprises.
The reporter of China Securities Journal found that most of the subsidiaries to be split and listed are concentrated in emerging industries such as new materials, semiconductor manufacturing, new energy and information technology.
On the evening of March 8, Han’S Laser Technology Industry Group Co.Ltd(002008) released the plan to spin off the subsidiary Han’s optoelectronics to be listed on the gem. Han’s optoelectronics was founded in 2007, focusing on the R & D and manufacturing of special equipment for semiconductor and pan semiconductor packaging and testing. According to Han’S Laser Technology Industry Group Co.Ltd(002008) introduction, at present, Han’s optoelectronics has more than 10000 machines in the LED and IC market, leading its Chinese counterparts; The high-speed automatic semiconductor gold / copper wire welding machine independently developed by the company can be comparable with similar products of ASM and other international well-known sealing and testing equipment manufacturers in terms of performance and efficiency, effectively reducing the procurement cost of Chinese downstream customers. After acquiring 100% equity of its Singapore subsidiary in 2021, Han’s optoelectronics realized an operating revenue of 345 million yuan, a year-on-year increase of 128%; The net profit was 50.58 million yuan.
Gf Securities Co.Ltd(000776) said that the global demand for semiconductors remained strong, the downstream capacity utilization was full, and the demand for semiconductor equipment was expected to continue its high boom.
Tangshan Sanyou Chemical Industries Co.Ltd(600409) the subsidiary Sanyou silicon industry to be split is engaged in the production of new silicone materials. At present, the company has a silicone monomer production capacity of 200000 tons / year Guangdong Dongfang Precision Science & Technology Co.Ltd(002611) the subsidiary Yum power to be split is a national specialized and new “little giant” enterprise. In 2021, the company successfully mass produced 115 horsepower models of outboard machines, breaking the long-term monopoly pattern of international well-known brands in this power segment.
According to the reporter’s incomplete statistics, 61 A-share companies issued the spin off and listing plan in 2020, and 33 companies disclosed the spin off and listing plan of their subsidiaries in 2021. In the past two years, it has been common for large listed companies to spin off and go public for financing. For example, the global security leader Hangzhou Hikvision Digital Technology Co.Ltd(002415) raised funds for the spin off and listing of its subsidiaries fluorite network and Haikang Siasun Robot&Automation Co.Ltd(300024) in April 2020 and December 2021 respectively.
In addition, there are Goertek Inc(002241) spin off of goerwei, Baoshan Iron & Steel Co.Ltd(600019) spin off of Baowu carbon industry, China United Network Communications Limited(600050) spin off of Zhiwang technology, Xcmg Construction Machinery Co.Ltd(000425) spin off of XCMG information, etc. the spin off of the above company is still in progress.
Sealand Securities Co.Ltd(000750) believes that in the new round of science and technology industry cycle, small and medium-sized enterprises will usher in development opportunities, and large enterprises will spin off and list their sophisticated businesses, which will help them focus on industrial upgrading and enhance their own scientific and technological innovation strength.
focus on developing main business
The reporter found that the main reasons for the spin off and listing disclosed by listed companies include: promoting the parent and subsidiary companies to focus on the main business, broadening financing channels, improving the overall valuation of the company, improving the profitability of subsidiaries, optimizing management ability, maximizing shareholders’ interests, etc.
Guolian Securities Co.Ltd(601456) researcher told reporters: “the parent company usually has mature and stable main business, but the performance growth is slow and the valuation will not be too high. After the spin off and listing of subsidiaries carrying new business, even if the profitability is poor at this stage, they often get a high P / E ratio or P / C ratio.”
China International Capital Corporation Limited(601995) believes that, generally speaking, spin off listing can activate the vitality of parent and subsidiary companies. Spin off can make the respective development strategies of parent and subsidiary companies clearer and improve the professional operation level and management efficiency; After the spin off, the subsidiaries need to disclose financial and business information independently, which is conducive to the market to make a reasonable valuation of the parent and subsidiary companies. In addition, there are many restrictions on the refinancing of listed parent companies. The spin off can broaden the financing channels of enterprises, enhance the financing ability of parent and subsidiary companies and improve the operating conditions of parent companies.
Ernst & Young China related sources said that the spin off listing can bring many benefits to listed companies and spin off subsidiaries, but there are many risks and challenges in the actual operation process, involving business, organization, technology, personnel and other aspects.
In the past two years, the laws and regulations of spin off listing have been continuously improved, creating a good policy environment for the spin off listing of listed companies. On January 5 this year, the CSRC issued the rules for the spin off of listed companies (for Trial Implementation). While improving the conditions for the spin off, it added the situation of prohibiting the spin off, and further clarified that if the main business or assets of a subsidiary belong to the main business or assets of a listed company at the time of its initial public offering and listing, the subsidiary will not be listed.
