Research On The Impact Of Business Transformation Of Sace On Financial Performance

In recent years,the haze problem has been widely concerned and has become one of the major environmental problems.Our government has introduced a series of policies to improve the fog and haze,and the use of coal is one of the main reasons for the haze problem.Trapped in the adjustment of national policy,the coal industry has been developing hard,the price is down,and the production capacity is overcapacity.The current situation of the coal industry,so that most coal companies can not see the hope that coal companies are seeking transformation and development.Business transformation is one of the options for coal enterprises.SACE entered the coal industry at the end of 2002.The main business was coal mining,washing,processing and marketing.From 2012 to 2014,the yield of raw coal and the sales of commercial coal increased year by year.In 2014,SACE was transformed into the Internet game industry.Based on this,this paper studies its business transformation with the case of SACE,and evaluates the effect of business transformation through the impact of business transformation on financial performance.Firstly this paper adopts normative research method,according to the domestic and foreign scholars on the business transformation and the financial performance of the literature and related theories are reviewed.On the basis of research results of scholars at home and abroad,this paper introduces the research perspective,research on the financial performance of the business transformation influence,through the analysis of financial performance to evaluate the implementation effect of business transformation the.Secondly,this paper use case study method to analyze the internal and external environment before and after the transformation of SACE.This paper use PEST analysis method,industrial life cycle theory and resource analysis theory to find out the internal and external causes and paths of the transformation of the company.Finally,based on cause analysis,using comparative analysis method,through the SACE before and after the business transformation of the financial performance of the longitudinal comparison,the study found that SACE to enter the Internet game industry,growth capacity significantly improved;in 2015 by stripping for loss of business,improve profitability;strengthen the R & D management,form the brand effect;open up foreign markets;cash flow is guaranteed,the increase of debt paying ability.However,through horizontal comparison of the financial performance and industry level before and after the transformation of SACE,the paper find that the operation capacity of SACE is not enough,the financial leverage effect is not obvious,and there is still a big gap with the industry competitors.Aiming at the difference between the financial performance and the industry before and after the transformation of SACE,this paper puts forward some corresponding suggestions,and reveals the related risks faced by SACE after the transformation of business.This paper hope that through this research,it will help to strengthen the operation and management and improve the financial performance after the business transformation.