Research On Financial Performance Evaluation Of The Merger And Reorganization Between Shenhua And Guodian

In the past two years,China has embarked on a new journey of high-quality development.The Central Working Group has clearly put forward a solid push for structural reforms on the supply side,focusing on "three go,one drop,one supplement".In this context,China’s state-owned enterprises have set off a wave of mergers and reorganizations.However,these enterprises face many difficulties in merging and reorganizing.Especially,the level of capital operation after mergers and reorganizations has always been an important factor that plagued merger performance and directly affected mergers and reorganizations.The energy industry is the focus of state-owned enterprise reform,especially the coal and electric power industries have prominent problems.Therefore,solving the contradiction between coal and electricity has become the top priority of state-owned enterprise reform.In today’s complex and changing economic environment,doing a good job of merger and reorganization has far-reaching significance for the reform of state-owned enterprises.The merger and reorganization between Shenhua and Guodian is the first case of state-owned enterprise energy reform.Researching its financial performance before and after the merger and reorganization is of great value.It has a key practical guiding role for the future development of state-owned enterprise reform and the promotion of corporate reorganization.Based on the relevant theories and the review of domestic and foreign research results,the literature research method,comparative analysis method,financial indicator method,and DuPont analysis method are comprehensively used to analyze the case of Shenhua Guodian’s merger and reorganization,and systematically summarize the reasons for the merger and reorganization and process;By collecting and organizing financial data from the first quarter of 2016 to the second quarter of 2019,the financial indicators of the profitability,debt serviceability,operating ability,and development ability of the two companies before and after the merger and reorganization are analyzed;and then compared with DuPont analysis To explore the changes in the financial performance of the two companies before and after the merger and reorganization.The research found that the profitability and development capacity of enterprises after the merger and reorganization have increased to a certain extent.Therefore,on the whole,the merger and reorganization of the two central enterprises was successful,which not only strengthened the company’s operating strength and promoted its long-term development capabilities,but also provided a good benchmark for the merger and reorganization of other enterprises in the future.