Research On Triple Performance Evaluation Of JY Group’s Acquisition Of JD Cement

Cement industry plays an important role in China’s national economic construction.With the decline of China’s national economic growth and the sharp increase of economic downward pressure,there are many problems in the development of cement industry:low concentration of industry,serious overcapacity,huge losses,serious pollution situation and so on.In 2015,affected by the depression of the downstream real estate industry and the substantial reduction of cement demand,the national cement industry was greatly impacted,and faced serious obstacles in its development.When the development of enterprises encounter obstacles,merger and acquisition is undoubtedly an important way to help enterprises out of difficulties.M&A can not only promote the formation of enterprise scale effect,improve market concentration,but also optimize the allocation of resources,change the mode of economic development,and effectively fight against foreign competitors.Under the requirements of capacity reduction and low pollution,the state encourages the merger and integration of cement enterprises and promulgates a series of policies,which creates favorable conditions for the M&A of large cement leading enterprises.Based on this,JY Group completed the acquisition of JD Cement,which effectively solved the problem of overcapacity in the region and improved the industry concentration in North China.It is a major M&A event conforming to the trend of supply side reform.In order to know whether the overall completion of the merger and acquisition has reached the original set goals,it is necessary to evaluate the performance of JY Group’s merger and acquisition of JD Cement.Firstly,it introduces the fundamental state of enterprises on both sides of M&A,the implementation plan and process;secondly,it analyzes the background and motivation of merger and acquisition;thirdly,combined with the triple bottom line theory,it constructs the merger and acquisition performance evaluation index system including three dimensions of economy,environment and society;fourthly,it introduces the principle of catastrophe progression method and the evaluation steps of this method;Fifthly,when the evaluation method is applied to the specific case analysis,the entropy method is introduced to sort the indicators according to the weight;sixthly,the normalization formula is used to calculate layer by layer,and finally the catastrophe grade value of the first level indicators is the required evaluation value;seventhly,the calculated results of JY Group’s economic,environmental and social performance in the five years before the merger,the year of the merger and the three years after the merger(i.e.,from 2011 to 2019)are analyzed;finally,some reasonable suggestions are put forward to improve the triple performance of JY Group.The study found that although the economic performance of JY group has recovered in the year of M&A,it has declined in the second year after M&A,and still did not recover to the level before merger and acquisition in 2019.Overall,the overall performance is poor.After M&A,the environmental performance has been steadily improved,the energy consumption has been strictly controlled,the emission of pollutants has been strictly restricted,and the green operation ability has performed well;Social performance also continues to rise after M&A,and the performance of it is good.Through the study of this paper,it can provide some reference for the evaluation of the performance of cement enterprise M&A,and provide ideas for the future development of JY Group.