Performance Research On The Asset Restructuring Of Jinyu Group And Jidong Cement Under The Background Of Overcapacity Reduction

As the the market-oriented economy is growing fastly,at the same time,the industrial restructuring and the supply-demand imbalance has made the development of the traditional manufacturing industry difficult.In 2015,the total profit of the cement industry decreased by58 % year on year.The benefits of the cement industry declined seriously,and the development of the whole industry was not optimistic,it is imperative for the cement industry to cut overcapacity.The state has also issued a lot of documents to encourage competitive companies in the industry to reassignment capital through reorganization,improve the industry concentration.The asset reorganization of Jinyu Group and Jidong Cement is the largest asset reorganization in the cement industry.This reorganization has made a great contribution to the overcapacity reduction of the cement industry,and also brought good results for Jidong Cement,the successful experience of this case can provide a good reference for enterprises in other overcapacity industries.This paper uses the case study of Jinyu Group and Jidong Cement.First,this paper gives a brief overview of the two sides of the reorganization,and analyzes the motivation,process and the overall effect of the reorganization;Secondly,based on the perspective of short-term performance,adopting the event research method,the synergistic effect perspective,adopting the financial index method and the value creation perspective,adopting the EVA method to analyze the effect of the reorganization to Jidong Cement.At the same time,the industry average value is used to compare the results and exclude the impact of the industry.The study found that the reorganization not only solved the problem of competition between the two sides,improved the industrial concentration ratio,stabilized the cement price in the region,but also brought good short-term performance for Jidong cement,since the reorganization,the financial indicators of Jidong Cement have also developed significantly,realizing good operation coordination,management coordination and financial coordination.At the same time,the EVA value has not only changed from negative to positive,but also significantly improved,consolidating its leading position in the cement industry and creating good conditions for its subsequent development.Finally,based on the special background of “overcapacity reduction“,coupled with the research and analysis of the restructuring case,this paper puts forward some targeted suggestions from the perspective of overcapacity reduction and asset restructuring respectively:In terms of cutting overcapacity,enterprises in industries with excess capacity can concentrate their advantages,enhance their competitiveness through assets restructuring;increasing investment in environmental protection and technological innovation,and finding new sources of income;In the course of asset restructuring,we should accurately identify our own threngths and weeknesses,carefully select the restructuring objects,innovate the restructuring methods according to the environmental changes in time,and pay attention to the comprehensive integration after the restructuring.