Research On The Impact Of Asset Restructuring On Corporate Performance Under The Background Of State-owned Enterprise Refor

The reform of SOEs has a long history,from the three-year SOE reform measures(2020-2022)to the mobilisation and deployment of value creation measures to benchmark SOEs against world-class enterprises in March this year.Overall,the main objectives are similar: to strengthen,improve and expand the national economy and SOEs,and to increase the viability and competitiveness of SOEs.In this context,asset restructuring has become a favourable ’tool’ for reform initiatives,with an increasing number of SOEs opting for restructuring in increasingly larger deals.Many scholars argue that restructuring can help improve the overall strength of an enterprise and facilitate its transformation and modernisation.This paper focuses on the restructuring activities of Zhongyuan Special Steel in order to examine the motivations for the company’s restructuring,the changes in the company’s performance after the restructuring and then summarise the impact of the restructuring on the company’s achievements.This paper selects a single case study for analysis in order to examine the reasons for Zhongyuan Special Steel’s decision to restructure and the impact of the restructuring on the company’s performance,and to analyse whether Zhongyuan Special Steel’s restructuring activities contributed to the company’s overall performance.The paper analyses the reasons for Zhongyuan Special Steel’s restructuring of COFCO Capital.It finds that through asset restructuring,Zhongyuan Special Steel introduced high quality assets,transformed and modernised its main business,turned a loss into a profit,successfully emerged from its difficulties and preserved its listed resources.Accordingly,this paper analyses the impact of the restructuring on the performance of Zhongyuan Special Steel.The study shows that:firstly,through the restructuring,Zhongyuan Special Steel divested low-quality assets,reduced operating costs and advanced the objectives of structural reform and de-capitalisation,thus promoting sustainable development;secondly,after the restructuring,Zhongyuan Special Steel changed its main business,improving its profitability;again,the restructured Zhongyuan Special Steel significantly increased its external donations and number of employees,taking on greater social responsibility and improving social performance.Finally,through the asset restructuring,Zhongyuan Special Steel has optimised its business management model,improved its risk control capability and enhanced its governance level.At the same time,Zhongyuan Special Steel took advantage of COFCO Capital’s industrial background and brand advantages to improve its operating performance by allocating quality capital and promoting synergies between production and finance to enhance its financing capacity,sustainable development and risk tolerance.Through case studies,this paper hopes to explain the antecedents and consequences of the restructuring of Zhongyuan Special Steel,examine the specific impact of the restructuring on corporate achievements and assess whether the restructuring has met expectations,in order to enrich case studies in the industry,provide theoretical support for more SOE reforms in the future,and provide practical experience for the transformation and modernisation of more enterprises and the implementation of policy objectives of SOE reforms.