DS Energy Chemical Co., Ltd.Asset Restructuring Effect Evaluation

Chinese enterprises, especially small and medium-sized private enterprises areexperiencing the historical process of industrial structure optimization, and capacityupgrading. The reorganization of assets, is the focus of enterprise reform, thusevaluation of its effect is an important symbol to check whether the restructuringsuccess or not.This paper studies the asset-restructuring case between two companies, DS andLK. With application of relevant theories, the paper firstly states the macro andmicro background information of DS from the macro research level to introduce thesituation of the both participated sides. Then, specializes analyzed and evaluated thereorganization effects of DS based on analysis of relevant issues.Linking theory with practice, this article studies actual conditions andcharacteristics of asset restructuring in DS, and analyses its capacity of profitmaking, operating and business developing, with usage of asset-restructuringperformance evaluating index system. With these analyses, the article also studiesthe overall after-effects from management synergies, operational synergies andfinancial synergies. It shows that, the profitability, operational capacity, operationand development capacity of DS has been improved to some extent; in addition, itsdebt service, financing capacity and management efficiency has been greatlyimproved. So it proves to be a successful case.The results of this study reveal relevant regular patterns and problems for suchsmall and medium-sized private enterprises in the process of restructuring of assetsand provide new ideas for their long-term development.