*ST Xin Ye Of Asset Restructuring And Strategic Evaluation

Because of specificity of China capital market, the special treatment company that in deep trouble and face to delisted urgently seek the possibility of turning around. Recapitalize not only plays an important role in get rid of the difficulties of enterprises, revitalize the enterprise assets and improve the core competitiveness of enterprises,and that it works rapidly,no doubt recapitalize becomes an important means that special treatment companies keep listing qualifications. Although the most scholars has given a severe criticism to this phenomenon, recapitalize of all special treatment companies should not be negated totally, many special treatment companies will treat recapitalize as an opportunity to stripping bad assets, change the development strategy and promote industrial upgrading.Based on the example of *ST XinYe, the first listed industrial enterprises of Sinkiang production and construction corps, this paper makes further exploration of the influence on the performance and strategy of enterprise recapitalize under the dilemma. First of all, the paper analyzes the research background and research significance of this article, and reviewed the domestic and foreign scholars’ research about the impact of predicament enterprise recapitalize on its performance and strategic; Secondly, this paper summarizes the related concepts and theoretical basis, and combs the theory; Thirdly, giving a brief introduction to the company and a detailed analysis to the cause of loss of the company and restructuring process in this paper; Then, using event study analyze the short-term effect of the company, found the recapitalize caused the positive announcement effect, and brought excess earnings to shareholders, followed analyzing its long-term performance by using financial indicators, and through the financial indicators compared with industry’s top five enterprises found that *ST XinYe has greatly improve financial performance, and its profitability and solvency got obvious improvement; Then, the method of EVA which can evaluate *ST XinYe asset restructuring strategy, we can see *ST XinYe development trend is on the rise, the shareholders’ wealth is gradually increasing after the reorganization of assets.Finally, summarizing the research conclusion that the main reasons of loss of *ST XinYe are its prime operating revenue is low, poor daily management, unbalanced sales and the weak competition ability.*ST XinYe not only strip out the bad assets through recapitalize, achieve the optimal allocation of resources, improve the enterprise overall performance, but also it adjust the strategy of industry and promote the upgrade industries, make the enterprise out of the dilemma. Next, the paper gives a few Suggestions to the recapitalize of special treatment companies: special treatment companies should improve their own competitiveness, which is the basic means to get out of trouble; special treatment companies should accurately select the target company in the process of restructuring, after the restructuring target company can rapidly form a complete industry chain with the enterprise; ST companies should have correct reorganization motives, not to simply "report restructuring", but to substantial strategic restructuring; also the country should continue to complete the laws and regulations of recapitalize and promote the rapid development of security market of our country.