Study On The Effect Of Huaneng Southern Company Asset Restructuring

Currently,electric power enterprise are facing a huge pressure from the external environment: on the one hand,China implements coal production control,constantly to reduce the producing capacity,which results in the high main business cost in electric power enterprises,and the profit earning pressure in the electric power industry's increase dramatically;on the other hand,affected by supply side policy reform,sluggish international economy,as well as the slow domestic economic growth,the electric power industry in China is suffering from unprecedented difficulties,and most companies' profit is experiencing sharp fall or even getting losses.Therefore,if the electric power enterprises want to seek better development in the crisis,they need to be bigger and stronger through the assets restructuring,the most common way in the capital market,to expand the scale of operation,and realize the healthy and sustainable development.Assets restructuring,however,is not only a panacea of effective solution to solve the issues of restructuring company,so whether an electric power enterprise' assets restructuring can meet the expectation with a positive effect,this is not only an important problem must be researched,but a hot spot in current capital market research.Based on Huaneng southern company as the research object,this thesis aims to find a "key point" that improve the outcome of the electric power enterprise' assets restructuring.Firstly,it introduces the assets restructuring process in Huaneng southern company,analyzes the motivation of the restructuring,and then detailedly analyzes the market effect after the assets restructuring.The study finds this restructuring brought about excess returns for Huaneng southern company,which shows that the capital market held positive expectations for Huaneng company;this may improve the management ability of the enterprise,and bring about more wealth for the shareholders.Secondly,it analyzes the financial indicators of Huaneng southern company by using both the horizontal and vertical comparison method before and after the assets restructuring,and then finds that its operating ability,profitability,solvency,and growth ability have a definite improvement.However,some issues need to be solved still remained due to the company's larger financial risks,and the post restructuring integration has not fully realized,Finally,the article puts forward to some corresponding suggestions based on the above issues.This thesis states that Huaneng company should pay attention to the integrating efficiency of the post asset restructuring,and make the enterprise get better,healthy,and sustainable development.