Case Analysis Of The Reasons For The Failure Of Significant Assets Reorganization Of Yangzi New Materials

Generally,internal self-accumulation is the main mode of enterprise development in early commercial economy.However,with the continuous concentration of enterprises and social capital,external expansion through asset restructuring has become an important way for modern enterprises to grow and develop.Since mankind entered the era of industrialization,economic development has always been achieved through successive economic restructuring.Assets reorganization not only provides a quick and effective channel for enterprises to grow but also optimizes the allocation of resources,improves social efficiency and promotes the economic development in industries,countries and the world.In our country,asset reorganization can solve the shortcomings and problems left over by history in the process of developing the socialist market economy with Chinese characteristics.Yangzi New Materials is one of the privately owned enterprises that have entered the organic coating industry earlier in China.At the beginning of its establishment in 2002,it started to specialize in the production and operation of organic coating plates.The main products include organic coated boards and their substrate products.Unlike some listed companies that seek cross-border restructuring due to the sluggish main business and the downturn in performance,the performance of Yangzi New Materials is steadily improving in recent years.Under such favorable conditions,Yangzi New Materials has selected major asset restructuring and failed in the end,which in the case of listed companies in asset restructuring has a certain significance.This paper refers to the current domestic and international perspectives on the study of asset restructuring,especially for private enterprises,analyzes the restructuring motives of Yangzi New Materials.The article carried out various analyses of Yangzi New Materials and found out the reasons for its failure.Finally,we gained some inspirations and provided some suggestions for companies that would later undergo major asset restructuring to reduce the recurrence of such failures.