The Analysis Of Motivation And Performance About Divestiture Of Resource-based Enterprises

Asset divestiture refers to the fact that the listed company separates non-operating idle assets,unprofitable assets,assets that achieve the intended purpose,and all assets that are detrimental to the company's overall interests from the company's assets.It is a concrete operation method of asset reorganization and it is part of the company's shrinking strategy.In the past decades,many enterprises in our country have expanded blindly and their management has been blind.Most large companies blindly pursue the scale,regardless of the company's effectiveness.The company's horizontal expansion spans many companies and it is blind to business confusion.By the end of the 1990's,many large companies had special It is the predicament that large state-owned enterprises have fallen into losses year after year.In this context,the separation of assets has become an indispensable means of business management.Chinalco is a leading company in China's non-ferrous metals industry,and its overall strength ranks in the forefront of the global aluminum industry.As a resource-based enterprise,its profitability is significantly affected by the economic cycle.After the financial crisis in 2008,the price of aluminum metal as a raw material for industrial use fell sharply.As a result,the business performance of Chinalco declined sharply.The net profit was from 2007.The annual revenue of 11.6 billion yuan was directly reduced to 160 million yuan in 2008,and the loss in 2009 was nearly 4.7 billion yuan.Although Chinalco Corporation turned losses and made small profits in 2010-2011,it is still struggling with losses and profit.2012 In the year,Chinalco lost 8.6 billion again,which was the highest since the company went public.In 2013,the international aluminum price continued to decline and there was no hope of recovery.Chinalco Corporation began to make painstaking efforts and chose to shrink its business and divested large amounts of loss-making assets to its controlling shareholders.This paper comprehensively collects relevant data and data samples from the case of Chalco Assets' divestiture.Based on the relevant theories of domestic and foreign listed company's asset divestiture performance studies,the paper introduces the company's profile,shareholding structure,financial status,and implementation status.,focusing on analyzing the time background and motivation of its asset stripping.Then the financial indicators and non-financial indicators were used as metrics to analyze the performance of asset stripping,and it was found that the performance of asset stripping was significant.In terms of financial performance,non-operating income from asset stripping has improved short-term performance,increased corporate solvency and reduced the company's operating costs.In terms of non-financial performance,capital markets have reacted to the short-term effects of asset stripping.Actively,the divestiture prevented the shares of Chalco from being ST and get rid of the same industry competition with the parent company.Through research,it is found that asset stripping can have a certain positive impact on the short-term business performance of the company,but the medium-to-long term effect is not obvious.Asset stripping can be used as an important means for the cyclical industry to survive the industry downturn,and it also helps the company maintain its competitive advantage.The article is divided into five chapters.The main contents include: Chapter 1,Introduction.First,the research background was introduced and the research significance was proposed.Secondly,the research results related to asset stripping at home and abroad are summarized.Finally,this paper briefly introduces the research ideas and methods.Chapter 2,theoretical analysis.First,it outlines the related concepts of asset divestitution.Second,it reviews the motivation theory of the company's asset divestiture and analyzes the causes of asset divestiture in detail.Finally,the article introduces the research ideas and methods.The third chapter introduces the case and motivation analysis.This chapter adopts the event analysis method to outline the basic business situation,main business,background and methods of the spin-off,and review asset dive events.At the same time,it summarizes the characteristics of asset divestiture.The fourth chapter analyzes financial performance and non-financial performance,and further analyzes and summarizes the reasons for related performance.Chapter5,conclusions and inspirations.Through the analysis and collation of the cases,the conclusions are drawn,and relevant inspirations are summarized.Asset divestituting is a kind of shrinking capital operation mode,which does not always mean the failure of the enterprise operation.In many cases it is also a reasonable choice for the enterprise development strategy.The principle of operation is the same as the expansion of assets through mergers and acquisitions.All these are the repositioning of the company's business portfolio and the reconfiguration of the company's economic resources to enhance the competitiveness of the company and ultimately increase the profitability of the company.In this paper,through the case analysis method,the company's asset stripping behavior in the industry's down cycle is studied.The motives and timing of the company's asset stripping are analyzed.It is helpful to discover the problems encountered by listed companies in the implementation of asset stripping in China,and promote the A rational perspective examines its own asset stripping behavior.