The Case Study Of Cross-border Transformation And Financial Restructuring Of LC Listed Company

With the continuous deepening of China's reforms,structural contradictions in the economic field have gradually emerged,and some private enterprises have experienced problems such as excessive cost and overcapacity.As the most dynamic market entity in the national economy,traditional private enterprises have gradually lost their low-cost advantages in the context of slowing economic growth.At the same time,resource consumption and environmental pollution are serious,and it is urgent to seek strategic transformation.On the other hand,the popularity of the "Internet Plus" model and the policy spirit of "mass entrepreneurship and innovation" have led to the rapid rise of the emerging digital economy.In 2018,the operating income of China's strategic emerging service industry increased by 14.6%year-on-year.The accumulation of new kinetic energy is an important driving force for China's economic growth in the future.The rapid development of emerging industry media companies has stimulated the transformation and innovation of traditional industries,and also proposed a new direction for the transformation and upgrading of private enterprises.In the stage of further optimization of China's economic structure,priority should be given to the development of the real economy and the transformation and upgrading of the manufacturing industry in order to achieve the common progress of the traditional industry and the emerging service industry.However,in the process of traditional enterprise transformation,the financial crisis is an important reason for the failure of the transformation.For example,Jinrui Mining's acquisition of Chengdu Rubik's high valuation problem led to transformation failure;ST Zhongnan successfully acquired Datang Brilliant,Value Interaction and Aurora Network,The goodwill eventually led to the failure of the transformation,etc.,all of which were financial problems and could not be smoothly transformed.Therefore,how traditional private enterprises can use their financial advantages to achieve cross-border transformation is not only conducive to enhancing the competitiveness of enterprises and promoting their healthy development;but also important for China's comprehensive deepening reform and promoting high-quality economic development.This paper adopts the single case study method,mainly through the three data collection methods such as in-depth interview,on-site observation and second-hand data,to study the process of cross-border transformation of LC listed company,and summarizes the company's use of financial resources and dynamic financial capabilities to achieve cross-border transformation.The financial restructuring mechanism provides a reference for traditional private enterprises to use financial advantages to achieve cross-industry transformation.Based on the typical perspective,the LC listed company was selected as the case study.The LC listed company is a private enterprise specializing in traditional chemical business.Under the economic situation of overcapacity and sharp decline in performance,it accurately identifies financial opportunities and utilizes its own finances.Advantages and successful transformation of the Internet marketing field.This paper analyzes the process of successful transformation of LC listed company through continuous mergers and acquisitions of many Internet marketing companies in 2014-2018,and divides its transformation process into three typical stages.It discusses the financial factors that promote the transformation of each stage in a vertical direction,and then summarizes the financial restructuring mechanism of cross-border transformation.Thispaper can draw the following conclusions:(1)The cross-border transformation of LC listed company can be divided into three stages of mergers and acquisitions,which is a process from passive adaptive transformation to active creative transformation.(2)The financial restructuring mechanism of LC listed company's cross-border transformation is the integration and reconstruction of financial resources and dynamic financial capabilities under the organizational learning mechanism.The financial organization learning has undergone the process of adaptive learning,innovative learning and re-learning,which has enabled the financial resources and dynamic financial capabilities to be reconstructed from low-order to high-order changes to jointly promote transformation.(3)By studying the financial restructuring mechanism of the transformation of LC listed company,it provides a reference for how traditional enterprises can effectively achieve cross-border transformation,how to avoid financial crisis during the transformation process and comprehensively utilize financial resources and dynamic financial capabilities.The research conclusions of this paper further enrich the relevant research on cross-industry transformation through mergers and acquisitions;expand the research of enterprise transformation from macro level to micro level,summarize the financial factors that promote enterprise transformation,and the path of enterprise cross-industry transformation and Influencing factors provide innovative research ideas.At the same time,it also provides lessons for the use of financial advantages in the process of private enterprise transformation to avoid financial crisis.