The Research On Financial Performance Of K Company's Strategic Transformation

In the context of global economic integration,science and technology are making continuous progress,and the competition among enterprises is becoming more and more fierce.In order to ensure their competitiveness,enterprises must constantly adjust their development direction and carry out strategic transformation according to the changes in the environment.Especially in recent years,with the implementation of supply side reform in China,many traditional manufacturing enterprise's development space is limited,have to emerging industrial transformation and upgrading,many enterprises realize the strategic transformation by means of cross-industry transformation,this way is helpful for enterprise quickly into a new industry,industrial risk,optimize the allocation of resources,improve enterprise value.Based on this,this article selects the traditional manufacturing enterprises in the strategic transition from a nationally representative sample of K company as the research object,through the way of cross-industry mergers and acquisitions,completed from the instrument single main business to "instrument+professional education" double main business transformation,in the process of transformation of stripping again drag on the performance of the original main business,has realized to the thorough transformation of the education.This paper first expounds the research background and significance,and uses the literature research method to comb the domestic and foreign literature,and then defines the relevant concepts and theories of strategic transformation and financial performance.Then the paper introduces the general situation of K company's strategic transformation and analyzes its transformation motivation.Then,the financial performance of K company before and after strategic transformation was studied through the analysis of financial characteristic change,comparative analysis of financial indicators,comparative analysis of industrial financial performance,EVA analysis and financial performance prediction.It shows that the strategic transformation has improved the profitability,growth ability,operation ability and shareholder value creation ability of K company,but its debt paying ability has been weakened.It is predicted that its future long-term financial performance is optimistic And from the analysis of financial performance,it was found that the following problems existed in the financial performance of K Company's strategic transformation:goodwill impairment risk;weak cost control;operating risk intensified industry competition;internal control risk.Therefore,the countermeasures were put forward:pay attention to post investment management,online and offline collaborative development;strictly control cost,strengthen comprehensive budget management;broaden the industrial chain and adjust poor performance business;improve the internal control system and standardize the operation of the company.Finally,it summarizes the enlightenment to the strategic transformation of traditional manufacturing enterprises:carefully select the transformation industry and M&A targets;focus on integration and strategic adjustment after transformation;and focus on long-term financial performance after transformation.The following conclusions are drawn from this study:First,the strategic transformation of K company has a positive impact on its financial performance on the whole.Second,it is desirable for traditional manufacturing enterprises to seek new profit growth points through cross-industry mergers and acquisitions to achieve the goal of strategic transformation.Third,the strategic transformation of traditional manufacturing enterprises can guide their operation and development through financial performance analysis.Fourth,the process of cross-industry transformation is dynamic,and the traditional manufacturing enterprises should make strategic adjustment based on the overall goal.The research of this paper can provide reference for the strategic transformation and development of traditional manufacturing enterprises in China,and can play a practical guiding role in the strategic transformation of enterprises.