Case Study On The Effect Of China Railway Industry Asset Replacement

State-owned enterprises are the backbone of my country’s national economy and an important support for my country’s pillar industries.Deepening the reform of state-owned enterprises is a strategic plan formulated by the Party Central Committee.At the same time,the concept of "Made in China 2025" was put forward to develop high-end manufacturing.In this context,China Railway High-tech Industrial Co.,Ltd.has been following the development of the times,deepening the reform of state-owned enterprises,and promoting the development of the manufacturing industry to a high level.This article selects China Railway High-tech Industry Co.,Ltd.as a case enterprise and analyzes the effects of asset replacement events on the enterprise.Firstly,introduce the case background and plan of China Railway Industry’s implementation of asset replacement,and analyze the basic situation and relationship between China Railway Industry and China Railway Corporation of China Railway Industry and China Railway Corporation,the implementation motivation of asset replacement event,and the entire process of asset replacement from the beginning to the end of each event.The specific plan for the implementation of asset replacement and asset replacement,which mainly includes major asset replacement,issuance of shares to purchase assets and raising supporting funds.Secondly,it focuses on the financial and non-financial effects of China Railway Industry’s implementation of asset replacement.The financial effect is analyzed based on three research methods: event research method,financial index analysis method and efficiency coefficient method.Among them,the event research method analyzes whether the China Railway Industrial Asset Replacement event has a positive effect by calculating the excess return rate and the cumulative excess return rate;financial indicators The analysis method is divided into two perspectives: vertical comparison and horizontal comparison.The vertical analysis of the changes before and after the replacement of China Railway Industry’s assets,the horizontal analysis selects five companies with similar main businesses and products to compare with China Railway Industry;the efficiency coefficient method is calculated by selecting evaluation indicators The efficiency coefficient score analyzes the financial risk level of China Railway Industry.Non-financial effects are analyzed from two aspects: industrial structure and long-term development.Long-term development is divided into three perspectives: solving problems of competition in the same industry,increasing investment in research and development,and having core competitiveness.Thirdly,the introduction to the effects of China Railway’s implementation of asset swaps is also based on two aspects: financial effects and non-financial effects.Finally,based on the above analysis,the research conclusions of this article are drawn: asset replacement has improved the financial status of the enterprise,enhanced the company’s corporate value,upgraded the industrial structure of the enterprise,and promoted the long-term development of the enterprise.Generally speaking,the implementation of China Railway Industry’s asset replacement is successful and has played a positive role in the development of the enterprise.At the same time,it draws some enlightenments to similar state-owned enterprise reforms or parent-subsidiary asset replacement cases: injecting high-quality assets is the key to enhancing corporate value;raising supporting funds is a way to achieve good results;achieving professional division of labor is the basis for optimizing resource allocation;strengthening assets Management is the guarantee for promoting long-term development.The innovation of this article is that in the previous studies on the case of China Railway Industry’s asset replacement,only the unilateral effect on China Railway Industry was analyzed.This article focused on the effect on China Railway Industry,and at the same time looked at the case of asset replacement from a macro perspective.The effect on China Railway Group is used to illustrate that the asset replacement event has had a good effect on both sides,achieving a win-win situation.It is hoped that the successful implementation of China Railway’s industrial asset replacement will provide some reference for the reform of state-owned enterprises or other enterprise reforms that have a parent-child relationship.