The Motivation And Performance Analysis Of Century Huatong’s Continuous M&A

Since the beginning of the 21 st century,the emergence of high-tech technologies such as artificial intelligence and AR has changed our lives and has also spawned new development formats.Premier Li Keqiang put forward the "Internet +" development concept in the government work report,requiring companies to open up online channels,use the advantages of the Internet to promote reforms and innovations,and seek new development paths.This has pointed out the direction for traditional enterprises in trouble.On the one hand,with the development of my country’s economy and the transformation and upgrading of industries,traditional industries have gradually lost their competitive advantages relying on natural resources and labor,and market competitiveness has been declining;on the other hand,due to the slowdown of foreign economic growth,market demand has decreased.Leading to a reduction in orders;the living conditions of traditional enterprises are very severe.Therefore,according to their own development status and national policy calls,many traditional companies have chosen high-quality Internet companies as the targets of mergers and acquisitions,using their rich Internet resources to integrate and achieve transformational development.As a traditional company,Century Huatong has grasped the opportunities of the development of the times.Since 2014,through continuous mergers and acquisitions,it has realized the integration of the manufacturing industry and the game industry,forming a dual-track development model of auto parts and the game industry.This article reproduces the entire M&A process of Century Huatong,and provides relevant opinions on the follow-up development of related companies.First,this article introduces the background of the topic,the significance of the research,the induction and summary of the relevant theories about continuous mergers and acquisitions,the logical framework diagram and the research methods used in this article;then the narration of the relevant theories about continuous mergers and acquisitions,as the theory of the full text Basic;followed by an introduction to the M&A link,including the development status and prospects of the automobile manufacturing industry and the game industry,the company profile of the acquirer and the acquired party,and an overview of the acquisition process;continue to describe the motivations of Century Huatong’s continuous acquisitions;With the short-term,long-term and market value three levels to study corporate performance and verify the degree of realization of the motivation;finally the conclusion and enlightenment of this article.This article presents the entire history of Century Huatong from the perspectives of the company’s own development dilemma,the background of the merger,the motivation of the merger,the effect after the merger,and the future of the company.Through research,this article concludes:through continuous mergers and acquisitions,the goal of the company is achieved;through continuous mergers and acquisitions,the market value of the company is increased.However,not every merger can achieve the desired results.At the same time,it is hoped that the case of Century Huatong’s merger and acquisition will provide a reference for the future development of other companies in the industry.