Analysis On The Performance Of GCL’s Asset Restructuring Based On The Performance Prism Method

In modern economic society,cases of corporate asset reorganization are not uncommon.Asset reorganization,as an important way to revitalize corporate assets and rationally allocate resources,has become the tool of choice for many companies to achieve horizontal expansion and vertical integration strategies.The photovoltaic industry is an industry that my country strongly supports to implement the concept of green economy.The characteristics of the industry are mainly reflected in the high initial investment cost and long payback period.In addition,in recent years,the international photovoltaic market has suppressed Chinese products and the domestic productivity is saturated.As a result,the mainland photovoltaic companies represented by Group C urgently need to upgrade their industries and shift to an integrated business model of production and sales.Asset reorganization,as an important way for enterprises to achieve industrial upgrading and increase profitability,will inevitably cause widespread concern.This article uses the 2014 GCL reorganization case as the research object to analyze the performance effects of asset reorganization.Before GCL’s reorganization,Company C was a representative company in the mainland photovoltaic market.It was listed on the A-share market in 2011.Since its listing,affected by the economic environment,the company’s operating conditions have been poor,with losses for three consecutive years.In 2014,it declared bankruptcy and reorganization.After the reorganization was implemented,GCL became the first wholly-owned subsidiary of G Group in A shares.Both parties to the reorganization belong to the photovoltaic industry.This reorganization has achieved the integration of the industrial chains of the two companies and promoted the integration of the vertical industrial chains.This article combines the industry situation and the status quo of both parties to the reorganization,analyzes the motivation of the asset reorganization,and then analyzes the performance before and after the reorganization.Aiming at the analysis of the performance of this asset restructuring,the article uses the performance prismatic method to construct performance evaluation indicators from a qualitative and quantitative perspective.From the perspectives of shareholders and creditors,government,employees,and customers,four stakeholders are satisfied with thier Contribution,organizational strategy,business process and organizational capabilities.The study found that although the asset reorganization solved the debt dilemma of C company in the short term,the capital injection of the reorganization partially repaid the liabilities of C company’s previous operations,so that C company avoided the situation of suspension of trading.But in the long run,the positive effect did not last for a long time,and some indicators began to grow slowly or even negatively one to two years after the reorganization.This is mainly because most of the funds after the reorganization are used to repay debts,and effective asset integration is not carried out in a timely manner.After the reorganization of assets,enterprises should pay attention to the effective use of internal resources.There are not many cases where the performance prism method is applied to performance analysis.This article uses the performance prism method to analyze GCL,which supplements the performance prism method in many literatures that is only applied to the theoretical level.The article basically constructs the indicators required by the performance prism method,hoping to provide some ideas for similar research.