Research On Financial Performance Of Bankruptcy Reorganization Of Shenyang Machine Tool

With the development of economic globalization and increasingly fierce market competition,a large number of foreign enterprises pour into China,and domestic enterprises are under pressure.In recent years,the problem of overcapacity in China’s enterprises has become more and more serious,and the speed of economic development has slowed down.Most enterprises with state-owned assets have financial difficulties due to their own physical limitations,the obstruction of historical burden,the lack of their own core technology and other reasons.On June 1,2007,China officially promulgated the enterprise bankruptcy law of the People’s Republic of China,which has more specific norms for the laws related to enterprise bankruptcy,not only limited to regulating the bankruptcy behavior of enterprises,but also the relevant provisions of bankruptcy reorganization have become an important part of the new bankruptcy law.This paper takes Shenyang machine tool as an example.Due to its improper business decision-making,the profitability of the enterprise has decreased,and a large number of loans have increased the debt burden of the enterprise.Since 2012,the operating income of Shenyang Machine Tool topped the first in the world machine tool industry with us $2.783 billion,it has suffered losses for consecutive years,with a total accumulated loss of more than 2 billion yuan in 2015 and 2016,In 2017,the Securities Regulatory Commission issued a delisting warning.After the delisting warning was implemented,Shenyang machine tool carried out a major asset restructuring in 2017 and took off the hat of * ST in 2018.However,after the bankruptcy restructuring,Shenyang Machine Tool continued to invest the funds obtained from the asset restructuring into the project of 5D manufacturing Valley in order to improve the i5 layout as soon as possible,resulting in tight capital chain and inability to repay liabilities.In 2019,it was applied for bankruptcy restructuring by creditors.This paper mainly analyzes the reasons for the bankruptcy reorganization of Shenyang Machine Tool.One is that Shenyang Machine Tool failed to save itself in2017,the other is to protect the shell resources of listed companies,and the other is to protect the stakeholders of enterprises.Secondly,the financial index analysis method is used to compare and analyze the financial performance of Shenyang Machine tool before and after bankruptcy reorganization through the extraction of the financial data of the enterprise in recent years with the financial indicators of profitability,operating capacity,solvency and development capacity and EVA performance indicators.The results show that the financial performance of Shenyang Machine Tool after bankruptcy restructuring is not significantly improved in the short term.Although the financial indicators are improved in 2019,the financial indicators in the following two years are not significantly improved.According to the senior situation,enterprises should put forward targeted development suggestions from the aspects of formulating appropriate business development strategy,reasonable financing,optimizing industrial structure and improving the core competitiveness of enterprises.Through the case summarizes the bankruptcy reorganization can help enterprises out of financial difficulties in a short period of time,improve the financial situation of the conclusion,further in the selection of appropriate restructuring mode,make full use of the power of the government and play the role of market guidance and other aspects of comprehensive suggestions,improve the success rate of enterprise bankruptcy reorganization.