Research On Financial Performance Of Wuchan Zhongda Group’s Value Chain Integration

In the context of economic globalization,the global value chain has become the main form of international production division.However,in the global value chain system led by developed countries,enterprises in developing countries are long trapped and locked in the low-end,making it difficult to fairly participate in benefit distribution.As China has entered a new normal in economic development,domestic enterprises have a low industry status and backward technology in the global value chain,particularly in key areas where they lack core technology and have low industrial concentration,which is becoming increasingly prominent.Can the value chain integration led by the state-owned enterprises has an impact on corporate financial performance?What are the specific impact paths? Can it play a positive role in promoting the transformation and upgrading of upstream and downstream enterprises? How can it be further developed and improved?What kind of reference and suggestions can it provide for similar enterprises? In response to these issues,this thesis takes Wuchan Zhongda Group as the research object,in-depth studies the mechanism of the impact of value chain integration on corporate financial performance,and explores the internal connection between value chain integration and corporate financial performance in practice based on relevant data,which has important theoretical and practical significance.This thesis innovatively takes state-owned enterprises as the research object of value chain integration,and uses the Analytic Hierarchy Process and Event Study Method to evaluate the impact of value chain integration on corporate financial performance from both the company and project perspectives.The research object of this thesis is Wuchan Zhongda Group,a typical state-owned enterprise leading value chain integration.As early as 2016,it started exploring value chain integration and has accumulated rich experience in the implementation process over the years,which is of great research value.Meanwhile,as a publicly listed company,the financial data publicly disclosed by Wuchan Zhongda Group is complete,standardized,and with high credibility,which ensures the accuracy of research conclusions to a great extent.In the specific research process,this thesis first expounds the basic theory of value chain and value chain integration,and based on transaction cost theory,resource-based theory,organizational learning theory,and collaborative benefit theory,analyzes the impact path of value chain integration on financial performance.Subsequently,from the company level,this thesis introduces the basic situation of Wuchan Zhongda Group’s value chain integration.After calculating the proportion of Wuchan Zhongda Group’s value chain integration related business,a financial performance evaluation system was established using financial performance evaluation indicators such as EVA rate.The Analytic Hierarchy Process was used to assign weights to various indicators,and finally,the efficiency coefficient method was used to score the involved financial indicators,referring to the "Enterprise Performance Evaluation Standards" released by the State-owned Assets Supervision and Administration Commission each year,to achieve an overall evaluation of Wuchan Zhongda Group’s financial performance before and after value chain integration.Furthermore,based on the characteristics of Wuchan Zhongda Group’s value chain integration,this thesis selects three representative value chain integration projects from the project level,and used event study method and financial indicator analysis method to study the impact of value chain integration on specific financial performance indicators.The conclusion was drawn that Wuchan Zhongda Group’s value chain integration has a positive impact on financial performance.The research results at the project level were then cross-validated with those at the company level,to identify the main paths through which value chain integration at different stages has an impact on financial performance of Wuchan Zhongda Group.Finally,this thesis concludes that Wuchan Zhongda Group ’s value chain integration model,by leveraging Wuchan Zhongda Group ’s advantages as a large state-owned circulation type enterprise in terms of funding,channels,and social recognition,can have a positive impact on Wuchan Zhongda Group ’s financial performance,and it has replicability,can improve the risk resistance ability of enterprises,and still has promotion and reference value in the current context of localization and regionalization of the value chain.At the same time,limitations were discovered,such as high requirements for funding reserves and lack of technical support in the high-end product research and development process.Combining the problems discovered during the research process,this thesis proposes relevant suggestions for top-level system design and the development of solutions in the process of value chain integration.