Research On The Performance Of Enterprise Asset Restructuring From The Perspective Of Strategic Transformation

With the rapid development of the Chinese economy towards high-quality development,more and more enterprises in the capital market are seeking strategic transformation and upgrading through asset restructuring;At the same time,under the influence of supply side structural reform,traditional manufacturing enterprises are actively responding to the national call to deleverage and reduce production capacity,in order to achieve an increase in the value chain;On the other hand,the 13 th Five Year Plan proposes an innovation driven development strategy,which has propelled the high-tech industry onto a fast track of development.The development prospects of emerging industries such as big data platforms,cloud computing,and network security are promising,which has prompted a large number of traditional manufacturing enterprises to hope to avoid industry barriers and enter relevant high-tech industries smoothly through major asset restructuring aimed at strategic transformation,enhancing their value creation ability.Therefore,the motivation and performance of major asset restructuring of listed companies,as well as the results of strategic transformation,are issues that need to be actively explored,which can provide reference experience for other listed companies in the industry to implement strategic transformation.This article is based on research literature on strategic transformation,mergers and acquisitions,and asset divestment both domestically and internationally,combined with the domestic economic environment,and selects the strategic transformation of China’s A-share listed company Tianrong Xin as a case event.Firstly,the purpose of enterprise strategic transformation is derived based on the reasons for two major asset restructurings of the listed company,as well as the external market and policy environment;Secondly,it evaluated the performance of two major asset restructuring in the process of strategic transformation of Tencent.On the one hand,it evaluated the market performance of major asset restructuring of Tencent through the event study method and Tobin Q value analysis.On the other hand,it innovatively incorporated the idea of industry finance integration into the analysis of financial indicators,and evaluated the financial and non-financial performance of Tencent from both financial and business levels.Through research,this article draws the following conclusions: Firstly,Tianrongxin attempts to exit the traditional wire and cable industry through two major asset restructurings,enter the promising network security industry,and achieve strategic transformation.The motivation for its mergers and acquisitions is strategic planning layout,breaking development bottlenecks,and integrating high-quality resources.The motivation for asset divestment is to improve profitability,seize market opportunities,and enhance liquidity;Secondly,from the perspective of market performance,the short-term market response to the two major asset restructurings is good,indicating that market investors are optimistic about Tianrong Xin’s major asset restructuring behavior.However,due to the asset divestment,Tianrong Xin’s performance has not been significantly improved,and even due to a large amount of investment in research and development,there has been a significant decline in performance,resulting in temporary lack of market confidence and long-term poor market response;Finally,from the perspective of corporate performance,at the financial level,Tianrongxin’s solvency and profitability have been significantly improved,but there has been a certain decline in operational and growth capabilities.Combined with business level analysis,it can be found that the reason for the decline in relevant indicators is that Tianrongxin has invested a large amount of funds in technology research and development and channel expansion after its transformation.At the same time,Tianrongxin does have a low level of cost control,However,its customer structure is relatively stable,providing a certain guarantee for its growth space and sustainability.This article proposes the following suggestions: Tianrong Xin should improve its cost control level and reasonably evaluate its goodwill to prevent a surge in goodwill from hitting investor confidence and affecting the sustainability of its business performance and operations;Listed companies of the same type can choose a gradual strategic transformation path to enter industries with good development prospects,change their development concepts,combine with the market environment,and carry out reasonable asset restructuring;Relevant government departments should strengthen policy guidance for asset restructuring of listed companies,optimize industrial structure,and promote high-quality industrial development;Investors should invest cautiously,learn financial knowledge,improve risk prevention awareness and the ability to identify false information.