Evaluation Of Shenghe Resource Investment Efficiency And Its Influencing Factors

With the increasingly extensive application of rare earth materials in the social production and manufacturing process,rare earth is listed as one of the key materials to achieve "Made in China 2025" and plays an important role in various fields of the national economy.China is currently the only country in the world with a full chain of rare earth industries and a large country in rare resources.Despite the obvious advantages,at the same time,the development of China’s rare earth industry is also facing problems such as environmental pollution,waste of resources,lack of high-value-added products at the back end of the industrial chain,and the gap between scientific and technological level and innovation ability compared with developed countries.China continues to introduce relevant policies to promote the sustainable development of the rare earth industry.Driven by policies,most rare earth enterprises actively invest,expand the scale,extend the industrial chain,implement industrial integration,and increase technology investment and product research and development,so as to achieve industrial transformation and upgrading.At present,some enterprises have realized the whole industrial chain and Shenghe Resources is one of them.From the micro level,enterprise investment behavior directly affects enterprise value,and whether enterprise value can be maximized depends on whether the investment is effective,so evaluating the investment efficiency of enterprises helps managers improve investment decisions.It can be seen that in the context of the continuous expansion of the investment scale of rare earth enterprises,it is very important to pay attention to investment efficiency.In recent years,the research on the investment efficiency of the rare earth industry has aroused great interest among scholars,and the research on the influencing factors in various aspects has been continuously enriched.However,in the existing research,scholars mostly evaluate from a macro perspective,and the research on individual case companies has a certain degree of deficiencies.This paper focuses on Shenghe Resources through case analysis,explores its investment efficiency level based on the industry,industrial chain division,and specific situation of the company,and analyzes which factors affect the company’s investment efficiency from a micro perspective.This article focuses on Shenghe Resources Co.,Ltd.for a case study.S Shenghe Resources’ rare earth resources include both light rare earth and heavy rare earth,and it is also the first company in the industry to implement the overseas layout of the industrial chain and successfully realize the dual circulation strategy at home and abroad.At the same time,the nature of the company’s property rights is mixed ownership,which is a special characteristic among listed companies in China’s rare earth industry.This paper first expounds the research background and significance,combs the relevant literature review,defines the concept of investment and investment efficiency,and introduces the relevant theories.Secondly,the current situation of the rare earth industry is introduced,as well as the case company overview,company investment status,and investment motivation.Thirdly,the principle of the DEA model is introduced,based on the demand of the DEA-BCC model,20 rare earth enterprises are selected as sample companies.Combined with the existing research in the literature,the appropriate indicators are selected to measure the investment efficiency of the samples.According to the calculation results of industry investment efficiency,combined with the position of the company’s industrial chain,the horizontal and vertical comparative analysis is carried out with the average investment efficiency of the front-end enterprises and the investment efficiency of Northern rare earth.The projection analysis is used to analyze the inefficient investment of Shenghe resources.Finally,explore the factors affecting Shenghe ’s resource investment efficiency and put forward optimization suggestions.This study mainly draws the following conclusions: First,the efficiency level of Shenghe resource investment is at the middle and upper level in the industry,and there is a certain degree of inefficient investment for 5 years,all caused by insufficient investment.Second,analyzing the factors affecting the efficiency of investments,it was found that Shenghe Resources has a reasonable corporate governance structure that effectively increases the efficiency of the company’s investments,but inventory turnover and receivables turnover are low,and insufficient internal cash flow,which leads to insufficient investments,which leads to inefficient investments,which lead to inefficient investments in the company.In the capital structure of Shenghe Resources,the assets-liability ratio has been raised to a good condition,but the proportion of current liabilities is too large,which leads to strong pressure on the company to repay principal and interest,resulting in insufficient investment.Shenghe Resources’ low financing constraints have improved the efficiency of the company’s investments to some extent,but the financing structure is unreasonable,which reduces the investment efficiency to a certain extent;Due to the tilt of government subsidies,the pressure on Shenghe Resources and funds has been eased to a certain extent,reduce the inefficient investment.