| With 20 years’ development of stock market in China, mergers and acquisitions(M&A) of listed enterprises has been increasing as well as the sum of money involved and the frequency of M&A. Reform and opening up policy has spurred China’s economy for 30 years; and the comprehensive national strength and risk resilience capacity of China have been increased; socialist market economy of Chinese characteristics has been established. And now the economic development in China is at a curial juncture, during which it is necessary to consider how to let the market direct limited resources to the efficient enterprises, to restrain the enterprises with overcapacity in national industrial restructuring and other aspects, and naturally high energy-consuming enterprises with high contamination will be phased out by market. And M&A of capital market is an efficient way to help market allocate resources and boost the efficiency of social economy.The paper briefly introduces the development of M&A at home and abroad, the concept and the basic types of M&A, the basic concept and ways of financial analysis. Through M&A, Gansu Jingyuan Coal Industry and Electricity Power Co., Ltd.(JC) finished the overall market of coal-related industry which is under the control of controlling shareholders by placing the whole coal-related asset that is controlled by the shareholder Jingyuan Coal Industry Ltd. to the listed enterprise. The paper takes the M&A of JC as example to comparatively analyze the M&A enterprise’s financial performance.The paper compares the financial data of JC before and after listing, the debt capacity, earning power, operation capacity and financial index, and analyses several financial index from other representative peer enterprises to show the index change of JC before and after listing. In the same time, the data of listed enterprises in the same industry in the same period are compared to analyse the self-changing of JC before and after listing as well as the change of the position of JC in the industry, which provides direction to the enterprise’s development.The paper takes JC’s M&A as the example to analyse and confirm the result from the majority of scholars. JC’s M&A and the overall market not only exert positive influence to the financial performance but also solve the competition problem between listed enterprise and the controlling shareholder. However, M&A brings risks to the merging enterprise, which mainly are high risk in asset evaluation, the risk of dominant shareholder, risk of asset integration and so on, and suggestions are offered in the end of the paper.Guided by theories, the paper takes JC as an example to conduct comparative analysis of financial data of listed enterprise before and after M&A based on the public relevant data. The theories are combined with practices in the paper to discuss the problem and solutions and though in M&A, which can provide reference to the M&A of listed enterprises. |
