Research On The Path Of Turnaround And Subsequent Performance Of *ST Guanggang

Along with the perfect capital market in our country,the normative system,and the increasingly fierce competition between enterprises,the number of the public company which was in financial trouble has a sharp growth.Financial difficulties usually have many adverse effect on the public company,such as falling profit,a sharp fall of stock prices and delisting.Therefore,in order to avoid delisting and resume normal operations as soon as possible,the public companies which were in financial trouble will take a series of measures to get rid of trouble.Assets reorganization can help enterprises to redistribute resources,make more reasonable and sufficient use of resources,optimize the economic layout,and bring vitality to the enterprise.So,Assets reorganization is one of the most commonly used way to get rid of trouble.Due to different companies are faced with different specific situation,they also can choose different types of asset reorganization.After the 2008 financial crisis,the industry management are affected,including iron and steel industry in particular.Many companies of iron and steel industry have a backlog of product inventory and sharp fall of operating profit.The situation of iron and steel industry is not optimistic.More and more companies start to merge or change the main business to seek sustainable development.But there are still a part of the enterprise was in financial trouble.According to the state of the database data show that in 2008-2012,the number of steel industry listed companies falling into financial difficulties is seven.The new rules of 2012 make the publish companies in financial distress out of trouble urgently.As of the end of 2016,4 of these 7 companies have been delisted;one got out of trouble but had been ST again;two got out of trouble;the case company of this paper is one of the two companies which had good performance.Firstly,this paper expounds the theory of financial distress and asset reorganization,and analyzes the common causes of financial distress of listed companies and the motivation of asset restructuring.On this basis,Guangzhou iron and steel Limited by Share Ltd was selected as a case analysis: firstly,introduced the basic situation of the company and the inside and outside reasons of financial distress;Secondly,analyzed the process of asset restructuring and subsequent management of the company;Thirdly,studied the rescue performance by the index analysis method and factor analysis method and summed up the reasons for the successful performance of the reverse;Finally,make a summary and put forward relevant suggestions.