A Case Study On Ningxia Xinri Hengli Steel Wire Co.,Ltd Acquiring Boyalife Technology Co.,Ltd

In the capital market,a reasonable M&A activity can bring some benefits to the enterprise.Through the mergers and acquisitions between enterprises,the size of the enterprises of the mergers and acquisitions can be increased,so as to improve the economic performance and occupy a larger market share.In the reform of state-owned enterprises,to promote corporate mergers and acquisitions under the stimulus effect,the degree of corporate mergers and acquisitions in 2015 is higher than the scale of transactions in 2014.However,in the hot mergers and acquisitions trend of mergers and acquisitions,not all of the corporate mergers and acquisitions are successful,corporate mergers and acquisitions as a double-edged sword,which brought benefits and did not agree in the academic community on the performance of mergers and acquisitions before and after the change.And the argument has never stopped.Ningxia Xinri Hengli Steel Wire Co.,Ltd constant force is a main metal products listed companies,the company leading products are wire rope,prestressed steel wire,wire.In recent years,by the coal,steel industry downturn and the impact of increased competition in the metal products industry,the company's performance continued to decline in 2014,the first three quarters of 2015 results were loss.In order to avoid a continuous loss caused by the company given ST,Ningxia Xinri Hengli Steel Wire Co.,Ltd began planning major asset restructuring.After the acquisition of Boyalife Technology Co.,Ld in 2015,the new cross-border mergers and acquisitions have entered a number of issues,such as the choice of industry,the integration of resources between two different industries problems and operational risks after mergers and acquisitions.Whether the case for future enterprises to provide cross-border mergers and acquisitions to provide some experience,it is worth our in-depth studying.The text of this article is as follows:First of all,this article to the new days of mergers and acquisitions Boyalife Technology Co.,Ld as a case,combined with the practice of the way to study the cross-border mergers and acquisitions on the M&A side of the performance impact of new days,highlighting the emergence of mergers and acquisitions.Secondly,this paper makes a systematic analysis of the cross-border M&A behavior by taking the Boyalife Technology Co.,Ld as the starting point,and mainly includes the financial performance as the operational capacity,debt service levels,profitability and business development capabilities.Analysis of operating capacity through inventory turnover,accounts receivable turnover,current asset turnover,fixed asset turnover rate;solvency were analyzed short-term solvency and long-term solvency;profitability analysis through the sale of net profit margin,The cost of profit margins and the total assets of the net profit margin;development capacity analysis through the total asset growth rate and operating income growth rate.Finally,the article gives recommendations,which is based on the analysis of the previous problems and the reasons for the corresponding.