A Comparative Analysis Of Financial Statements Between SBS And SAB Based On Harvard Analytical Framewor

The zipper industry,as a manufacturer of accessories for garments,bags,and sporting goods,has its characteristics,such as large number of production companies,small-scale businesses,and low barriers to entry.With the growth of the domestic economy and the upgrading of consumption,downstream companies are increasing their demands of the quality and style of zippers.Some companies in the zipper industry are gradually transforming from the labor-intensive production of low-end products to the technology-intensive business with the production of high-end products.As a leading company in the domestic zipper industry,Xunxing has competed with Japan YKK in the mid-to-high end zipper market,and also faced competition from domestic competitors such as Weixing.After nearly 30 years of development,Xunxing has already possessed five major production bases and technology research and development centers.It is the leader in the formulation of domestic zipper industry standards.Its has achieved the good performance in recent years,and its net profit has grown steadily.The future market has broad prospects.However,in this context,in December 2016,the Fujian Xunxing Group,the parent company of Xunxing Co.,Ltd.suddenly announced that it will transfer 25%of the shares held by Xunxing to an investment company that has been established for less than three months.Also transferred,the Xunxing Group dropped to the fourth largest shareholder.Xunxing Group announced that it hopes to introduce strategic investors through equity transfer to optimize Xunxing's corporate governance structure.We can not help but ask what operating difficulties encountered by Xunxing Co.,Ltd.need to introduce strategic investors to optimize the governance structure?This article uses the Harvard analysis framework to analyze the financial statements of Xunxing in recent years in an attempt to find the answers to the questions.In recent years,the domestic zipper industry suffered from a decline in performance due to the external environment,and the growth was weak.The cost of Xunxing shares increased and profits declined,and market share increased slowly.According to the analysis,it is found that the company's inventory and receivables management capabilities are relatively weak,and sales and other costs account for a relatively high proportion,cash assets do not affect short-term debt repayment ability,and R&D investment is insufficient.All of the above problems constrain growth of corporate profits and increase growth.Not as expected may be one of the reasons for the transfer of equity.In September 2017,Xunxing acquired a 65%stake in the chain of cross-border e-commerce,and quickly entered the cross-border e-commerce industry through acquisitions to achieve a dual-vendor development strategy.The combination of the zipper industry and e-commerce platform is conducive to complement advantages of each other,expanding the scale of operations,and increasing sales revenue and net profit.