Research On The Financial Performance Of Jiugang Hongxing Under The Background Of Supply Side Reform

The steel industry is an important basic industry in China's national economy.Since 2012,it has been plagued by problems such as overcapacity and low industrial concentration.The whole industry has gradually entered a cyclical downturn,and subsequently there has been a large loss in the industry.Since the central government began to implement supply-side reforms in 2016,the overcapacity situation in the industry has been effectively alleviated,and the operating conditions of steel companies have improved significantly.Gansu Jiugang Group Hongxing Iron and Steel Co.,Ltd.,as an important large-scale iron and steel enterprise in the western region,had a very poor business performance before the country vigorously implemented the supply-side reform,and its operating conditions were greatly improved after the reform.Based on this,this paper takes Jiugang Hongxing as the research object,and analyzes the financial performance before and after the supply side reform to explore how the supply-side reform has affected the financial performance of Jiugang Hongxing.This paper first reviews the relevant literatures of domestic and foreign scholars on supply-side reform and financial performance,and makes a review.Secondly,using the selected and classified financial performance evaluation indicators,the financial performance of the case enterprises before and after the supply-side reform is compared and analyzed to evaluate the implementation effect of the company's supply-side reform measures.At the same time,compare the main financial indicators of case enterprises and industry benchmark enterprises.The study found that the company has not seen results in terms of destocking and cost reduction,and has significantly improved in terms of capacity,de-leverage,profitability and business growth.However,compared with the industry benchmark,it is obvious.There is a big gap in the improvement,mainly due to the high inventory level of the company,the high proportion of liabilities and the high financial risks.In view of the financial problems still existing after the supply side reform,the paper suggests that the company should properly handle idle assets,improve inventory management,reduce debt leverage and improve independent research and development capabilities.It is hoped that through the research in this paper,it will be helpful to improve the financial performance of Jiugang Hongxing,which is under the supply-side reform background.