Comparative Study On Financial Performance Of Steel Industry Before And After Supply-side Structural Reform Policy

Since the 18 th National Congress of the Communist Party of China,under the comprehensive analysis of the long-term cycle of the world economy and the staged characteristics of China's development and its interaction,the central government has made significant judgments on the situation of the time,and believes that China's economic development mode has developed from high-speed and extensive development in the past to medium-and high-speed intensive development.Economic development has entered a "new normal." In order to solve the bottleneck of economic development,the central government proposed that "it must accelerate the transformation of economic development mode,accelerate the adjustment of economic structure,and accelerate the cultivation of new growth drivers." Faced with multiple difficulties such as structural overcapacity and low supply quality,the Central Government officially proposed “promoting supply-side structural reforms” in December 2015,that is,“improving the supply side structure while appropriately expanding aggregate demand.Reform,focus on improving the quality and efficiency of the supply system,and enhance the momentum of sustained economic growth”(Xi Jinping,2015).According to the spirit of the Central Economic Work Conference,China's real estate,steel,coal and other industries with overcapacity have actively promoted and implemented supply-side structural reforms,focusing on the “supplyside structural reform” and other policies,and vigorously promoted the transformation of China's economic structure and improved supply quality.Achieve high quality economic development.In view of this,this paper takes the “supply-side structural reform policy” as the research background,systematically considers the specific measures in the implementation of supply-side structural reform policies in China's steel industry,the dilemma of policy implementation,and the implementation of supply-side structurality through case company empirical analysis.The changes in financial performance before and after the reform further verified the effects of supply-side structural reform policies.Firstly,on the basis of analyzing the supply-side structural reform theory,it expounds the background of China's supply-side structural reform policy.Secondly,taking China's steel industry as an example,it analyzes the financial performance changes and existing problems before and after the implementation of supply-side structural reform policies.Finally,through the case company,the financial indicators that are related to the supply-side structural reform effect are selected,and the horizontal and vertical analysis case companies implement the supply-side structural reform effect.The study found that after the supply-side reform,the financial performance of the steel industry and AS companies improved significantly,and the positive role of supplyside structural reforms was reflected.After the formal implementation of the supplyside structural reform,AS Company actively implemented the “three to one supplement and one reduction” according to the current development of the industry,and the financial indicators closely related to financial performance such as solvency,operational capability,profitability and development capability.It has improved significantly before the reform.However,AS's short-term solvency,inventory turnover,and sustainability capabilities are significantly lower than the industry average.Through case studies,AS Company has realized the short-term improvement of the company's performance by means of the supply-side structural reform policy dividend,but must consider the policy dividend effect diminishing.It should learn from the industry development experience,strengthen the enterprise's “short-board” investment,and work hard to achieve internal efforts.Achieve high quality and sustainable development of the company.Through the comparative study of the financial performance of the steel industry and case companies before and after the supply-side structural reform,qualitative and quantitative research on the implementation effect of the national major reform policy,theoretically further enriching Xi Jinping's new era of socialist economic theory with Chinese characteristics,corporate governance and financial theory To enrich and improve the existing research literature on supply-side structural reforms;in practice,provide useful lessons for China's traditional industries and other industries to implement supply-side structural reforms,promote and accelerate China's economic structural transformation,and achieve high-quality economic development.