The Financial Performance Research Of Luoyang Glass Company Limited’s Assets Reorganization

Glass manufacturing industry is a high energy consumption and high emission industry.In recent years,the market competition of building glass has been further intensified,especially in flat glass market.The sharp decline in price has sounded an alarm for the steady development of glass manufacturing enterprises.The industrial structure needs to be adjusted urgently.In this context,asset restructuring has become an important means for the glass industry to seek long-term development.This paper takes Luoyang Glass Asset Restructuring as an example to analyze: in order to reverse the situation of enterprises and improve their profitability,LYG strives to promote transformation and upgrading.On December 21,2015,it acquired 100% equity of Bengbu China Building Material Information Display Material Co.Ltd.by means of asset replacement,cash payment and share issuance.The effect of LYG’s assets restructuring and its relationship with financial performance are analyzed and studied.Firstly,the short-term financial performance of LYG’s asset Restructuring is analyzed by event analysis method.It is found that the event has brought significant growth to shareholders’ interests in the short term during the restructuring period.Subsequently,according to SASAC’s Rules for Comprehensive Performance Evaluation of Central Enterprises,this paper constructs a financial performance evaluation system to compare the financial performance of LYG with that of the same industry horizontally by using the efficiency coefficient method.At the same time,it compares the financial performance of LYG before and after asset restructuring with the financial index analysis method,and demonstrates that the financial performance of LYG has been improved with the development of asset restructuring.Finally,the free cash flow method(FCFF)is used to predict and evaluate the value of Luoyang Glass Enterprise after asset restructuring.Finally,the conclusion is drawn that the asset restructuring behavior of LYG improves the financial performance of the enterprise and creates value for the enterprise from the three dimensions of short,medium and long-term analysis.In the end of this paper,based on the advantages and disadvantages of the financial performance analysis of LYG’s assets reorganization,this paper puts forward some suggestions for consolidating and improving the work of LYG’s assets reorganization,including improving information disclosure to enhance market attention,optimizing enterprise capital structure to avoid financial risks,reducing production costs to improve enterprise efficiency,and adjusting industrial structure to promote the reorganization.Further strategic transformation of enterprises.It is hoped that the research and analysis of this paper can provide reference for the future development direction of LYG,so that enterprises can look at asset restructuring behavior more rationally,avoid blind restructuring,and provide reference for related enterprises in glass industry to carry out asset restructuring,and at the same time,make certain reference value for the practical development of asset restructuring in China.