The Research Of Bayi Iron And Steel Path Out Of Poverty From The Perspective Of Supply-side Reform

Since the Reform and Opening up,the steel industry,as an important pillar industry in China,has deve loped by leaps and bounds both in scale and strength.At the same time,the long industrial chain has a large driving effect,occupying an important strategic position and making great contributions to the economy.H owever,the extensive development of the steel industry over a long period of time has resulted in problems such as mismatch between supply and demand,overstocking of inventory and large-scale debt management.With the arrival of the new normal of China’s economy,the slowdown of economic growth has bro ught a huge impact on the steel industry.Problems such as low-end overcapacity,intensified vicious compe tition,low economic benefits and excessively high leverage ratio have become increasingly prominent.At t he same time,in 2014,experts pointed out that the steel industry has entered into a comprehensive loss,so i t is urgent to study the way out of the crisis for the steel industry.In 2015,our country is put forward in ord er to "go capacity,deleveraging,inventory,cost reduction,short board" as the main content of the Supply-si de Reform,in early 2016,promulgated by the state council to dissolve excess capacity as the main task to h elp development of iron and steel enterprises to erase,the reform of the structural adjustment effect in the st eel industry gradually highlights,some iron and steel enterprises dramatically improve performance.This paper takes Bayi Iron & Steel a typical financial distress company that reforms key industries,as the research object.It first introduces the background and significance of the topic selection,reviews the domestic and foreign literature,sorts out the research ideas,and secondly explains the related concepts and theoretical foundations of financial distress and relief.Then introduce the current situation of the financial distress of the case companies,and analyze the reasons for the financial distress,then in-depth interpretation and evaluation of a series of measures taken out by Bayi Iron and Steel under the background of reform,and finally draw the research conclusions of this article and put forward relevant suggestions.Bayi Iron and Steel,as the only listed iron and steel enterprise in Xinjiang,was forced to "wear a star and wear a hat" due to two consecutive years of losses in 2014 and 2015,and entered a serious financial distress.This article attempts to study the path of Bayi Iron and Steel from the perspective of supply-side reform based on the combination of policy background,industry characteristics,and enterprise status:(1)Bayi Steel’s troubles are the result of a combination of internal and external factors.On the one hand,due to the serious overcapacity of the industry and the contradiction between supply and demand,the volume and price have fallen;on the other hand,the enterprise has problems such as unbalanced production and sales,unreasonable product structure,weak cost control,and mismatched investment and financing terms.(2)Bayi Iron and Steel actively responded to the task requirements in the context of reform: by resolving inefficient production capacity and improving the efficiency of resource allocation;carrying out debt restructuring and fighting for government subsidies to alleviate the pressure on funds;managing high cost points to achieve cost reduction and efficiency gains;digest Inventory reduces capital occupancy;increase R & D investment,improve supply quality,and take multiple measures to get rid of difficulties.(3)A series of sustainable and non-sustainable path combination solutions adopted by Bayi Iron & Steel enabled the company to turn a loss into profit in 2016 and successfully take off its cap.Further analysis of the effect of Bayi Iron and Steel from the financial situation and core competitiveness,it is concluded that the risk of bankruptcy of the company is greatly reduced,the true profitability is improved,and the "substantial" lift is being gradually completed,indicating the path of Bayi Steel to choose Correct and effective.Finally,to make recommendations on the status quo of Bayi Iron and Steel Reform,the company should expand financing channels,develop non-steel businesses appropriately,increase R & D investment,and improve the logistics distribution system.It is hoped that the research in this article can provide reference and enlightenment for enterprises with overcapacity to get rid of financial distress,and at the same time provide relevant departments to further deepen and improve the corresponding policies.