Research On The Path Of Turnaround And Subsequent Performance Of *ST Shenggong

In the context of capital market development,competition among enterprises is becoming more and more fierce.Many listed companies are in trouble because of the deterioration of operating environment or poor internal management.This not only brings economic losses to enterprises,but also hinders the healthy development of our national economy to a certain extent.Due to the scarcity of listing qualifications in China,companies that have been in trouble take some measures to save themselves in order to avoid delisting.Asset restructuring has become an important means for enterprises to optimize the allocation of resources and get rid of difficulties.More and more ST and *ST companies join the ranks of asset restructuring and try to improve their performance by integrating their own resources.However,the choice of restructuring methods will have an impact on the performance level after they get out of difficulty.Some companies do not have sustainable development ability after removing their hats,and their continuous performance is not optimistic.*ST Shenggong took off its hat smoothly on April 27,2012 through a series of restructuring measures,which is a few typical cases of successful hat removal and sustained and healthy development after hat removal.This paper analyses the company's performance in order to provide reference for other companies in trouble to get out of trouble and improve their performance level.At the beginning of the article,this paper introduces the relevant theories under the research background and significance,and arranges the related theories of the impact of reorganization on the performance of distressed companies.Then,it analyses the internal and external causes of *ST Shenggong's distress and the way out of it.Then,it uses three methods: financial indicators,factor analysis and non-financial indicators to analyze the long-term performance of the company after the distress comparison.The study found that: asset restructuring helps *ST Shenggong take off its hat smoothly and provides a good start for the company's follow-up development;*ST Shenggong's comprehensive performance ranks fifth among 66 companies that got out of trouble in the same year within five years,and it has changed from a company in financial distress to a company with good performance,with long-term performance capabilities improved.This paper,different from previous studies,chooses ST Sheng's successful removal of hat,improvement of business after reorganization and good cycle as the research object,describes its performance after extricating from difficulties comprehensively,traces its long-term performance after extricating from difficulties from multiple perspectives,and analyses the reasons why its combination of extricating paths has a sustained good effect on long-term performance.Finally,in view of ST and *ST companies that want to get rid of difficulties through restructuring,this paper puts forward suggestions from three aspects: risk response attitude,path choice of restructuring in difficulties and enterprise development after getting rid of difficulties,hoping to give some inspiration to those companies that really get rid of difficulties after taking off their hats,strengthen their core competitiveness and realize resource integration.