Study On The Performance Of Reorganization And Integration Of Central Enterprises Of KunLun Energy Company Limited

Since 2014,Chineseeconomy has entered a new normal development.In the face of great changes in economic operation,deepening reform can adapt to the current situation and promote the transformation of market economy from high-speed growth to high-quality growth.The reorganization and integration of state-owned enterprises,as one of the important means of reform,plays anessential role in optimizing the national economic structure and improving the usage efficiency of state-owned funds.Central enterprises,as the main force and outstanding ones among state-owned enterprises,are the solid foundation of Chinese national economy,and their reorganization and integration play an extremely important role.Thus,the post-evaluation of integration is also the most concerned issue among scholars.In this context,the author chooses to study the performance after the reorganization and integration of central enterprises,and selects the reorganization and integration of KUNLUNENERGYCO LTD,a large central enterprise controlled by CNPC,as the case support.According to the literature review,the post-performance evaluation of reorganization and integration can be divided into two main threads: "short-term performance" and "long-term performance".Therefore,this paper uses CAR,EVA and financial indicators to analyse and assess the reorganized and integrated performance of thecompany from the perspective of short-term and long-term quantity.By Comparing the internal and external environment before company’s reorganization and integration,and calculatingsubsequently relevant indicators,the following three conclusions are summarised :(1)in the short term,the market shows a positive attitude to the reorganization and integration of the company.(2)reorganization and integration enable the company not only to revitalize inefficient and invalid assets,optimize resource allocation,but alsoreverses losses and break away frompredicament.(3)reorganization and integration will be beneficial to the future development of the company.According to the case study,the author puts forward three suggestions for the subsequent reorganization and integration of central enterprises :(1)the goal of reorganization and integration should be clear.(2)reorganization and integration should seize the opportunity.(3)reorganization and integration should be multi-level and all-directional.Three main contributions are made in the paper :(1)the author collected and sorted out the relevant data of the reorganization and integration of central enterprises from 2003 to 2018,and it is found that most of the external reorganization and integration events of central enterprises occurred between 2004 and 2011.Afterwards,the central enterprises implement both internally and externally reorganization and integration.(2)In terms of the company’s reorganization and integration,the case study is of great value,and the relevant research results are of certain reference significance.Because the company has achieved remarkable results in restructuring and integration,and it is included in the "double hundred actions" list of state-owned enterprise reform by the government in 2018.(3)the author comprehensively uses CAR,EVA and financial index analysis methods to study the integrated performance of the company from the perspective of short-term and long-term.The shortcomings of this paper are as follows :(1)In the circumstances of limitations of the author’s knowledge and ability,the research on this topic needs to be further deepened.(2)there are only three methods applied to the appraisal of performance after reorganization and integration,and the case study is not very comprehensive,which the conclusion might not be universal to some extent.(3)the annual report of the company is based on Hong Kong accounting standards and the bookkeeping standard currency is Hong Kong dollarbefore 2016,hence there is a certain deviation in the index analysis process.