Financial Performance Analysis Of Changhang Phoenix Bankruptcy Reorganization

In recent years,with China's economic development entering the new normal,the economic growth rate slows down,some enterprises' production and operation activities can't repay the long-term huge debts,only rely on government subsidies and long-term large loans to maintain the operation,and gradually become a "zombie enterprise".These "zombie enterprises" are not only unable to generate income,but also seriously affect the process of China's economic transformation.Our government has issued a series of policies to govern "zombie enterprises".Compared with bankruptcy liquidation,bankruptcy reorganization system can save enterprises with operating value and make them get new life,so most enterprises tend to choose bankruptcy reorganization when they are on the verge of bankruptcy.However,some enterprises did not usher in the expected rebirth after the bankruptcy reorganization,but fell into continuous losses after the short-term profits.The main reason is that the stakeholders are concerned about whether they can make profits in a short period of time,but ignore the business situation and sustainable development ability after bankruptcy and reorganization.Therefore,if an enterprise wants to achieve long-term stable operation,it should make effective management strategies according to its own reality.As a large state-owned enterprise,Changhang Phoenix is also a representative enterprise of bankruptcy reorganization.This paper selects Changhang Phoenix as a case company of bankruptcy reorganization.The event study method is used to analyze the short-term performance of bankruptcy reorganization by calculating the excess return rate and cumulative excess return rate.Using the financial index analysis method,this paper selects four aspects of solvency,profitability,operation ability and development ability from the financial data of three years before,during and after the bankruptcy reorganization of Changhang Phoenix,i.e.2011-2018 12 indicators are used to analyze the medium and long-term performance of enterprises from horizontal and vertical perspectives.Entropy weight method is used to evaluate the medium and long term performance of Changhang Phoenix bankruptcyreorganization.It is found that the short-term financial performance of Changhang Phoenix after bankruptcy reorganization is obvious,and the medium and long-term performance is also improved.Although the medium and long-term financial performance has improved after the bankruptcy reorganization,its performance is vulnerable to the cyclical nature of the industry and the international economy,and the overall operating performance is not stable.At the same time,the lack of core competitiveness limits the further development of enterprises when the industry turns warm due to the lack of transportation capacity.Based on the research results,this paper summarizes the successful experience of Changhang Phoenix bankruptcy reorganization,and puts forward suggestions on the business activities of the enterprise from three aspects: insufficient transportation capacity,low efficiency of receivables recovery and diversification of cyclical risks in the industry.