Case Analysis Of CSIC Assets Divestiture

China is a large shipbuilding country,accounting for one-third of the global shipbuilding market.After the subprime mortgage crisis,all three major indicators of the shipbuilding industry have fallen sharply.The shipbuilding industry has experienced the crisis and continues to this day.This round of crisis was caused by the combination of the two factors,namely the sluggish demand-side supply and excess supply-side capacity,making this ship market crisis the longest-lasting and most influential one of the previous ones.In this crisis,China's shipping companies are generally faced with difficulties in order receiving,delivery,financing,and profitability.Some shipping companies have gone bankrupt and closed.Enterprises urgently need to take measures to get out of the predicament.In 2015,in order to adapt to the new stage of economic development,the Chinese government proposed a supply-side structural reform,stating that it is necessary to strengthen high-quality supply in the production field,reduce ineffective supply,expand effective supply,improve the adaptability and flexibility of the supply structure,and increase all factors Productivity enables the supply system to better adapt to changes in demand structure.The core task of supply-side structural reform referring to deleveraging,capacity reduction,inventory reduction,cost reduction,and improving underdeveloped areas.CSIC is the largest domestic shipbuilding listed company.It seized the opportunity and actively responded to the task of reform.It implemented three internal supply-side structural reform,and achieved good results.By analyzing the entire process of the divestment of CSIC,analyze the characteristics and reasons for the success of CSIC's divestiture,summarize its successful experience and make recommendations,which may have implications for companies that want to implement divestiture.This article uses a case analysis method and a comparative analysis method to analyze the characteristics of CSIC's first batch of divestitures from four perspectives: divestiture power,purchaser,asset characteristics,and debt terms.From internal competition,core business protection,the characteristics of the second batch of divestitures are analyzed from the perspective of transaction consideration,and the characteristics of the third batch of divestitures are analyzed from the perspective of competition,asset size and operating value.According to the characteristics of the divestiture,the reasons for the implementation of the divestiture and the reasons for the smooth implementation are further explored.Among them,the help of the parent company,the balance of the interests of the two parties to the transaction,and the characteristics of the divested assets are all important factors that promote the smooth implementation of CSIC's divestiture.Based on the analysis of the characteristics of the divestiture of the assets and the analysis of the causes,it is found that the use of multiple methods to strip off inferior assets in batches can highlight the core business of the enterprise,reduce unreasonable competition within the enterprise,and improve the efficiency of resource allocation of the enterprise.Therefore,through the analysis of CSIC's successful implementation of divestiture,the following enlightenment can be obtained: firstly,companies should strip related assets with excess capacity and nonperforming assets that affect their core competitiveness;secondly,in the process of divestiture,companies should pay attention to The reasonable procedures for divestiture should reasonably use various types of divestiture methods.finally,after divestiture,attention should also be paid to asset reorganization,integration,and evaluation.