Research On Financial Performance Under The Supply-side Reform Of SG Shares

The steel industry is one of the key industries for the development of my country’s heavy industry.The industry has a wide coverage and a high degree of conjunction to other industries.Before the supply-side reform began,due to the continuous blind expansion of the industry,the problem of overcapacity in my country’s iron and steel industry became more serious.Excessive leverage and decline in corporate profitability and other issues.At the end of 2015,my country proposed the five major tasks of supply-side reforms and the “three removals,one reduction and one supplement”,namely,destocking,capacity,deleveraging,cost reduction,and shortcomings.The steel industry and steel companies are the focus of reforms.The most important thing is that the supply-side reform has been implemented for five years,and the development status of the enterprise can well reflect the implementation effect of the reform.Therefore,the performance of steel facilities before and after the supply-side reform is worthy of wariness.In this paper,by consulting relevant materials and literature,the theories of supply-side reform at home and abroad,the background,content,The requirements and objectives of the supply-side reforms of my country,the methods of evaluating the financial results of companies,the evaluation of the monetary results of companies in the circumstance of the supply-side reforms and the state.Although steel companies before the supply-side reforms,they were systematically screened and sorted.Secondly,based on the principles of comprehensiveness,feasibility,importance,and developmental,19 indicators in five aspects including profitability,solvency,operating ability,development ability and innovation ability were selected to construct a corporate financial performance evaluation system.Third,apply the system constructed above,take SG shares as the research object,and use the factor analysis method to analyze the financial performance of SG stocks before and after the supply-side reform and the firm’s sector performance rankings before and after the supply-side reform on the supply side.Conducted research and analysis,and found that after the supply-side reform,the solvency,profitability,development capabilities,and innovation capabilities of SG shares have increased compared to their own,operating capabilities have declined,and the overall performance level has improved,but in the industry The company is still at a low-middle level.Among them,SG’s innovation-driven ability has been enhanced,the asset-liability ratio is still relatively high,and the cost of the company is relatively high.So as to certificate the effectiveness of the evaluation system,this paper also selects economic value-added financial performance indicators to verify the research results of the previous system.It is verified that the economic value-added of SG shares has been on the rise in the four years after the supply-side reform,and it is in the industry.After the supply-side reform,the company’s ranking has risen by two.Enterprises are creating value at this stage,but there are still some shortcomings in the current operating conditions of SG shares,which are consistent with the conclusions drawn in the previous article.Finally,this article puts forward the following suggestions for the current financial performance of SG shares after the supply-side reform: the government must continue to vigorously promote the supply-side reform,enterprises must enhance R&D and innovation capabilities,accelerate the accumulation of technological advantages,reduce corporate leverage and corporate costs,and enhance corporate profitability.Suggestions on accelerating the transformation and upgrading of enterprises and promoting the green development of enterprises.