Research On The Financial Distress Relief Of Xinghua Co.,Ltd. Based On Strategic Transformation

With the rapid development of the market economy and the continuous improvement of the capital market,companies are facing a more complex economic environment.While the number of listed companies is increasing,the market has stricter supervision of listed companies.After a listed company falls into financial difficulties due to poor management,it cannot continue to generate profits,and the company will have the risk of delisting,which will bring significant economic losses to the company and society.Since it is difficult for my country to obtain the qualification for listing,how to get out of financial difficulties and ensure the sustainable development of listed companies have become a topic of concern to all parties.As an important industry of the country,the chemical industry has an increasing number of listed chemical companies,affecting social and economic development in all aspects.However,due to the large scale of the chemical industry,it has a greater impact on the economic environment and the natural environment.In addition to the overcapacity in the chemical industry in recent years,companies in the chemical industry are increasingly affected by the market environment,and listed companies in the chemical industry continue to fall into financial Dilemma.Shaanxi Xinghua Chemical Co.,Ltd.was affected by internal and external factors,and its net profit continued to be negative in 2014 and 2015.The company was put on the ST logo and the company was in financial trouble.However,Xinghua successfully got out of difficulties through strategic transformation,and achieved sustainable development after getting out of difficulties.This article attempts to take Xinghua Co.,Ltd.as an example to carry out relevant research on listed companies getting out of trouble through strategic transformation.This article uses the "theoretical analysis framework-case analysis-case enlightenment-conclusions and prospects" to carry out the analysis.First of all,based on the strategic transformation theory,a theoretical analysis framework of listed companies’ financial distress relief is constructed.The whole framework is divided into two parts.The first part is the driving factor of corporate strategic transformation relief composed of internal and external factors faced by enterprises.The second part is the process mechanism of strategic transformation and relief,which is divided into three stages:the first stage is the reorganization stage,which aims to improve the status quo of the financially distressed enterprise,which is the first step for the enterprise to realize the transformation;the second stage is the integration stage,the purpose is To re-energize the enterprise,its key activities include the integration of concepts and the integration of content;the third stage is the sustainable development stage,through the three dimensions of economic performance,social performance,and environmental performance to observe the effects of corporate strategic transformation and to verify whether it has been achieved Sustainable development.On this basis,a case study was carried out with Xinghua Co.,Ltd.as an example.The first step is to analyze the driving factors of Xinghua’s strategic transformation from the internal factors and external factors,and choose the effective means of strategic transformation to escape the difficulties.The second step analyzes the process of Xinghua’s strategic transformation and relief:the first stage is the restructuring phase.Xinghua’s restructuring is mainly based on asset reorganization,and Xinghua’s corporate governance reorganization and strategic and operational restructuring are supplemented to complete the restructuring stage of strategic transformation and relief.;After changing the status quo of the company,Xinghua Co.,Ltd.carried out the second stage,the integration stage.The first is the integration of ideas to ensure the unity of transformation and corporate strategy throughout the process.The second is the integration of content from the three perspectives of human,financial and material to create new In the third stage,after the completion of reorganization and integration,the effect of Xinghua’s strategic transformation and relief from the three dimensions of economy,society and environment was verified,and it was confirmed that it had achieved sustainable development.Thirdly,it is the enlightenment of the case.It summarizes the success factors of Xinghua Co.,Ltd.through strategic transformation from the two aspects of driving factors and transformation process,so as to provide reference for similar enterprises to get out of trouble.The last is the conclusion and outlook of the article.