Study On The Business Performance Of State-owned Enterprises Under Mixed Ownership Reform

State-owned enterprises are an important pillar of China’s economy,and the reform of state-owned enterprises is an important measure to promote China’s economic development,as well as an important way for the government to promote the development of state-owned enterprises.In 2015,the mixed-ownership reform of state-owned enterprises officially kicked off with the release of the guidance document "The Guidance of the CPC Central Committee and the State Council on Deepening the Reform of State-owned Enterprises",which clearly pointed out the operational norms for the mixed-ownership reform of state-owned enterprises.By the end of 2018,the National Development and Reform Commission had promoted the implementation of mixed-use reform in 50 SOEs in total,and further promoted the implementation of mixed-use reform in more than 100 SOEs in 2019.Wanhua Chemical Group completed its mixed ownership reform in 2019.This paper chooses Wanhua Chemical as a case to analyze the management performance before and after the mixed ownership reform of Wanhua Chemical.The case selected in this paper is timely and typical.Few of the existing literatures discuss the mixed ownership reform of Wanhua Chemical,and its reform experience is conducive to enriching the theoretical research framework and case base of the mixed ownership reform of state-owned enterprises in China.At the same time,Wanhua Chemical,as a new chemical material company with global operation,is the typical representative of the industry with its current production capacity ranking the first in the industry in the world.Wanhua Chemical participated in and witnessed the arduous process of state-owned enterprise reform from exploration to development and then to deepening the reform,and the company has also become a successful example of state-owned enterprise reform.Wanhua Chemical’s mixed ownership reform case is generally more successful.This paper analyzes the financial performance of Wanhua Chemical through Harvard analysis framework and finds that the company’s debt paying ability has declined after the mixed reform,mainly because of the company’s financial strategy of short loan and long investment and the relatively high asset-liability ratio of BC Company injected.The reason for the slight weakness of operation capacity lies in that the chemical industry was in the cycle trough in the year after the mixed-use reform.In order to expand sales,the company relaxed credit policies,resulting in the increase of receivables.Compared with the average level of the industry,the profitability and development ability both show significant improvement after the mixed reform,and can maintain a good level of profitability even when the product price is low.In this paper,through the event study analysis mix short-term market performance change before and after the change,found that most of the excess yields the shares of companies after the event date is positive to the good state,suggests that the market has made a positive response to wanhua chemical mixed change,at the same time,the events in the future the cumulative excess yields increased quickly brought excess returns for investors.Based on the case study of Wanhua Chemical,this paper draws the following conclusions :(1)the high-quality assets introduced by the mixed-ownership reform will improve the competitiveness of enterprises;(2)Mixed ownership reform is conducive to enhancing the company’s ability to resist risks and improve profitability;(3)Mixed reform can optimize the corporate governance structure.At the same time,it puts forward some thoughts and suggestions on the mixed ownership reform of state-owned enterprises :(1)to establish a diversified equity structure with checks and balances to effectively avoid excessive supervision;(2)Correctly choose the subject and scope of mixed-use reform to give full play to the synergistic effect;(3)Correctly choose the mode of mixed reform to match their own development strategic needs.