Study On Financial Performance Of Transformation Merger And Acquisition Of Zheng Meiji

In recent years,the proportion of coal consumption in my country’s total energy consumption has gradually shrunk.Affected by this,the domestic coal machinery market demand has continued to shrink,industry competition has intensified,and basic losses have been achieved.Some companies have closed down.Facing the current situation of shrinking market and increasing competition,Zhengzhou Coal Mining Machinery Group Co.,Ltd.(hereinafter referred to as Zhengzhou Coal Mining Machinery)has plummeted its operating income since its listing in 2012.To change this situation,Zhengzhou Coal Mining Machinery chose to acquire auto parts companies The transformation has enabled the company to transform from one main business of coal mining machinery to two main businesses of coal mining machinery and auto parts.This article selects a typical case of Zheng meiji’s transformation through mergers and acquisitions of auto parts companies,and first analyzes the internal and external motivations of Zheng meiji’s transformation through mergers and acquisitions based on the relevant policy background and the internal conditions of the company.Secondly,construct the financial performance evaluation system and evaluation model of Zhengzhou Coal Mining Machinery’s transformation and acquisition under the entropy method.Third,the financial performance score obtained by the entropy method is combined with financial data to analyze the financial performance of Zhengzhou Coal Mining Machinery’s transformation and mergers.The analysis results show that the financial performance score of Zhengzhou Coal Mining Machinery has been rising linearly compared with that before the merger.After the merger,the profitability,debt repayment and operating capacity of the company have been improved,and the large operating income of the auto parts business is Zheng meiji’s financial performance has improved;the growth of the company after mergers and acquisitions is not ideal,and the net profit of the auto parts business needs to be focused on by the company.Finally,I summarize the case and hope that the enlightenment from it can provide a strategic reference for other companies trying to achieve transformation through mergers and acquisitions to open up a second main business.