Analasis On The Going-Concern Ability Of Sinomach Heavy Equipment Group Co.,Ltd And Research On The Improvement Path Under The Background Of Relisting

Since the re-listing system was launched in 2012,only three companies have successfully re-listed.The main purpose of establishing the re-listing system is to support delisted enterprises to return to the original market after improving the sustainable operation ability,perfecting the governance structure and truly meeting the re-listing requirements.With the comprehensive promotion of China’s registration system and the release of stricter delisting regulations at the end of 2020,the market pattern of "in and out" and survival of the fittest will gradually form.If delisted enterprises want to be listed again,it is essential to have the ability of continuous operation.The successful re-listing of Sinomach-HE shows that its going concern ability has been restored.Sinomach-HE took the initiative to delist in 2015 due to continuous losses,becoming the "first stock to delist voluntarily".Five years later,it was back as a going concern and successfully relisted.How did it do that ? The question remains to be answered.The main research question of this paper is:What measures have been taken after the delisting?How do these measures play a role in improving the ability of Sinomach-HE?In previous studies,there are few studies on delisting and re-listing enterprises.In addition,the study on the going concern ability is more empirical analysis by using models,with less case study methods,and less attention is paid to how enterprises improve their going concern ability through restructuring of their own businesses.Based on this perspective,this paper studies how the first delisting enterprise can recover its continuing operation ability and successfully relist.The successful re-listing of Sinomach-HE not only gives other delisted enterprises some confidence,but also provides some references for delisted companies to apply for re-listing and enterprises with poor management in the future.This paper mainly adopts the case study method,selects the first delisting and relisting enterprise Sinomach-HE as the case study object,and follows the basic thinking of "theoretical analysis-case introduction-problem analysis-promotion path research-conclusion and suggestion" to analyze the change and improvement path of Sinomach-HE continuing business ability.Firstly,the three factors theory of sustainable operation ability,enterprise capability theory and enterprise competitive advantage theory are introduced.Then,the re-listing system and its implementation in China,and the whole process from delisting to re-listing of Sinomach-HE are sorted out.Thirdly,using the three-factor model of going concern,this paper analyzes the going concern ability of Sinomach-HE from active delisting to re-listing from three aspects: financial quality,operating quality and governance efficiency.Finally,starting from the measures taken after the delisting,the paper analyzes how to improve its continuing operation ability and draws relevant conclusions and suggestions.Through research findings: during the delisting,the financial risk was too high,the operation quality was poor and the governance efficiency was not good,which led to the lack of sustainable operation ability.After delisting,the company took a series of measures such as bankruptcy reorganization and asset reorganization,which significantly improved the sustainable operation ability and made it competitive in the market.The measures taken by Sinomach-HE make the financial capacity,operating capacity and governance capacity influence and promote each other,thus improving its ability to continue operating.