ST Integration Asset Divestiture Motivation And Effect Analysis

Since the establishment of the Stock exchange,there have been many companies that have lost money for two consecutive years due to their own reasons or other reasons.They are classified as risk warning（ST or *ST）enterprises according to the regulations of the stock Exchange.If they continue to lose money in the third year,they will face the risk of delisting.There are more and more similar cases,which have a certain impact on the securities market and will affect the orderly development of the overall economy.This issue has attracted the attention of scholars,capital and government related institutions.Therefore,in order to "take off the hat and protect the shell" and improve the financial good,enterprises that have been warned of risks will generally take a variety of ways such as asset merger and acquisition,asset stripping,debt restructuring and equity transfer to achieve financial relief.In the process of divestiture and reorganization,there are some problems encountered in process decision-making and practical operation level that are not explained too much.For example,risk identification,risk response measures and risk control in the process of stripping;How to plan the stripping before the stripping of assets? How to choose the right time to divest? How to choose the right recipient needs further study.Therefore,on the basis of previous studies,we continue to strengthen the study of process analysis,hoping to provide a case reference for enterprises in similar circumstances.This paper chooses ST Integration as a case,the company in 2017 and 2018 has two consecutive years of financial announcement data net profit loss,in accordance with the relevant provisions of the company as a risk warning company.This paper analyzes the case from multiple levels of stripping agent,the timing of the stripping,transaction object selection,stripping solution analysis,etc.,and from two aspects: financial and nonfinancial on the company’s business performance is evaluated,and before and after stripping all aspects has carried on the comprehensive description,carried on the thorough research from different perspectives.ST integration after the restructure,by spinning off assets,made up for the company’s operating earnings,the company in the annual report by financial difficulties into operating situation improves,to improve the shortterm performance,provides the transformation strategy,the development of competitive business platform,as well as its ability to promote long-term development laid a certain foundation,and gradually moves towards a virtuous circle.Finally,this paper points out that divesting assets can complete the realignment of assets in a short time,obtain cash flow and improve the company’s operating performance Capital can be invested in high-quality business,expand the company’s profitability,enhance the company’s competitiveness,improve the company’s short-term performance.In this article,through the analysis of enterprise financial position,in order to get rid of financial difficulties,the enhancement enterprise for the enterprise long-term viability and realize effective combination of advantages of resources to provide the reference and for other enterprises to get rid of financial difficulties,to improve enterprise survival capacity,effective utilization of resources of advantage provides a beneficial enlightenment.