Motivation And Performance Analysis Of Sinomine Resources’ Acquisition Of Dongpeng New Materials

Since 2018,due to the trade friction between China and the United States,the global economy has been unstable for a long time,and the profitability of many traditional domestic enterprises in the mature period has begun to fluctuate.In addition,under the global goal of "carbon neutrality",the production and sales of new energy vehicles grew rapidly,the demand for lithium batteries began to gradually spread,and the competition in the industry is becoming more and more fierce.Many enterprises have chosen mergers and acquisitions to enhance their competitiveness and development ability.Some traditional enterprises have also begun to enter the emerging industry field through enterprise mergers and acquisitions,in order to win the first-mover advantage in the new energy and new materials industries,disperse the risks of the original business,and find new sustainable profit points.Therefore,the selection of China mining resources merger and acquisition of Dongpeng New Materials event,on the one hand,because the merger and acquisition behavior is representative,it occurred under the background of the country strongly supporting the new industries such as new energy and new materials;On the other hand,Dongpeng New Materials has an absolute say in cesium rubidium salt,and is the largest producer and supplier of rubidium cesium salt in China.The same battery-grade lithium fluoride is supplied to Tesla Automobile.Analyzing the motivation of the merger and acquisition of Dongpeng New Materials and the performance changes brought about after the acquisition,it is more reference to the merger and acquisition of new energy and new material related fields in the future.This thesis uses a combination of theory and case analysis.First of all,on the basis of a large number of domestic and foreign experts and scholars on the merger and acquisition related literature,it expounds the definition and type of merger and acquisition,expounds the motivation of enterprise merger and acquisition and the performance of merger and acquisition,and briefly introduces the situation and process of both mergers and acquisitions;Secondly,the motivation of the acquisition of Dongpeng New Materials is carefully analyzed from the external factors and internal factors,and then the performance changes of the merger and acquisition are analyzed from the two aspects of financial indicators and non-financial indicators;Finally,through the case analysis of the acquisition of Dongpeng new Materials,the conclusion and enlightenment of the acquisition of Dongpeng new Materials are summarized.The study found that the main reason for Sinomine Resources’ acquisition of Dongpeng New Materials is that Dongpeng New Materials has been engaged in lithium salt,cesium salt,and rubidium salt for many years,has rich technical accumulation,and has certain pricing power for products;The vertical integration of the industrial chain helps both resources to reduce costs and increase profits;deeply bind downstream customers,and consolidate the market share at home and abroad;National policies will guide the integration of industrial chains;Realize business diversification,improve the level of enterprise profitability;Competitors in the same industry will accelerate the industrial chain integration.In addition,in terms of performance,using abnormal yield,cumulative extraordinary yield,financial indicators,financial indicators,financial indicators,mechanism analysis of financial performance before and after mergers and acquisitions,found that the merger improved the financial performance of the mining resources,and the financial performance is improved,the development of mining resources has played a positive role.Finally,the conclusion is drawn through the analysis of the case of Dongpeng new materials acquisition by China Mining resources.Diversified business layout and the realization of the company’s strategic upgrading and transformation are the important reasons for the acquisition of Dongpeng New Materials;After the acquisition of Dongpeng New Materials,the two sides fully coordinated the resources of all parties to enhance the core competitiveness of the enterprise;The strong support of national policies to emerging industries,as well as the development trend of the industry,has boosted the acquisition of Dongpeng New materials.At the same time,all the relevant enlightenment of the merger and acquisition is summarized: The conditions and benefits of successful mergers and acquisitions in the industrial chain;When the trader should choose the acquisition object,the trader should not blindly choose,should pay attention to whether the resources of both sides can converge with each other and give full play to the synergistic benefits;Enterprises should closely follow the development trend of cutting-edge technology in the industry,and seize the opportunity.Hope to provide valuable reference for other enterprises M&A.