A Study On The Motivation And Economic Consequence Of The Nationalization Of Beijing Orient Landscape

Beijing Orient Landscape is a private enterprise with environmental protection and garden as its main business and PPP as its main project operation mode.In 2018,Beijing Orient Landscape had a famous "failure in issuing bonds",resulting in a financial crisis,and finally transferred the control right to state-owned capital in 2019.This phenomenon also appears in other private enterprises in the same industry.By analyzing and refining the business process of Beijing Orient Landscape in the past six years and the development of related industries,this paper mainly answers the two questions:what factors led to the nationalization of Beijing Orient Landscape and what impact nationalization had on it,which will help to provide a positive reference for the future development of the industry.After analyzing the operation status of Beijing Orient Landscape before its nationalization,this paper finds that the core reason for the nationalization of Beijing Orient Landscape is that PPP project leads to the financial crisis of it.After a further research,this paper believes that the nationalization of Beijing Orient Landscape mainly has the following reasons:(1)The financial crisis of Beijing Orient Landscape needs to be solved with the help of state-owned capital resources;(2)The business development of Beijing Orient Landscape is blocked,so we need to improve our business competitiveness with the help of state-owned assets;(3)The nationalization of Beijing Orient Landscape can achieve synergy,which is a win-win behavior.After obtaining the control of Beijing Orient Landscape,state-owned capital mainly helps it get rid of difficulties from two aspects:(1)Provide liquidity support,broaden financing channels and improve corporate financing constraints;(2)Improve the internal operation and management of enterprises.In addition,Beijing Orient Landscape also gave full play to its own advantages,realized government enterprise coordination with state-owned capital,and greatly improved the operation efficiency.Through a series of behaviors,the financial indicators such as financing cost and profitability of Beijing Orient Landscape have improved,and the market has also shown a positive response.Through the case analysis of Beijing Orient Landscape,this paper finally believes that nationalization can help private enterprises have government background and resources,so as to obtain business competitive advantages and reduce financing constraints.Private enterprises controlled by state-owned capital can also help realize the strategic planning of local governments and achieve a win-win situation.Finally,this paper provides relevant suggestions on how to realize government enterprise cooperation and promote enterprise development after nationalization.