Study On Financial Risk Of Material Assets Reorganization Of Huaxing Yuanchuang

As an important means of corporate expansion,major asset restructuring differs from general M&A restructuring in terms of the scale of the restructuring,the capital involved and the scope of business changes.Financial risk,as a centralized manifestation of enterprise operation risk,is bound to fluctuate when there are significant changes in the underlying conditions related to the operation of the enterprise.In recent years,the failure rate of major asset reorganization of listed enterprises in China has been increasing,behind which enterprises often bear huge losses and run counter to their initial strategic vision,and some of them even fall into the dilemma of financial fraud and are involved in litigation disputes.Therefore,it is important to study the financial risk of major asset restructuring to prevent the financial risk of enterprises.As a newly established board to support the development of strategic emerging industries in China,some enterprises announced their plans for major asset restructuring in the same year of the opening of the board.Firstly,this paper adopts the case study method and selects Huaxing Yuanchuang,the first stock listed on the STB and also the first major asset restructuring on the STB,as the object of study,and introduces the strategic layout of the company by analyzing its internal and external business environment,and then elucidates the reasons for its major asset restructuring.The financial risk is identified into four aspects,such as pricing,financing,payment and integration,using the process before and after the restructuring as nodes;again,the principles of selecting indicators for financial risk evaluation are determined,relevant financial indicators are selected,and the entropy TOPSIS model is applied to evaluate the financial risk;finally,based on the evaluation results,the financial risk behind Huaxing Yuanchuang’s major asset restructuring is analyzed,and the actual reasons for Huaxing Yuanchuang’s major asset restructuring are discussed.Finally,based on the evaluation results,the financial risks behind the major asset restructuring of Huaxing Yuanchuang are analyzed,and financial risk prevention suggestions are made with respect to the actual situation of Huaxing Yuanchuang.Based on the above research process,this paper finds that the financial risk of major asset reorganization focuses on the integration stage,and its financial risk changes do not manifest immediately in the immediate period of the reorganization but with a certain lag.In addition,because of the impact of major asset reorganization on the business of enterprises,the financial risk of major asset reorganization runs through the subsequent business management process.