Case Study On Assets Reorganization Of Guangxi Hechi Chemical Co.Ltd

Since the formal opening of Shanghai Stock Exchange in 1990,listed companies have been an important pillar of China’s rapid economic development.But in recent years,affected by China’s economic transformation,a considerable number of Listed Companies in traditional industries are marked as ST companies.For most ST companies,the qualification of listed companies is very important for their survival,so they often actively seek opportunities to retain the qualification of listing.Asset M & A is considered as one of the best ways to turn losses because it can quickly change the status quo of enterprises.This paper takes the major asset restructuring event of Guangxi Hechi Chemical Co.Ltd as a case study.Hechi chemical industry,as a listed company in the traditional fertilizer industry,focuses on the production and sales of urea products.Its industrial structure is not perfect,and its business technology content is low.Affected by the industry environment,Hechi chemical industry has been losing money for consecutive years,and has received * ST delisting warning.In this major asset restructuring event,Guangxi Hechi Chemical Co.Ltd successfully introduced high-quality assets with strong profitability and great development potential by seling urea production related assets with low profitability and purchasing Nansong pharmaceutical shares with 266 million yuan,The main business will be shifted to more advanced pharmaceutical intermediates business.This paper analyzes the background,scheme and process of asset restructuring of Guangxi Hechi Chemical Co.Ltd,compares the situation before and after asset restructuring,analyzes its short-term performance through event study method,and then analyzes its medium and longterm performance through financial index analysis method.Combining case and theory,this paper further explores the Enlightenment of how ST company carries out "shell protection and self rescue" through asset restructuring,In order to help more ST listed companies regain profitability and growth ability,and protect the interests of shareholders and the community.This paper is divided into five parts.In the first part of the introduction,the research background and research methods are described.In the second part,the theoretical basis of this case study is mainly introduced.In the third part,the basic situation and reorganization scheme of listed companies before and after the reorganization are introduced in detail,The fourth part analyzes the motivation and performance of the case,and the last part summarizes the Enlightenment of the case,and puts forward suggestions for investors,government and ST listed companies.Like a considerable number of Listed Companies in traditional industries,Guangxi Hechi Chemical Co.Ltd has fallen into operational difficulties due to problems in business structure and management level.Through the analysis of the Guangxi Hechi Chemical Co.Ltd asset restructuring event,we can find that the time-consuming of the asset restructuring is relatively short,the market response is relatively good,the goal of turning loss into profit and shareholder’s equity to be positive can be achieved in a relatively short time,the stock price growth rate is among the best in the securities market,and its asset restructuring effect is relatively significant.Therefore,summing up the experience and lessons of this case may be helpful to the listed companies in traditional industries in business difficulties.