Research On The Performance Of Continuous Asset Divestiture Of Hwhg Based On Refocusing Strategy

In recent years,with the release of various national policies,focusing on core businesses and implementing the refocusing strategy,asset divestiture has become the choice of many enterprises.Since the 2015 Central Economic Work Conference proposed the policy of "three reductions,one reduction,and one compensation",focusing on the return business has become a key task for most state-owned enterprises.The smooth convening of the 20 th National Congress of the Communist Party of China(CPC)has led to a greater emphasis on the formation of core competitiveness in various industries against the backdrop of the country’s emphasis on the development of main industries and industrial transformation.State-owned enterprises should focus on a series of policies that are primarily responsible for their main businesses,releasing a signal that encourages excessively diversified expansion of enterprises to return to the right track of enterprise development through refocusing.Due to excessive competition,the Chinese pharmaceutical industry has not formed a good industrial development environment.In the early stage of its development,the HWHG has always adhered to a diversified expansion strategy,blindly acquiring multiple companies and engaging in multiple fields.Excessive diversified expansion has not brought expected benefits,but has led to a high asset liability ratio and a surge in goodwill.In recent years,the HWHG has re-examined its own development,implemented a refocusing strategy,and conducted multiple divestitures,which is representative of strategic transformation.Based on this,this article takes the HWHG as a case study object,analyzes the performance impact of its continuous asset divestiture events based on core competence theory,signal transmission theory,efficiency theory,and resource allocation theory,combining literature research and case analysis methods.This article first summarizes the domestic and foreign literature on the motivation and economic consequences of corporate asset divestitures,and briefly summarizes the existing literature.Secondly,it introduces the current operating situation of the HWHG from the perspective of strategic evolution and business layout,and analyzes the continuous asset divestiture process of the HWHG based on the refocusing strategy in combination with the policy and industry background of the refocusing strategy transformation,the main motivation is:(1)Business attribution;(2)Strategic adjustment;(3)Improve performance.Finally,from three dimensions of market performance,financial performance,and non-financial performance,analyze the performance impact of its implementation of continuous asset divestitures,research shows: After implementing continuous asset divestitures based on the refocusing strategy,the HWHG has significantly improved its core business capabilities,consolidating its leading position in the narcotics segment.However,due to blind diversified mergers and acquisitions in the early stage,the enterprise value is still below the industry average.The asset-liability ratio is still far higher than that of enterprises in the same industry,and problems such as insufficient R&D and innovation capabilities have revealed that the refocusing strategy transformation is not strong enough.Long-term strategic planning is still needed to ultimately achieve the coordinated development of various core businesses and maximize enterprise value.This article studies the continuous asset divestiture of the HWHG based on the refocusing strategy,providing a practical case reference for similar excessively diversified expansion enterprises,and helping them better achieve business refocusing focus.