Analysis On The Motivation And Effect Of Funeng Oriental Introducing The Reverse Mixed Reform Of Foshan Public Utilities Holding Co., Ltd

The 20 th National Congress of the Communist Party of China proposed to build a high-level market economy system,maintain the momentum of good development of the socialist economic system,continue to improve the reform of the state-owned economy,promote the appreciation and preservation of the state-owned economy,encourage the state-owned economy to enter the private economy for mixed reform,support,encourage,and guide the development of the private economy,maximize the role of the government,and utilize the crucial role of the market in resource allocation.At the same time,the report of the20 th National Congress of the Communist Party of China proposes to further reform the state-owned economy,such as solely state-owned enterprises and state-owned holding enterprises,to accelerate the adjustment and improvement of the state-owned economic structure and layout,to promote the continuous growth,strength,and optimization of the state-owned economy,and to enhance the core competitiveness of state-owned enterprises.Improve the growth environment of listed private enterprises,protect their own rights and interests in accordance with the law,and enable the private economy to continuously grow and strengthen in a fair environment.With the continuous promotion of the national mixed ownership reform,the state-owned economy has been continuously reformed and strengthened.However,the introduction of state-owned capital into the private economy for reverse mixed ownership reform is rarely mentioned.The private economy has always been difficult and expensive to raise funds,and the platform is not as good as the state-owned economy,making its development much more difficult than the state-owned economy.Therefore,this article aims to provide suggestions and inspiration for other private enterprises by studying the introduction of state-owned capital into reverse mixed ownership reform in private enterprises,while enriching relevant research on mixed ownership reform.Based on the practical and theoretical background,this article selects Funeng Oriental’s introduction of Foshan State owned Assets Supervision and Administration Commission for reverse mixed reform as the object,studying the motives and economic consequences of private enterprises introducing state-owned capital,aiming to provide reference for the current mixed reform of state-owned capital and private enterprises.This article mainly adopts normative research method and case study method.In the normative research section,research was conducted on domestic and foreign literature,and it was found that the motivation for private enterprises to introduce the mixed reform of state-owned assets and the participation mechanism of the State owned Assets Supervision and Administration Commission in private enterprises was also involved.In the case study section,this article first introduces the basic situation and transaction process of Funeng East and the State owned Assets Supervision and Administration Commission of Foshan City,and then compares and analyzes the business situation of Funeng East before and after the reform from two aspects: enterprise performance and corporate governance.After research,this article draws the following six conclusions: firstly,after the establishment of Fo Gong Holdings,the company structure,executive team,and risk management of Funeng Oriental have undergone changes,which has provided help for Funeng Oriental to effectively control costs and avoid operational risks;Second,the company’s income source has changed from single to diversified,and its net interest rate and net return on assets have significantly improved,as well as its profitability;Thirdly,the company’s revenue growth rate and total asset growth rate have significantly improved,and its development ability has significantly improved;Fourthly,the company actively introduces highly educated researchers,increases research and development investment,and significantly improves innovation capabilities;Fifthly,with the help of Fogongcheng after the mixed ownership reform,the company has continuously acquired and invested in high-tech enterprises that are in line with its own development,and constructed the Funeng Technology Industrial Park,which has significantly improved its investment capacity;Sixth,after the mixed reform,Fo Gong Kong has continuously provided financial assistance for the development of Funeng Oriental,and with the help of state-owned platforms,the company’s financing ability has been improved.