Study On YG’s Transition From "Returning To Reality"

With the changing global market environment,the intensification of trade friction between China and the United States,the downward pressure on China’s real economy has increased,and real enterprises have ventured into the virtual economy such as finance and real estate in order to obtain high profits,and the phenomenon of "de-realization to deficiency" of real enterprises has become more and more serious.In recent years,the state has introduced a series of policies to guide manufacturing enterprises to "return to reality",among which,"deleveraging" in the supply-side structural reform has become an important means to regulate the disconnect between the real and the virtual economy.How to guide the manufacturing enterprises to "return to the real" is the key to promote the high-quality development of China’s economy.This paper takes YG Company,a manufacturing company that has been deeply"de-realized" and then shifted to "de-realized",as an example,and takes the current situation of domestic and foreign research and relevant theories as the basis to study the motivation and economic consequences of "de-realization" of the case company."The study is based on the current situation of domestic and foreign research and the relevant theoretical exposition.Firstly,we introduce the basic situation of YG Company,and review the history of YG Company’s transition from "real to real" and the path of realizing "real to real".Secondly,we discuss the external environment and internal motivation of YG’s "de-realization".Finally,by analyzing the market response,financial and non-financial effects of YG’s decision to "return to the real world",the economic consequences of YG’s " from the virtual to the real " are discussed,and the following conclusions are drawn:(1)The national macro policy guidance and the(1)The national macro policy guidance and the promising development of the apparel industry provide a favorable external environment for the case company to " from the virtual to the real ".(2)YG’s "de-focusing" is based on the motives of reducing the risk of earnings uncertainty,improving the long-term competitiveness of the company,and guiding the valuation of the company back to rationality.(3)The market response after the company’s "de-factoring" is positive;in terms of financial performance,the overall positive impact of "de-factoring" is mainly reflected in the steady improvement of profitability,operational efficiency and growth potential,but the pressure of debt servicing However,the pressure on debt service has yet to be alleviated.(4)In terms of non-financial performance,the company’s"de-virtualization" helps promote R&D innovation,increase industrial investment,improve industrial layout,and enhance long-term competitiveness of the enterprise.By exploring the economic effects of YG’s "return to the reality",this thesis provides some guidance on how to guide industrial capital to return to its main business and accelerate the upgrading and transformation of the manufacturing industry against the background of the country’s strong advocacy of revitalizing the real economy.It emphasizes the importance and necessity of the return of manufacturing industry as the core engine to promote the long-term stable growth of China’s economy,with a view to providing a reference path for the development of other "real to virtual" real enterprises to return to their main business.