Financial Performance Statistical Analysis Model and Application of
Growth Enterprise Market Company
Jinhong Zhou
School of Aeronautics and Astronautics, Sun-Yet Sen University, Guangzhou, China
Keywords: Statistical Analysis Model, Companies Research, Financial Performance, Growth Enterprise Market.
Abstract: Taking Growth Enterprise Market as an example, this paper analyzed the company's financial performance
by establishing a time series statistical analysis model, and measures financial performance through effective
data information processing. So as to further study the application and improvement of the financial
performance statistical analysis model. The paper draw valuable data analysis conclusions and provide
valuable suggestions for follow-up mathematical statistics of financial performance.
1 INTRODUCTION
Regarding the Growth Enterprise Market, I
understand that this is a relative market that
complements the main board market. It is a new type
of securities market for small and medium-sized
enterprises. Its main purpose is to provide more
convenient financing channels for small and medium-
sized enterprises. The Growth Enterprise Market
mainly serves growth-oriented innovative and
entrepreneurial enterprises, and aims to enable
traditional small and medium-sized enterprises to be
more closely related to the rapid development of new
technology industries and new models.
2 LITERATURE REVIEW
2.1 Reform of the Registration System
In 2020, due to the impact of the new crown
epidemic, many small, medium and micro enterprises
have been hit to varying degrees. In order to support
the development of small and micro enterprises and
protect people's livelihood, the central government
decided to reform the Growth Enterprise Market in
April 2020 and in August of the same year, the
Growth Enterprise Market registration system was
first launched. Batches of companies passed the
listing. This reform mainly focuses on simplifying
and optimizing the conditions for initial public
offerings on the Growth Enterprise Market,
emphasizing the transparency of information review
and transmission, strictly implementing the
requirements for registered issuance centered on
information disclosure, and clarifying the basic rules
of market-oriented issuance and underwriting. Small
and medium-sized securities firms are the main sales
force of the Growth Enterprise Market, and the
reform of the registration system is formally
beneficial to the brokers of small and medium-sized
enterprises. Therefore, it can significantly enhance
the vitality of the Growth Enterprise Market. Coupled
with the benefits of the new financing policy in the
early stage, the small and medium-sized Growth
Enterprise Market will be more active.
This measure is also conducive to promoting
more high-quality new technology companies to
enter the capital market, further enhancing the capital
market's ability to serve the real economy, enhancing
the function of the capital market, and improving the
basic system of the capital market. A series of reform
measures are aimed at adapting to the current
economic transformation, promoting the listing of
more innovative and entrepreneurial enterprises,
increasing the level of marketization and reducing
business costs. All these will accumulate valuable
experience for the further future of the market-wide
registration system reform.
2.2 Research on Company Financial
Performance
For the analysis of GEM companies, it is also
Zhou, J.
Financial Performance Statistical Analysis Model and Application of Growth Enterprise Market Company.
DOI: 10.5220/0011349700003440
In Proceedings of the International Conference on Big Data Economy and Digital Management (BDEDM 2022), pages 801-810
ISBN: 978-989-758-593-7
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
801

possible to use financial analysis methods for other
ordinary companies. But we also need to know the
characteristics of GEM companies. Most GEM
companies are engaged in high and new technology,
with high growth potential, long R&D cycle, current
performance is not outstanding, the scale of the
company is also small, the risk of profit instability is
also greater, but the development potential is high.
Collect information and data of research companies
and process the data for analysis. After understanding
(Song 2011), the main financial performance
indicators in the following aspects are profitability,
solvency, operating ability and growth ability
indicators. For the analysis method here, we use the
ratio analysis method, which can be used as a
reference for performance indicators. The
proportional analysis method is to use the ratio
between different financial data to quantitatively
analyze the capabilities of certain aspects of the
enterprise. A reasonable selection of data can draw a
judgment on the financial status and operating
conditions of the enterprise. A quantitative score for
financial performance indicators for analysis (Xu
2021, Guo 2021, Chen 2021). It should be noted that
these four capabilities are not mutually independent
vertical relationships. Many of these financial ratios
are coupled with each other (Song 2011), so there
may be analytical correlations. At the same time, only
relying on the analysis of individual financial ratios
may have insufficient depth and breadth, resulting in
inability to have a comprehensive response to
corporate problems, and misjudgments are prone to
occur (Li 2021). Therefore, when selecting data
ratios, it should be more comprehensive and
diversified to achieve the purpose of more
comprehensive analysis.
2.2.1 Profitability Capability
Profitability refers to the ability of an enterprise to
obtain profits. It is the most concerned aspect of an
enterprise, and can even be used as an expression of
the core competitiveness of an enterprise. Here we
choose the net asset interest rate and the cost and
expense profit rate as indicators. The net asset interest
rate can reflect the ability of the company to manage
assets and use assets, and it can reflect the overall
profitability of the enterprise; and the cost and
expense profit rate reflects the existing one of the
enterprise The ability of inputs to generate economic
benefits can be seen horizontally in terms of the
development of the competitiveness of enterprises (Li
2021, Guo 2021).
2.2.2 Solvency Capability
Solvency is divided into short-term solvency and
long-term solvency. Short-term solvency reflects the
company’s ability to use current assets to repay debts.
It is the company’s ability to cope with sudden debt
repayment. Here I choose the current ratio as the
short-term solvency indicator; long-term solvency is
the company’s guaranteed debt repayment Ability
represents the foundation of a company’s credit
generation. Here, the debt ratio is chosen as the
indicator of long-term solvency. Because faced with
GEM companies, the scale of the accident is
generally not too large, the transaction inventory is
small and the investment is basically short-term
investment, so these two indicators can more truly
reflect their debt solvency. However, in terms of
financial solvency, the higher the better (Chen 2019),
too high means that the company's use of assets is not
reasonable enough, which means that its asset
distribution needs to be improved.
2.2.3 Operational Capability
Operating capability selects the turnover rate of
current assets and the turnover rate of total assets as
capability indicators. The turnover rate of current
assets is a good measure of how companies use idle
resources, and can reflect the company's strategic
deployment capabilities to a certain extent, which is
very important for companies on the GEM; the total
asset turnover rate is the company's use of assets to
generate profits Revenue efficiency is mainly an
indicator of the liquidity of a company’s assets, which
can reflect the company’s sales and internal
operations capabilities to a large extent.
2.2.4 Growth Capacity
There are many indicators that can be selected here,
because for an enterprise, the enhancement of the
above-mentioned capabilities can reflect the growth
of the enterprise to a certain extent. The growth rate
of operating income, the rate of capital accumulation,
the growth rate of operating profit, and the growth
rate of total assets can well reflect the growth of a
company's scale and profitability. For start-ups that
are difficult at the beginning, paying attention to their
scale growth can give a good indication of their
ability to survive and grow in the reformed market
environment.
In terms of how to selecting data, representative
data is usually selected. There are many statistical
methods such as correlation coefficient calculation or
factor analysis (Yang 2021), which can screen out
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reasonable and representative data as analysis
materials. Through analysis, some characteristics of
GEM companies are obtained, and some feasible
improvement suggestions are put forward.
3 FINANCIAL ANALYSIS OF THE
CASE COMPANY
3.1 Comparative Analysis of Solvencys
Define abbreviations and acronyms the first time they
are used in the text, even after they have been defined
in the abstract. Abbreviations such as IEEE, SI, MKS,
CGS, sc, dc, and rms do not have to be defined. Do
not use abbreviations in the title or heads unless they
are unavoidable. The data of the research sample's
asset-liability ratio (unit: %) from the end of 2016 to
the end of 2020 is as follows:
Table 1: Asset-liability atio Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 59.57 66.58 64.94 64.40 65.53
2 000651.SZ Gree 69.88 68.91 63.10 60.40 58.14
3 600690.SH Haier 71.37 69.13 66.93 65.33 66.52
4 002050.SZ Sanhua 36.10 35.82 37.55 36.68 40.39
5 002032.SZ Super 41.96 43.32 44.45 42.23 41.13
6 002508.SZ BOSS 35.70 33.67 35.16 34.53 34.23
7 002705.SZ Xinbao 50.97 43.77 45.07 46.90 51.15
8 002242.SZ Jiuyang 37.17 33.05 42.50 49.77 53.12
9 300894.SZ Martian 63.01 56.70 52.50 49.70 37.89
10 000921.SZ Hisense 72.06 67.20 63.86 63.28 65.54
Average 53.78 51.82 51.60 51.32 51.36
Median 55.27 50.24 48.78 49.74 52.14
Data source: Wind Financial Terminal
According to the above table, the overall asset-
liability ratio of Midea Group has remained stable
after 2017. Due to the large scale of payment required
for mergers and acquisitions, its asset-liability ratio is
higher than the industry average and median.
The current ratio data of the research sample from
the end of 2016 to the end of 2020 are as follows:
Table 2: Current Ratio Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 1.35 1.43 1.40 1.50 1.31
2 000651.SZ Gree 1.13 1.16 1.27 1.26 1.35
3 600690.SH Haier 0.95 1.15 1.18 1.05 1.04
4 002050.SZ Sanhua 2.15 2.34 2.02 2.13 2.45
5 002032.SZ Super 1.99 1.95 1.91 1.98 2.01
6 002508.SZ BOSS 2.42 2.58 2.47 2.54 2.59
7 002705.SZ Xinbao 1.26 1.49 1.37 1.45 1.41
8 002242.SZ Jiuyang 1.84 2.04 1.70 1.49 1.52
9 300894.SZ Martian 0.95 0.91 0.83 0.91 1.81
10 000921.SZ Hisense 0.97 1.05 1.06 1.18 1.13
Average 1.50 1.61 1.52 1.55 1.66
Median 1.31 1.46 1.39 1.47 1.47
Data source: Wind Financial Terminal
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According to the above table, the current ratio of
Midea Group has remained stable as a whole, and
there is no significant difference from the average and
median values of the industry.
The quick ratio data of the research sample from
the end of 2016 to the end of 2020 are as follows:
Table 3: Quick Ratio Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 1.18 1.18 1.18 1.28 1.14
2 000651.SZ Gree 1.06 1.05 1.14 1.12 1.17
3 600690.SH Haier 0.74 0.87 0.90 0.76 0.78
4 002050.SZ Sanhua 1.68 1.84 1.60 1.67 1.96
5 002032.SZ Super 1.47 1.40 1.41 1.52 1.53
6 002508.SZ BOSS 2.01 2.15 2.05 2.17 2.25
7 002705.SZ Xinbao 0.91 1.14 1.01 1.04 1.08
8 002242.SZ Jiuyang 1.64 1.74 1.44 1.20 1.32
9 300894.SZ Martian 0.72 0.70 0.54 0.69 1.55
10 000921.SZ Hisense 0.77 0.81 0.84 1.01 0.97
Average 1.22 1.29 1.21 1.24 1.38
Median 1.12 1.16 1.16 1.16 1.25
Data source: Wind Financial Terminal
According to the above table, similar to the
current ratio, the quick ratio of Midea Group remains
stable as a whole, and the difference with companies
in the same industry is relatively low.
The cash ratio data of the research sample from
the end of 2016 to the end of 2020 are as follows:
Table 4: Cash Ratio Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 1.18 1.18 1.18 1.28 1.14
2 000651.SZ Gree 1.06 1.05 1.14 1.12 1.17
3 600690.SH Haier 0.74 0.87 0.90 0.76 0.78
4 002050.SZ Sanhua 1.68 1.84 1.60 1.67 1.96
5 002032.SZ Super 1.47 1.40 1.41 1.52 1.53
6 002508.SZ BOSS 2.01 2.15 2.05 2.17 2.25
7 002705.SZ Xinbao 0.91 1.14 1.01 1.04 1.08
8 002242.SZ Jiuyang 1.64 1.74 1.44 1.20 1.32
9 300894.SZ Martian 0.72 0.70 0.54 0.69 1.55
10 000921.SZ Hisense 0.77 0.81 0.84 1.01 0.97
Average 1.22 1.29 1.21 1.24 1.38
Median 1.12 1.16 1.16 1.16 1.25
Data source: Wind Financial Terminal
According to the above table, the cash ratio of
Midea Group has been on the rise in the past five
years, but it is still at a low level compared to
comparable companies in the same industry, mainly
due to the large amount of cash paid in many mergers
and acquisitions.
3.2 Comparative Analysis of
Profitability
The data of the research sample's return on net assets
(unit: %) from the end of 2016 to the end of 2020 are
as follows:
0
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Table 5: Return on Net Assets of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 26.62 25.63 25.80 26.21 24.84
2 000651.SZ Gree 30.42 37.51 33.40 24.52 19.68
3 600690.SH Haier 20.53 23.65 20.78 18.80 15.48
4 002050.SZ Sanhua 17.19 18.73 15.67 15.87 15.11
5 002032.SZ Super 24.05 26.86 30.07 30.13 26.30
6 002508.SZ BOSS 33.07 31.12 26.07 24.63 22.27
7 002705.SZ Xinbao 17.19 12.77 13.17 16.76 21.64
8 002242.SZ Jiuyang 20.77 19.63 20.43 21.79 23.39
9 300894.SZ Martian 79.87 84.01 27.02 48.45 28.56
10 000921.SZ Hisense 24.41 35.26 19.78 22.32 17.07
Average 29.41 31.52 23.22 24.95 21.43
Median 24.23 26.24 23.29 23.42 21.96
Data source: Wind Financial Terminal
According to the above table, in the past five
years, Midea Group's return on net assets has shown
a stable overall trend, and is significantly higher than
the level of comparable companies in the same
industry.
The research sample's return on total assets (unit:
%) from the end of 2016 to the end of 2020 are as
follows:
Table 6: Data of Return on Total Assets of The Research Samples.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 12.21 10.35 9.50 9.55 8.85
2 000651.SZ Gree 10.09 12.70 12.85 10.20 8.43
3 600690.SH Haier 8.35 8.10 7.93 8.94 7.37
4 002050.SZ Sanhua 12.71 14.45 11.97 11.75 10.71
5 002032.SZ Super 17.80 18.29 19.96 19.84 17.98
6 002508.SZ BOSS 23.17 22.30 18.43 17.78 15.54
7 002705.SZ Xinbao 11.15 7.67 8.14 10.31 13.12
8 002242.SZ Jiuyang 14.82 14.80 14.38 12.95 12.44
9 300894.SZ Martian 26.24 40.78 16.65 27.59 18.84
10 000921.SZ Hisense 7.59 10.94 7.06 7.40 8.67
Average 14.41 16.04 12.69 13.63 12.19
Median 12.46 13.58 12.41 11.03 11.58
Data source: Wind Financial Terminal
According to the above table, the return on total
assets of Midea Group has been declining in the past
five years, and has always been lower than the
average level of comparable companies in the same
industry. I believe this is still in the normal range,
because Midea Group’s asset scale and market value
scale far exceed those of other companies. Nine
comparable companies, and larger companies usually
have a lower return on total assets.
The sales gross profit margin (unit: %) data of the
research sample from the end of 2016 to the end of
2020 are as follows:
Table 7: Sales Gross Profit Margin Data of The Research Samples.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 27.31 25.03 27.54 28.86 25.11
2 000651.SZ Gree 32.70 32.86 30.23 27.58 26.14
3 600690.SH Haier 31.02 31.00 29.00 29.83 29.68
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No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
4 002050.SZ Sanhua 29.77 31.23 28.59 29.60 29.81
5 002032.SZ Super 30.53 29.56 30.86 31.15 26.42
6 002508.SZ BOSS 57.31 53.68 53.52 54.27 56.16
7 002705.SZ Xinbao 20.13 19.42 20.56 23.67 23.31
8 002242.SZ Jiuyang 32.70 33.01 32.13 32.52 32.05
9 300894.SZ Martian 47.59 51.11 52.42 51.78 51.58
10 000921.SZ Hisense 23.36 19.46 19.01 21.44 24.05
Average 33.24 32.64 32.39 33.07 32.43
Median 30.78 31.12 29.61 29.71 28.05
Data source: Wind Financial Terminal
According to the above table, the gross profit
margin of Midea Group has been fluctuating in the
past five years, with relatively low fluctuations, and
has always been lower than the average level of
comparable companies in the same industry,
indicating that Midea Group’s overall gross profit
margin is compared with other companies in the same
industry. The company has no significant advantages.
The cost of sales ratio (unit: %) of the research
sample from the end of 2016 to the end of 2020 is as
follows:
Table 8: The Cost of Sales Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 72.69 74.97 72.46 71.14 74.89
2 000651.SZ Gree 67.30 67.14 69.77 72.42 73.86
3 600690.SH Haier 68.98 69.00 71.00 70.17 70.32
4 002050.SZ Sanhua 70.23 68.77 71.41 70.40 70.19
5 002032.SZ Super 69.47 70.44 69.14 68.85 73.58
6 002508.SZ BOSS 42.69 46.32 46.48 45.73 43.84
7 002705.SZ Xinbao 79.87 80.58 79.44 76.33 76.69
8 002242.SZ Jiuyang 67.30 66.99 67.87 67.48 67.95
9 300894.SZ Martian 52.41 48.89 47.58 48.22 48.42
10 000921.SZ Hisense 76.64 80.54 80.99 78.56 75.95
Average 66.76 67.36 67.61 66.93 67.57
Median 69.22 68.88 70.39 70.29 71.95
Data source: Wind Financial Terminal
According to the above table, the cost of sales
ratio of Midea Group has always maintained a
relatively high level, consistently higher than that of
comparable companies in the same industry,
indicating that Midea Group has no comparative
advantage in cost control.
The sales period expense ratio (unit: %) of the
research sample from the end of 2016 to the end of
2020 is as follows:
Table 9: Expense Rate Data during The Sales Period of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 16.53 17.59 18.18 18.53 15.57
2 000651.SZ Gree 15.81 15.62 14.79 12.90 12.34
3 600690.SH Haier 25.50 25.62 23.46 25.38 24.68
4 002050.SZ Sanhua 14.40 15.51 13.84 15.14 16.63
5 002032.SZ Super 18.91 18.52 19.92 19.95 15.46
6 002508.SZ BOSS 33.06 29.45 31.98 31.30 31.95
7 002705.SZ Xinbao 11.73 13.23 12.14 14.68 13.39
8 002242.SZ Jiuyang 21.78 22.71 24.16 23.22 23.28
9 300894.SZ Martian 29.65 24.53 40.20 31.36 31.99
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No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
10 000921.SZ Hisense 20.58 17.40 17.08 18.99 17.95
Average 20.79 20.02 21.57 21.14 20.32
Median 19.74 18.06 19.05 19.47 17.29
Data source: Wind Financial Terminal
According to the above table, the period expense
ratio of Midea Group has remained stable overall and
is lower than the average level of comparable
companies in the same industry. The author believes
that this is in line with common sense, because Midea
Group’s overall scale is relatively large, so the period
expense has been diluted to a certain extent. level.
3.3 Compar ative Analysis of
Operating Capability
The inventory turnover rate data of the research
sample from the end of 2016 to the end of 2020 are
as follows:
Table 10: Inventory Turnover Rate Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 8.87 8.01 6.37 6.38 6.70
2 000651.SZ Gree 7.88 7.78 7.56 6.51 4.78
3 600690.SH Haier 6.90 5.98 5.93 5.57 5.11
4 002050.SZ Sanhua 3.98 4.31 3.99 3.78 3.79
5 002032.SZ Super 5.31 5.15 5.43 5.93 5.88
6 002508.SZ BOSS 3.02 3.21 2.81 2.64 2.61
7 002705.SZ Xinbao 6.55 6.70 6.10 5.26 5.65
8 002242.SZ Jiuyang 10.40 10.50 8.77 6.88 7.51
9 300894.SZ Martian 4.74 5.64 4.43 5.14 4.72
10 000921.SZ Hisense 8.31 8.90 9.18 9.12 9.43
Average 6.60 6.62 6.06 5.72 5.62
Median 6.73 6.34 6.02 5.75 5.38
Data source: Wind Financial Terminal
According to the above table, the inventory
turnover capacity of Midea Group has shown a
downward trend as a whole, but it is still significantly
higher than that of comparable companies in the same
industry.
The research sample accounts receivable turnover
rate data from the end of 2016 to the end of 2020 are
as follows:
Table 11: Accounts Receivable Turnover Rate Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 13.35 15.54 14.07 14.62 13.65
2 000651.SZ Gree 37.09 33.80 29.32 24.44 19.50
3 600690.SH Haier 12.95 12.90 16.02 18.72 15.57
4 002050.SZ Sanhua 6.03 6.86 6.23 6.07 5.73
5 002032.SZ Super 10.78 11.11 11.43 11.27 9.24
6 002508.SZ BOSS 17.78 19.97 18.16 13.24 9.38
7 002705.SZ Xinbao 9.85 10.93 8.79 8.73 9.57
8 002242.SZ Jiuyang 84.03 67.80 54.66 49.74 53.68
9 300894.SZ Martian 290.28 741.17 181.02 44.61 26.66
10 000921.SZ Hisense 11.11 12.05 12.15 10.60 9.16
Average 49.32 93.21 35.19 20.20 17.21
Median 13.15 14.22 15.05 13.93 11.61
Data source: Wind Financial Terminal
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According to the above table, it can be seen that
Midea Group's accounts receivable turnover rate
shows a stable overall trend, and there is no
significant difference from comparable companies in
the same industry.
The data of the current asset turnover rate of the
research sample from the end of 2016 to the end of
2020 is as follows:
Table 12: Liquid Asset Turnover Rate Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 1.49 1.67 1.49 1.40 1.25
2 000651.SZ Gree 0.83 0.95 1.08 0.97 0.80
3 600690.SH Haier 1.91 2.02 2.01 2.06 1.95
4 002050.SZ Sanhua 1.25 1.34 1.17 1.14 1.12
5 002032.SZ Super 1.90 2.00 2.14 2.11 1.86
6 002508.SZ BOSS 1.23 1.16 1.01 0.91 0.83
7 002705.SZ Xinbao 2.19 2.10 1.93 1.91 1.87
8 002242.SZ Jiuyang 1.79 1.96 1.94 1.81 1.75
9 300894.SZ Martian 2.53 2.76 2.75 3.04 1.67
10 000921.SZ Hisense 2.48 2.40 2.47 1.93 1.77
Average 1.76 1.84 1.80 1.73 1.49
Median 1.85 1.98 1.94 1.86 1.71
Data source: Wind Financial Terminal
According to the above table, the current asset
turnover rate of Midea Group has remained stable
overall. However, compared with comparable
companies in the same industry, the current asset
turnover rate of Midea Group is significantly lower.
Turnover rate is at a disadvantage.
The fixed asset turnover rate data of the research
sample from the end of 2016 to the end of 2020 are
as follows:
Table 13: Fixed Asset Turnover Rate Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 8.03 11.08 11.63 12.67 13.02
2 000651.SZ Gree 6.65 8.54 11.16 10.70 8.95
3 600690.SH Haier 9.94 10.09 11.00 10.44 9.98
4 002050.SZ Sanhua 3.16 4.11 4.00 3.57 3.36
5 002032.SZ Super 13.23 16.55 21.03 22.34 17.40
6 002508.SZ BOSS 6.72 8.35 8.89 9.30 9.85
7 002705.SZ Xinbao 5.24 5.22 4.72 4.84 6.19
8 002242.SZ Jiuyang 10.70 11.14 12.26 13.53 16.92
9 300894.SZ Martian 3.55 6.13 4.48 3.38 2.91
10 000921.SZ Hisense 7.62 9.95 11.06 10.59 12.58
Average 7.49 9.12 10.02 10.14 10.11
Median 7.17 9.24 11.03 10.51 9.91
Data source: Wind Financial Terminal
According to the above table, the fixed asset
turnover rate of Midea Group is showing an upward
trend, and it is significantly higher than that of
comparable companies in the same industry,
indicating that Midea Group's fixed asset turnover
rate is in an advantageous position.
The total asset turnover data of the research
sample from the end of 2016 to the end of 2020 are
as follows:
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Table 14: Total Asset Turnover Rate Data of The Research Sample.
No. Code Company 2016/12/31 2017/12/31 2018/12/31 2019/12/31 2020/12/31
1 000333.SZ Midea 1.07 1.16 1.02 0.99 0.86
2 000651.SZ Gree 0.64 0.76 0.86 0.75 0.61
3 600690.SH Haier 1.15 1.13 1.15 1.13 1.07
4 002050.SZ Sanhua 0.82 0.92 0.82 0.79 0.76
5 002032.SZ Super 1.57 1.67 1.80 1.77 1.54
6 002508.SZ BOSS 1.01 0.98 0.85 0.77 0.70
7 002705.SZ Xinbao 1.39 1.36 1.23 1.19 1.28
8 002242.SZ Jiuyang 1.27 1.32 1.36 1.32 1.35
9 300894.SZ Martian 1.36 1.49 1.28 1.32 0.97
10 000921.SZ Hisense 1.60 1.65 1.66 1.34 1.28
Average 1.19 1.24 1.20 1.14 1.04
Median 1.21 1.24 1.19 1.16 1.02
Data source: Wind Financial Terminal
According to the above table, the return on total
assets of Midea Group has shown a downward trend
in the past five years, and is significantly lower than
comparable companies in the same industry,
indicating that Midea Group is subject to a larger
company size and its total asset turnover rate is at a
disadvantage.
4 CONCLUSIONS
Through financial performance analysis, the author
believes that Midea Group’s horizontal mergers and
acquisitions effectiveness is not obvious at the level
of financial performance. First of all, according to the
exchange rate at the time of the acquisition, the three
M&A transactions were valued at RMB 3.3 billion,
RMB 29.2 billion, and RMB 14.4 billion,
respectively, for a total of 46.9 billion yuan. The
consideration paid was relatively high, which resulted
in the overall debt ratio of Midea Group being
relatively low. high. In addition, due to the rapid
expansion of assets and business, Midea Group has
no significant advantage in profitability compared
with companies in the same industry. This is more
obvious at the level of gross profit margin. Only the
return on net assets is significantly higher than that of
the same industry. Comparable companies in the
industry, because Midea Group has a higher leverage
ratio. Furthermore, the author finds that Midea
Group's overall operating capabilities and growth
capabilities have no significant advantages compared
to comparable companies in the same industry.
Therefore, the strategic intention to improve its own
operational efficiency and growth space through
horizontal industrial mergers and acquisitions has not
achieved significant financial performance.
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