| PPP(Public-Private Partnership),also known as the PPP model,refers to the government departments representing public interests and the private sector pursuing economic interests to carry out public project construction cooperation.At this stage,China is in a period of transition from high growth to high-quality development,and some past project models have been gradually eliminated and replaced.The new model of PPP emerged in China in 2014 and gradually raised doubts in 2017.The key reason for the change is the in-depth impact of the financing model of PPP on the company’s finances.It has brought about rapid expansion of the industry and also brought pressure on capital.With the tightening of the financing environment,the business cash flow cycle of general PPP projects has lagged.At this time,some companies may face the dilemma of breaking the capital chain.The deep-seated causes and development process behind this change process are still worthy of reflection.Bishuiyuan,as a leader of private enterprises in the water management industry,has obvious typicality and representativeness in its development process.Therefore,this article will take the company as an example to carry out risk identification and risk evaluation,restore its entire development process,pay attention to its core risk points and analyze it,and put forward corresponding suggestions to Bishuiyuan on the basis of analysis.The innovation of this article is to look at the financial impact of the PPP model on the overall company from the perspective of the social capital,and to quantify and evaluate financial risks using a combination of entropy weight method and efficiency coefficient method.This article hopes to provide help to the whole water industry,and to give some new ideas to the risk assessment and risk response of enterprise decision makers,so as to avoid and control risks.This article takes private enterprise Bishuiyuan Company as a case to conduct relevant research on its financial risks.The full text through the development process and literature of both the water industry and the PPP model,based on the full life cycle theory to identify the financial risk of each project life cycle stage,and based on the financial risk management theory to construct the entropy value method and the efficiency coefficient The financial risk evaluation system combining the methods.Taking Bishuiyuan as a case company on a theoretical basis,after comparing with Beijing Capital Company and Beijing Water Group,it identified four risks: financing risk,operating risk,capital recovery risk and investment risk,and finally concluded that Bishuiyuan’s financing risk,Capital recovery risk and investment risks are relatively significant.Different measures should be taken according to different risks.In view of financing risks,Bishuiyuan should do a good job of controlling the source and reducing expenditure.Controlling the source refers to adopting a financing method that matches the characteristics of the PPP project with a longer repayment period.In view of the risk of capital recovery,strengthening the screening of PPP orders refers to paying attention to the orders of more economically developed regions where the pressure of water management is placed to ensure the recovery of funds.In response to investment risks,the company’s investment strategy is adjusted,that is,to return to the asset-light strategy model and focus on the main business investment strategy.The financial risk evaluation system adopted in this article has objective and scientific value,which largely overcomes the subjectivity of people.At the same time,the system determines the weight of each indicator and quantifies the risk.Therefore,it allows companies to adopt different financial strategies based on different levels of risk. |
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