Study On Solution Of Baoshuo Stock Financial Crisis

Financial crisis refers to the dangerous or emergent state the enterprise's financial activity faces of being out of control or facing serious setback, including the state from being unable to pay the due debt to bankruptcy and all circumstances during this process. The financial crisis is generally considered as the serious weakening of the enterprise's profitability as well as its ability of paying debts, and even the company's continuous management becoming impossible or facing bankruptcy.Hebei Baoshuo Co., Ltd. (hereinafter referred to as "Baoshuo Stock" or "Stock Company") is a listed public company in Shanghai Stock Exchange, of which stock code is 600155. The total assets of Baoshuo Stock once reached 2.8 billion yuan with over 5,000 employees in its peak period, and was the largest domestic integrated plastics processing base north of the Yangtze River. The company is mostly engaged in plastics processing and basic chemical products manufacturing, among which the annual processing capacity of plastic soft packaging materials, chemical building materials and agricultural plastics was over 200,000 tons, and that of basic chemical products reached 200,000 tons. Baoshuo Stock once has obtained spectacular achievements in the fierce competition by making fully use of its own advantages. However, in recent years, as company developed gradually, Baoshuo Stock has gradually fallen into financial crisis. The funding has become the biggest problem in its development, and even threatened its survival.According to relevant theories about financial crisis and combining with the present actual situation, this thesis discusses about the solutions to Baoshuo Stock's financial crisis, which aims at finding as soon as possible an effective way to solve its financial crisis.Firstly, some theories are discussed, such as the concept of the financial crisis, types, the concept of its life cycle, characteristics in each cycle and the early warning and the strategy to deal with it, and some other related theories; Then, the characteristics of financial crisis of Baoshuo Stock, such as the manufacturing operation, business management and financial management, etc. are analyzed; and then the reasons of Baoshuo Stock's financial crisis are analyzed from the aspects like major shareholders'occupying funds, operating under debt, imperfect management structure and poor management, etc.; Subsequently, the effective way to solve the financial crisis is discussed, and a detailed analysis of the bankruptcy mode, that is to say, whether to prepare fully the financial data before its bankruptcy or after it, is given, and a conclusion that The First bankruptcy model is more workable and can help solve the financial crisis of Baoshuo Stock is drawn; Finally, the thesis explains that to prevent similar financial crisis happening again, Baoshuo Stock should take measures after resolving this crisis in terms of strategic, institutional and technical precautions.