Research Of Financial Risk Security Of Sangle Solar Energy Co., Ltd

After the accession of China into WTO, the marketization degree of Chinese economy is further raised. The enterprises are facing increasing instability and risks, especially financial risks, and financial security is crucial for their survival and development.Solar energy water heater is one of the rising industries in our country. The global energy crisis of the conventional energies such as oil and coal brings golden opportunity for the popularity of solar energy water heater. At the same time the global energy crisis drew attention of many international corporations and capital crocodile upon the market of solar energy, hoping share a big cake of this new developing market. So the domestic solar energy enterprises must face the challenges from not only national competition but also strong multinationals and capitals. The intensive competition takes great financial risks to the solar energy enterprises.Sangle solar energy company is a young solar energy water heater enterprise belongs to energy research institute of ShanDong academy of science. For its deriving from scientific unit, the company's corporate governance is not very scientific and its organization structure not satisfactory. Members of its administration basically graduated from science and engineering specialty and lacked of management experiences. Compared its imperfect management, the company's development was rapid with 90 percent annual increasing sales volume. The contradiction between objective problems and rapid development brought inconvenient financial risks. The financial risks would become the shackle of the company's jumping development without proper financial security strategy. Most of the researches about financial security were derived from the areas of large corporations and listed companies, but not much about the rapid developing enterprises. Researches about the new industry of solar energy water heater were more rarely reported. This paper uses the experience of international financial security for reference, combined with Chinese national conditions and specific reality of Sangle's development, to find the sources of financial risks through intensive analysis about existed and possible financial risks during Sangle's jumping development. Then the paper explores the causes of financial risks from two aspects both from inside and outside of the company. In the end, the paper provides a practical financial security strategy for Sangle's jumping development based on specific security measures about corporate governance, organization structure, inventory management and investment.