Electricity Supplier Corporate Finance Risk Analysis

With the development of the Internet technology, China’s Internet business enterprise is becoming another emerging market opportunity. From the 11 November online sales to the street billboard advertising, Chinese online business is becoming increasingly competitive. The competition in Chinese Internet business has developed from simple competition to a full-scale competition and such a trend has strengthened and enhanced the core business brand and also expanded businesses’ product lines. Due to the adoption of internet technologies in business, price competition, corporate financing and marketing have all become intense and diversified.Meanwhile, due to the globalization of the economy, China’s domestic enterprises not only need to face fierce competition locally, but also face the challenge of foreign companies, embrace the increased use of technology in enterprise development and be ready to take business decisions in a risky business environment. Furthermore, in the development of electronic business enterprises, the assets and capital structure are obtained at a higher risk to the enterprise as there are some problems in obtaining financing and how such financing is controlled to minimize risk.Firstly, the situations at home and abroad to understand the financing risks are reviewed in detail in order to fully understand the basis of relevant theories and developments.The second section describes the basic theoretical concepts of financing risk, content, classification, characteristics, as well as the positive and negative effects of debt financing, to reinforce the theoretical basis of the paper.The third part offers a detailed analysis of the causes of a business enterprise’s financial risk, financing risk measurement and how well a business can guard against and control the financial risk.The fourth part is a case study of JD’s methods for analysis. First article is on JD’s wage data which is summarily discussed as an overview, followed by calculating the enterprise’s financial leverage, debt financing as well as financial effect coefficient. Financing risk indicators reflected are aggregate, analyzed and compared with the same industry-related business data to discover their risk points.Finally, out of the analysis above, combined with JD’s specific situation in controlling and preventing financial risk, a reasonable proposal is made for the company.The fifth section summarizes the full text, puts forward proposals and points out the limitations of the study.This study, which is on the prevention and control of financing risks in electronic business enterprises, has a guiding role, and its theoretical basis has specific references.