The Research On Financial Crisis After Tianwei Baobian Strategic Transformation

With China’s economic development and social progress, the energy industry was facing increasingly serious contradiction between supply and demand. On the other hand, China’s air pollution became more and more severe, so the voice for energy conservation and emission reduction as well as energy structural transformation was enhanced continuously. Therefore, China began to energetically develop the renewable energy industry. On the basis of this, many enterprises wanted to share a piece of the huge cake-renewable energy, and some enterprises which had nothing to do with renewable energy originally started to get involved in renewable energy, but only some of them succeeded and more of them failed during the practical process of strategic transformation. In this context, the paper combines the current domestic and foreign research theories with the renewable energy strategic transformation process of Baoding Tianwei Baobian Electric Co., Ltd., and makes an analysis of and research on the outbreak of the financial crisis of Tianwei Baobian after the strategic transformation. Tianwei Baobian has declared failure of its renewable energy strategic transformation since most of its subordinate renewable energy subsidiaries are at a loss and a small number of such subsidiaries are shut down and even go bankrupt, as a result of which, the listed parent company is affected very much so that it is facing severe losses even delisting.The paper intends to play a role of opening a subject for discussion through the research on the financial crisis case of Tianwei Baobian to make enterprises in different industries be able to deal with the financial crisis specifically in the face of it in order to help them get out of the financial crisis and back on the right path of the development.The paper firstly selects Tianwei Baobian as a research object to sort the relevant theories of renewable energy, strategic transformation and financial crisis, on the basis of this, summarize and analyze the strategic transformation process and motivation of Tianwei Baobian, then use qualitative research method to elaborate some signs of financial crisis after Tianwei Baobian strategic transformation. Secondly, it takes the annual report of Tianwei Baobian as a major basis to perform a financial analysis and make a comparison through the combination of specific indicators of the domestic industry, then makes use of Z-Score multivariate model to conduct an inspection of the relevant indicators of financial crisis. Thirdly, the reasons why the failure of the strategic transformation of Tianwei Baobian triggers a financial crisis are obtained through the above analysis, and the corresponding specific countermeasures are put forward aiming at the above reasons. In addition, the inspirations for business operation are obtained through the case such as avoiding blind expansion, establishing a financial crisis early-warning system, reducing government intervention, etc. In the context of China’s current industrial structural transformation, the renewable energy is still a new thing, and the outbreak of the financial crisis of renewable energy enterprises also emerges and is largely centralized in recent years, so the current researches are incomplete.By this research, to help managers understand the renewable energy on the rational knowledge, reduce the possibility of financial crisis because involve the renewable energy blindly, thus bring long-term effective economic interests to the firm.