Research On Optimization Of Capital Chain Risk Control In YH Real Estate Enterprise

The real estate is a capital-intensive,high risk industry.Its risk management becomes more complicated with such characteristics as large investment,long construction period,long investment recovery period,etc.What are the key risks in the capital operation in real estate industry? How to identify these risks? What strategies would be used to respond to these risks? This thesis studies on YH group,one of the top 10 real estate enterprises in mainland China.YH group has always been facing capital chain tension since the revelations of "acquisition","trust fund","bankruptcy" event in 2011.By studying and comparing with several bench marking enterprises in the industry,it is found that there still exist some problems in the capital chain risk controlling field,in YH group,such as the imperfection of the internal control environment,risk capital chain control lag,most of the money precipitation,increased risk control difficulties etc.This thesis analyzes these problems and puts forward to some suggestions for improvement.This thesis mainly uses case study method.It elaborates the process according to the introduction to the theory--background analysis--problems discussion--putting forward the proposal,and the thesis analyses the case company present situation of capital chain risk by the charts,data and comparative analysis,and finds out the causes of the problem,puts forward the optimization suggestions.The study found that compared with comparable companies in the same industry,YH has higher company asset-liability ratio,lower cash ratio,lower profit and return on investment,higher operating leverage,and lower inventory and working capital turnover.On the aspect of capital chain risk control,it also has the problems including unsound internal supervision system,insufficient capital chain management,inefficient early capital chain risk warning system,lacking of long-term planning of capital management,,unreasonable financing channels and the capital structure.On the point of the problems of capital chain risk control,the thesis puts forward the following suggestions: first,improving the system of internal supervision;second,strengthening the risk consciousness of enterprise management;third,establishing and efficient early warning system of the risk of capital chain;fourth,arranging the capital plan reasonably;last,broadening the financing channel and optimizing the capital structure.The contributions of this thesis include that it calculates the Z value of case company using Altman’s Z-score model,and finds that the total real estate enterprises face higher financial risk and risk control has not played its role.