Research On The Causes And Solutions Of Financial Distress In *ST-Yihua

As an important agricultural production material,chemical fertilizer has greatly affected the development of agricultural production in China,and is closely related to the vital interests of farmers.However,in recent years,with the advancement of globalization,the external environment faced by enterprises has become more complex and changeable,which has led to increasingly fierce competition among enterprises.At the same time,the state continues to deepen the structural reform of the supply side,which makes the situation of the entire fertilizer industry more and more serious,and the contradiction between supply and demand in the industry is becoming more and more serious.In addition,the preferential policies of the fertilizer industry were gradually phased out,and the environmental protection policy forced most enterprises in the industry to stop production and limit production.As a result,the profitability of China’s fertilizer companies fell sharply,and there were more loss-making enterprises in the industry.Many enterprises were caught in Financial distress.Therefore,it is very necessary to study the financial distress faced by fertilizer companies.This paper takes*ST Yihua as the research object,and uses literature research method,case study method,proportional analysis method and trend analysis method to analyze it.Firstly,through the collation and summarization of classic literature at home and abroad,the concept definition and concrete performance of financial distress are put forward,and the basic theories related to it are introduced in detail.Secondly,the characteristics of the fertilizer industry and the problems it faces are briefly introduced.In this context,according to the financial statements of*ST Yihua from 2013 to 2017,the financial distress faced in terms of debt situation,solvency,profitability and operational capability is described in detail.Starting from the problem,combined with the national industry policy,the reasons for*ST Yihua’s financial distress are deeply explored,including:the impact of environmental protection policies on enterprises,weak security measures,inadequate cost control,poor asset management,and excessive guarantees.The financing structure is unreasonable and loses competitiveness.Finally,based on the reasons,a series of corresponding solutions are proposed.The research in this paper will help*ST Yihua to improve business performance and gradually get rid of financial difficulties.In addition,the study also has a certain reference significance for other fertilizer enterprises.