| As a major part of China’s foreign trade,mechanical and electrical products have been very active in the world trade.In the past 30 years,with the twists and turns of the world economic and trade situation,the proportion of China’s total merchandise exports jumped from 31.91% to 58.40% from 1996 to 2017.In 2017,the trade volume of mechanical and electrical products was about 2.2 trillion us dollars.At the moment of accelerating technological progress,the operating environment of China’s electromechanical product manufacturing industry has undergone profound changes.The past simple OEM model no longer constitutes the main competitiveness of China’s manufacturing industry due to the increasing human cost.To maintain the competitive advantage of enterprises for a long time,it is necessary to have independent research and development ability and master the core technology.Due to this trend,the strategic planning of an enterprise should be made clear before the financial analysis,and the possible influencing factors should be identified in advance,so that a reasonable analysis of the enterprise’s financial situation can be made accordingly,so that the financial data is no longer just a numerical value,but has a deeper significance.Through the analysis,the enterprise can correctly recognize whether there is a problem in its own operating situation,and understand how to improve.Harvard analysis framework,which is now widely used,founded by three professors from Harvard University and the university of Michigan,is applicable to the financial analysis of enterprises under the current development situation.The analysis is divided into four dimensions,and the in-depth analysis of enterprises is conducted from the perspectives of strategy,accounting,finance and prospect,so as to more accurately identify the factors affecting the performance of enterprises and foresee the risk drivers that enterprises may face,and provide assistance for the long-term development of enterprises.As a manufacturer of mechanical and electrical products,JINLONG is famous for its reputation as an apple supplier.Since its listing,it has been regarded as a dark horse and its stock price has soared all the way.CCB yueqing sub-branch even applied to the court for the bankruptcy liquidation of the controlling shareholder JINLONG group.Although JINLONG group got rid of the bankruptcy crisis temporarily after the mediation of all parties,situation was suspended,but the capital market has lost confidence in JINLONG,the company’s business was also affected,the number of orders compared with the previous year has significantly decreased.The debt crisis has a huge impact on JINLONG.This paper analysis JINLONG through the Harvard analysis framework,in order to explore the reasons for the dramatic change in its performance.After the analysis,it comes to the conclusion that the fundamental problem of JINLONG getting deep into the debt crisis is that it ignores the expansion of cash flow supporting capacity,and shortsighted investment of a large amount of production capacity and capital into the LCD module,which has a low technical content and is greatly affected by the technological progress of downstream products.This paper through the analysis pointed out that JINLONG should reduce foreign investment scale and reasonable use of existing funds,low-yielding assets liquidation proceeds,expand the scale of micro &special motor sales guarantee profits,improve operation ability and management level,efforts to get rid of the debt crisis. |
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