Research On Debt Default Risk Of Jianruiwoneng

Due to the driving force of the rapid development of the new energy automobile industry,the power lithium battery industry has entered the period of rapid development since 2015.However,according to the market reaction and policy orientation in 2018,the power lithium battery industry has experienced overcapacity.Shanxi Jianruiwoneng Co.,Ltd.is a typical case in the period of industry transformation.In 2016,Jianruiwoneng became a power lithium battery industry giant through mergers and acquisitions.However,in April 2018,the company incurred huge debt defaults.At present,the company intends to self-rescue through debt restructuring and asset auction.This paper takes the case of Jianruiwoneng debt default as the research object,and uses Z-Score model to quantify the cumulative process of the firm's debt default risk,which lays a foundation for the analysis of the cause of debt default.Based on the macro-level analysis,it is found that the reason for the debt default of Jianruiwoneng is that it ignored the risks brought by industry policies and financing policies to business operations,and the market competition pattern leads to greater business pressure.Therefore,suggestions for paying attention to industry risks are proposed.Based on the micro-level analysis,it is believed that the irrational investment activities,debt structure and fund management of Jianruiwoneng is an important reason for debt default.It is further recommended that the company should strengthen the formulation and monitoring of the strategy in the daily business activities,while paying attention to the management of funds.Combining the case of Jianruiwoneng debt default and the characteristics of the power lithium battery industry,it is believed that the industry policy should be coordinated with financing policy and regional policies to reduce the debt default risk of the power lithium battery industry,and should promote the competitiveness of the industry by promoting technological innovation and strengthening industrial cooperation.