| With the fast development and continuous improvement of Chinese capital market,more and more listed companies have gained greater opportunities under the impetus of capital.But coexisting with opportunities are more challenges.With the storm of the Internet and big data,and the advent of the era of Industry 4.0,which is dominated by artificial intelligence and clean energy,various industries are changing.The internal and external uncertainties faced by enterprises greatly increase.Many enterprises are out of control under the dual pressures of operating pressure and financial pressure,are in financial distress and even go bankrupt.Financial distress is a common problem in China’s listed companies,and it has become a hot issue in the theoretical and practical circles.The automobile distribution industry,greatly affected by external environmental factors,is one of the typical representatives.Since 2011,the ten-year golden period of Chinese auto distribution industry has ended,and the industry’s growth rate has slowed down.In 2018,the auto industry entered a cold winter,with the first negative growth in 28 years.Nearly 40% of auto dealers were in a loss state,fell into financial difficulties,and even went bankrupt.The fading of market dividends has exposed all kinds of hidden dangers bred by extensive development of the industry for a long time.This paper selects Pang Da Group for case study.As a leading company,Pang Da Group entered the automobile distribution industry very early and grew up with it.In recent years,the operating conditions of the company have been poor,and the net profit loss in 2018 exceeded 6 billion yuan.In September 2019,due to the inability to repay due debts,it was forced to apply for bankruptcy and reorganization,and the stock was "ST *".At the end of 2019,the reorganization was completed,and the stock name was changed to "ST Pang Da ".The various problems of Pang Da Group are highly representative in the industry,and how to recover as soon as possible after the reorganization and the future development trend of the company are very useful for peer companies.This article starts from four aspects: the concept of financial distress,the specific performance of financial distress,the causes of financial distress,and countermeasures for financial distress.It starts with the dilemma of debt burden,debt service ability,and profitability of large groups,focusing on development trends and industry comparison.In terms of the analysis of the major financial data and financial indicators of the huge group in the past five years,and combined with other relevant information,it explores the factors that affect the financial distress of the company,including the excessively aggressive expansion model,the decline in main business performance,and inadequate management of working capital.,The financing method is too dependent on short-term borrowing,the management concept change lags behind,and the external environment is bad.Combining the related theories of financial distress,this article proposes corresponding countermeasures to overcome the difficulties.They are to establish a reasonable and stable development strategy,adjust business structure,strengthen working capital management,optimize capital structure,improve corporate management,and pay close attention to changes in the external environment.The focus of this study is to select relevant data and indicators to conduct a comprehensive and multi-level analysis of the financial status of huge groups in recent years,from "financial" to "business",from effect to cause to find out the problems existing in the enterprise.Finally,combined with the theoretical knowledge and relevant information on industry development,a feasible solution is proposed.It is hoped that the research in this article can provide some reference for companies in financial difficulties,especially automobile dealerships,and small and medium investors. |
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