Kangmei Pharmaceutical Debt Financing Risk And Prevention Countermeasures

With the rapid development of China's economy,private enterprises are playing a more and more significant role.At the same time,the demand for capital is becoming increasingly strong.The financing methods of private enterprises are gradually becoming diversified,from the original single internal source financing to the current equity financing,debt financing and so on.Due to the restrictions of objective conditions,it is difficult for private enterprises to obtain equity financing,so their financing methods are mainly debt financing.In addition,corporate debt is growing too fast,and the pressure of debt repayment will often drag down its own development.In the context of deleveraging,Kangmei pharmaceutical has issued bonds in a large scale in recent years and maintained a relatively high bank borrowing scale.Subsequently,due to the downgrade of credit rating,the debt financing ability was affected and the debt repayment pressure increased rapidly,which seriously affected the development of Kangmei pharmaceutical.So the pharmaceutical industry as the research object,this article selects Kangmei using the method of literature research and case study of Kangmei pharmaceutical debt financing risk,based on the Kangmei pharmaceutical business and financial condition carries on the horizontal and vertical analysis,explore its debt financing risk and the causes,and based on this put forward to determine the moderate debt financing scale,the countermeasures to improve the structure of debt financing,etc.Kangmei pharmaceutical on April 30,2019 announcement asserting the existence of much plan the accounting errors of monetary fund 30 billion yuan,the securities regulatory commission on May 17,in 2019,then find out the Kangmei pharmaceutical inflated deposit,forge the income situation,Kangmei pharmaceutical industry in 2019 on May 21,take the initiative to apply for "ST",its capital market financing channel is closed,so the debts of the Kangmei pharmaceutical will lack enough capital support,the default will happen sooner or later.By studying the debt financing risk of Kangmei pharmaceutical,this paper puts forward the view that enterprises should take the initiative to manage the debt financing risk.On the one hand,this paper provides a reference for the risk management of private enterprises' debt financing;on the other hand,it enriches the case study on the debt financing risk of private enterprises in China.