Research On Financial Risk Control Under The High-speed Expansion Of Sunac China

As China's real estate market continues to mature and market competition becomes increasingly fierce,companies will inevitably encounter various financial risks.The financial risks of enterprises are always present.The size of risks is closely related to daily business activities.Every aspect of business survival may hide risks,and financial risks may occur not only in relation to corporate finance,but also in production and operation of enterprises.In every link.Therefore,in order to avoid the occurrence of corporate financial risks,enhance the effectiveness of management,improve the efficiency of business management and financial risk prevention,we must first identify the financial risks of enterprises and evaluate the possibility of occurrence,so as to avoid them more effectively.The occurrence of risk or the loss is minimized if the risk is unavoidable.Therefore,research on the identification and management of financial risks based on industry characteristics has become an important issue.Real estate has always been a pillar industry in China.The real estate industry is closely related to various industries,such as construction,steel,doors and windows,timber,decoration,property,commercial trade,education and other industries.Real estate enterprises have large financial risks,which have a great impact on the production and operation of various industries.As one of the representatives of real estate enterprises,Sunac China has developed rapidly,and successively acquired mergers and acquisitions,greatly increasing its land reserves and market possession,especially The acquisition of Wanda's travel platform of 63.17 billion yuan has expanded the business scope of Sunac China.Two of the three major international rating agencies have downgraded the credit rating of Sunac,and Fitch downgraded China's rating to BB-And put it on the negative watch list.In addition,it has continuously spent a lot of money to save LeTV,and it has invested in Jinke.The rapid expansion of high leverage has led to an excessive asset-liability ratio,which is likely to lead to the outbreak of corporate financial risks.Although many listed companies regard corporate growth as the primary issue,they ignore the sustainability of growth,which leads to overestimation of their ability to sustain financial growth.In the case of rapid growth,there is a lack of support for internal resources and a financial crisis.Therefore,the company's rapid growth is not always lucky.This paper uses a combination of theory and case analysis.The first part first introduces the background of the topic selection and the financial risk research results at home and abroad;then,the second part expounds the relevant theoretical basis,types and characteristics of financial risk.The third part briefly introduces the internal situation and external environment of Sunac China,and briefly reviews Sunac China.In the fourth part,for the financial status of Sunac China,the risk is identified by the free cash flow model,the F model is used to evaluate the risk,and the effect of the rapid expansion of China's financial expansion on the financial risk of the company is evaluated by comparing the sustainable growth rate with the actual growth rate.Finally,summarize the current financial risks of Sunac China.The fifth part proposes corresponding solutions to the problems found in the risk identification evaluation of Sunac China.