| Huishan Dairy suffered a serious debt crisis in March 2017,and the stock price collapsed.The company used tens of billions of funds to save the market in order to maintain the stock price stability.The source of the rescue fund is the equity pledge to Ping An Securities Company.The logical chain of events is that the company's debt crisis happens,then the stock price collapses,and then the major shareholder broke the position,finally the company is further in crisis.At present,the company is in the delisting stage.Huishan Dairy submitted the draft reorganization plan on February 17,2019,and submitted it to the creditors for review.The aim is to restore the company to normal operation and regenerate sufficient cash flow to minimize the loss of creditors.On the basis of this,the company can carry out effective rectification.The thesis reorganizes the driving factors of the company's stock market crash caused by the debt crisis,and sorts out the causes of the company's troubles from the root cause,from the company's business strategy,financial decision-making and corporate governance.At the level of business strategy,the company has an over-investment tendency.The industry chain is too long but not profitable,which leads to a decline in the company's return on net assets.At the financial decision-making level,the company's financial strategy is too aggressive,which is reflected in the company's short-term debt ratio is too high,but The proportion of fixed assets in the asset side is relatively high,which leads to a serious mismatch between the asset end and the liability end of the company,and the company's solvency is extremely weak.At the corporate governance level,the chairman has too strong discourse power in the board of directors and the corresponding supervision of the board of directors.The mechanism has been weakened and the company's external auditors have suspected interest transmission.Based on the latest progress of Huishan debt restructuring,the thesis proposes corresponding solutions for Huishan to solve the debt crisis from the business strategy level,financial decision-making level and corporate governance level by targeting the two industry leaders of dairy industry.At the business strategy level,according to PEST analysis,the dairy market in rural areas has a large space.At present,the per capita consumption of dairy products in rural areas is only 40% of the consumption of dairy products by urban residents.The company should accelerate the sinking of channels and focus on the operation in the vast rural market.At the financial decision-making level,based on DuPont Analysis,Huishan should strengthen product cost control,reduce unnecessary administrative expenses,increase sales expenses and establish corporate brand advantage.The company also should strictly control interest-bearing liabilities in current liabilities,reduce financial costs,strengthen operational management,improve company inventory and other asset turnover efficiency.At the corporate governance level,Huishan should limit the number of shares held by major shareholders,thereby constraining the rights of major shareholders,and introducing strategic investor executives to enhance Debtor supervision ability.In conclusion,the thesis firstly identifies and studies problems in three aspects: business strategy,financial decision-making and corporate governance,and then provides corresponding countermeasures for these three aspects.The problem identification aims to avoid the debt crisis in the early stage.The solution is to enable the company to get back on track as soon as possible after the debt crisis,and to resume normal production and operation,thereby minimizing the loss of creditors and safeguarding the rights and interests of the company's shareholders.Specifically,the thesis,because Huishan Dairy is a large private enterprise in Liaoning Province,is of great significance to deal with this debt to solve bad debts of banks,guarantee the basic rights and interests of employees and maintain social stability. |
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