Case Study Of Capital Chain Rupture In Huishan Dairy Industry

With the improvement of national living standards,dairy products are playing a more and more important role in our food demand.This change has promoted the coordinated development of industries in our country.However,with the improvement of dairy products’ status and the rapid development of dairy industry,there are also some problems,such as "Guangming Poison Milk Powder Incident" and "Sanlu Melamine Milk Powder Incident",which have aroused great concern and dissatisfaction of the people.In order to cope with these situations,some enterprises in our country are trying to use the strategy of "full industrial chain" to improve their competitiveness and promote their sustainable development.As a private enterprise,dairy enterprises should adhere to the concept of green development,pay attention to social benefits,undertake social responsibilities,and produce green,environment-friendly and pollution-free dairy products if they want to win in the same industry,meet people’s demand for diversified and high-quality dairy products,and achieve self-sufficiency and self-superiority.As a private enterprise,Huishan dairy industry plays a very important role in the development of local economy.Its survival and development are related to the economic development of Shenyang and northeast China.Along with the development of market economy,the growth of enterprises can not be separated from the injection of funds.In addition to the investment of shareholders,the injection of funds also needs to face social financing.There are many ways of financing,different financing methods will make enterprises face different financial risks,financial risks throughout the development of enterprises.However,due to the improper operation of enterprises or the inappropriate financing methods,it is easy for enterprises to fall into financial risk.In serious cases,enterprises need to overcome difficulties through debt restructuring.It is also very crucial for enterprises to choose what kind of debt restructuring mode.It is an important choice for enterprises whether they can survive or not,and whether they can avoid bankruptcy.The first chapter of this paper introduces the research background of the case,from the national requirements and policy support for the dairy industry,analyses some reasons why Huishan dairy industry adopts the "whole industry chain" strategy,then introduces the research significance of the case,analyses its importance to enterprises from the perspective of cash,and indicates that this article has other similar whole industry chain strategies for Huishan enterprises.Enterprises have certain guiding significance.Finally,the overall idea of the article is summarized,and the research methods of the paper are summarized.Chapter 2 of this paper first introduces the development process of China’s dairy industry from the founding of the People’s Republic to the present,and makes a brief analysis of it.Secondly,it introduces the development of Huishan dairy industry,from the establishment of brand to the development and implementation of its "whole industry chain" strategy,and then gradually moves towards the industry giants of dairy enterprises in Northeast China and key private enterprises in Liaoning Province.Next,it briefly introduces the reasons for the breakage of the capital chain in Huishan Dairy Industry.Finally,it introduces several self-rescue methods and results of Huishan Dairy Industry after the breakage of the capital chain.The third chapter of this paper is a case study.Firstly,it introduces the financing methods that enterprises can choose,including endogenous financing and external financing,and analyses the different financial risks that different financing methods may bring to enterprises.The financing modes of Huishan Dairy Industry areanalyzed,including equity financing,long-term and short-term loans of banks and other financing modes.Next,the Z-score model is used to analyze the financial risk degree of Huishan Dairy Industry.The financial indicators of Huishan Dairy Industry are calculated to analyze its solvency,profitability and operation ability.Finally,the paper gives a brief introduction and analysis of the fluctuation of Huishan Dairy Stock and the reasons for the fluctuation.In the last chapter of this paper,some suggestions are put forward to solve the current situation of the breakdown of the capital chain in Huishan Dairy Industry.Firstly,the feasibility of debt restructuring is analyzed,and different methods of debt restructuring are introduced for enterprises in different situations.Then according to the previous analysis,the paper puts forward the suitable debt restructuring plan and reasons for Huishan Dairy Industry.Finally,the paper briefly introduces the implementation process of Huishan Dairy Debt Restructuring Scheme,and finally evaluates the scheme.