Research On The Causes Of Financial Distress And The Way Out Of Difficulties In "ST"ZT Company

Financial distress refers to the continued loss of an enterprise or its inability to repay its debt at maturity.Listed companies are ST means that there is a financial crisis,in the prescribed period can not resolve the crisis will face delisting situation.Especially for the small and medium-sized enterprises listed on the new third board,the risk warning will be implemented if the net assets are negative at the end of the last fiscal year.Therefore,after the company is in financial distress,it needs to make a plan to get rid of the financial distress,otherwise it will be delisted and even face the risk of bankruptcy.ZT company listed on the new third board on January 14,2016.after the company had expected to go public,With the help of the binding force of the platform to strengthen the level of corporate governance,standardize the operation process,at the same time to meet the financing needs of enterprises,expand the scale of operation.However,on May 2,2017,the company was warned of risk and renamed "ST"ZT company.Similar to "ST"ZT company,more and more small and medium-sized enterprises are in financial distress because of the complex economic environment and fierce competition,coupled with the relative lack of their own strength and weak anti-risk ability.Through the in-depth analysis and exploration of "ST"ZT,this paper finds that the main internal reasons for its financial distress are the lack of core competitiveness,the weak ability of cost control,the mismatch between the strategic plan and the company,and the change of external industrial policy.The influence of external factors,such as fierce industry competition and financing difficulties,causes enterprises to fall into financial difficulties,and the listing behavior of the new third board does not have a positive impact on enterprises.According to the causes of "ST"ZT company financial distress,this paper puts forward that the main ways to get out of the predicament are to formulate strategies in line with the development of enterprises,to improve the level of enterprise decision-making,to gradually cultivate the development ability of enterprises,and to improve the ability of financial management.Maintain the rationality of financing and improve the ability to deal with external risks.Through the study of the causes of the financial distress of "ST" ZT company and the way out of it,this paper provides a reference for other small and medium-sized enterprises in financial distress to get rid of the financial distress.