Research On Financial Risk Control Of TCL Group’s Transformation And Upgrading

At the present stage,China is facing an important opportunity for the transformation and adjustment of manufacturing industry,which provides a favorable external environment for the development of the industry.Intelligent manufacturing is becoming a new economic development point.Cloud computing,Internet of Things,artificial intelligence,etc.are all developing at a rapid pace and have become important technologies for many enterprises to compete for development."Made in China 2025" is advancing steadily,providing strong policy support for the development of China’s manufacturing industry.TCL,a household name in China,has achieved great results in the mobile phone,household appliances and multimedia industries.However,TCL’s various development modes in recent years have brought benefits as well as potential risks.After transformation and upgrading,the restructuring business has been divested,and now Huaxing Optronics has become the most important source of profits for TCL Group.The transformation of TCL group is typical.TCL has taken transformation as an important development strategic direction of the enterprise in the early stage.Before the transformation,its main business scope includes traditional terminal manufacturing such as communication,home appliances,multimedia electronics,etc.Since investing in csot in 2009,TCL Group has been exploring transformation,In order to study the financial risks of TCL Group in the process of transformation and upgrading,this paper analyzes the financial risks of TCL Group in the process of transformation and upgrading and studies the specific countermeasures through case analysis.Combined with the background of the industry and the basic situation of TCL group,through the analysis of macro environment,external industry environment and SWOT internal and external environment,this paper summarizes that the transformation of TCL group is caused by multiple factors.It defines the most important transformation paths of TCL group over the years,namely,investment in semiconductor display industry and divestiture of traditional terminal business,Then it analyzes the income structure change of TCL transformation and upgrading,and makes clear that TCL’s transformation direction is semiconductor panel industry.It analyzes the financial situation of TCL Group in the past five years and identifies the financial risks,which are financing risk,investment risk and operation risk.Due to the characteristics of large investment and slow return in LCD panel industry,the financial risk caused by internal and external factors and the competition of semiconductor business will not be smaller than that of traditional household appliances and terminal business,and the transformation of TCL group is not smooth.Make a horizontal comparison between TCL and Midea Group,which was the same household appliance industry before the transformation,and BOE technology,which is the same display panel after the transformation.Through the multi-dimensional financial risk index comparison of F-score model,TCL’s financial situation is not better than that of its peers.Finally,the corresponding measures are put forward for the financial risk.It is hoped that TCL group can effectively control the financial risk and develop healthily in the long run.