Research On The Causes And Countermeasures Of Financial Distress In Silver Pigeon Investment

Since 2010,due to the impact of macroeconomic downturn and consumption upgrading,traditional manufacturing industries such as the paper industry are facing tremendous pressure for transformation and upgrading.Some enterprises have experienced a deterioration in operating conditions and even fell into financial distress.In-depth exploration of the financial distress causes and countermeasures of such companies can provide advice for troubled traditional manufacturing companies,and can also provide reference for other companies facing transformational pressures.This paper mainly uses case analysis method,selects the typical enterprise of traditional manufacturing industry —— the silver pigeon investment as the research object,deeply analyzes the causes of its financial distress and evaluates the effect of its countermeasures.This paper uses PEST analysis to analyze the external causes,and analyzes the internal causes based on the three activities of operation,financing and investment.The external reasons for the financial difficulties of the silver pigeon investment are: strict environmental protection policies and rising pollution control costs;The economic growth slowed down,pulp prices rose;customer demand turned to high-end,causes product transformation pressure;technology innovation and progress,cost pressure increased.The internal reasons are: poor management of operating activities,inadequate brand channel construction;long-term financing of short-term loans,high debt;investment for speculative purposes,ignoring the main business.This paper uses the event research method and the performance evaluation method to evaluate the effect of the measures.The study found :the capital operation and main business revitalization measures adopted by the silver pigeon investment make it break away from the financial dilemma in 2015 and successfully avoid the risk of delisting.However,in the long run,problems such as high investment risks and weak main business operations have not been fundamentally resolved.The paper proposes the following: Traditional manufacturing enterprises should take the initiative to transform enterprises and improve their operational efficiency through the construction of technology research and development,brand and sales channels;listed companies should focus on the main business,supplemented by capital operation,and cannot be reversed.