*ST Qiulin's Financial Dilemma Causes And Countermeasures

Since China joined the WTO,the economy has developed rapidly.The retail industry is the industry that is closest to people's life and plays a vital role in people's life.Large supermarkets,convenience stores,specialty stores and other new retail industries have greatly satisfied the needs of consumers and become the main driving force for the development of China's retail industry.In recent years,the booming of Internet technology,applied to all walks of life,the retail industry is also affected by the Internet,the rapid development of the online mall,wechat business also prompted the traditional retail industry into the fast lane,the traditional retail face a severe test of transformation,which want to maintain steady and fast development of the retail industry,* ST qiulin must constantly change the way of operation,efforts to adapt to the new environment,to meet new challenges.* ST qiu Lin as the leader of the retail industry in heilongjiang province,has a history of hundreds of years,in the entire retail in China occupies an important position,but in recent years,the national macroeconomic fluctuations,at the same time by the impact of the online mall,make traditional retail industry is struggling,and * ST qiu Lin in diversified fields development,in the process of development,because of growing too fast,failed to seek improvement in stability,especially related to gold jewelry business,the company's operating condition is getting worse,the company's annual net profit is negative,the company cash flow is not enough,shortage of funds,and even fell into financial difficulties,In April 2019,qiulin group was listed as "ST" by the stock exchange.Therefore,this paper chose qiulin group as the research object to study the financial difficulties faced by listed companies and propose solutions to the financial difficulties.In this paper,*ST qiulin company is selected as the research object.Through the research of related literature of financial distress at home and abroad,the author summarizes the definition criteria,characteristics,causes,countermeasures and theories related to financial distress.Based on these documents and the data in the company's financial statements every year,this paper analyzes the profitability,operation capacity,debt paying ability,development ability and cash flow of the company from five aspects to obtain the specific performance of qiulin company's financial difficulties and its economic consequences.By studying the specific performance of *ST qiulin's financial difficulties,this paper analyzes the causes of *ST qiulin's financial difficulties.External reasons include changes in macroeconomic policies,intensified industry competition and lack of hot spots in the market,while internal reasons include unreasonable product structure,imperfect accounts receivable management system,imperfect capital structure,defective governance structure,failure of internal control and lack of financial early warning mechanism.For these reasons,from the external reasons,we should pay close attention to national macro policy,pay attention to the industry dynamics,from the internal reason,we from the adjustment of product structure,optimize the assets structure,improve the corporate governance structure,establish a sound system of internal control and financial early warning system to help companies deal with the financial distress,to increase their own defense ability of financial distress,to better promote and perfect the enterprise financial management system,make enterprise out of trouble as soon as possible,but also provides reference for other business operators,make its rapid aware of their own production and business operation problem,look for financial concerns,Take effective measures to improve their own crisis management to prevent the occurrence of financial distress.The innovation of this article is that the selected company is * ST Qiulin,which belongs to the retail industry and is closely related to people's lives,rather than a cyclical company in the industry.Analyze the financial indicators of the company in five aspects of traffic,and find out the reasons for * ST Qiulin's financial distress in combination with the current situation,and provide solutions to inspire other companies in the retail industry,improve defense capabilities,and avoid financial distress.