Research On The Causes Of The Financial Difficulties And Solutions Of ST YINYI CO.LTD

With the development of China's capital market,enterprises are faced with increasing uncertainties and financial risks in the process of operation,and more and more listed companies are caught in financial difficulties.The problem of financial distress has become the focus of attention in theory and practice.Listed companies in financial difficulties will affect the operating efficiency of the company,or face the risk of delisting.It will not only hinder the development of the enterprise itself,but also bring adverse consequences and losses to all parties.Therefore,it is necessary to study the problem of financial distress.Through the analysis of the causes of the financial distress of listed companies and the study of the solutions,can help enterprises out of the financial distress,conducive to the stable development of the capital market.This paper adopts the form of case study.The object of study is ST YINYI,a medium-sized real estate enterprise listed in ShenZhen Stock Exchange.As the basic industry of national economic development,the real estate industry has played an important role in promoting urbanization and economic development.The real estate industry belongs to the capital-intensive industry,which generally has problems such as high leverage and long payback period.The overheated property market also attracted many speculators,creating a large number of real estate bubbles.Affected by the macro market environment and the national regulatory policies,the long-term problems in the real estate market have been centralized outbreak,business performance has declined,profits have plummeted,the financial risks of real estate companies continue to rise,and even many small and medium-sized real estate enterprises have fallen into financial difficulties,facing severe challenges.Therefore,the real estate industry in the supply side structural reform has been widely concerned.Therefore,this paper selects ST YINYI and studies the causes of its financial distress,so as to find solutions.Hope to be able to give small and medium-sized real estate enterprises or other listed companies "out of trouble" to provide reference.The paper is divided into four parts.The first chapter is the introduction,which introduces the research background and significance,research contents and methods,theoretical basis and literature review.The second chapter is divided into two parts: General situation and financial distress performance of ST YINYI.It briefly introduces the general situation of ST YINYI from the perspective of operation and equity structure,and summarizes the specific performance of its financial distress,which mainly includes five aspects: heavy short-term debt burden,bond default,sharp decline in operating revenue,shortage of funds and sharp decline in stock price.The third chapter is the core of this paper.It analyzes the causes of the financial distress of ST YINYI.Firstly,based on its asset status,it finds that the unreasonable asset structure,poor asset quality and over-reliance on debt financing are the financial factors that lead ST YINYI into financial distress.Secondly,through the excavation of the internal environment of the enterprise,it is concluded that the implementation of non-related diversification strategy drags down the capital chain and the internal governance mechanism is not perfect are the internal causes of the financial predicament.Finally,the external environment of the enterprise is analyzed,and we know that the external environment of ST YINYI is poor,the industry competition is fierce,the market risk is increased,and influenced by sino-us trade friction,all have a negative impact on the operating efficiency of ST YINYI,which leads to the financial difficulties of the enterprise.The fourth chapter is to ST YINYI financial predicament countermeasures study,think that implement the strategy of debt restructuring and reorganization and the introduction of strategic investors is ST YINYI out of direct measures,combined with the origin,the third chapter,it is concludedthat optimize the assets structure and strengthen asset management,optimize financing structure,perfect the governance structure,timely response to the external environment change is specific countermeasures to resolve the financial difficulties.