| With the development of the market economy in China,the capital market is becoming more and more perfect.In this process,the contribution of enterprises to the social economy has become increasingly prominent.However,since China’s economic development entered the new normal in 2012,the economic growth rate has gradually slowed down.The industrial structure is continuously upgraded and adjusted,and with the advancement of globalization,the risks assumed by enterprises continue to increase,and the probability of falling into financial difficulties increases.The occurrence of financial distress not only seriously affects the daily production and operation activities of the enterprise,adversely affects many corporate stakeholders,but also affects the stability of the industry and the stability of the capital market.Therefore,it is of great significance to study the problem of financial distress.Guangdong Dynavolt Renewable Energy Technology Co.,Ltd.is a famous exporter of motorcycle starter batteries.Since its listing in 2012,the company has begun to implement a diversified development strategy.It has clarified that based on high-end battery manufacturing,it promotes the coordinated development of new energy vehicles and clean power industry chains.Under this development model,the company’s operating income has risen steadily,and the company’s operating income in 2017 has reached more than 3.9 billion yuan.However,in the process of diversified development,due to the influence of national policies and its own factors,although the company’s operating income has increased year by year,the company’s funds have become increasingly tight,resulting in huge debts that cannot be repaid due to maturity and fall into financial difficulties,In addition,It’s negative net profit for twoconsecutive years in 2017 and 2018 is subject to special warnings and faces the risk of delisting.This article takes Guangdong Dynavolt Renewable Energy Technology Co.,Ltd.i as the research object,analyzes the internal and external reasons for its financial distress,and proposes specific measures to alert companies that also face financial problems so that they can effectively analyze their financial risks.Find problems in time and take effective measures to reduce losses due to financial difficulties.This article is divided into four chapters.The first chapter is the introduction.This part clarifies the definition of financial distress concept,performance and suggestions for improvement by combing the literature of scholars at home and abroad,thereby improving the understanding and understanding of financial distress theory.The second chapter is the case introduction.This part introduces the company’s general situation,operating status and operating structure,including the company’s equity structure and product structure.Secondly,through the company’s financial data from 2016 to the first half of 2019,analyze the company’s financial solvency,profitability and operating ability when it is in financial distress,and finally analyze the company’s financial difficulties when it is in financial distress.Non-financial performance,including delisting risk warnings on the company’s stock,sharp declines in stock prices,and Z-values in bankruptcy.The third chapter is the analysis of the causes of the company’s financial distress.This chapter analyzes internally and externally.The internal reasons include the decline in main business performance,a large number of assets impairment,blind external expansion,and relative concentration of equity and funds.There are four major deficiencies in the management system.External reasons include three aspects: the complexity and variability of the macro economy,changes in the direction of industrial policies,and increased competition within the industry.The fourth chapter is to improve the suggestions and inspirations.According to the internal causes of the third part,this part puts forward four suggestions of focusing on the development of the main business,improving the asset management system,planning the development of the enterprise and optimizing the management system of the company’s funds according to its own situation.The internal causes of the three parts,this article puts forward thefollowing enlightenments: establish a financial crisis early warning mechanism,pay close attention to industry dynamics and market dynamics,and enhance core competitiveness.Companies hoping to be in financial distress should,based on their own characteristics,explore ways to help themselves. |
