| China is a large agricultural country.Since the founding of the People's Republic of China 70 years ago,the agricultural and sideline food processing industry has made great development.Under the background of the development of large industries,sugar industry has also developed rapidly.Sugar is an essential food in life and an important raw material of food and medicine.It can be said that the development of sugar industry is related to the national economy and people's livelihood.With the improvement of living standards,the change of eating habits and the rapid development of food industry,the demand for sugar and related sugar products still has a large growth space.However,the sugar industry is a cyclical industry.With the price of domestic sugar falling in recent two years,Chinese sugar enterprises are facing great pressure.In this kind of economic environment,if the management level of all aspects of the enterprise is lack,and the enterprise can not take appropriate measures to deal with the risks,it is easy to fall into financial difficulties due to operating performance.Nanning Sugar Industry selected in this paper is located in Guangxi,which occupies the leading position of China's sugar industry.It is one of the few listed sugar enterprises in China.Due to its capital advantage and regional advantage,Nanning Sugar Industry once became a leader in the industry.However,in recent years,the operating performance of Nanning Sugar Industry has fallen sharply.After a huge loss of 1.3 billion yuan in 2018,due to the negative profit for two consecutive years,it became an ST share in 2019,and the enterprise also fell into financial distress.It is very important for Nanning Sugar Industry to find out the deep causes of financial distress and take appropriate measures to get rid of them.This paper will carry on the case study through four chapters.The first chapter will elaborate the related theory of financial distress,and make a comprehensive review of the research on financial distress at home and abroad,in order to improve the readers' understanding of financial distress.The second chapter makes financial ratio analysis and comprehensive analysis of financial data of *ST Nantang in 2014-2018,effectively evaluates the financial situation of the enterprise,and summarizes the following predicament characteristics or performance of *ST Nantang: excessive debt and insufficient debt paying ability,slow asset turnover,continuous decline in profitability,continuous negative operating profit and weak development ability.The third chapter analyzes the causes of financial distress of *ST Nantang from both inside and outside,and finds that the external causes of *ST Nantang's financial distress include the fall of domestic sugar price and the government's higher price of purchasing sugar cane;the internal causes include: unreasonable industrial layout,ineffective cost control,failure of purchasing Yuanfeng sugar industry,single financing channel and imperfect governance structure.In chapter four,according to the analysis of the causes of financial difficulties in chapter three,the following suggestions will be put forward: optimizing the industrial structure,strengthening the cost control,transferring Yuanfeng sugar industry and improving the acquisition efficiency,adopting diversified financing channels and improving the corporate governance structure.At the same time,through the study of financial distress of *ST Nantang,this paper draws the following enlightenment: first,financial distress can be prevented and controlled.In order to avoid financial distress,enterprises should improve risk awareness and establish financial distress prediction mechanism.Second,hat removal does not mean poverty removal.When enterprises take measures to get rid of difficulties,they must start from the long-term perspective that is conducive to the development of enterprises,and should not take short-sighted actions for the sake of hat removal.The innovations of this paper are as follows: first,this paper limits the study of financial distress to sugar industry.At present,there are few scholars who study the financial distress of sugar industry enterprises.The study of this paper will provide effective reference for the majority of sugar industry enterprises to get out of the predicament in time or avoid falling into the predicament.Second,in the financial analysis,not only the traditional financial ratio analysis method is used,but also the comprehensive analysis of the financial situation of the enterprise based on the Z-score financial distress prediction model will be more helpful to evaluate the financial situation of the enterprise.This paper makes a comprehensive analysis of the performance,causes and countermeasures of the financial difficulties of *ST Nantang,hoping to help *ST Nantang get out of the difficulties,and at the same time hopes that the analysis methods of this paper can be used for reference by other companies,and take measures to get out of the difficulties or prevent it in time. |
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