Research On Financial Causes And Countermeasures Of Internet Video Company's Breaking Of Capital Chain

In recent years,with the increasingly severe global economic integration and competitive environment,Chinese companies have had to maintain their competitive advantages through strategic transformation and business upgrades,and set off a wave of strategic expansion.This is also true of the Internet industry.Of course,strategic expansion can enable enterprises to expand their own value,and in the process of expansion,they can obtain new opportunities and seek new competitive advantages.However,in combination with many cases of strategic expansion failures in the past,strategic expansion may make companies blindly expand,the road of expansion is only for the sake of expansion,ignoring the changes of the company's own strength and external environment.In the process of expansion,many companies are facing financial as one of the few listed companies in the video website industry,Baofeng Group has attracted much attention because of its daily limit after listing.Several years later,Baofeng Group has become the focus again,but because of the frequent corporate conditions,it has been exposed to serious financial crisis.difficulties,and a lot of companies have gone bankrupt because of broken capital chains.This article mainly uses the literature research method and case study method to sort out the relevant contents of the domestic and foreign capital chain,and clarifies the research results of domestic and foreign scholars on the capital chain.Based on this,the case analysis of Baofeng Group is made.In the process of case analysis,first,analyze the financial situation of Baofeng Group after listing,that is,from the four levels of debt repayment ability,operating capacity,profitability,and development ability,and use this to understand the operation status of Baofeng Group as a result,it was found that Baofeng Group has been facing certain funding pressure since 2016;Secondly,it analyzes the entire operation status of its capital chain,that is,analyzes from fund raising,capital investment,capital return,and the overall situation of the fund to understand the source and destination of the entire Baofeng Group.After analysis,it is found that Baofeng Group is raising funds poor capacity,still investing heavily in poor operating conditions;Thirdly,based on the financial status and the operation of the capital chain of Baofeng Group,the reasons for the breakage of its capital chain were found.The analysis found that the reasons for the breakage of the storm chain of Baofeng Group were mainly due to the lack of planned financing,the rapid advancement of strategic layout,and the lack of income distribution scheme five major aspects: poor core business,inadequate early-warning mechanism for risk of capital chain breakage;Finally,based on the financial cause of the break in Baofeng Group's capital chain,it proposes countermeasures to prevent the capital chain from breaking,namely: planning and financing in advance,advancing the layout in stages,constructing a reasonable income distribution plan,focusing on existing core businesses,and establishing funds These five aspects of the chain break risk early warning mechanism,and look forward to the fund chain management of the Internet video industry.