Research On The Causes Of Financial Distress And Countermeasure For The Sanya Phoenix International Airport

For enterprises,there are many manifestations of financial distress,such as: default on operating payables,failure to repay debts due,no working capital turnover and insolvency.Most of the causes of financial distress are closely related to the investment and financing activities of enterprises.The most common decision in private enterprises is to adopt an aggressive development strategy in order to quickly realize diversification and expansion.They blindly make acquisitions and mergers by excessive use of financial leverage,but fail to significantly improve the operating efficiency,and are therefore caught in financial difficulties.The research on the prediction and countermeasures for financial distress in enterprises in China has just started,thus how to get rid of the financial distress has become an urgent issue that needs study.From the perspective of the Sanya Phoenix International Airport（SPIA）,a tier-four company under the control of HNA Group,this thesis analyzed the structure and use of cash flow produced in its three major activities of operation,investment and financing.Although the SPIA,being a main airport of civil aviation transportation industry,has excellent assets,remarkable operating benefits and abundant cash flow,it has played a strategic role as a financing platform in the process of the HNA Group’s overall diversified expansion,during which it borrowed a lot and transferred healthy cash flow to related enterprises through equity investment,internal fund lending and other forms,that led to that the balance of the internal operability of itself can not meet the needs of its financing cost.In addition,affected by the external macro-environment control and the fracture of capital chain of the HNA Group,the SPIA finally fell into the financial distress.This paper also thoroughly discussed how could the SPIA rely on the support of the government and financial institutions to optimize the debt with its own financially hematopoietic function,and studied the feasibility as well as pros and cons of various solutions,and searched ways to help it to get rid of the financial difficulties.The content might be used for reference by other airports of HNA Group,and has guiding values for actual cases to some extent.