A Case Study Of Financial Risks In The Diversification Of Farming And Animal Husbandry For Young Eagles

With the rapid development of my country's social economy,the competition in the domestic market has become more and more fierce,and companies want to stand out in such a situation,maintaining the original stick to a single professional business model is no longer the only way for enterprises to choose,Diversified management methods are gradually favored by modern enterprises.However,there are obvious two-sidedness in the way of diversification.On the one hand,the reasonable diversification of the enterprise will make the enterprise diversify the risk and bring more profits;effect.As a typical agricultural enterprise,Young Eagle Farming and Animal Husbandry has been favored by numerous investors at the beginning of its listing,and has the reputation of "China's No.1 Pig Raising Stock".However,since it began to diversify its business segments in 2014,it began to expand blindly.Diversified and non-diversified businesses went hand in hand,internal control failed,and corporate investment was too dependent on external financing,resulting in huge pressure on corporate debt.In 2017,the F value was in worry.In 2018,with the maturity of corporate bonds,there was a situation of insolvency,which eventually led to delisting.The reason for the financial risks brought about by the diversified operation of Young Eagle's farming and animal husbandry is that managers are overly optimistic about the prospects of the investment industry,blindly implement expansion without a reasonable analysis,overestimate the synergies brought about by diversified operations,and underestimate the synergies brought about by diversified operations.The risk of entering non-related fields;while new projects have not formed core competitiveness,the core business of the company has been seriously affected,resulting in the breakage of the company's capital chain;at the same time,the difficulty of financing the company is increasing,and there is no sound internal management system.,lack of awareness of risk prevention;and the decisionmaking process of the enterprise is not very reasonable,and there is a lack of relevant professional management talents.