Research On Financial Risk Control Of Overseas Investment Of Resource-based Private Enterprises

In recent years,due to the development of economic globalization,the countries in the world are becoming more and more closely connected,and Chinese large enterprises have also begun to "go out" strategy to enhance their own strength.With the support of national industrial policies,the downstream industry,especially the new energy vehicle industry,is growing rapidly,and the demand for lithium mineral resources is increasing.Global lithium resources are mainly distributed in Chile,China,Argentina and Australia,of which the output of Australia ranks first in the world.Although China’s lithium resources proven reserves ranked second in the world,about 90% of lithium resources in the western region.The lithium content of ore lithium is low,while the brine lithium contains magnesium is high.The lithium extraction process of this salt lake brine with high magnesium and lithium ratio has high requirements and high cost,and the large-scale production can still not be achieved in China.Therefore,in order to improve the overall anti-risk ability,enhance its competitiveness and consolidate the position in the industry,enterprises have to choose overseas investment.This paper first introduces the background of the topic,the background of the reseach,and summarizes the theoretical research on overseas investment.Then it analyzes the current situation of overseas overseas investment of resource-based private enterprises,including the current situation of overseas investment of Chinese enterprises,the current situation of overseas investment of resource-based private enterprises and the financial risk analysis of overseas investment of resource-based pribate enterprises.Finally,take TQ company’s purchase of SQM company equity at the end of 2018 as an example,it can identify,analyze and control the financial risks of its overseas investment.The main financial risks will include valuation risk,debt repayment risk,financing risk,exchange rate risk,information asymmetry risk,risk of failure of performance commitment,payment risk,risk of affecting business performance,etc.The biggest risk in this case is valuation risk,debt repayment risk.In order to control the valuation risk,the enterprises should be based on the characteristics of the industry cycle and project economy,according to the professional data,through professional intermediary agencies to conduct detailed financial due diligence,obtain the financial situation,operating conditions,market environment,enterprise competitiveness,and make reasonable valuation to avoid excessive valuation.To control debt repayment risks,enterprises should focus on the main business to carry out normal business activities and obtain stable cash flow;secondly,enterprises should find multi-channel financing methods to avoid overdue debt;thirdly,enterprises should introduce strategic investors to reduce debt repayment pressure.Besides,It provides a certain reference for improving the success rate of overseas investment of Chinese resource-based private enterprises and enhancing the comprehensive competitiveness of resource-based private enterprises.