Research On H Group’s Diversified Investment Strategy

With the development of global economic integration,enterprises will increase their investment and expansion.However,in recent years,many real enterprises have invested excessively in non-related industries such as the financial industry when diversifying,which runs counter to the development of the real economy,making the results of diversification not as expected and even causing the enterprises to fall into financial crisis.As a representative example,H Group,which expanded rapidly through diversified investment and mergers and acquisitions,ended up in bankruptcy and restructuring,and its diversified investment ended up in failure.Companies usually focus on the development of diversification strategies and optimistically believe that diversification will bring new benefits,but to a certain extent ignore the risks faced when diversifying into new industries and the problems that need to be considered and dealt with in the process of diversification.H Group,as the leading domestic private airline,was overconfident when diversifying into investments,believing that developing in non-related diversified industries such as the financial industry would be as good as developing its own airline industry,but ended up in a liquidity crisis.Therefore,this paper examines the diversification history of H Group to explore the issues that companies,and theoe companies should pay attention to when carrying out diversification investment strategies and to explore whether companies should enter new industries that are not related to diversification,especially the high-risk financial industry.From a financial perspective,this paper takes the diversification development history of H Group from 2003 to 2019 semiannual as a research object,and through financial analysis of the financial performance and operational performance of H Group and theoretical analysis and verification of the problems of H Group’s diversification,it puts forward targeted improvement suggestions for H Group,so as to help enterprises intending to diversify,especially It also suggests the problems that enterprises need to consider and deal with in the process of diversification strategy.