An Analysis Of The Default Case Of Young Eagle

Chick Eagle Agriculture and Animal Husbandry Group Co.,Ltd.after listing with a unique "chick model" rapid expansion.In order to resist the pig cycle,the young eagle began to implement the whole industrial chain strategy and diversification strategy.After the implementation of the strategy,the company’s performance did not rise and fell,investors lost confidence in the company,the company’s share price declined.The outbreak of swine fever in 2018 caused the swine cycle to be in a reverse cycle of low swine prices.Many enterprises in the swine breeding industry encountered extreme situations together.Other enterprises successfully survived the crisis.But the capital chain of the young eagle farming and pastoral industry broke,resulting in debt default,and the young eagle farming and pastoral industry became the only delisted company in the swine breeding industry in 2019.Based on the Z model and the F-score method,the analysis of the default of Xiaoying Agricultural and Pastoral Bonds shows that the gap between the financial data and the Z value is within the acceptable range compared with the listed companies in the same industry such as Maoyuan Group and Wenshi Group.Therefore,only the financial risk analysis is weak,and it is unable to explain the reasons for Xiaoying Agricultural and Pastoral Bonds’ default and final delisting.Therefore,it is necessary to conduct in-depth analysis from multiple perspectives and dimensions,especially in combination with business models.This paper analyzes the bond default cases from the perspectives of diversification expansion,financial leverage and business model,and gives a detailed explanation of the bond default cases of Xiaoying.Hog breeding enterprises are seriously affected by pig cycle and epidemic situation,and are vulnerable to extreme risks.Due to the particularity of the business model and the influence of the contract between the main body and other stakeholders,the cash flow of Foal Eagle Farming and Animal Husbandry Company dried up faster than other companies.This paper points out that the worsening degree of credit risk in different business models is not the same in the extreme situation.Through the extreme situation analysis,investors are reminded of the importance of scenario assumption in the investment analysis.By simulating the extreme situation and combining the cash flow situation of the business model to make financial forecast,it is an important auxiliary content to analyze bond default.