Research On Financial Risk Management Of The Asset-Light Long-Term Rental Apartment Enterprise D From The Perspective Of Cash Flow

With the progress of urbanization,the scale of the floating population has become larger,and the residents’ demand for rental housing has also continued to increase.As a result,the long-term rental apartment industry is booming under a housing system which encourages both renting and purchasing.However,this emerging industry has experienced the participation and withdrawal of capital in just a few years.Especially under the influence of COVID-19,a large number of long-term rental apartment enterprises have gone bankruptcy due to the break of the capital chain,most of which are in a asset-light model.The stable development of the rental industry is related to the basic living needs of thousands of tenants.Against this background,financial risk management has become an important issue to maintain the development of long-term rental apartment enterprises.This article takes the long-term rental apartment Q&K International Group(denoted by long-term rental apartment enterprise D)with the asset-light model as an example,which was the first company listed in the U.S.,and conducts an in-depth study on the financial risk management of D enterprise from the perspective of cash flow.Based on the financial risk management process,this paper firstly identifies and analyzes the financial risks faced by the enterprise and the reasons for the risks from internal and external.Secondly,this paper evaluate the enterprise’s financial risk from the qualitative and quantitative perspectives through the "four-stage symptom" analysis method and the factor analysis method,to identify the degree of the financial risk.Finally,the suggestions are put forward to optimize the financial risk control measures.Through research,it is found that under the asset-light operation mode,in order to achieve large-scale development,enterprise D uses external financing funds to snatch the rapid expansion.However due to flaws in the operating model,the operational capability and profitability are not improved in the meantime.As a result,the capital chain of the enterprise is getting increasingly tense.From the risk assessment results,the enterprise has faced a serious financial crisis.On this basis,this paper considers that the long-term rental apartment enterprise D should start from optimizing its own operation mode,and do a good job in cash flow management in investment,financing,and operation.In order to control financial risks to achieve healthy and stable development,enterprises D should optimize the capital structure,expand diversified financing channels,rationally use innovative financial tools in the financing process,and manage the investment scale,quality,method and structure well in the investment process,and strengthen capital management,improve profitability,improve corporate governance and moral construction level in the operation process.This paper focuses on the the financial risk of the asset-light long-term rental apartment enterprises,combining the enterprise operation mode with financial operations,which further supplementing the research perspective of long-term rental apartment companies.This paper not only provides direct guidance for financial risk management of company D,but also provides a certain reference for the same type of long-term rental apartment enterprises.