Research On Financial Risk Prevention Of Haidilao Based On Financial Strategy

In the circumstance of the fast exploitation of socialist market economy,the catering industry is indispensable to the development of China’s economy.With the improvement of consumers’ living conditions,in addition to higher requirements on the quality of dishes when eating out,the dining environment and dining experience have also become important factors for consumers to choose restaurants.Due to customers’ attention to the restaurant’s service level and customers’ picky taste and other conditions,the increasing human cost and the research and development cost of new dishes make the catering industry in recent years "inward volume" serious.In what should have been a flourishing restaurant industry,the sudden COVID-19 outbreak in nineteen caused immeasurable damage to many brick-and-mortar restaurants at that time.Under the shadow of COVID-19,the overall revenue of the catering industry declined in 2020,and many catering enterprises were forced to close or close their stores due to increasingly serious financial risks.This warns us that in normal corporate management,in the face of emergencies,any catering enterprise should pay more attention to financial risks,make positive financial strategic adjustments,and take targeted and effective measures to deal with them.On the basis of relevant theories,this paper first evaluates the entire financial risk of catering enterprises,It is found that the financial risks of financing,investment and capital recovery are relatively high under its strategic background,and takes the listed company Haidilao as an example to comprehensively evaluate the strategic finance of Haidilao through z-Score model.Then combined with various financial data of Haidilao in different periods,the financial strategy and financial risks of Haidilao are deeply analyzed,found that Haidilao has problems in credit management quality,Cash flow triggered by fluctuations in capital structure and unstable efficiency of investment program selection.The reason is mainly due to the improper planning of Haidilao’s internal future financial strategy and the failure to timely make targeted adjustments in the face of the external impact of COVID-19.In the end,together with the practical work of Haidilao and the consequences of the beyond dissolution and assessment,this paper puts forward relevant strategies and suggestions for the financial risks existing in the financial strategy of Haidilao.Haidilao’s financial risks are reflected in the following aspects: the capital composition ratio of Haidilao is unreasonable after the epidemic,and the narrowing of haidilao’s profits leads to the decline of haidilao’s debt paying ability.As the financing channels of Haidilao are relatively narrow,irrational investment also brings risks to it.At the same time,the receivables that may not be collected in time and the inventory with low liquidity will reduce the credit management quality of Haidilao,and the improper profit distribution will also lead to risks for the future development of the enterprise.In view of the financial risks of Haidilao,it is necessary to broaden financing channels,control costs,carefully consider investment projects and other methods to reduce the probability of financial risks.The in-depth study on the financial risks of Haidilao under the strategic background in this paper will help to further enligh10 other catering enterprises how to adjust their own strategies and reduce financial risks in the face of major health and safety emergencies.