Research On The Financial Distress Of LF Shares

With rising the level of financial business,and the real economy sustained pressure,financialization of enterprises and the phenomenon such as "take off the real to virtual" frequently appear,many entities companies citing strategic expansion is turning to the financial sector,even sacrifice the main investment blindly,causing some companies in financial woes,the debt crisis or even the difficulty.General Secretary Xi Jinping once pointed out,"The real economy is the foundation of a country’s economy and the source of its wealth.Advanced manufacturing is a key to the real economy,and economic development should not shift from the real to the virtual at any time." In December 2021,the Central Economic Work Conference clearly listed "preventing and defusing major risks" as a major theoretical and practical issue that needs to be correctly understood and grasped.This shows that "risk mitigation" and "crisis prevention" are issues that the whole people need to focus on,especially for the real economy.As an important part of the real economy and manufacturing industry,the automobile industry resonates with the national economic development.After a long period of rapid growth,the sales volume has experienced negative growth for three consecutive years since2018.In 2021,it will overcome difficulties such as "lack of core" and "production reduction" and turn down to rise.Among them,new energy has become a bright spot in the automotive industry because it is in the front of the golden development period.However,with the change of consumer structure and the decrease of demographic dividend,the automobile industry has gradually switched from incremental market to stock market,which makes it more difficult for enterprises to obtain flow,intensifies competition in the industry,and risks and crises are everywhere.In this context,it is particularly important to pay attention to the survival crisis of enterprises.LF shares as a member of the automobile industry,as a set of motorcycle,fuel vehicles and new energy vehicles in one of the three business enterprises,as a number of independent automobile brands have a certain degree of visibility of the enterprise,to explore the evolution of its financial crisis and the formation of the cause has a strong practical significance.The article choose LF shares shares as case study object,using the methods of case analysis and qualitative quantitative analysis,through the analysis of the evolution process of LF shares financial crisis,and then explore it into specific cause of the financial crisis,thus makes the enlightenment about enterprise management,provide power for enterprise’s sustainable development.Specifically,on the basis of theoretical concepts and literature research,this paper reviews LF shares’ operation and development from three aspects of industry background,development history and business situation,and then describes the basic situation of LF shares’ financial crisis from the beginning and end of the outbreak of the event and typical performance.Furthermore,the development process of LF shares’ financial crisis is divided into three stages: incubation period from 2011 to 2013,gestation period from 2014 to 2018 and outbreak period from 2019 to 2020 by using two analytical tools,F score model and financial strategy matrix to measure the financial crisis,and the development and management of each stage are comprehensively analyzed.Then,after sorting out the business development at each stage,the key factors of LF shares’ financial crisis from generation to outbreak are identified.The 5M factor analysis method is used to carry out in-depth elaboration from the five dimensions of "human","machine","material","law" and "environment".Finally,on the basis of quantitative measurement and qualitative analysis,the case enlightenment and suggestions are correspondingly set up from the above five dimensions to provide reference suggestions and theoretical guidance for enterprise operation and management.