Study On Financial Risks In The Diversified Transformation Of Real Estate Enterprises

In the past two decades,the contribution rate of the real estate industry to GDP has continued to rise,becoming a pillar industry.There are over 200 upstream and downstream industries,which are closely related to finance and play a crucial role in the economy and society.The overheated investment in the super fast developing real estate industry led to a serious foam,and the house price far exceeded its own value and the purchasing power of ordinary people.To prevent systemic financial risks brought by the real estate industry,the government has introduced a series of regulatory policies,such as purchase restrictions and loan restrictions.Faced with increasing policy and industry risks,many real estate companies are seeking diversified transformation.However,due to its high debt and long payback period characteristics,if real estate companies want to undergo diversified transformation,it may increase the financial pressure on the enterprise,thereby increasing its financial risk.Therefore,the study of financial risks in the diversified transformation of real estate enterprises has become particularly important.This article takes H Company as the case study object,and by sorting out the development process and motives of H Company’s diversification,and using the Z-score model and F-score model to analyze the comprehensive financial risk of the enterprise,combined with specific financial indicators,identifies the financing risk,investment risk,and operational risk of H Company.It is found that as the degree of diversification deepens,the financial risk of the enterprise gradually increases;After in-depth analysis,it was found that the main factors leading to financial risks include the following: firstly,the increase in period expenses brought about by diversified operations reduces the profitability of the enterprise;Secondly,centrifugal diversification causes investment losses;Thirdly,the pace of diversified layout is too fast,resulting in imbalanced long-term and short-term debt structures;Fourth,diversification relies excessively on debt Financing,and the financing cost is high;Fifth,improper cash flow management during the diversification process leads to an imbalance in the cash flow structure.This article analyzes the industry and financial characteristics of the real estate industry,studies the mechanism of financial risks caused by the diversification of H enterprise,and proposes to strengthen cost control;Be cautious and diversified to avoid investment losses;Reasonable planning of investment rhythm,optimization of debt structure and other management suggestions.I hope that this study has certain reference value for real estate enterprises seeking diversified development and transformation to avoid financial risks.