Study On Financial Risk Prevention And Control Of DH Invest-holding Company

In recent years, along with the process of economic construction in our country is speeding up, local governments actively open up the financing channel, and increase infrastructure investment. The local investment and financing platform companies has obtained the rapid development, and played a positive role in the development process of urban construction in the local areas. At the same time, the investment and financing platform companies in operation has caused problems such as imperfect governance structure, the debt burden, capital chain tension. Those issues not only affect the sustainable management of the enterprise itself, but also may transfer the enterprises’ internal risks to financial institutions and the government, causing even greater systemic risk. To this end, the state attaches great importance to those problems and has promulgated a series of policies and regulations, in order to regulate the operation of local government financing platform companies and guard against the risk of occurrence. Therefore, in-depth analysis of local investment and financing platform companies’ problems, can explore the related financial risk prevention and control measures, which can enhance the financing platform companies management. Guarding against financial risks and promoting the healthy development, it has the important practical significance to maintain the sustainable development of local economy.In this paper, according to the thinking way of "question–analysis- solving", and combining the literature and operation situation of our investment and financing platform, we use the research methods of combination of theoretical research and empirical research, to study the company which is facing the financing platform financial risk question what carried on the summary.This paper selects a case which is representative of the significance of the investment and financing platform for DH Invest-holding Company in western province area of China. Through the in-depth analysis of the problems of financial risks faced by the company in the process of operation, we analyze the company financial risk index in three aspects: financing, investment, and sustained profitability. To find out the main problems existing in the financial risk, which combined with the actual situation of the company, we explore the "1+N" mode of investment and financing platform companies on financial risk prevention and control measures from the companies’ three main risk aspects and business responsibilities.From the study of the specific case, this paper first introduces the background of the establishment of the DH Invest-holding Company, role orientation, organizational structure, "1+N" management mode, the advantages and disadvantages characteristics, and the main contribution to the local economy. While affirming the achievements, through analyzing the financial risk indicators of capital structure and solvency, profitability, cash flow analysis, we tease out the main financial risks existing in the financing investment, working capital management, risk control and early warning etc., which is combined with the actual operation of the company. Finally, from the microscopic point of view to strengthen the internal management of the company’s financial risk, we should operate these measures such as putting forward the innovative financing channels, optimizing financing strategy, reducing the financing risk. We also can adjust the investment direction and structure in limited investment conditions, and strengthen the follow-up management of investment so that enhancing the investment benefit. In view of the above problems, we still implement a comprehensive risk management, optimization and perfection of corporate risk control system so as to strengthen the capital management and operation; and we should promote the development of the transformation so as to enhance the company’s profitability and ensure the sustainable development of the company as well.At the same time, through the case study of DH Invest-holding Company, we hope to provide the beneficial reference for "1+N" operation mode of the investment and financing platform companies in strengthening the financial risk prevention and control, and promote the sustainable and healthy development.