Chinese Refrigeration Compressor Enterprise Group Financial Risk Control Research

Chinese technology of compressor refrigeration which imports from other countries by technology introduction and joint venture companies has developed a lot, and the refrigeration enterprises play an important position in the world today. In the decades of development, the market for the refrigeration industry is extremely competitive in China, and some businesses are forced to close for the poor condition.The refrigeration compressor enterprises are located in the middle of the whole refrigeration industry value chain. The refrigeration compressor enterprises have become more integration challenge since the competition grows, which mainly reflected in two aspects:one is the integration of air conditioner and compressor enterprises; the other one is the integration of compressor enterprises and parts supplies. Today the main air conditioner manufacturers, such as Gree, Midea, Panasonic, LG, Samsung all have their own compressor capacity, and scale growth rapidly. According to the statistics of National Power Grid Enterprise Integration, the compressor produced by the integrated enterprises accounts for 65% of the total size of compressor market. Take Gree and Midea for example, the Gree company produced 1.96 million compressors in 2005 and in 2007, this number reached 6.04 million, and in 2012 annual production capacity has reached 33 million, and the annual average growth rapidly. In support of the order of Midea, GMCC produced 13.07 millioncompressor in 2007, and 36 million in 2012. GMCC become the leader in domestic compressor market.In recent years, the competition of the refrigeration compressor industry has changed a lot and in the state of monopoly, which influenced by the international financial crisis in 2007 and domestic economic policy. Chinese refrigeration compressor enterprises are facing the global market, and are influenced by the international political and economic environment.But no matter what kinds of enterprises, all of them are facing the financial risk from the external and internal environment. How to control financial risks effectively, and maintain and improve the competitive capacity? It’s an important topic for the survival and development of the refrigeration compressor enterprises.The paper studied the financial risk control in Chineserefrigeration compressor enterprises. Firstly, the paper introduced the financial risk control research background, significance, and summarized the financial risk research in domestic and foreign, introduced the development of the theory of financial risk controlling and internal control system of the relevant provisions in China. By studying the financial risk characteristics in compressor enterprises, and took the financial risk control practices in QAZL, the paper gave the proposal and guidance for refrigeration compressor enterprise group financial risk control, improve competition ability provides theoretical and methodological on the basis of three advanced enterprise financial risk control experience.