Research On "*ST Yunwei" Debt Default

With the expansion and development of enterprise scale,enterprises will be more and more through the financing of funds to meet their production and management needs.The financing of the enterprise is divided into internal financing and external financing.The external financing is mainly divided into two ways: debt financing and equity financing.Because of the limited funds available to the firm itself,external financing becomes the primary means of corporate finance,and more and more companies will choose to borrow money from financial institutions to raise funds.But if the enterprise excessive debt management,while their own cash flow and can not repay the debt,then there will be the risk of debt default,will be a serious threat to the survival and development of enterprises.Yunwei Co.,Ltd.was established in 1996,is a large state-owned chemical listed companies,enterprises at the beginning of the establishment of the company’s performance is still acceptable;from 2006 onwards,enterprises began to expand production scale,and the acquisition of Yunnan large coke and Yunnan Greatly coking,becoming China’s largest coal coking listed companies.However,since 2007,the company’s profitability declined,and gradually began to loss,in 2014 the company appeared a loss of 1.048 billion,while the company’s losses in 2015 reached 2.6 billion.At the same time,due to corporate perennial debt management,their own business activities brought about by the cash flow can not repay the debt,so in 2016 * ST Yunwei and its subsidiaries were disclosed to produce 1.868 billion yuan of debt default.At present,the company is in bankruptcy reorganization.Based on the data of the financial statements of the Company from 2006 to 2015,this paper studies the factors influencing the external economic operation environment and internal operation and management,and explores the reasons for the debt default.,Specifically,this paper is divided into the following parts: First,the debt default theory,summed up the need to study this issue.Secondly,it reviews the development process of * ST Yunwei and the process of debt default,and combines the report data and related theories,from the aspects of enterprise development strategy,debt structure,profitability,asset use efficiency and cash flow turnover.Fundamental analysis of the reasons for the occurrence of debt default,which in response to the actual business proposed policy recommendations.Finally,it is the conclusion and prospect.Through the above case analysis,the conclusion of the research is given,and the shortcomings in the research process are explained.The prospect of the future is put forward,which will provide reference for the control of the enterprises in the same industry and the debt default.