Study Of The Problem Of Financial Distress In *ST LONGLIVE Based On Survival Factors Of Enterprises

In 2008,China began to implement the corn storage policy,which prompted corn prices to continue to rise,leading to rising costs for corn deep processing enterprises.As China's environmental protection standards gradually increase,the cost pressure of corn deep processing enterprises has intensified.Simultaneously,due to the lack of downstream demand in the industry,the operating rate of enterprises in the industry continued to decline,and the profits of a large number of enterprises fell or even suffered losses,and even fell into financial distress.The development of the industry is in trouble.Therefore,it is of great practical significance to study the financial distress of corn deep processing enterprises.At the end of 2017,*ST LONGLIVE broke out of debt and gradually deteriorated into a financial distress.As a member of the corn deep processing industry,the firm owns about 85% of China's low-polyxygarose market share and accounts for about 75% of the international market share.It is a unicorn in the industry.Why is there a financial distress in the enterprise,a unicorn in the oligo-xylose industry? What are the reasons for the company financial distress? How do companies deal with the financial distress?Based on the above considerations,this paper first sorts out the living environment of the firm's main business,and combines the definition of financial distress to discuss the main characteristics of the problem of financial distress,including the company falling into accounting bankruptcy and being delisted Risk warning.Secondly,from the perspective of survival factors of enterprise,the reasons for the problem are analyzed.This paper concludes that the combination of poor overall environmental factors and poor corporate characteristics has caused the firm to fall into financial distress.Specifically,the overall environmental unfavorable factors include policy factors leading to rising corporate costs,lack of demand due to consumption perceptions,and poor corporate characteristics due to poor corporate governance and the company's operations,investments,and financing due to poor corporate governance.Poor performance in terms of aspects.Among them,the poor governance of the firm is mainly reflected in the defects of management structure and the failure of internal control;the adverse effects of other enterprise characteristics factors include the decline of corporate profitability and excessive project investment.Finally,based on the conclusion of the above analysis,it proposes short-term coping strategies such as actively seeking government assistance,optimizing capital structure,and expanding financing channels;and introducing long-term coping strategies such as reshaping corporate governance structures by external strategic partners.