A Case Study Of *ST Kaidi Capital Chain Break

In recent years,the events of the capital chain break of listed companies have occurred one after another,causing widespread concern in the capital market.The socalled capital chain,that is,the chain formed by the circulation of capital in the normal production and operation activities of enterprises,connects all aspects of the social economy.The break of a small link may trigger a series of chain reactions,which may lead to bankruptcy of enterprises,shareholders and creditors.Suffering from major losses,but also triggering a social credit crisis,leading to an economic crisis,adversely affects the country's financial and economic security.Therefore,the academic community should strengthen the in-depth study of the relevant content of the capital chain,and the enterprise itself should also pay attention to the management of the capital chain to avoid the recurrence of such incidents.In 2018,it was a tough year for *ST Kaidi.From the end of April,the company did not disclose the annual report of the previous year at the specified time.By May,the company had a large-scale debt default,and many executives left the company.The audit report of *ST Kaidi was officially kicked off with an audit report that could not express opinions.Many creditors filed lawsuits,and several bank accounts of the company were frozen.The shares held by major shareholders were frozen by the judicial waiting list.The listed companies and controlling shareholders were all investigated by the China Securities Regulatory Commission.The company stopped production on a large scale and involved hundreds of cases.At present,the company is planning restructuring to solve the problem of capital chain breakage.The in-depth study on the incident of *ST Kaidi Capital Chain Break has a strong practical significance for the similar development of similar enterprises in the capital market.This paper uses case analysis method,comparative analysis method and literature research method.Based on the case of *ST Kaidi capital chain breakage,this paper analyzes the reasons of the company's capital chain break and proposes the optimization of enterprise capital chain management.First,an overview of the case is presented,including the basics of the *ST Kaidi Company,the difficult situation,the shareholding structure and financial analysis.After that,from the three links of the input chain,the operation chain and the return chain,the paper studies the operation status of the company's capital chain,and then deeply analyzes the reasons for the formation of the *ST Kaidi capital chain break,and concludes that the external financing environment is tightening and blind expansion is expanding.Operational risks,excessive reliance on debt financing,large amounts of funds occupied by related parties,and unsatisfactory control of funds are the five main factors that cause the company's capital chain to break.Although the risk can not be completely eliminated,it can be effectively prevented through certain improvement measures.Therefore,in the end,for the reason of the *ST Kaidi capital chain break,this paper proposes to improve the financing ability of the enterprise,scientifically formulate the investment and financing strategy,and determine the reasonable capital structure.The fund chain management optimization recommendations for the five aspects of the related party supervision and strengthening the management and control of capital risks can effectively prevent the break of the capital chain of enterprises,and expect to provide some reference for other enterprises in the capital market.