The Research On Financial Risks And Control Strategies Of Xingyuan Environment Technology Company Limited Applying PPP Mode

Since the Third Plenary Session of the 18th Central Committee proposed"allowing social capital to participate in the investment and operation of urban infrastructure",that is,the PPP(Public Private Partnership)mode,central ministries and commissions have also issued a series of documents to encourage and promote the PPP mode.Therefore,in recent years,PPP mode have gradually become famous in the field of public construction.Many companies have also contracted a large number of PPP projects with the trend,and their revenues have grown rapidly.However,comparing with other countries,our country's PPP mode start a little late,many theories and models are still not mature.What's more,since 2018,local finance has begun to tighten,and a large number of PPP projects have been shut down or retired.As a result,many companies applying the PPP mode suddenly face the risk of capital chain breakage.Therefore,how to rationally avoid risks when applying the PPP mode is a difficult problem that needs to be solved urgently.Only this problem can be solved,our country's PPP mode may continue to develop.This paper takes the representative Xingyuan environment technology company limited as an example to describe the internal and external motivations of this company applying the PPP mode,and further analyzes the company's financial risks including financing risk,investment risk,capital recovery risk,cost overrun risk caused by applying the PPP mode.Finally,it discusses how Xingyuan company can reasonably avoid risks in the future,and also provides reference strategies for other environmental protection enterprises which looking to applying PPP mode to avoid financial risks.This paper mainly uses case analysis method,literature research method and the combination of qualitative and quantitative methods to research.Firstly,the first chapter discusses the overall development background,research value and significance of the PPP mode.In the second chapter,the paper integrates a series of domestic and foreign literatures on the related risks that may be caused by the PPP mode and how to avoid these related risks.In the third chapter,the paper mainly introduces the related theories of the PPP mode and their possible financial risks,which lays the foundation for later research.The fourth chapter describes the development status of the PPP mode,including the current warehousing of PPP projects and the overall situation of companies applying the PPP mode.Then the fifth chapter introduces the case of Xingyuan company.After introducing the background of Xingyuan company,this paper describes the situation of Xingyuan company's application of the PPP mode and the internal and external motivations of Xingyuan company's application of the PPP mode.Then it further analyzes the company's financial risks caused by the company's application of the PPP mode,including financing risk,investment risk,capital recovery risk,cost overrun risk.The sixth chapter elaborates how Xingyuan company should avoid financial risks in the future,and gives specific preventive measures to other environmental protection industries.The last chapter is the conclusion and outlook section.