Research On Causes And Countermeasures Of The Financial Distress Of HM Motor Corporation

As the representative of Chinese enterprises,listed companies have rich assets and technology accumulation,which is an important support for the development of China's national economy and the enhancement of economic competitiveness.However,listed companies may be in a dilemma because of market fluctuation,industry recession and the causes of their own operation.The operation dilemma of enterprises is directly manifested as financial dilemma,which is the fundamental reason for enterprises to fall into financial dilemma.It is of great significance to the operation of listed companies that how to overcome their financial difficulties,especially those companies with certain technological strength and great significance to the economy and society,and how to get rid of their operating difficulties and avoid delisting by means of refinancing,internal reform and restructuring.By selecting listed companies in financial distress,this paper focuses on the causes,performance and Countermeasures of financial distress,further analyses the operational difficulties behind financial distress,tries to enrich the relevant theories of financial distress in the form of cases,and provides theoretical guidance for listed companies to solve their financial distress by combining theory with practice.The structure of this paper is divided into five parts.The first part is the introduction.This part mainly introduces the background and structure of this study from the overall point of view.It mainly introduces the background and significance of this study,combs the research status at home and abroad through the literature research method,and introduces the research methods and technical routes of this paper.The second part mainly defines the core concepts and combs the theoretical basis.The third part introduces the case of this paper,that is,HM Motor Corporation.Based on the analysis of its financial situation in the past seven years,we find that the main business income of HM Motor Corporation declines rapidly,the proportion of assets and liabilities rises rapidly,while the main business sector shrinks sharply,compared with the non-core business sector has expanded.The fourth part mainly introduces the causes of financial distress of HM Motor Corporation.According to the orientation and management strategy of HM Motor Corporation,the main causes of financial distress of HM Motor Corporation are internal and external.The internal factors include the company's trial production decision-making error,lack of core technology,inadequate capital management,inadequate internal integration and other factors,policy changes,automobiles.Overcapacity of the industry as a whole,increasingly fierce market competition and changes in consumer preferences are external factors,of which internal factors are the core causes of the plight of HM Motor Corporation.The fifth chapter is the part of countermeasures and suggestions.It is believed that HM Motor Corporation needs to make efforts in both internal reform and external adaptation in order to truly and effectively get rid of the realistic predicament of enterprise management.