Financial Risk Control In Enterprise Expansion

On March 31,2018,Kaidi Eco-Environment Technology Co.,Ltd.released the “2017 Annual performance forecast”.It is estimated that the net loss attributable to shareholders of listed companies will be 1.3 to 1.6 billion yuan in 2017.Subsequently,the 2017 annual report was not released,and the Kaidi Eco stock was suspended.On May 7,2018,Kaidi Eco failed to meet the first-phase medium-term note “11 Kaidi MTN1” issued in 2011,which constitutes a material breach of contract.The default involves a principal amount of 657 million yuan.Debt default is a long-standing topic in academia,and hot topics have their own significance.China's economic development is changing with each passing day,domestic enterprises are becoming bigger and stronger,and high-speed development is also burying a huge crisis.With the downturn of the macroeconomic situation,China's debt defaults have occurred frequently since 2014,ranging from private enterprises to state-owned enterprises.Wind data shows that in terms of quantity and amount,China's debt defaults have shown an upward trend,especially in the 2018 bond market default data exceeds the sum of the previous four years,and the default amount accounts for the cumulative default amount since 2014.Nearly 60% of the 2058.36 billion yuan.From the perspective of industry distribution,most of the defaulters in 2014-2015 are new energy industries;the new defaults from the end of 2015 to 2016 are mostly represented by overcapacity industries;in 2018,the default entities involved in the industry are obviously widely distributed,and new default issuers The commonality of the industry is mainly due to poor cash flow,excessive investment in the early stage,strong refinancing of non-standard and bonds,and the situation of refinancing tightening and investor risk appetite.In the current situation of debt defaults and widespread industry distribution,it is still of practical significance to study debt defaults in combination with corporate cases.This paper chooses the biomass power generation industry to do research,considering that China as a major energy production and consumption country,research on energy issues has very important political and economic significance.At present,the international energy market vigorously promotes the replacement of fossil energy with renewable energy,and the domestic implementation of “supplyside reform” and “de-capacity”.As a kind of renewable energy,biomass energy has the characteristics of clean,renewable and large reserves,and has great development potential.It will have great development in the next 30 years.ST Kaidi is the leading brother of the biomass power generation industry,from ambitious to falling to the bottom for only three years.This article uses ST Kaidi research object to review the related literature,analyze the enterprise expansion and financial risk control,analyze the reasons for the debt default case and the failure of financial risk control,and open up the prosperous coat to analyze its deep reasons.I hope to sum up the lessons learned and also have some inspiration for other companies.