Financial Risk Of Photovoltaic Enterprises

As a strategic emerging industry in China,the photovoltaic industry has aroused more and more attention in recent years.Compared with similar enterprises in developed countries in Europe and America,China's PV companies have a short history of development.They are lack of core technologies and reliant on international markets Most of them depend seriously on government subsidies,which makes them vulnerable to financial risks.For example,the anti-dumping investigation started in the United States in 2012 caused most domestic PV companies to go bankrupt;in 2018,after the introduction of the“531”PV New Deal,half of the PV companies' operating profits fell sharply.Therefore,it is necessary to analyze the influencing factors of the financial risk of the photovoltaic industry to establish a financial risk assessment model,which is crucial for predicting and coping with the financial risks of PV companiesThis thesis selected the leading enterprise in the photovoltaic industry,Jinkosolar,as a case enterprise.Firstly,the financial data of 94 domestic and overseas listed PV companies from 2010 to 2017 were selected as samples.Based on the factor analysis method and the data collected,a financial risk assessment model was established for PV companies.Then,the model was used to analyze and evaluate the financial risks of Jinkosolar.The trend of the financial risk status of Jinkosolar and the annual risk level of financial risks was assessed accordingly.In order to verify the accuracy of the assessment,the Z-score model is also used,as a reference,to evaluate the financial risk status of Jinkosolar.Finally,the causes of the financial risks of the photovoltaic industry and Jinkosolar were analyzed and risk management advices were proposed accordingly.