Research On The Prevention Of Financial Risks Of BAICUI Company

With the increasing integration of the global economy,more and more high-tech emerges,Internet + is irresistible,and world economic competition is becoming increasingly fierce,and China's proportion in the development of the world economy continues to rise.Facing the update of old and new technologies,adjustment of industrial structure and product innovation are major issues facing all walks of life in China.This paper reviews the development process of the company,and the author feels that it is not easy for the company to develop along the way.After decades of development,the company has become an automobile industry chain company with several subsidiaries,including transportation industry.In 2018,China's car market appeared a turning point,which was the first decline in nearly a decade,entering an adjustment range.The company also experienced the baptism of macro environment and industry competition.The net profit loss attributable to the shareholders of the listed company was 786 million yuan.The net profit loss attributable to the shareholders of the listed company after deducting non-recurring profit and loss was 1.877 billion yuan.This paper studies the current situation of corporate risk management and finds that there are defects in corporate solvency,operating capacity,profitability,profit distribution and other aspects.At the same time,there are also financial risks such as unreasonable capital structure,prolonged business cycle and reduced asset turnover rate.Based on the company's financial statements from 2014 to 2018,this paper takes the average data of the automobile industry as the reference object,analyzes the four dimensions of financing risk,investment risk,operation risk and dividend distribution risk through horizontal and vertical comparison,and sorts out the reasons for the company's financial risk.The study found that the company has the following risks: 1.In terms of fundraising,due to insufficient equity fundraising,irrational debt scale and maturity structure,inadequate construction of a risk early warning system,the company's financial costs increase,and short-term debt service capabilities deteriorate risk.2.In terms of investment,due to the over-focused investment direction,insufficient domestic investment and low quality of comprehensive talents cause sustainable financial development risks such as large financial risks and inadequate back-end power.3.In terms of operations,due to insufficient receivables and cash flow issues,risk management capabilities and insufficient working capital balance capabilities have caused financial liquidity risks such as reduced capital flows and shrinking working capital.4.In terms of dividend distribution,it is concluded from the three dimensions of shareholders,the company and the environment that it is unreasonable to issue dividends with a fixed dividend policy for a long period of time.It has not been analyzed based on the market environment,causing corporate financial risks.This paper takes the research of financial risk prevention as the starting point,according to the four problems faced by the company,according to the principle of financial risk,designs the scheme,puts forward feasible and effective financial risk prevention scheme,for example,in order to improve the capital structure of the company,increase the strength of equity financing to reduce the financing cost of the enterprise,and reasonably arrange the debt structure.The company can also establish a diversified investment portfolio to obtain profits from investments in equity assets to assist in the development of the main business.At the same time,the company can reduce the distribution of dividends,improve the company's operating capabilities,strengthen the management of accounts receivable and operating liquidity,formulate a scientific financial risk information feedback system,and promote the development of retained earnings.In addition,the company can improve the financial risk early-warning system and enhance the risk awareness of management personnel,and establish a sound financial risk learning mechanism,focus on cultivating professionals to protect financial risks,and promote the implementation of various programs.These risk prevention programs and safeguard measures provided to the company hope to establish a risk management protection wall for the future development of the company.At the same time,it also provides valuable reference for scholars and managers in the same research direction.