Study On The Financial Crisis Of Orient Landscape

In recent years,under the influence of China's deleveraging policy,there are more and more enterprises with debt default problems.According to the data of CITIC Securities,the number and scale of credit debt defaults in China are on the rise from 2014 to 2019,while the enterprises with problems are mainly private enterprises.According to statistics of Wind database in 2019,27 new default private enterprises were added from January to October 2019,accounting for 68% of the total number of new entities.The default bond balance of private enterprises reached 103.04 billion-yuan,accounting for 88.6% of the total default scale.It is necessary to study the financial crisis of private enterprises,find out the reasons for enterprises,and help enterprises through the crisis.In this paper,Beijing Orient Landscape Environment Co.,Ltd.(hereinafter referred to as " Orient Landscape ",listed on the Shenzhen small and medium-sized board on November 27,2009,stock code: 002310)is taken as a case study.Firstly,the purpose and significance of the study are described,the literature research method is used to sort out the relevant literature of financial crisis,and the financial crisis is defined.This paper analyzes the financial crisis in the broad sense is not the financial crisis in the narrow sense.Based on 4R crisis management theory,enterprise adversity management theory and risk management theory,this paper makes a follow-up analysis.Through a detailed analysis of the whole process of the financial crisis of Orient Landscape,it is found that Orient Landscape uses radical financing policies in financing,which makes enterprises appear the phenomenon of short-term loan and long-term investment,and the financing mode is mainly short-term debt,while the capital is used for The PPP project with a long payback period makes the financing period of the enterprise mismatched,resulting in a large financing risk.Secondly,Orient Landscape relies too much on PPP project,which has the problem of large scale of accounts receivable and inventory in operation.At the same time,it is found that the risk awareness of the management is weak and the financial crisis early warning management system is imperfect in the internal control of Orient Landscape.This paper analyzes the effect of the emergency measures taken by Orient Landsc ape to alleviate the financial crisis,and concludes that the measures taken by the ente rprise can alleviate the tense cash flow,avoid debt default and improve the external fi nancing environment in the short term.As the measures taken by enterprises are main ly to alleviate the high tension of capital flow,in order to truly resolve the financial crisis,it is necessary to strengthen the prevention and control of financial risks from t he perspective of enterprises themselves.Therefore,from the perspective of risk preve ntion and control in the follow-up to the financial crisis,this paper puts forward coun termeasures and suggestions such as carrying out multiple financing to reduce the fina ncing risk,reducing the proportion of PPP projects and activating accounts receivable,strengthening the internal control management and the application of financial crisis ea rly warning system.It is hoped that enterprises can get out of the predicament of fina ncial crisis and make the financial crisis not recur.