Study On The Financial Risk Management Of Baofeng Group Co.,Ltd.

As China's economic growth slows down,economic development has entered a period of steady development,and the advent of the Internet era has brought new growth points for China's economic development.In the current economic environment,the development of traditional industries is sluggish,while the Internet industry is developing better and better.Compared with traditional industries,the Internet has the characteristics of great development potential and strong government support.More investors choose Internet companies with good prospects to invest.However,with the increasing competition in the Internet industry,Internet companies have also exposed varying degrees of financial risk.The most famous one is the financial crisis that Le TV broke out in 2016.The incident caused concern in the capital market and many investors.Baofeng Group Co.,Ltd is not only in the same industry as Le TV,but also has the same ecological layout and Le TV.After the financial crisis broke out in Le TV,the business status and financial status of Baofeng Group Co.,Ltd have also been questioned.Based on this,this paper analyzes and evaluates the current financial status of Baofeng Group Co.,Ltd by reviewing the annual financial statements of Baofeng Group Co.,Ltd from 2015 to 2017,and selects the trend analysis of the valuable financial indicators of this paper and compares with the same industry,from financing and investment.The four corners of operation and dividend distribution activities identify their possible financial risks,in order to provide some reference and reference for the identification of financial risks by Baofeng Group Co.,Ltd and other Internet companies.Next,based on the relevant theory,this paper takes Baofeng Group Co.,Ltd as the research object and conducts research on Baofeng Group Co.,Ltd through the combination of theoretical research and case analysis.Analyze the causes of the financial risks of Baofeng Group Co.,Ltd,and study the financing methods,capital structure,debt structure and internal control of Baofeng Group Co.,Ltd.This paper believes that the financial risks of Baofeng Group Co.,Ltd are as follows: single financing method,unreasonable debt scale and maturity;weak cost control,unreasonable asset structure;poor management of accounts receivable,lack of liquidity of inventory,lack of balance of working capital;The impact of the company,shareholders,and environmental factors on distribution.Based on the above-mentioned financial risk identification and cause analysis of Baofeng Group Co.,Ltd,this paper proposes targeted management measures for the financial risk management of Baofeng Group Co.,Ltd.The recommendations are divided into the following categories: building diversified financing channels,establishing scientific debt scale and liability structure;preparing investment budget,rationally controlling costs,improving investment quality,optimizing asset structure;improving accounts receivable management level and inventory management efficiency Strengthen the management of working capital;construct a rationalized income distribution plan and select an appropriate form of income distribution.In order to further improve the financial risk management level of Baofeng Group Co.,Ltd,it is hoped that managers will pay attention to the prevention and control of financial risks while focusing on the development of the company,and finally realize the long-term healthy and stable development of Baofeng Group Co.,Ltd.The author hopes that through the identification,analysis and suggestion of the financial risks of Baofeng Group Co.,Ltd,it can provide reference for other Internet companies.Managers can pay more attention to financial risks,instead of thinking of remediation after something happens,I hope to manage financial risk of Internet companies.Make a little contribution.