| China’s real estate industry has entered a period of rapid development since entering the 21st century,and has now developed into one of China’s pillar national economic industries.Not only that,the real estate industry has strong correlation with many industries in China,such as machinery,building materials,chemicals,steel,finance and other industries that are connected with the national economy.The tremendous influence of this industry has made the development of the national economy always affected by the progress of the real estate industry.Even if the real estate industry is under the rapid development speed,the problems that arise with it cannot be ignored.In recent years,due to the influence of the international economy,China’s real estate industry has also been greatly affected.In 2017,the real estate industry ushered in the most stringent regulatory environment in history,and the price increase was significantly lower than that in 2016.In 2018,the real estate industry set the tone for "households and no speculation".At the same time,due to its own financing characteristics,high debt and high leverage are more common in China’s real estate industry.In addition,in recent years,the high inventory phenomenon in the real estate industry has led to an increase in the supply of ineffective markets.Not only that,but Chinese real estate companies also have many major problems in the supply-side reform.The external real estate policy,the continuous strengthening of the state’s control over real estate enterprises and the substantial adjustment of the real estate market structure have made the situation of real estate enterprises more difficult and the financial risks have increased sharply.Under the background of internal and external contradictions,China’s real estate industry is facing an unprecedented financial crisis.Therefore,the financial analysis and response of real estate companies has increasingly become the focus of theoretical research and practitioners.Based on the above social background,this paper selects S real estate Company as a representative case for analysis and research.S Real Estate Company is a very representative company with some financial characteristics,such as high leverage,high asset-liability ratio,slow capital recovery,low cash flow management,etc.,all of which are owned by companies in the real estate industry.At the same time,compared with those companies who have rich financing channels and large-scale,small and medium-sized real estate companies such as S companies often face higher financial leverage and more intense financial difficulties,and the scale expansion of large-scale real estate enterprises continues.Next,the living scope of S real estate companies is decreasing in an inch.Therefore,the calculation and analysis of the financial risks of S company will be applied to more ordinary real estate enterprises in China,which has high research significance.This paper,through reading a large number of related literatures,summed up the research results of prevention and financial risk identification from the perspective of combining theory and practice,using cash flow analysis,univariate model,Z-value scoring model,robustness test,analytic hierarchy process efficacy Coefficient method,and other means or tools to carry out detailed calculation and analysis of the financial risks of the enterprise.On this basis,from the perspective of national macro-policy,real estate industry environment and individual real estate companies,the financial situation of this industry is studied.Finally,it is proposed how S real estate enterprises actively seek de-leverage and de-stocking in a highly leveraged environment.The practice is to reduce financial risks and respond to financial crises,with a view to providing experience for the analysis and management of financial risks of other companies in the real estate industry. |
