Financial Diagnostic Report Of Hengkang Medical Group Co.,Ltd

Hengkang Medical Group Co.,Ltd.(hereinafter referred to as "Hengkang Medical Group" or "The company")was established in 2001.Hengkang Medical Group gradually develops and expands by producing and selling "blind" series of drugs and listed on shenzhen stock exchange in 2008.In 2013,the company concluded that with China's rapid aging society,the medical service industry has a good development opportunity.In the following years,the company carried out large-scale mergers and acquisitions and successively acquired more than 40 hospitals(mainly "restructured" former public hospitals)and specialized diagnosis and treatment institutions,such as the third hospital of wafangdian,etc.,quickly entering the medical service industry and quickly becoming one of the top five medical service companies in China.With the rapid acquisition of assets,hengkang medical asset scale and operating income achieve rapid growth.However,the company's profitability did not rise but fell,the debt scale rose sharply,the financial leverage was greatly enlarged,the company's capital was extremely tight,and the financial risks were highlighted.Since the beginning of 2018,with the overall valuation of the a-share market and the decline of the company's performance,the company's stock price has continued to decline,which led to the concentrated outbreak of the pledge risk of the company's major shareholders,who were forced to give up their controlling shares but failed to realize the equity transfer.The company's own financial risk and the pledge risk of major shareholders' equity affect each other and cross infect,resulting in serious impact on the company's production and operation.On the basis of introducing relevant theories of financial diagnosis,based on the financial report of hengkang medical from 2015 to 2017,this paper USES SWOT analysis to qualitatively study the operating environment of hengkang medical.Using trend analysis and structure analysis to study the company's financial situation and development trend;Use ratio analysis,comparative analysis,factor analysis and dupont analysis to study the company's main financial indicators and business indicators.Through the analysis of accounting policy,the company's goodwill recognition and impairment of the rationality of the provision;The z-value warning model is used to analyze the financial risks faced by the company.Through the above financial diagnosis methods,the existing problems and risks of hengkang medical financial management were found out,the root causes of the problems and risks were analyzed,and corresponding improvement Suggestions were put forward to promote the company to optimize resource allocation and defuse financial risks,laying a foundation for the long-term healthy development of the company.Since 2018,financial risks of a number of domestic listed companies have erupted in a concentrated way,among which the major financial crisis caused by excessive investment accounts for the majority,which has become an important factor affecting the stability of China's financial market and sustained economic growth.Problems and risks of hengkang medical treatment are typical among the above companies.The author expects that this paper can be of certain reference significance for private enterprises in China,especially fast-growing listed companies,to deal with the relationship between rapid development and financial risk control and avoid major financial crisis.