Study On Default Risk And Control Of Security Enterprise Bonds

The first part of this paper mainly introduces the research background and significance of this paper.The significance of this paper lies in that through the in-depth analysis of the reasons for the bond default of China Security Technology Co.,Ltd.,combined with the characteristics of the security enterprise industry,we can get the real reasons for the bond default of China Security Technology Co.,Ltd.,at the same time,we can explore how to strengthen the security of the security industry in the case of economic downturn and slow growth of enterprise benefits Industry risk management and control,remind investors to pay attention to investment risk is the foothold of this paper.The second part is literature review and related theories,which introduces the related content of financial risk prediction model,as well as the research status at home and abroad.The third part is the introduction of the case of bond default of China Security Technology Co.,Ltd.First of all,it briefly describes the current situation of the security industry,including the basic financial situation,bond issuance status,and the process of corporate bond default.The fourth part is to use Z-score Model to early warn the financial data of the company in recent four years.Chapter four analyzes the five aspects of the profitability,cash flow and solvency,operation ability and development ability of the company,and obtains the occurrence based on the comprehensive data of all aspects.The direct cause of bond default is(1)The continuous decline of profitability.The expansion strategy in the early stage of an enterprise leads to a substantial increase in liabilities and financial expenses,insufficient solvency and liquidity failure.(2)In 2017,asset impairment loss increased significantly,loan interest expense increased significantly,and net profit decreased due to disposal of investment real estate.(3)Due to the characteristics of the security enterprise industry,the main business security system integration construction cycle is long,and the company’s advance payment cost is high in the early stage.(4)The bank credit is greatly restricted,and the company’s refinancing channels are completely exhausted,which eventually leads to the occurrence of debt default.The sixth part is based on the analysis results combined with the characteristics of the security industry,on how to control the risk of enterprises to put forward relevant opinions.Zhongan Technology Co.,Ltd.should(1)Improve financial risk early warning and focus on improving profitability.(2)Improve internal control to ensure the authenticity and reliability of financial information.(3)Strengthen the management of corresponding accounts receivable and improve the financing channels.From the perspective of industry development,the major trend of security enterprises in the future is artificial intelligence and big data cloud computing.Only by strengthening their core technology,increasing research and development,and actively exploring the home security market,can enterprises have a place in the future market.