Research On The Financial Plight Of China's Petrochemical Industry

As an important subject of China's economic development,listed companies play an important role in the national economy.However,in recent years,with the slowdown of China's economic growth,the performance of many domestic listed companies has declined,and some have even fallen into financial difficulties.As a basic industry,the petrochemical industry is one of China's important industries and an important pillar for the survival and development of the national economy.The petrochemical industry is not only resource-intensive,capital-intensive,and technology-intensive,but also provides energy support for other industries,and has a high degree of correlation with industry and agriculture.With the slowdown of China's economic growth,the development of traditional manufacturing industries has been greatly affected,as has the petrochemical industry.Due to the impact of fluctuations in oil prices,the continued downturn of the product market,the adjustment of the national industrial structure and the control of environmental pollution,the petrochemical industry is facing greater pressure,and many listed companies in the petrochemical industry are in financial distress.This article first summarizes the concept of financial distress and related research on getting out of difficulty.Based on industry life cycle,risk management,Schumpeter's innovation and other related theories,the development and dilemma of China's petrochemical industry are analyzed,and the characteristics of petrochemical industry out of poverty are obtained.*ST Huajin is selected as the key research object.It focuses on the analysis of the reasons for the company's financial distress,the choice of the means of relief,and the performance evaluation after the relief.It was found that *ST Huajin was plunged into financial difficulties due to poor main product benefits and uneven resource allocation.*ST Huajin has made the company out of financial difficulties through measures to improve product competitiveness and integrate internal and external resources.From this,it is concluded that the comprehensive treatment of escape measures is conducive to the financial difficulties of listed companies out of their predicament,and improving the competitivenessof main products is an important measure to ensure their long-term development.Pay attention to the company's long-term development recommendations.The innovation point of this article is that in the existing literature,more research content on means to overcome difficulties is a form of asset reorganization,and less research on comprehensive means to overcome difficulties.Most of the related researches on the financial distress of the petrochemical industry have focused on the construction of financial distress early warning models,and there is a lack of research on performance analysis during and after the dilemma.This article takes *ST Huajin,which has a better effect of getting rid of difficulties in the petrochemical industry,as an example.When analyzing its means of getting rid of difficulties,it focuses on both asset reorganization and the improvement of the company's daily operation and management.Provide references for other companies in the industry in financial distress.