A Case Study Of Capital Chain Management Crisis In Oriental Landscape Under PPP Mode

Since the Third Plenary Session of the 18 th Central Committee of the Communist Party of China proposed to "allow social capital to participate in urban infrastructure investment and operation through franchising and other means",the governmentprivate partnership model(PPP)has been popularized and put into practice in various public infrastructure construction and public service projects related to the national economy and people’s livelihood.The Notice on the Promotion of the Use of the Model of Cooperation between Government and Social Capital(Finance No.76)states that the PPP model is a long-term partnership in the areas of infrastructure and public services.The PPP model can provide sustainable and diversified financial support for urbanization construction,promote the transformation of government functions and play more effectively,and promote the structural reform on the supply side and the high-quality transformation and development of our economy.However,in the PPP model continues to explore and develop at the same time,there have been a variety of production operations and financing chaos.Since the second half of 2018,in a short period of six months,ten PPP private enterprises,such as Oriental Landscape,Shengyun Environmental Protection,Yongqing Environmental Protection,Tiehan Ecology and Grass Ecology,have encountered the risk of breaking the capital chain.Therefore,PPP private enterprises how to prevent the crisis of the capital chain has become an urgent problem to be solved.By combing the literature,this paper finds that the research on the management of the capital chain by domestic and foreign scholars mainly focuses on the establishment of the financial risk early warning index system to quantitatively identify and assess the risk of the break of the capital chain,as well as qualitatively describe the current situation of the break of the capital chain of enterprises,analyze the causes of the break of the capital chain of enterprises.At present,few scholars have made in-depth study on the crisis of capital chain management of private enterprises under the PPP model.Therefore,on the basis of consulting the relevant literature and learning related theories,this paper,taking the PPP star enterprise Oriental Landscape as an example,deeply understands the process of its falling into the crisis of the capital chain,focuses on the reasons for its crisis in the capital chain and puts forward countermeasures,with a view to providing reference for PPP private enterprises to prevent the crisis of the capital chain.First of all,this paper gives a literature review and theoretical overview of PPP model and fund chain management.In the theoretical analysis of PPP model,this paper analyzes from the background of PPP model,the positive effect of PPP model,the problems of PPP model,the difficulties faced by PPP practice of private enterprises in China.In the theoretical basis of capital chain management,this paper summarizes the theory of capital turnover,capital structure,optimal financing and term matching.Secondly,this paper combs through the giant tide information network,oriental wealth network,stock bar and so on in recent years the oriental landscape announcement,research report,information and other information,in-depth understanding of the development of the Oriental Landscape,the main business and business model,PPP business model under the operating situation,and combed the Oriental garden step by step into the capital chain crisis process.Then,this paper from the credit environment overall tightening and PPP project strict standardization and rectification,business model risk hidden dangers,company management mismanagement,PPP project and accounts receivable accounting treatment of the statements and the distortion of the real situation of the capital chain,etc.,in-depth excavation of the Oriental Landscape into the capital chain crisis.Finally,on the basis of theoretical analysis,combined with the problems existing in the management of the capital chain of oriental gardens,the paper makes suggestions,with a view to providing reference for how to prevent the crisis of the capital chain of PPP private enterprises in China.The main contributions of this paper are:(1)through the case study of the crisis of the management of the oriental garden capital chain of PPP star enterprises,we can further enrich the research on the management of the capital chain;(2)By in-depth analysis of the causes of the crisis of the capital chain in oriental gardens,the proposals put forward in this paper can provide reference for the management of the capital chain of other PPP private enterprises,and thus reduce the risk of the break of the capital chain of PPP private enterprises.