Research On Financial Risk Management Of Foton Company

Nowadays,China’s economic development has entered a new normal.As an important part of the national economy,the automobile industry has an important impact on China’s economic development.The Party Central Committee has clearly proposed that the development of socialist market economy must focus on the real economy and promote manufacture to a new level.Automobile industry is a representative industry of manufacture,promoting the development of the real economy will bring another round of historical opportunities.At the same time,in recent years,our country is striding forward to a well-off society in an all-round way.People’s living standard is improving day by day,and per capita income is increasing day by day.As a high-end consumer goods,cars are entering more and more families.Therefore,the sales volume of automobile market is increasing gradually in recent years.But at the same time,it should also be noted that after years of development,the automobile industry in China has entered a mature period of development,and the growth rate of sales volume has begun to slow down.In the automobile market,domestic automobile brands still lack competitive advantages compared with foreign automobile brands.In addition,at present,China’s "six" emission standard has been implemented,and the requirements of automobile fuel consumption,environmental protection and financial subsidy policies have been implemented,these policies put forward higher requirements for current automobile manufacturing enterprises.Foton is a state-controlled listed company,In the face of the severe competition situation of the current automobile market and the complex economic development environment in the future.Its sales performance has declined in recent years and overall business condition is not good,the uncertainty in the production competition and financial risk are increasingwhich makes the operation of the company problematic.Therefore,if an enterprise wants to occupy a place in the market,it must reduce the uncertainty in production competition,gradually enhance the awareness of risk management,and prevent and deal with the financial risks in the process of enterprise development.Therefore,based on the theory of financial risk management,this paper takes Foton as the research object,identifies and evaluates the overall financial risk of the enterprise from four aspects of financing,investment,capital operation and income distribution,and carry out financial risk assessment on Foton through the combination of theory and practice,qualitative and quantitative methods.On this basis,it put forward the financial risk control measures to reduce the financial risk,which is good at the long-term development of the company and also can provide effective reference for other automobile manufacturing enterprises.