Research On Financial Crisis Management Of Manufacturing Enterprises Under The Background Of Strong Stock Market Supervision

With the advancement of globalization,market competition is becoming increasingly fierce,and the external operating environment of enterprises is constantly changing.More and more enterprises have fallen into a financial crisis due to their poor management,and have even delisted and declared bankruptcy.In recent years,China has also gradually strengthened the supervision of the stock market,and the indicators for delisting have become more diversified.The "Securities Law" promulgated in 2014 stipulates that delisting companies can only be relisted after rectifying the original delisted companies.The new "Securities Law",which came into effect on March 1,2020,further reformed the delisting system,deleted the corresponding expressions of suspension and termination of listing,and changed the business rules of the exchange to determine whether stocks should be terminated,so that Listed companies in dilemma face a dual crisis of time and system at the same time.Therefore,preventing financial crisis at all times and avoiding further deterioration leading to delisting and bankruptcy has become a major issue that companies must pay attention to,and business managers must also have the skills for financial crisis management.Especially for the manufacturing industry,after nearly ten years of rapid expansion and development,with the adjustment of industrial policies,the problems accumulated in the industry have begun to erupt,the development has entered a cyclical trough,and more enterprises have continued to flood into the industry.Capital and brands are not as profitable as veteran companies,and many emerging manufacturing companies have financial crises in the early stages of development.They face bankruptcy and are unable to continue to operate.It is extremely unfavorable for China’s manufacturing industry to create innovation,inject fresh blood and improve traditional technologies.Weihai Huadong CNC Co.,Ltd.is a machine tool manufacturing industry company listed on the Shenzhen Stock Exchange in 2008.Since 2011,the company has shown signs of financial crisis,but due to the negligence of corporate managers and the promotion of the external economic environment,its financial crisis It further deteriorated.In 2014 and2017,the CSRC implemented the "delisting risk warning" twice.Fortunately,after some timely response strategies,Weihai Huadong CNC Co.avoided the forced delisting twice,successfully turned losses into profits,and eased itself.The severe financial crisis has provided a lot of places for reference and reflection.Therefore,this article selects Weihai Huadong CNC Co.as the case study object,and mainly describes the company’s financial crisis with the description of the company’s related data from 2008 to 2019.First,therelated developments and research results of financial crisis management at home and abroad are introduced,and the overview of Weihai Huadong CNC Co.is introduced.Then from the four aspects of market performance,operating conditions,financial indicators,and financial crisis early warning,and then combined with the crisis life cycle theory,the financial crisis evolution process is divided and analyzed.After an in-depth analysis of the case,it is pointed out that the external industry policies and the new delisting system are more stringent,the company’s internal control structure is unreasonable,lacks forward-looking and lacks core competitiveness of its main business,and the company’s excessive debt and unreasonable structure all lead Step by step,it is deeply involved in the financial crisis.Subsequently,the analysis of Weihai Huadong CNC Co.response to the financial crisis was analyzed,including the disposal of subsidiaries,obtaining government subsidies,debt restructuring,and destocking,so that the company turned losses into profits and avoided forced delisting.However,the company still has some financial crisis management issues.Therefore,this article finally proposes some methods for East China CNC and other manufacturing companies to improve their own financial crisis management response strategies,and puts forward some suggestions for strengthening the supervision of China’s stock market,hoping to improve the financial crisis management and related departments of our manufacturing companies in the future.