Study On Causes And Countermeasures Of Financial Distress Of Listed Enterprises In Phosphorus Chemical Industry

As an important means of production and living,phosphorus chemical products are widely used in various fields of economic life and are closely related to our daily necessities.However,in recent years,due to the advancement of globalization,the production and operation development of enterprises is increasingly restricted by the external environment,and the phosphorous chemical industry is facing the situation of rising raw material cost and decreasing export volume under the COVID-19 pandemic.With the launch of the 14 th Five-Year Plan,the national environmental protection policy got tighter,which made the polluting phosphorus chemical industry facing a more serious situation.As a result,the preferential policy of phosphate fertilizer,one of the main downstream products of phosphorus chemical industry,was gradually cancelled.As for the enterprise itself,the listed company sometimes faces the problem of capital being appropriated by the upper group company.To sum up,the profitability of some enterprises in China’s phosphorus chemical industry declined sharply and fell into financial difficulties.In the past,there were few listed companies in the phosphorus chemical industry that were in trouble,and there were few corresponding researches on the financial difficulties of the phosphorus chemical industry.This paper took ~*ST Cheng Xing,a representative leading enterprise in the industry,as the research object,and analyzed it in detail by literature research method,case study method and comparative analysis method.Firstly,the definition of financial distress and the methods of getting out of financial distress in domestic and foreign literature are summarized and the basic concepts and theories related to financial distress are introduced.Secondly,it summarizes the basic situation of ~*ST Cheng Xing and its financial predicament in asset quality,debt repayment pressure and profitability audit report.In this context,it analyzes it from four aspects using Harvard analysis framework.After analyzing the reasons for ~*ST Cheng Xing’s financial predicament,it is found that the main reasons include tightening of environmental protection policies,insufficient utilization of production capacity,the impact of COVID-19,embezzlement of funds by major shareholders and compression of bank loans.At the same time,it is proposed that the solutions to get out of the predicament of phosphorus chemical industry under the current special background,such as expanding the market,improving techniques,raising funds and replacing the management level.This study is not only conducive to ~*ST Cheng Xing to find a practical solution to get rid of financial difficulties,but also can help other enterprises in the phosphorus chemical industry to get rid of difficulties,thus this study has a practical role and value for the production and application of phosphorus chemical industry,recovery of economic benefits and even social benefits brought by the industry.