Analysis On Causes And Solutions Of Debt Crisis Of Tianqi Lithium Corporation

In recent years,the rapid development of the new energy vehicle industry has driven the continuous expansion of the market demand for lithium batteries.The lack of lithium resources,the raw material required for the production of lithium batteries,has become a key factor restricting its development.In order to compete for the leading position in the industry,many enterprises in the new energy vehicle industry chain have adopted radical business expansion strategies and continuously expanded their business scale.Most of them do not hesitate to adopt the business model of high debt and high leverage,and even swallow other enterprises in the way of "snake swallowing elephant" to obtain more resources,which eventually led to the debt crisis.In addition,the COVID-19 epidemic has affected the global economic development,the downward pressure on the domestic economy has increased,and more and more uncertain factors have emerged in the production and operation process of enterprises,further aggravating the financial risk of enterprises.The development of enterprises often involves the interests of multiple subjects.Therefore,falling into a debt crisis will have an adverse impact on creditors,suppliers,customers,investors,enterprise employees and other stakeholders,resulting in the further expansion of financial risks among different subjects,the formation of domino effect,and finally serious consequences.Therefore,it is very important to properly deal with the problem of enterprise debt crisis.Tianqi lithium,an upstream leading enterprise in the domestic new energy automobile industry,has rich lithium mineral resources at home and abroad,and its development has always been the focus of many investors.In recent years,in order to seize the mineral resources and quickly occupy the leading position in the industry,the company has not hesitate to adopt the high debt acquisition strategy to continuously acquire major mines at home and abroad.The radical business expansion strategy has led to the debt crisis of the enterprise,Subsequently,the enterprise successfully realized "self rescue" by implementing a series of crisis resolution paths.By studying the debt crisis resolution case of Tianqi lithium industry,this thesis analyzes the reasons why it fell into the debt crisis,and studies each resolution path and effect after it fell into the debt crisis,so as to draw lessons and provide reference suggestions for other similar enterprises to prevent and resolve the debt crisis.By searching a large number of literature,this thesis summarizes and combs the relevant research of domestic and foreign scholars on the concept,causes and resolution path of enterprise debt crisis at this stage,lays a theoretical foundation for the study of the causes and resolution path of Tianqi lithium industry debt crisis,and then summarizes the connotation,characteristics,causes and resolution path of enterprise debt crisis.Firstly,it comprehensively introduces the basic situation of Tianqi lithium industry from the aspects of enterprise development process,ownership structure and business operation.At the same time,it focuses on combing the whole process of the formation of Tianqi lithium debt crisis and the economic consequences caused by the crisis,including the specific performance of enterprise financial status,operation and capital market response,and expounds the serious consequences caused by the outbreak of enterprise debt crisis.Then,it analyzes the causes of the enterprise debt crisis from the perspectives of internal management and external environment,mainly including the reasons for the too radical expansion strategy,the delay of investment projects,poor management,the decline of profitability,the downturn of lithium industry,the severe external environment and so on.Next,it focuses on each crisis resolution path and corresponding effects implemented by enterprises after the outbreak of the debt crisis.At the same time,it analyzes the changes in the specific performance of enterprises such as financial status,operation and capital market response after the debt crisis resolution.It is concluded that the debt crisis resolution path implemented by enterprises is effective,the asset liability ratio has returned to a reasonable level,and the financial situation has improved significantly.Finally,draw lessons from the debt crisis resolution case of Tianqi lithium industry,draw some conclusions and enlightenment,and provide some ideas and suggestions for other similar enterprises to prevent and resolve the debt crisis.By studying the case of debt crisis resolution of Tianqi lithium industry,this thesis draws the following conclusions: first,the excessive debt expansion strategy is too radical,resulting in heavy debt burden and high financial leverage,which is the main reason for the outbreak of debt crisis of Tianqi lithium industry.Second,the weak profitability and poor internal hematopoiesis of the enterprise lead to tight capital liquidity and inability to repay huge debts due,which is the root cause of the debt crisis of Tianqi lithium industry.Therefore,we can draw the following enlightenment: first,implement a sound business strategy,guard against radical expansion,improve enterprise management,pay attention to technology research and development,and improve the core competitiveness of products;At the same time,controlling the project investment cost,accelerating the return of funds and improving the internal hematopoietic ability are the key to resolve the enterprise debt crisis.Second,introducing high-quality strategic investors,strengthening cooperation,giving full play to the upstream and downstream resource advantages of the industrial chain,further exploring new profit growth points and improving the profitability of enterprises are important countermeasures to resolve the debt crisis.At the same time,paying attention to debt management,broadening financing channels and adopting diversified financing strategies to reduce financial risks will help resolve the enterprise debt crisis.In addition,enterprises should improve the internal control system,improve the financial risk management system,establish a debt crisis early warning mechanism,and improve the ability of crisis response and risk prevention.