Research On The Financing Risks Of Steel Enterprises Under The Background Of Carbon Neutralit

The steel industry is the second largest carbon emission industry in China after the thermal power generation industry.According to data,in 2020,the total carbon emissions of China’s steel industry were 1.8 billion tons,accounting for 15% of the country’s total carbon emissions.According to China’s carbon neutrality goal,in order to protect the ecological environment,it is necessary to achieve carbon peak in 2030 and carbon neutrality in 2060.In the past five years,China’s steel enterprises’ carbon emissions have continued to rise due to the high production capacity,which still does not meet the requirements of the carbon neutrality goal.It can be seen that the low-carbon development prospects of China’s steel enterprises are very severe,facing many challenges and pressures.In this situation,further research is needed on how the steel industry makes financing decisions,responds to financing risks,and provides stable and healthy funding sources for enterprise financing needs.Based on national policy guidance,in order to enhance their comprehensive strength,remove excess production capacity,and reduce product costs,Chinese steel enterprises have achieved optimized allocation of social resources through transformation and upgrading.However,under the carbon neutrality policy,steel enterprises will have various types of risks exposed.Market risks,legal risks,financial risks,etc.are all possible risks.This article selects Liugang Co.,Ltd.as a case study.It first analyzes the financing needs of enterprises under environmental protection policies,and analyzes the company’s financing capacity from four major directions: capital structure,operating capacity,profitability,and cash flow.Based on this information,it further analyzes the potential financing risks and causes of the company.Then,it uses the entropy weight TOPSIS method to conduct a horizontal comparative analysis between Liugang Co.,Ltd.and its industry,Obtain the ranking of Liugang Co.,Ltd.in the same industry;Then,the data of Baosteel and Liugang from 2011-2021 are selected from the industry for vertical comparative analysis,which can more intuitively see the changes of risk factor of corporate financing.The study found that in the context of carbon neutrality,Liugang’s restructuring of Guangxi Iron and Steel,taking over the Fangchenggang Iron and Steel Base still under construction,and the investment in technology R&D and environmental protection governance to achieve carbon emission reduction led to the increase of production costs,the decline of operating profits,and the investment in environmental protection and R&D became the main factors affecting the financing risks of enterprises.On this basis,the paper puts forward a series of countermeasures and suggestions that enterprises should broaden financing channels,connect with green finance,standardize related party transactions,and provide reference for the future development of enterprises.