Research On Financial Risk Of Meijin Energy On The Backdrop Of Holding Shareholder Stock Ownership Pledge

The reform of China’s market economy is prompting many enterprises to seek development,and the financing methods are constantly iterative and updated in this process.Equity pledge has slowly appearing and turn into significant financing form.The process has different dilemmas: some listed companies’ big shareholder follows with interests the characteristics that equity pledge has many advantages,so they carry out equity pledge frequently and on a large scale to meet their own financing needs.However,after the equity pledge,the controlling shareholders face the risk of control transfer,which will be detrimental to the operation and development of the company,Finally,there are financial risks.How to effectively deal with the financial risk of enterprises under this background is a problem that many enterprises must face.Based on the current research,this paper uses the control right theory to explain how the equity pledge affects the financial risk,uses the financial risk management theory to study the financial risk,takes the coking enterprise Meijin energy as a typical case,and takes the literature analysis method and case study method to make a specific analysis.Firstly,the basic information and shareholding structure of Meijin energy and its controlling shareholders are excavated.Secondly,it explains the case process: the intention of shareholders’ equity pledge-the process of controlling shareholders’ equity pledge-the path of financial risk of Meijin energy.Thirdly,identify the four major financial risks of Meijin energy from the perspective of financial activities: identify the financing risks from the development strategy,asset expansion,capital introduction strategy and financial structure of Meijin energy,identify the investment risks from the cost projects and investment use efficiency,and identify the capital recovery risks from the aspects of inventory quality,sales collection management level and overall working capital,Identify the risk of profit distribution from profit distribution and relevant indicators.Finally,the new Z-value model is used to further comprehensively evaluate the financial risk,and it is confirmed that the financial risk of Meijin energy is generally in the early warning range in the process of pledge of controlling shareholders’ equity.In view of the above problems,it is suggested that the top priority should be to improve the financial risk response framework system of Meijin energy.For example,in advance,a special department should be established to supervise such regular pledge and guarantee activities of Meijin group;In the process,we should diversify financing,reduce costs as much as necessary,boosting the collection rate,and control profit distribution;Afterwards,it is suggested to promote the risk early warning construction and attach importance to the financial risk response framework system of Meijin energy.I hope it can help Meijin Energy and other similar companies to deal with such problems,which is of reference significance.