Gree Electric Appliance Supply Chain Financing Risk Management

In the current context of economic globalization,the competition in the market is not only the competition between enterprises,but also the competition between supply chains.In order to survive in the fierce competition,we must complement the advantages of other enterprises,form a more stable,efficient and low-cost supply chain system and establish a strategic alliance.Small and medium-sized enterprises upstream and downstream of the supply chain are often difficult to finance from financial institutions because of their lack of credit.The core enterprises in the supply chain can provide credit guarantee for small and medium-sized enterprises,so that they can smoothly finance in financial institutions to meet their own business and development needs.At the same time,the core enterprises in the supply chain can also rely on their strong position to obtain available cost-free funds,In terms of payment methods,more deferred payment or advance collection methods are adopted,which reduces the cost of using funds.Therefore,the supply chain financing model can not only provide help for the financing of small and medium-sized enterprises,but also facilitate the core enterprises to obtain available cost-free funds for production,operation and scale expansion.Based on the supply chain financing risk management theory,information asymmetry theory,signal transmission theory and principal-agent theory,this paper selects Zhuhai Gree Electric Appliance Co.,Ltd.,which was approved by the CBRC as one of the pilot enterprises of supply chain financing in 2014,as the case study object for analysis.Firstly,this paper introduces the development of Gree’s supply chain financing,then analyzes its financial situation according to the annual report from 2015 to 2021,identifies and evaluates the financing risk of Gree’s supply chain by combining qualitative and quantitative methods,and finds that the debt structure of Gree needs to be optimized and the risk of capital repayment is high;Finally,in view of the problems found above,relevant suggestions are put forward.Gree Electric should pay attention to optimizing the debt structure when implementing the supply chain financing model;Strengthen supply chain management;Actively explore new interest points to reduce financing risks;Strengthen the legal effect of contract formulation.It is expected that the research of this paper can have a certain reference significance for Gree Electric Appliance to implement supply chain financing.