| With the continuous promotion of the "double carbon" policy and the continuous improvement of social environmental awareness,new energy vehicles ushered in a huge development opportunity,many companies choose to enter the bureau of new energy vehicle manufacturing.However,many companies failed in the car building boom,not only did not achieve the expected profits,but also got into financial difficulties,among which Mengshi Technology is a typical example.As a manufacturer of power and energy storage batteries,Mengshi Technology used to be the leader in battery export.However,in the process of strategic transformation,affected by its own operating factors,the capital was increasingly strained,and a huge amount of debt could not be repaid when due,and it fell into financial difficulties.Finally,it announced to delist in 2022.This paper first reviews the literature related to strategic transition and financial distress,and summarizes relevant theories to provide reference for the following research.Secondly,the process of the strategic transformation of Mengshi Technology is sorted out,and the motivation of the company’s strategic transformation is analyzed.Thirdly,in terms of finance,it identifies the poor profitability,excessive debt repayment pressure and lax asset management of Mengshi Technology under the background of strategic transformation.In the non-financial aspect,during the period of strategic transformation,many overdue debts of Mengshi Technology led to a large number of lawsuits and a large number of core employees lost,which reflected the severity of the financial predicament of Mengshi Technology.Principal component factor analysis was used to extract five factors: asset management ability,debt paying ability,profitability,cost control ability and growth ability.Through longitudinal evaluation of factor analysis results,it was found that cost control ability factor had the largest negative impact on the total score,while debt paying ability and profitability also had a large negative impact.In the horizontal evaluation,it was found that the asset management ability factor score was in the middle and lower reaches of the industry before the company’s strategic transformation and had not been promoted,while the growth ability factor score and ranking had a good performance,indicating that the company’s high period cost,severe debt repayment pressure,tight profit space and lax asset management during the strategic transformation led to the financial predicament.However,the company still maintains strong growth ability and has certain space to get out of trouble.Combined with the identified performance of financial distress and the result of factor analysis,this paper believes that the radical decision of strategic transformation caused by the high concentration of equity of Mengshi Technology can be successfully passed the resolution of the board of directors.During the transformation period,the single financing channel,limited production development and strategic assets with serious impairment greatly reduced the debt paying and profitability of Mengshi Technology,which is the internal reason for the company’s financial distress.However,changes in the direction of external policies and intensifying market competition make the profit margin of Mengshi Technology further narrowed,its financial situation continued to deteriorate,and eventually it fell into financial difficulties.Finally,according to the reasons for the financial predicament of Mengshi Technology,this paper puts forward some suggestions,such as rational allocation of resources,emphasis on the development of traditional business,adjustment of enterprise financing structure,and starting from Mengshi Technology,For other enterprises that plan to enter into the manufacturing of new energy vehicles through strategic transformation,it is proposed to optimize the governance structure,develop the main business stably,expand the financing channel and so on to prevent enterprises from getting into financial difficulties. |
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