Study On Financial Risk Early Warning Of Great Wall Motor Company

The auto industry is playing a positive role in promoting the country’s economic transition from a phase of rapid growth to a phase of high-quality development,providing consumers with smarter and more environmentally friendly products.Great Wall Motor Co LTD is China’s largest collectively owned auto company and the first mainland’s auto company to be listed in Hong Kong,raising HK $3.3 billion and achieving high growth and profitable performance for more than 10 consecutive years.To a large extent,the research of leading companies in the industry can reflect the development status of automobile companies and the lack of new energy vehicle research and development ability.The development environment of automobile companies is good,but in the actual operation,there are also challenges such as large initial investment,return fluctuation and long product development cycle,which make the company face greater financial risks.This paper firstly describes the background of the topic,the purpose and significance of the research,the content and methods of the research,and reviews the relevant research status and research results at home and abroad.Secondly,by using the method of literature research,the paper systematically describes the concepts of financial risk and the theoretical basis of the financial risk early warning system,as well as the development history,corporate culture and operating conditions of the Great Wall Motor Company.In this paper,the objective method,from the debt paying ability,operation ability,profitability,development ability of the four aspects of 16 different financial indicators,from different financial indicators,horizontal and vertical perspectives,compared and analyzed the Great Wall motor Company and peers,as well as the Great Wall Motor Company’s financial situation in each fiscal year;The principal component analysis method is used to establish the early warning model,establish the financial risk early warning evaluation system,to evaluate the financial risk of Great Wall Motor Company.It is concluded that Great Wall Motor Company has certain risks in profitability and development ability.Finally,several targeted risk control measures will be put forward for Great Wall Motor Company,including enhancing the multidimension of R&D investment,adjusting the structure of assets and liabilities,and enhancing the awareness of enterprise capital management.In the face of increasingly fierce market competition,enterprises pay more and more attention to financial risk control,so through a more effective way to accurately understand and judge the financial risk,help management personnel to make decisions,and promote the long-term development of enterprises.As a leader in the domestic automotive industry,Great Wall Motor Corporation has advanced core technologies and independent research and development capabilities,and has technological advantages.Taking Great Wall Motor Company as a research institution,financial risk research has a certain benchmarking and learning value for other companies in the industry.