Research On Financial Risk Control Of JC Holding Company’s Transformation And Upgrade

As an important pillar of the national economy,China’s manufacturing industry has achieved good results through extensive development for a long time,but as we enter the New Normal,and the "five development concepts" are constantly put forward,the requirements for the adjustment of the industrial structure and green transformation of the manufacturing industry are also constantly improving.China’s manufacturing industry is also facing more severe challenges.Along with the transformation and upgrading,the financial risk issues of manufacturing enterprises are becoming increasingly prominent.In 2017,JC Holding Company had already launched its own strategic transformation,leveraging the development of globalization and implementing diversified product management strategies to provide the company with a new economic growth point.In the process of corporate strategic transformation,a series of cross domain mergers and acquisitions,investments,mergers and upgrades,etc.have been carried out,but they have not had a significant improvement effect on the company’s operations,and have instead led the company into a vicious cycle.Due to the enormous pressure on the company’s capital chain,it faces serious financial risks in its daily operations.In this study,JC Holding Company was selected as the research object to conduct an in-depth analysis of the financial risks it faces during the transformation process.Based on the relevant theories of corporate strategic transformation and financial risks,while reviewing relevant research literature at home and abroad,this study delves into the identification,evaluation,and control of financial risks in the strategic transformation of JC Holding Company.This article first identifies the financial risks faced by JC Holding Company during its transformation process from the perspectives of investment,financing,and operations.Then,using financial data from 2017 to 2021,using Analytic Hierarchy Process and improved efficacy coefficient method,a comprehensive financial risk evaluation system is constructed.According to the quantitative analysis of its financial risk level,JC Holding Company’s financial situation was relatively stable in the early stages of strategic transformation.In 2017,it was at medium risk,but after the company underwent multiple strategic transformations,its financial situation also began to emerge.In 2018 and 2019,its risk level was relatively high.Finally,combining the research on financial risk identification and evaluation with the previous analysis of JC Holdings’ strategic transformation,it is proposed to implement differentiation strategy and accurately control investment and financing risks;Suggestions for implementing a focused strategy and accurately controlling operational risks.The research on JC Holding Company is beneficial to improve the financial management level of enterprises to a certain extent,and also provides reference for the reform and development of similar enterprises.