Research On The Financial Risk Of Yangzhou H Real Estate Co.,Ltd.

The real estate industry is a capital-intensive industry.In recent years,with the increasingly strict regulation and control of real estate industry,the real estate industry in China is faced with severe problems,such as the gradual tightening of the capital chain,and the problem of financial risk has become increasingly prominent.Therefore,accurately analyzing the financial data of real estate enterprises,efficiently identifying and evaluating their financial risks,and taking corresponding measures to control their financial risks are essential to the stable development of every real estate enterprise.Yangzhou H Real Estate Co.Ltd.is a real estate enterprise focusing on real estate development and sales.This paper,taking H company as the research subject,studies the financial risk management of real estate enterprises from the following four aspects.First,in terms of financial risk identification,by using the method of financial index analysis,the paper analyzes the key index of H company and identify its financial risks mainly lie in its financing,investment,operation and cash flow.The internal factors include the company’s radical expansion strategy,imperfect decision-making mechanism,inefficient operation and low risk awareness.The external factors include the increasingly strict financing policy,land supply policy and purchase quota policy.The internal factors include the company’s radical expansion strategy,imperfect decision-making mechanism,inefficient operation and low risk awareness.Secondly,in terms of financial risk evaluation,by using report analysis at first,the paper analyzes the level and probability of its financial risks in detail.There are great financial risks in financing capacity,investment capacity,operation ability and cash availability.By using Z-score model,the paper gives an overall evaluation of the company’s financial risks.The results of Z-score computation reveals that H company indicates the existence of an overall financial risk,even increasing year by year.Thirdly,in terms of financial risk control,considering the above analysis,the paper puts forward the following suggestions for its financial risk control.To resolve the financing risk,the company needs to seek quality investors,broaden financing channels and optimize capital structure.To resolve the investing risk,the company needs to adjust development strategy,enhance decision-making and implement multiple investment portfolio.To resolve the operation risk,the company needs to increase rotation rate and enhance management efficiency.To resolve the cash flow risk,the company needs to establish an activity-inertia cash flow budget mechanism and formulate a scientific cash flow scheme.Fourthly,in terms of financial risk control and safeguard measures,considering the management status of H Company.In addition,the paper proposes five supporting measures for financial risk management,i.e.to set up a sound institution for financial risk management,to perfect financial risk management system,to establish financial risk monitoring mechanism,to improve financial staff’s quality and to develop a financial risk management culture.These measures will enable the company’s financial risk control measures to be effectively implemented for a long time.