Research On Financial Risk Control Of H Automobile Limited By Share Ltd

The automotive industry is part of the manufacturing sector and playing an increasingly significant role in China’s real economy.With the Fifth Plenary Session of the19 th Central Committee of the Communist Party of China,the importance of developing the real economy has increased further,creating a favorable policy environment for the development of China’s automobile industry;in the meantime,as households’ disposable incomes have increased,people’s consumption concept has also changed,and cars have entered thousands of households as a common means of travel.Recently,the sales of cars in China have been on the rise year on year.However,we must also recognize that: the automotive industry has transitioned from a stage of rapid development to a stage of maturity,with a sluggish sales market and a slowdown in sales growth.Based on the background of increasingly fierce competition,the phenomenon of survival of the fittest is becoming increasingly evident among automakers.To avoid being left behind,companies must create a risk management concept and focus on preventing and controlling their own financial risks.The case study of this paper is H Auto Company,which is a key listed state-owned enterprise in W Province.The first two chapters introduce the background,significance,research dynamics and theoretical basis of the selected topic.In the third chapter,the basic situation and industry characteristics of the company are briefly introduced,mainly including the current situation of automotive industry production and sales,policy environment,market risks and so on.Then,this paper analyzes financial risks of the company more systematically from three aspects: financial risk,operation risk and investment risk by using quantitative methods and financial indicators.The Z-score model is used to analyze the company’s overall financial risks.The results indicate that the company has serious financial risks and probably goes bankrupt,which should be paid sufficient attention to.Chapter 4 analyzes the sources of financial risk faced by the company.On the base of the previous section,Chapter 5 proposes measures to control the company’s risk.Chapter 6 is the conclusion of the whole paper,in order to benefit the development of the company and similar enterprises.