Research On Financial Risk Evaluation And Prevention Of Zhongnan Construction Real Estate Company

In recent years,with the implementation of the national macro-control policies,the real estate industry is facing a more and more severe market environment and more and more fierce competition,its development of the golden week has become a history,but it is still an important force to promote economic development,it is necessary to analyze its financial risks.From the characteristics of the industry,the real estate industry not only needs a large amount of capital investment but also takes a long time to recover,which makes it face financial risks;From the point of the external environment,house represents the Chinese people to life yearning,most people in the fight for buy a house,it also led to rising house prices,to prevent its development is overheating,the government rolled out a lot of regulation policies,strengthen financial supervision and so on,for example,coupled with the impact of a new outbreak of crown,sales of real estate industry is affected by the larger,This will bring financial risks to the development of the real estate industry.If an enterprise wants to gain a foothold in the market and develop stably,it should not only focus on the new market and look for new and characteristic consumption points,but also effectively control financial risks to maintain the core competitiveness of the company.Taking Jiangsu Zhongnan Construction Group Co.,Ltd(hereinafter referred to as "Zhongnan Construction")as the research object,this paper firstly combs the theories of financial risk at home and abroad,introduces the changes of China’s real estate development and regulation,and analyzes the problems existing in the financial management of Zhongnan Construction.Based on the financial data of Zhongnan Construction in recent five years,the financial risk of the enterprise is identified from financing,investment,income distribution and other aspects,and the index system of financial risk evaluation is constructed.Then the model is established to evaluate the financial risk according to the selected index system.Through the analysis,it is concluded that the construction in Central and Southern China mainly has problems such as single financing method,unreasonable capital structure,high premium land acquisition to increase investment risks and weak inventory management ability.Meanwhile,measures to prevent financial risks are proposed from the perspectives of financing,investment,operation and early warning system,mainly for adjusting capital structure.Make reasonable use of financial leverage,broaden financing channels,attach importance to project feasibility assessment,strengthen inventory sales,establish financial risk warning system,etc.Under the dual influence of macro-control and epidemic,the study on the financial risks of Zhongnan Construction can provide reference for other enterprises in the industry and promote the development of the industry.Finally,the paper reflects on the shortcomings of this paper and hopes to improve it in the future research.