Research On Capital Chain Risk Management Of Evergrande Real Estate

The real estate sector,which is closely linked to people’s daily lives,is an important part of China’s national economy and has experienced rapid growth since the1990 s.The profitability of real estate companies is a special business model with high capital investment,high debt,long business cycles and geographical disparities compared to other industries.Real estate is a capital-intensive industry,with high levels of borrowing for land acquisition and high levels of unused inventory,which can lead to poor cash flow.A small problem in one part of the business can stall the progress of the entire business or break the chain of capital until the business fails.This is an undesirable factor that threatens the smooth functioning of the socio-economic system,causing loss and damage not only to the business,but also to the state and society.The thesis takes Evergrande Real Estate Group Limited(hereinafter referred to as "Evergrande Real Estate")as the research object,based on the data disclosed in the annual report of China Evergrande Group,combined with the research results of relevant experts and scholars,analyzed in detail the current situation of the risk of Evergrande Real Estate’s capital chain and the existing problems in terms of solvency,financing structure,cash flow and profitability.Based on the results of the analysis and risk assessment of Evergrande Real Estate’s capital chain risk impact factors,we analyzed and identified the factors influencing Evergrande Real Estate’s capital chain risk from three aspects: fund raising,fund use and fund recovery,and evaluated and analyzed Evergrande Real Estate’s capital chain risk by combining two scoring models: Z-score and F-score.Based on the analysis of factors influencing Evergrande Real Estate’s capital chain risk and risk assessment results,the optimization measures of Evergrande Real Estate’s capital chain risk management are proposed from several aspects,such as diversified financing,optimization of capital structure,strengthening of cash flow control,clarification of diversified strategic objectives and formulation of comprehensive budget system.The research results of this thesis have certain practical significance to the risk management of Evergrande Real Estate’s capital chain.