Disscussion On The Causes And Governance Of The Debt Crisis Of Dynavolt Technology

In recent years,corporate debt crises have emerged continuously.Since 2015,there have been two large-scale corporate debt crises.The first round broke out from 2015 to 2016,and the corporate debt crisis was mainly concentrated in strongly cyclical industries,represented by steel and coal enterprises.No longer limited to a certain industry.Usually capital-intensive companies use a variety of financing methods to support continued operations and growth,of which debt financing is one of the most common.However,many companies do not control the proportion of their debt financing,and at the same time lack the ability to manage debt risk,which can lead to excessive debt and an unbalanced capital structure.Over time,companies continue to accumulate debt risks,eventually falling into debt crisis,and even going bankrupt and delisting because of this.The occurrence of a debt crisis will not only have a serious adverse impact on the daily production and operation activities of enterprises,but also infringe on the legitimate rights and interests of stakeholders,and even destroy the stability of the industry and the stability of the capital market.Therefore,how to analyze the reasons behind the debt crisis has become a research issue that has been paid close attention by the academic and practical circles.However,most of the existing studies focus on the analysis of the debt crisis at the macro level,and rarely analyze it from the micro level.This dissertation aims to explore the causes and transmission mechanisms of corporate debt crises through typical cases,and put forward corresponding governance suggestions on this basis.This dissertation takes Dynavolt Technology as the object to conduct a case study.The first is to describe the basic situation of the company in a targeted manner.The early business of Dynavolt Technology was lead battery business.In 2015,the company accelerated its strategic transformation and new business layout,clarified that based on high-end batteries,new energy vehicles and the clean power industry chain will develop collaboratively,thus forming three business segments that keep pace with each other.development model.Since the company’s strategic transformation,the company’s operating income has been rising in form,but in fact,the operating profit has been continuously compressed,until the company’s loss in 2018 reached 2.869 billion yuan.The funds of Dynavolt Technology are increasingly tight,and eventually the capital chain breaks,resulting in a huge debt that cannot be repaid when debt comes due,and the company has fallen into a debt crisis.At the same time,Dynavolt Technology has been issued a special warning for its negative net profit for two consecutive years in 2017 and2018,and faces the risk of delisting.The second is to objectively describe the process of the debt crisis.It took only three years from Dynavolt Technology adjustment of strategy in 2015 to the outbreak of the debt crisis in 2018.Finally,in the analysis of the key chapter "The Causes,Transmission Mechanism and Economic Consequences of Debt Crisis of Dynavolt Technology",the macroeconomic and industrial policies are revealed with the help of external policy documents,relevant laws and regulations,the official website and the annual report of Dynavolt Technology.The external causes and the internal causes of the corporate strategy and debt financing structure,as well as the corporate governance mechanism and the transmission mechanism of internal control are expounded.For the economic consequences of the corporate debt crisis,this dissertation makes a detailed analysis from three levels: market value consequences,financial consequences and value consequences.The debt crisis of an enterprise cannot be ignored.Once it occurs,there should be not only short-term measures to resolve the debt crisis,but also long-term measures that are conducive to the sustainable development of the enterprise.The research conclusions of this dissertation are:(1)The development strategy of Dynavolt Technology aggressive expansion is an important incentive for the debt crisis,and the strategic aggressiveness increases the company’s debt default risk by negatively affecting investment efficiency.(2)The long-term reliance on debt financing to support its expansion strategy,and the "short-term loan,long-term investment" capital operation model aggravated the debt crisis.(3)The weakened corporate governance and low-level internal control of Dynavolt Technology are the fundamental reasons for the debt crisis.On the one hand,the weakened corporate governance mechanism will increase the company’s financial risk by affecting the company investment and financing decisions.On the other hand,a low level of internal control leads to companies prone to compliance problems,promotes mindless expansion,and reduces risk management capabilities.Superimposed on the external environment of deleveraging and strong supervision,the company debt crisis is imminent.On this basis,this dissertation concludes that the company needs to formulate appropriate development strategic goals according to its own situation;maintain a reasonable level of debt and strengthen the company financial risk analysis and forecasting;establish a sound corporate governance structure and strengthen internal control of the company.The application value of this dissertation is: on the one hand,it fills the research on the micro level of the company,not only reveals the cause of the direct cause of the debt crisis of corporate,but also expounds the transmission mechanism of the company’s debt crisis,which has a certain theoretical research value.On the other hand,it provides practical guidance for company managers to prevent and resolve debt crises,and helps stakeholders to make correct investment decisions.