Research On Finacial Risk Of WANXIANG DONEED Under The Background Of Dual Circulation

During the 14 th Five-Year Plan period,General Secretary Xi Jinping pointed out that we should adhere to the strategic base point of expanding domestic demand and innovation-driven development,and accelerate the construction of a new development pattern with domestic circulation as the main body and domestic and international dual circulation promoting each other.At the same time,in order to accelerate the revitalization of the seed industry,the 20 th meeting of the Central Committee for Comprehensive Deepening Reform in 2021 deliberated and adopted the Action Plan for the Revitalization of the Seed Industry,which will support advantageous seed enterprises and improve the development level of leading enterprises in the seed industry as a major deployment of the national seed industry revitalization action.However,compared with international seed companies,China’s seed industry listed companies started late,the overall scale and income are in a disadvantageous position,lack of a perfect risk identification and evaluation system,and the competitiveness to seize market share is weak.Moreover,the number of domestic seed enterprises has increased sharply,the number of seed varieties has increased but the homogenization is serious,and the domestic seed market competition is fierce.In addition,the operation of seed enterprises is easily affected by changes in national policies,and the change of the new development pattern also brings certain challenges to the development direction of seed enterprises.Therefore,identifying,evaluating and preventing the financial risks of WANXIANG DONEED under the background of dual circulation is not only conducive to avoiding the financial risks of enterprises in a timely manner,improving the competitiveness of enterprises,but also conducive to analyzing the reasons for the financial risks of enterprises under the current background,improving the strength of WANXIANG DONEED to deal with business risks under the new development pattern,and promoting the construction of a large domestic seed industry recycling market.In view of this,this paper analyzes the development status of the seed industry,the external macro environment of enterprises under the dual circulation and the impact of the new development pattern of dual circulation on WANXIANG DONEED under the background of the new development pattern,taking WANXIANG DONEED as the research object.Using the financial data from 2017 to 2021 to calculate financial indicators,identify financial risks from three aspects: operation,cash flow and growth,evaluate the overall financial risks of the enterprise through horizontal and vertical comparison of the F-score model,analyze the causes of financial risks,and put forward corresponding preventive measures for operational risks,cash flow risks and growth risks respectively,so as to achieve the sustainable and healthy operation of WANXIANG DONEED.The results of the study show that the overall operation of WANXIANG DONEED is good,but the overall profitability and core industry competitiveness of the enterprise are insufficient,and there are short-term debt repayment risks and cash flow risks,and financial risk management needs to be strengthened.