| At present,the changing economic market situation in China,the gradual saturation of the market size and the increasingly fierce competition for interests within the companies,coupled with the emergence of the new coronavirus pneumonia epidemic in 2020,have plunged both domestic and international companies into a serious crisis.For real estate companies,the widespread shutdown of production has brought sales and sales volumes to a low point over the last three years,and the gradual reduction in consumer demand as the epidemic rages on has undoubtedly added to the situation.How to leverage finance and keep financial management and investment risks within a reasonable and effective range is therefore a major issue that every property development company must face.The property industry is a capital-intensive and highly leveraged industry,and its development and construction cannot be achieved without the guarantee of capital,hence the strong reliance on financial leverage.The high cost of debt financing has severely constrained the development of the real estate industry.While the national policy of "deleveraging" is being implemented,financial leverage and its associated financial risks have become a growing concern for major enterprises.Therefore,it is of great theoretical and practical significance that a large number of scholars and enterprises have started to discuss how to use financial leverage appropriately,how to bring into play the positive effects of leverage and how to reduce the financial risks associated with leverage.This paper examines EVERGRANDE Group,a leading enterprise in China’s real estate industry.According to the actual situation of EVERGRANDE Group,through a comparative analysis of the basic financial situation of EVERGRANDE Corporation Group in the last ten years,it is found that EVERGRANDE Corporation Group at the current stage has problems such as the expansion of the scale of liabilities and the slowdown of profit growth,and the use of financial leverage is also very risky and the level of financial leverage is very high;through a comparative analysis of the current financial situation of EVERGRANDE Group by choosing the Z-value method and the efficacy coefficient method,it is concluded that EVERGRANDE Group The current stage of financial risk is a big problem.Considering that many enterprises in China,especially real estate enterprises,have similar financial problems at present.This paper puts forward countermeasures to solve these problems,hoping to provide some reference and reference for the healthy development of the real estate industry and other enterprises with similar problems.Through the above research,the main findings of this paper are as follows:(1)EVERGRANDE Group is currently in a poor financial position due to its expanding debt,slowing profit growth and tight cash flow,which requires attention.(2)EVERGRANDE Group has not brought its financial leverage into positive effect due to high debt financing.The company has significant financial risks and should promptly adjust its decision-making direction and make up for its shortcomings to resolve its current difficulties as soon as possible.(3)EVERGRANDE Group itself should optimise its debt structure and investment approach,strengthen its control of sound cash flow,enhance the feasibility analysis of basic financing projects,transition from a highly leveraged model to diversification of external expansion,and improve the financial risk warning system and strengthen the dynamic monitoring of financial risk indicators through its internal audit system.In respect of meso-macro,EVERGRANDE Group should actively respond to the impact of policy environment on EVERGRANDE Group externally,timely adjust the development direction to prevent policy risk,reasonably predict industry development to reduce industry risk and enhance comprehensive strength to reduce competition risk. |
