Risk Diagnosis And Influencing Factors Of Capital Chain Rupture

In recent years,incidents of capital chain rupture in listed companies have occurred one after another,leading to corporate bankruptcy and significant losses for shareholders and creditors.The capital chain is a chain formed by maintaining the normal production and operation of an enterprise and realizing the basic cycle of cash asset cash appreciation,which runs through the entire process of enterprise operation.A break in one link of the capital chain may trigger a series of chain reactions.Therefore,the academic community should strengthen the research on the relevant content of the capital chain to provide theoretical support for the healthy development of enterprises;At the same time,enterprises should also pay attention to the good operation of the capital chain to prevent similar situations from occurring again.Since 2019,Xinhualian’s performance has declined and it has been involved in debt disputes.The company’s shares have been frozen.By 2022,Xinhualian continues to suffer losses.The main holding company has been filed for bankruptcy and reorganization by creditors,and Xinhualian faces a serious risk of capital chain rupture.After analyzing the current situation of Xinhualian’s capital,it is believed that in-depth research on the situation of Xinhualian’s capital chain has strong practical significance for similar enterprises to develop well in the capital market.This paper uses case analysis,comparative analysis,and literature research methods to analyze and evaluate the risk of capital chain rupture in combination with the existing capital situation of Xinhualian,find out the reasons for the risk of capital chain rupture in Xinhualian,and propose optimization suggestions.First of all,this paper introduces the basic situation of Xinhualian,the proportion of shareholders,etc.,and shows the financial situation,equity pledge,and guarantee situation of Xinhualian.After that,this paper analyzes the balance sheet,income statement,and cash flow statement.In the stage of raising corporate funds,it emphasizes the situation of corporate debt repayment and financing methods;In the capital use stage,it reflects the daily operating costs and investment decisions of Xinhualian;After analyzing the enterprise’s operating income and capital occupation during the capital withdrawal stage.The data from 2017 to 2021 were selected for measurement and evaluation using the capital chain rupture risk identification and measurement indicator system established in recent years to determine that the enterprise indeed has a capital chain rupture risk.And dig deeper into the causes of the problems: internal is mainly debt financing,narrow financing channels;High concentration of equity,affecting the strategic choice;Frequent pledge guarantees and poor circulation of the capital chain;Large internal and external risks and lack of control mechanisms.The external reason is the continuous repetition of the epidemic and the impact of changes in policy direction.Although risks cannot be completely eliminated,they can be effectively controlled through optimization measures.Finally,this paper proposes countermeasures in two parts for the above causes of risk.Internally,it proposes preventive measures to the behaviors that may trigger the risk of capital chain breakage of Xinhualian.Externally,it proposes optimization suggestions to the external risk control methods of Xinhualian to improve the internal and external risk prevention ability of the enterprise,and expects to provide a reference for other similar enterprises.