KW Apartment Financial Risk Research

Recently with the continuous acceleration of the urbanization process and the implementation of the introduction policy of high-quality talents in various cities,a large number of graduates and young workers have chosen to work in well-developed cities,but the growing housing prices have made the housing demand of young people no longer obsessed with buying houses,but choose to tilt towards the demand for high-quality rental housing.In 2017,General Secretary Xi Jinping for the first time clearly proposed a new housing system of "renting and selling at the same time",and put forward many policy supports for encouraging housing rental.In this context,the tertiary industry in the real estate industry,the long-term rental apartment industry,has been vigorously developed,and the market size has grown,but the seemingly lively long-term rental apartment industry has hidden financial crises.At the past years,there have been long-term rental apartment enterprises,due to the adoption of "high in and low out","long collection and short payment","rent loan" and other business methods,As a result,the financial risk of enterprises has increased sharply,and even bankruptcy and delisting.In the context of this industry,how to carry out effective financial risk management has become an indispensable topic for the development of long-term rental apartment enterprises.This paper selects the most representative long-term rental apartment enterprise in the industry,namely KW Apartment as the research object.Guided by the relevant theories of financial risk management,using literature research method,case analysis method,qualitative and quantitative combined analysis method and other research methods,starting from risk management,financial risk management and other related theories and the definition of related long-term rental apartment concepts,focusing on " The main line of risk management process,such as risk identification-risk evaluation-risk control",conducts research and analysis on KW apartments.On the basis of expounding the relevant theories,the third chapter first briefly introduces the basic situation of KW Apartments,and then in order to analyze the problems in financial risk management,select KW Apartments’ annual financial reports from 2017 to 2019 and the first quarter of 2020.The main information in the financial report,from the five risk dimensions of financing,investment,operation,growth,and cash flow,ident ify its financial risks,and then use a combination of qualitative and quantitative methods to evaluate the financial risks of KW Apartments.The qualitative analysis method chosen is the most commonly used "four-stage symptom method",and the quantitative analysis method is to use the already mature Z-score model.The evaluation results show that KW Apartment has been facing a large financial risk,and the degree of risk is increasing year by year.Then,the paper explores the reasons for the formation of its financial risks from both internal and external aspects;finally,according to the reasons for the formation of financial risks of KW apartments,it proposes financial risk management suggestions for KW apartments.