Research on BG Group Financial Risk Evaluation and Control Countermeasures

DOI: https://doi.org/10.62517/jse.202411405

Author(s)

Jierong Li, Haiyan Zhao*

Affiliation(s)

Business School, Lingnan Normal College, Zhanjiang, Guangdong, China *Corresponding Author.

Abstract

The real estate industry is a pillar of China's economic development, characterized by large investment scale, long cycles, and high fixed costs. It is closely linked to the development of people's livelihoods and the stable operation of the economy. Therefore, ensuring the robust development of the real estate sector is of significant importance for safeguarding the property safety of the citizens and the continuous and healthy development of the national economy. In recent years, the business environment for real estate companies in China has become increasingly challenging, with financial risks becoming increasingly prominent. This paper selects BG Group as the research subject and, based on financial indicators from 2018 to 2022, identifies and analyzes financial risks from four aspects: financing, investment, operation, and growth. It employs the Z-model for a comprehensive evaluation of its financial risks. On this basis, the paper proposes Countermeasures and recommendations for risk control, aiming to provide a reference for BG Group and other real estate enterprises to reduce financial risks.

Keywords

Financial Risk; BG Group; Risk Identification; Risk Management

References

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