• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
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HOME > Archive > 2025 > Volume 13 Number 1 (2025) >
JOEBM 2025 Vol.13(1): 102-111
DOI: 10.18178/joebm.2025.13.1.852

Financial Risk Analysis of Chinese Real Estate Enterprises-A Case Study of China Evergrande Co., LTD

Xiaoman Zheng
Wenzhou Semir United International School, Zhejiang, China
Email: zhebgxiaoman0122@gmail.com (X.M.Z.)

Manuscript received October 8, 2024; revised December 14, 2024; accepted January 2, 2025; published February 25, 2025.

Abstract—This paper takes Evergrande Group as the representative to study the financial risks in the strategic transformation of diversified enterprises, analyzes and identifies financial risks based on the key financial data indicators of Evergrande Group in the past ten years, and thoroughly studies the financial risks and internal and external causes of Evergrande Group in the process of diversification strategy transformation. First of all, it introduces Evergrande Group and sorts out the implementation process of its strategic transformation. Secondly, the comprehensive financial index analysis method is used to identify the financing risks, operating risks, investment risks and overall liquidity risks faced by Evergrande Group in the process of diversification strategy transformation, and analyze the degree of its diversification strategy and its impact on the overall financial risks of the enterprise. Thirdly, this paper uses Z-score model analysis to identify the company’s financial risks, and learns that the financial risks of Evergrande Group are very high in recent years. With the development of Evergrande’s diversification strategy transformation, Evergrande Group has experienced increasing financial risks and serious financial crisis since the implementation of the diversification strategy transformation.

Keywords—real estate enterprises, Evergrande group, financial risk, risk assessment

Cite: Xiaoman Zheng, "Financial Risk Analysis of Chinese Real Estate Enterprises-A Case Study of China Evergrande Co., LTD," Journal of Economics, Business and Management, vol. 13, no. 1, pp. 102-111, 2025.

Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 
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