Analysis of the Causes and Countermeasures of Financial Explosion--Taking Shanghai Electric Group Co., Ltd. as an Example

With the steady and rapid development of China's economy, the performance of enterprises shows an excellent growth trend. However, there are also negative news caused by a large number of corporate financial fraud and a significant decline in performance. This paper takes the financial explosion event of Shanghai Electric in 2021 as an analysis case and uses systematic theoretical knowledge to analyze the causes and consequences of the case in detail. We summarize the problems and put forward the safeguard measures. Finally, we provide corresponding suggestions to help enterprises avoid relevant financial risks and hope to further help the future development of the electrical equipment manufacturing industry.