Investment Financial Risk Assessment in Fuyao Glass' Internationalization Process

Zitao Wang

2025

Abstract

This study investigates the financial risk management challenges faced by Fuyao Glass during its international expansion, with a focus on its U.S. investments from 2014 to 2020. By analyzing the company's financial data, the research highlights two major risks: exchange rate volatility and structural market risks, which significantly impacted Fuyao's profitability. The findings reveal large fluctuations in foreign exchange gains and losses (ranging from ¥459 million in profits to ¥422 million in losses), underscoring the company's exposure to currency risks despite its growing overseas revenue (55–65% of total income). The study applies Miller's (1996) risk classification framework to assess Fuyao's strategies, demonstrating that while the company successfully transitioned from trade to local manufacturing, its risk mitigation measures, particularly in financial hedging, remained underdeveloped. Based on these insights, the paper proposes an integrated risk management approach combining strategic financial tools, dynamic asset-liability matching, and specialized team training. This research contributes to the understanding of financial risks in emerging-market multinationals and offers practical recommendations for manufacturing firms expanding globally.

Paper Citation

in Harvard Style

Wang Z. (2025). Investment Financial Risk Assessment in Fuyao Glass' Internationalization Process. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 259-265. DOI: 10.5220/0014350500004718

in Bibtex Style

@conference{emiti25,
author={Zitao Wang},
title={Investment Financial Risk Assessment in Fuyao Glass' Internationalization Process},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={259-265},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014350500004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - Investment Financial Risk Assessment in Fuyao Glass' Internationalization Process
SN - 978-989-758-792-4
AU - Wang Z.
PY - 2025
SP - 259
EP - 265
DO - 10.5220/0014350500004718
PB - SciTePress