Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)

<Previous Article In Volume
Next Article In Volume>

Efficiency, Power, and Risk in the Supply Chain: An Analysis of Working Capital Management of Haday Co. Ltd.

Authors
Xiangxian Zhu1, *
1Guangzhou Huamei International School, No. 23, Huamei Road, Longdong, Guangzhou, China
*Corresponding author. Email: BettyZhuxx@outlook.com
Corresponding Author
Xiangxian Zhu
Available Online 29 April 2026.
DOI
10.2991/978-94-6239-642-5_10How to use a DOI?
Keywords
Supply Chain Management; Working Capital Management; Cash Conversion Cycle; Efficiency Analysis; Systemic Risk
Abstract

This study evaluates the working capital management efficiency of Foshan Haday Flavouring & Food Co., Ltd., from a supply chain perspective for the period 2019-2023. Taking Haday as a case study and using financial ratio analysis, it is found that the company’s market dominance results in a consistently negative Cash Conversion Cycle and high economic efficiency. This is accomplished by extending the terms of payment made to suppliers (leading to a high Days Payables Outstanding or DPO) and enforcing cash-on-delivery with distributors (leading to a low Days Sales Outstanding or DSO). However, this power-centric model conceals significant risks, such as excessive inventory in the distribution channel. Such excessive inventory distorts market demand signals and shifts financial pressure to the company’s downstream distributors. For sustainable development, this study suggests adopting supply chain finance tools (e.g., reverse factoring) and establishing a unified digital platform to align the interests of all stakeholders and enhance the resilience of the value chain.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
29 April 2026
ISBN
978-94-6239-642-5
ISSN
2352-5428
DOI
10.2991/978-94-6239-642-5_10How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Xiangxian Zhu
PY  - 2026
DA  - 2026/04/29
TI  - Efficiency, Power, and Risk in the Supply Chain: An Analysis of Working Capital Management of Haday Co. Ltd.
BT  - Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
PB  - Atlantis Press
SP  - 86
EP  - 93
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-642-5_10
DO  - 10.2991/978-94-6239-642-5_10
ID  - Zhu2026
ER  -