Research On Tangrenshen’s Financing Strategy Based On Industrailchain Extension Investment

Capital is the first driving force for the survival and development of enterprises,and financing,as an important source of funds for enterprises,plays a crucial role in their survival and development.Financing strategies meet the funding needs of enterprises by comprehensively planning their financing methods and structures,controlling financing costs and financial risks,and ultimately achieving sustainable development of the enterprise.With the acceleration of the modernization process of agriculture and rural areas with Chinese characteristics,the pig farming industry in China has entered a transformation period of large-scale farming.Integrating upstream and downstream resources and extending the industrial chain have become the fundamental way for pig farming enterprises to achieve industrial development.The extension of the industrial chain means a large amount of capital demand,and at this time,a good financing strategy arrangement is of great significance for pig breeding enterprises to achieve their development goals.Tang Renshen Group’s expansion of its industrial chain during the downward period of the pig cycle is a major test of its financing strategy.Therefore,this article selects Tang Renshen as the case study object,uses the case study method,and takes Tang Renshen’s industrial chain extension investment as the entry point to deeply analyze the specific arrangement of financing strategies in this investment context.Based on a review of relevant literature both domestically and internationally,relevant concepts and connotations were defined;Then,research was conducted on the financing strategy of Tang Renshen.Firstly,the basic business situation of Tang Renshen was introduced,and the direction,methods,and scale of Tang Renshen’s industrial chain extension investment were sorted out.The impact of industrial chain extension on Tang Renshen’s financing scale,financing channels,financing structure,and financing costs was deeply analyzed,and the types and characteristics of current Tang Renshen’s financing strategies were summarized and extracted;Then,the data envelopment method was used to calculate and evaluate the implementation effect of Tang Renshen’s current financing strategy,and a comprehensive analysis was conducted based on the previous review of the financing strategy.Research has shown that the Tang Renshen industrial chain has extended towards capital intensive aquaculture,with a sharp increase in financing scale.Existing financing channels are difficult to meet investment needs,and sustained independent investment methods have further exacerbated the test of financing methods and time.For this reason,Tang Renshen adjusted its financing strategy to a radical financing strategy,but the current financing strategy has low effectiveness,relying excessively on short-term loans and experiencing term mismatches;Poor financing structure,insufficient internal financing capacity,frequent equity pledges,and increased financial risks.So this article proposes targeted suggestions: slow down the investment speed of the industrial chain,implement the matching principle of financing,optimize the financing structure,strengthen fund management,and enhance industrial synergy;At the same time,innovate financing models and establish long-term financing mechanisms.This article hopes to provide feasible suggestions for the optimization of Tang Renshen’s financing strategy through research,and help it successfully complete the investment goal of extending the industrial chain;At the same time,it provides reference suggestions for pig breeding enterprises on the path of industrialization exploration,helping them develop well and quickly.