Dec Group Co., Ltd. Group Commercial Draft Pool Building&Management Research

Dongfang Electric Corporation (abbreviation:Dongfang Electric), as one of the biggest Chinese comprehensive group specialized in power equipment manufacturing and power station contracting, has launched a series of group management moves during the progress of dedicating to be the heavy-duty machinery and equipment group with international competitiveness. Especially in August,2009, the Dongfang Electric had eliminated all the resistances and difficulties to develop the group funds centralized management through the finance platform of the Dongfang Financial Corporation. It has been3years since the launch of group funds centralized management, due to this significant progress, the efficiency of whole group capital utilization has been increased, the overall capital cost has been drastically reduced, the balance level had been effectively improved, the capital surplus and deficiency swap function had been full played, and the group management and control capacity has been compressively enhanced. As a result of this, the financial management progress which focused on capital management, has achieved overwhelming attentions from all the group members. But due to the limits of various subjective and objective conditions, the draft centralized management has not been achieved in the group yet, and the commercial drafts (including the bank acceptance drafts and commercial acceptance drafts) have not been scientifically and effectively managed by the group members, as a result, the problems including inefficiency of draft resources and higher cost of capital are obviously displayed, meanwhile, the security of the drafts can not be guaranteed. However, there are only few successful cases of draft pool management among other groups, if any, the draft pool management models are not systematic, complete, and hard to be operated.This thesis is specified in the researching of the group "draft pool" projects, consolidating all practical problems of inefficient draft resources, high financial cost, isolated information during the group members’ draft management process based on questionnaire survey, worksite investigation, and data analysis. This thesis has detailed analysis of the drafts physical depository, drafts virtual concentration, the advantages and disadvantages of the3draft pool models cooperated with banks. According to the actual situations of wide distribution, various industries involvement, frequent internal business, large quantities of draft business in group members, this thesis had bought out the idea of constructing the draft pool in the Finance Company which performed as the inner non-bank institution. The "Unified received&Unified paid" draft pool management system mentioned in this thesis including drafts receivable, drafts payable, drafts information pool, operating pool, material pool, inner draft management policies, uniform invoices, endorsement, discount, pledge financing, due day money collection, cash deposit, and bringing out detailed effective construction and suggestion plans covering the aspects of budget, policy guarantee, system guarantee, finance guarantee, administrative guarantee, cooperation banks selection, implement promotion and so on.The draft pool plan mentioned in this thesis, is expected to play great management and economic benefits during the operation process of Dongfang Electric, not only benefits the Dongfang group management itself,but also benefits the other groups in China.