Financial Planning Of SHWL Company’s Relocation

SHWL company is set up by Tianjin Port Group corporation and other five state-owned large and medium corporations. SHWL company is to the west of Haifang road, its south is Dagu river, its southeast is Dongdagu railway station, and its north is Jinjin highway. SHWL company occupy about11.93kilometers squired. Its total asset is about3.17billion. According to the space development strategy of "Double cities, Double ports" of Tianjin government, Binhai new district government started to build the middle new city. SHWL company located in the north area of the middle new city, that is an important parts of kernel area of Binhai new district. Because of its wonderful location and perfect foundation conditions, this area will become the starting and kernel model area. So, SHWL company is facing relocation as a whole.According to the indication of Tianjin government, SHWL company is in charge of the relocation and the first grade land development. After the land first grade development, the auction of the land will be carried, and the government will take25%of the total income. The other part of income will belong to SHWL.Because of the change of foreign and domestic economic situations and the micro control of the national economy, the real estate industry in China is now very weak, which results in the decrease of the price of the land. Meanwhile, this task needs a large sum of money. So, it is an important issue for us to control the risk properly and to get a relative high return rate under the condition of realizing the task of the Tianjin government.By making use of the theory of project management, we measure the effects of different plans from a perspective of capital operation. The advantage and disadvantage analysis and financial risk analysis are carried on. Some suggestions to SHWL company are put forward.