Panva Group Financial Control Optimization Study

LPG delivery is a matured labor intensive and capital intensive service industry with low entry barriers. In recent years, the market share and profit margin of LPG delivery service decrease because of the spread of the gas pipeline, the increase of LPG price, the price limitation of government and the labor force cost’s continuous growth. Some companies in LPG industry struggle from the adverse situation and compete with one another intensively by capital operating or purchasing other companies. In such a circumstance, Panva Gas Holdings Limited (Panva), a Hong Kong-funded public group of corporations focusing on LPG delivery service, is pursuing management efficiency by reforming the corporate governance and financial control model, and by grouping and refining the management model.This paper is going conclude the Panva’s present financial control model problems by describing, comparing and analysing the actual financial situation and financial control factors objectively with applied corporate governance and financial control theories. Furthermore, the financial control model will be discussed, and it could be ensured that semi-centralization with light empowerment is the most appropriate financial control model for Panva’s present situation. Finally, the paper will discuss and recommend the design and implementation process of the financial control model reform plan.Corporate financial control program is an adjustment process guided by the corporate strategies. The focuses and methods of financial control need to be adjusted following the changes of the corporate strategies, which aims to meet the company’s needs.