The Financial Analysis Of Tianjin Elite Auto Steering Project

The significant trend of Manufacturing globalization, or the growth of China’s autodemand provide a broad market opportunity to Chinese auto parts industry, includingautomotive steering systems. Automotive industry has always been a typical industrywith significant economies of scale, but it is also a prominent "burn" industries. Noconsiderable resource capacity, it is difficult to occupy a place in this industry, moreinvestment equals more risk. Zhuzhou Elite is one of the first companies successfullydeveloped and mass production of electric power steering system, and has been theindustry leading enterprise. Times not only gives us opportunities of rapidly growingindustrial projects, but also brings significant financial pressures and potentialoperational risks. In order to quickly form a supporting system, service key customers,and promote electric power steering industry develepment, Zhuzhou Elite prepared toreach for northern areas of the vehicle centralized production, the implementation ofTianjin Elite automotive steering project in investment. To this end, this paper intendsto conduct a feasibility analysis of the project from a financial perspective. Only fullyusing resources and supporting continuous operation capabilities, the project can bestanding out in the competition and makes a due contribution for Chinese autoindustry to the real high-end and development.This article refers to and digests the project financial analysis and its related theories,meanwhile makes a relevant introduction for project background, defines projectdevelopment and analyzes objectives boundaries. It tries to start from industry marketenvironment, technology environment and development trends to analyze projectenvironment of automotive steering in Tianjin Elite, make sure the capacity of thenorthern market and development trends, and estimate the project has proposed10%of market share. It points out industry where to be improved and the ability of thescale for the creation of the project, which established the basic framework offinancial analysis for Tianjin Elite steering project, and established financial analysissystem, namely: according to the project characteristics and objectives, it estimatedbasic financial data of the project; Based on the estimates of various basic indicators,it made a project profitability analysis and forecasting; it made analysis andforecasting for solvency and viability of the project; prefer to the financial indicators,which various resource capacities have reflected, it identified a key factor, which makes influence on the project obviously, and makes the risk of changes in the test,reflects the influence of the financial uncertainty and the level of change; and itproposed other related problems which present within project itself and financial risk,it also raise specific proposals to implementation of the project.Through systematic financial analysis to assess operational and financial risks of theproject, it got the feasibility of the conclusion in the aspect of financial assessment, itput forward some advice for reference in the future development. It hopes to find theviable options of industry growth and capacity expansion for the current automotivesteering systems, and also looks forward to having the opportunity to provide areference path to technology investment and integration of resources in Chinese autoparts industry.