Research On Fine Chemicals And Supporting Project Financing Problem Of YY Group

In recent years, with the rapid development of China’s economy and the increasing levels of industry, the chemical industry has made tremendous progress, while other industries demand for basic chemical products is also rising. The construction and investment of the project in this paper is conducive to the full development of YY’s a chlor-alkali projects.Application of advanced technology in manufacturing the shortage products of thionyl chloride, can promote the development of China’s chlor-alkali chemical industry as well as enhance the chlor-alkali chemical industry technology. Also, it plays a positive role in boosting YY Group to expand the industrial scale, enhance economic efficiency and core competitiveness and enhance the multi-faceted anti-risk ability, achieve sustainable development. Therefore, investigating of the YY Group financing problems of in-depth, helps to improve operational efficiency and avoid the economic, political and other risks that may arise in project financing, and ultimately enhance the Group’s comprehensive ability.Firstly, the research background, significance, research methods and major innovations and deficiencies are described, and previous literature are summarized, all of which establish theory foundation for later research.Secondly, project financing in China is comprehensively analyzed. The basic concepts of project financing is clarified by summarizing different definitions. Comprehensive comparison of project financing and traditional financing methods is put forward, the advantages and disadvantages of project financing, and several major modes are given.Furthermore, the main factors of project financing are studied in terms of project characteristics, project sponsors background, project financing environment, national investment policies and financing channels and methods. The main problems existing in project financing are elaborated, including financing capital structure, financing guarantees and financing risk.Thirdly, overview of YY Group is described based on the basic theory of project financing. The total investment is estimated considering characteristics of the project of YY Group fine chemical and supporting projects and existing actual financing, and a preliminary design plan is presented. Then the financing mode, capital structure, anticipated payback period, internal rate of return and other issues of the financing plan of the project are carried out a detailed study. Limitation of the preliminary design is summed up, such as the financing of structural imbalances, single project sponsor, unreliable financing guarantees, and the potential risks of financing some projects may face are pointed out.Fourthly, successful experiences of project financing in numerous domestic and foreign firms are summarized, which provides improved financing solutions for YY Group. Specific financing strategies include: introduction of other sponsors to reduce financing burden;financing diversification so that the capital structure is more reasonable; improving the financing guarantee mode and reducing corporate guarantee liability; strengthening risk control project financing.Finally, in order to solve the project financing problem of YY Group, relative measures and other suggestions are put forward on YY fine chemicals and supporting the implementation of the project financing plan. These measures and suggestions integrate experience of successful financing firms at home and abroad and actual situation of the project. In short, this study is instuctive for financing of chemical firms.