Research On Investment And Financing Issue Of Amellia Business In Jiangxi Water Investment Group Corporation

Camellia oleifera is a unique woody edible oil tree in southern China,together with oil palm,coconut and olive to be known as the four major woody oil corps in the world.With rich(high up to 90%)unsaturated fatty acid content almost ranking first in all kinds of vegetable oil,Camellia oil can be called as the healthiest vegetable oil for human health.According to "Shan Hai Jing" written in the third century BC,the large-scale planting of camellia oleifera began in 100 years BC.So far it has a long history more than 2000 years.Since ancient times,camellia oil has been considered as tribute for royalty because of its excellent quality and efficacy.Yong Zheng Emperor in Qing Dynasty even vigorously promoted camellia oleifera plant during that period.Camellia oil became an ordinary food in many families and be planted everywhere.After 30 years' reform and opening up,as China's economy and living standard having a rapid development,people paid more and more attention on health.Lot of people are not only satisfied with many basic elements,such as safety,cleanness,etc,but also health care.As the best edible vegetable oil,camellia oil absolutely can meet the need of most consumers.Facing the vast domestic market,camellia oil industry will have a bright future.The central committee of CPC and the State Council attached great importance to camellia oil industry.During the two sessions in 2015,Jinping Xi,the general secretary of CPC,having made important instructions for the former Central Sovietthe area pro-poor industry(including camellia oil)in the south of Jiangxi province when participating the deliberation of Jiangxi delegation.As general secretary Xi paying much more attention to camellia oil industry in Ganzhou,the camellia oil industry in Jiangxi province,will usher in a new period of rapid development.To implement the important instructions of general secretary Jinping Xi and develop the camellia oil industry,Jiangxi government emphasized the importance of camellia oil industry for Jiangxi economy and society in many important meetings.Jiangxi government required all levels of government to be fully awared of the importance of camellia oil industry to the poverty reduction in rural areas of Jiangxi,and introduced many supportive policies on Camellia oleifera planting.In July 3,2015,the provincial government office issued "General Office of People's Government of Jiangxi Province on speeding up the development of Camellia oleifera Industry opinions",which support camellia oil industry from special funds,preferential loans,financial discount,tax relief,infrastructure construction,agricultural subsidies,and technical services.Camellia oil industry will face an unprecedented policy environment and development opportunities.In response to the provincial government,Jiangxi Water Investment Group Co.,Ltd made seriously research and concluded that the camellia oil industry was a health industry and has broad market prospects.With the steady improvement of living standards and further awareness of camellia oil,people's demand for camellia oil will rise and market share will expand rapidly.In order to develop and promote the population of camellia oil industry in Jiangxi Province,Jiangxi Water investment Group Co.,Ltd aimed to establish a leading camellia oil company.Under the current economic and industrial downturn,Jiangxi Water investment Group Co.,Ltd would integrate camellia resources in the Province and play scale effect of camellia oil industry.In this way,the company will not only make profit,but also reduce provety and improve the ecological environment and people's livelihood.However,with the development of market economy and adjustment of China's economy structure,the industrial competition intensified.Camellia oil industry is also facing new round of challenges: pest control,backward technology of comprehensive utilization,rising labor costs,decentralized forest rights,weak anti-risk ability,scattered fund support,high cultivation risk,the weak willingness of commercial banks to lend,the lack of effective collateral,high cost of initial investments,long payback time,etc.To operate the camellia oil project well and make necessary benefits,Jiangxi Water Investment Group Co.,Ltd.needs to solve the investment and financing problems above.This paper began with asking,analyzing and solving questions,the writer discussed how to build the business unit of camellia oil in Jiangxi Water Investment Group Co.,Ltd.Firstly,according to strategic plan,the writer analyzed the feasibility of the construction of camellia oleifera forest and the acquisition of current camellia oil company,pointed out the necessity and significance of acquisitions and construction projects.Secondly,by analyzing the input-output,calculated the internal financial rate of return.Thirdly,analyzed the potential problems both investment and financing.The investment problems were mainly immature technology of pest control,lack of capacity utilization,etc.The financing problems were mainly credit risk,lack of effective collateral,etc.Finally,gave advises about how to solve problems,including increasing inputs in technology and expanding financing channels.This is an useful exploration about the investment and financing of camellia oil business for Jiangxi Water Investment Group Co.The paper provided a reference for the decision maker to promote the sustainable development of camellia oil business or the researcher to do further study.