D Company Financing Channel Research

As a capital-intensive industry,the stainless steel products manufacturing industry has the features of the greatly capital input amount,the longer recovery stage.D company mainly engaged in stainless steel seamless tube and pipe fittings,stainless steel plate,sheet metal processing and sales,which highlights the main business.D company since its inception,with a good market reputation and excellent product quality,has formed a stable customer base,market share continues to soar.In the critical period of economic transformation,D company strives to develop high value-added stainless steel products in response to the national call.At present,D company plans to expand a 45,000 tons of high-precision metal products production line,which needs to invest 46 million yuan.However,D company's current financing channels can not meet this financing needs.In this case,it has a great practical significance in exploring financing channels of small and medium-sized stainless steel manufacturing enterprises such as D company actively.Firstly,the research defined the concept of financing and discussed the related theories of financing,which mainly introduced the transaction costs theory,the MM theory and finance growing cycle of enterprises.The article introduced and compared the current financing channels of small and medium-sized enterprises in China,which established theory basis for next contents.On the basis of this,the paper introduced the financing situation of D company and analyzed the operation status of D company by Porter's five-force model,which used macro analysis of the D company's operating conditions from the buyers,suppliers,potential entrants,substitutes and intra-industry competitors.This paper also analyzed the financial situation of D Company,which illustrated the four aspects of profitability,solvency,operating turnover and capital expenditure.And then the paper introduced the current financing channels from the D company's financing needs and financing channel distribution.The study found that D company's financing needs are mainly in technological innovation,product research and development,expanding capacity,process transfonmation,market expansion and liquidity,etc.The research found that D company's current financing channels have such problems as narrow financing channels,small financing scale,higher financing costs and information disclosure is not sufficient.There are four main causes:the less-than-ideal internal control situation,the low management level,the scale of financing is constrained by the industry development and financial management level is not high.There are some principles that D company's financing channel optimization program should follow:to enhance corporate value,improve the efficiency of enterprises,to ensure controlling stake of the existing large shareholder.D company's current financing channels should make full use of a combined strategy with internal source financing and external source financing.At the same time,D company's future financing needs should take listing financing as the main,the financial institutions'long-term loans as the supplementary.The article puts forward the safeguard measures of D company's financing channel optimization plan.In order to guarantee the smooth implementation of the optimization scheme of D company's financing channel,the solvency and liquidity of D company should be improved,the construction of talent team should be strengthened,the company system and the financial management level should be improved.