A Case Study Of TISCO Sale-leaseback

Financial leasing originated in the United States after World War II.With the development of the world economy,financial leasing has become an important financing method.China's financial leasing began to be introduced in the 1980 s.Although it started late,it has been used by more and more companies because it has its own unique advantages compared to other financing methods.The financial leasing method occupies a dominant position.In recent years,due to the lack of demand for steel in the international market.Demand for steel in the domestic market has fallen sharply,and the supply and demand in the steel industry has been in conflict.Moreover,during the period of prosperous development in the early stage,the capital investment in the steel industry in China was large,resulting in a serious overcapacity and the entire steel industry is in a predicament.In addition,in recent years,with the development of the economy,the Chinese government has paid more and more attention to the issue of environmental protection.The steel industry is a highly polluting industry.Therefore,it faces more stringent industrial policies and higher production requirements.Many steel companies are actively adjusting their industrial structure.,Looking for new profit growth points to get rid of the predicament as soon as possible.Coupled with the country's efforts to curb the blind expansion of the steel industry,tightening the monetary base and compressing the credit scale of the steel industry has made the financing of the steel industry more and more serious.As a new form of financing,sale and leaseback allows companies to obtain liquidity in a timely manner and improve the efficiency of the use of funds.The study of this method is not only important for solving the financing problem of China's steel industry,but also has important significance for the development of the entire leasing industry.This article selects Shanxi Taigang Stainless Steel Co.,Ltd.as a case study object.First,it introduced the background of Taigang Stainless' s sale and leaseback business,and then analyzed the reasons for its sale and leaseback,which showed that the financing method for sale and leaseback was Taigang stainless steel is very suitable.Secondly,based on TISCO's annual report data,this paper uses quantitative qualitative analysis and comparative analysis to compare and evaluate the cash flow,financing capacity,and financial status of Taiyuan Stainless before and after sale and leaseback.The discovery of after-sale leaseback plays an important role in optimizing the company's cash flow,enhancing the company's financing capacity,and improving the financial status of the company.Then,from the perspective of TISCO stainless steel and TISCO leasing,this article analyzes the problems existing in the case and proposes countermeasures for the corresponding problems.Finally,the paper concludes and concludes.Then this case is generalized,from the point of view of the lessor,lessee,and the government,it proposes policy suggestions of universal significance in order to promote the development of the leasing industry in China.Through the case study of this paper,it is found that,in the current context of financing difficulties in the steel industry,after-sales leaseback is a new financing method that raises funds for enterprises without affecting the normal operation and operation of the company,thus alleviating the financial pressure on thecompany.Has an important role.The study of this article is conducive to deepening the understanding of the financing methods of after-sales leaseback by enterprises,and changing the concept of “re-ownership”and “lighter management authority” in the Chinese entrepreneurial tradition.Not only can we provide a way for our country's iron and steel enterprises to solve the financing problem,but it is also conducive to the further development of China's leasing industry.