The Financial Analysis Of Haima Motor Corporation Under Harvard Frameworks

The automobile industry is an important pillar of the national economy.It has developed into one of the most important and largest industries in the world after a hundred years of development.It has promoted a new round of industrial revolution and technological revolution,and it provided a stable driving force for global economic development.In recent years,China's auto industry has developed at a high speed.With the transformation of a new generation of consumer brand awareness,the market share of Chinese brands has gradually increased.Haima Automobile Group Co.,Ltd.is a self-owned brand automobile company that has grown along with the domestic auto industry.Since the transformation of Haima Automobile Company into its own brand,its development has been relatively stable.However,in the past five years,the company's solvency and operational capacity have shown a continuous downward trend and its performance in similar companies is not satisfactory.In 2017,the company is more strategically adjusted.Almost it lost all the net profit of the past five years,the company's huge losses led to the regulatory attention letter of the Shenzhen Stock Exchange.In the important transition period of the domestic automobile industry,paying attention to the financial health problems of Haima Automobile Company is of great significance that is not only to the company itself,but also to the operation and development of independent brands in the automobile industry.Traditional financial statement analysis is only considers financial statement data,but it ignores the impact of corporate strategic decisions and accounting methods on financial data.The Harvard analysis framework effectively complements the shortcomings of traditional financial statement analysis,it combines the company's strategic analysis with the company's financial statement analysis,at the same time itgrasps the company from a strategic perspective,along with it conducts accounting analysis and financial analysis of the company,as well as ultimately in rationality.On the basis of research,judging the development prospects of the company and providing effective along with reasonable support for the future decision-making are benefit to the judgment of listed companies.This paper uses the Harvard analysis framework to analyze the financial statements of Haima Motor Corporation.The second chapter of this paper introduces the basic situation and operation status of Haima Automobile Company and the similar companies in the industry:BYD Company,Jianghuai Automobile Company and Great Wall Motor Company.In the third chapter,the financial statements of Haima Automobile Company are analyzed based on the Harvard analysis framework.First of all,in the strategic analysis part,explain the industry background of Haima Motors Co.,Ltd.and its own implementation strategy,and it point out that Haima Automobile Company's product focus strategy in 2017,it is trying to change from cost leadership strategy to differentiation strategy.Secondly,through accounting analysis,it is concluded that Haima Automobile Co.,Ltd.conforms to the industry situation in the selection of accounting policies and has made reasonable conclusions on accounting estimates in accordance with accounting standards.Once again,the Haima Automobile Company's 2013-2017 financial statements and the financial statements of the three automobile companies in the same industry were selected.The financial statements and financial ratios of Haima Automobile Company were analyzed from both horizontal and vertical perspectives,as well as the 2017 profit was obtained through analysis.The main reason for the significant decline is because of during the transition from the cost-leading strategy to the differentiated strategy,the new product market is less competitive,this decline in the total sales volume of the car leads to a decrease in the main business income,and the change in the new energy vehicle subsidy policy leads to changes in the revenue recognition conditions.The equipment related to some of the discontinued products,it is subject to a large amount of asset impairment,the need to suspend research and development expenditures for research along with development projects.The final prospects evaluate the future development prospects of the company through the analysis of the development capabilityindicators of Haima Automobile Co.,finally I believe that Haima Automobile Company still has good development prospects.The final chapter of the article provides a brief introduction to the problems existing in Haima Motor Corporation,at the same time I give suggestions for improvement in the future development of the company.