A Study On Shen Zhen ZFT Construction Joint-stock Company IPO Financing

Many decoration enterprises,taking the chance of reform,increasingly expand their business to grow stronger.When they develops to some extent,they will encounter obstacles,mainly meeting the funds bottleneck.To break the bottleneck,many cultural construction decoration enterprises plan IPO,trying to become bigger and stronger,and continuously standardize the company management and operation.Some intermediary structures will inevitably find out many problems when they help the enterprises to apply for the IPO,so how to help planed IPO companies prepare a variety of solutions,and standardize the management and operation is particularly important.Selecting ZFT company as the research object,this paper try to analyze some problems in the process of its plans to apply for IPO and provide some solutions,meanwhile,provide guidance for subsequent cultural construction decoration enterprises,and help them understand the crux of the problem in the process of enterprise development,and finally realize the more and more standardized operation.In this paper,the case study of ZFT company found that financial and corporate governance are two outstanding problems in the IFO application process.Financial problems mainly reflected by continuous profitability,related party transactions,and financial accounting,while corporate governance issues showed by the board structure,CEO duality and the internal control.Continuous profitability is a common issue in the construction resulting from the long construction period and heavy workload.Consequently,the corporate cannot afford a long project cycle,and a large amount of illeagal subcontracting and subcontract lead to a very low gross profit in some industry after many subcontracts.Other problems are common in the general public companies,which will emerge in the development of each enterprise.Transforming from small to big,weak to strong,substandard to normallized,the system in early-stage are always not perfect,and enterperises decisions are usually original shareholdersares' arbitrariness,which breeds the connected transactions,financial accounting and governance issues.Analyzing these questions,ZFT company should adjust its strategy to develop acoustic decoration,expand customer base,optimize the financial management system and internal control system.Actively in the enrolment of advanced talents,and strengthen the training of staff to improve their professional level.ZFT company should optimize the company ownership structure,and give full play to role of the board of directors and supervisory board.ZFT should strengthen the independence of independent directors to prevent major shareholders overriding the company regulations.ZFT should hire professional management team,and incited by high salary mechanism.ZFT should inspire the executive team and make them responsible for due diligence,which can completely solve the related trade problems.