Case Studies Of The H Technology Company’s Financing Strategy

With the continuing development of China’s reform and opening up,and the much more matured capitalist market,China’s small and medium sized high-tech enterprises have developed rapidly,it’s status in China’s economy has increased,in return it also helped the national economy.Taking H high-tech company as the representative among the many hightech companies,it’s operating characteristics is high growth and high profit,promising market prospect,which also companying with the potentially threat from competitors.As a result,enterprises are driven to carry out rapid business expansion strategy,and strategy implementation needs sufficient funds guarantee,thus financing problems become the primary problem of the expanding high-tech companies.This paper is taking H high-tech company’s implementation of financing strategy for case study,the research object of the case is the New Third Board listed high-tech enterprises,and the stock market provides a broad platform for the capital operation.Based on the characteristics of the large amount of equity financing and low bankruptcy risk,H high-tech company developed a financing strategy called “relying equity financing strategy” in its expansion period.This paper will analyze this financing strategy combining H high-tech company’s market,industrial financing environment and its internal management status,using qualitative and quantitative methods to elaborate the strategy’s problems.What’s more,this paper will optimize the company financing strategy;in other to provide some advice to other expanding small and medium size high-tech enterprises.First of all,this paper introduced the implementation background of H high-tech company’s financing strategy.Its implementation of the company’s expansion strategy is the basis of its financing needs,"relying equity financing strategy” implementation has got large funds for the company’s expansion,but it also leads to a series of problems such as losing the company’s control,diluting shareholders and so on.Secondly,the paper using methods to elaborate the company’s financing strategy,also point out the unreasonable existing capital structure,the lack of planning and financing way is too limited.Eventually providing the corresponding suggestions on how to optimize the company’s financing strategy.In the end of this paper,it concludes that enterprises’ financing decision should adopt scientific management,construct the capital structure using dynamic optimization management mechanism,and make the financing strategy according to the different production cycle.The government should also optimize the financing environment by investing and helping small and medium sized high-tech enterprise financial intermediary and developing a perfect social support system,to provide better support for the scientific enterprise financing.In summary,small and medium-sized high-tech enterprises should make scientific financing strategies based on the control of risk and cost,to promote the healthy development of enterprises.