Research On Century Co.,Ltd's Financial Strategy Optimization

With the advent of the era of knowledge economy,the status of high-tech enterprises in the national economy has become increasingly prominent.The state's strong support for high-tech enterprises has also enabled high-tech enterprises to gain a broad space for growth.However,due to the inherent characteristics of high investment,high risk and high return,and the management status of heavy research and development and light finance,many companies with good prospects for development have caused losses or even bankruptcy due to improper financial strategy.Therefore,optimizing the existing financial strategy based on the enterprise development strategy is of great significance to the sustainable growth and value creation of high-tech enterprises.Through the combing of the existing literature on financial strategy,it is found that there are few researches on the optimization of financial strategy for growth-oriented high-tech enterprises,which is not conducive to providing ideas and references for optimizing the existing financial strategies for many growth-oriented high-tech enterprises.Therefore,this paper takes CENTURY Co.,Ltd as the research object,and based on the financial strategy theory,puts forward the optimization suggestion of CENTURY Co.,Ltd Finance Strategy.This paper firstly combs the environment and current situation of CENTURY 's financial strategy,and analyzes the matching degree between the company's overall development strategy and the current financial strategy.It finds that the company is adopting a growth-oriented development strategy and should match the expansion type.Financial strategy,but the actual adoption of a more robust financial strategy.Secondly,the financial strategy matrix is used to analyze the company's capital and value status.Based on the analysis of the existing financial strategy,the company finds problems in the fundraising,investment,working capital management and income distribution strategies,and then the company's current financial strategy exists.The problem is raised by the optimization proposal.Specifically,In terms of financing strategy,we must increase the asset-liability ratio and reduce the cost of financing.Second,we must increase long-term debt and balance the debt financing structure.Third,we must actively expand the financing channels and expand the scale of financing.In terms of investment strategy,we must increase R&D investment and increase R&D capitalization.Rate,second,we must focus on smart medical care and improve investment efficiency;in terms of working capital management strategy,we must strictly control accounts receivable and accelerate capital turnover.Second,we must expand the scale of working capital and optimize the internal structure.In terms of income distribution strategy,we must implement zero The dividend or residual dividend policy stabilizes the dividend payment,the second is to take stock dividends to increase retained earnings,and the third is to implement stock options to motivate technical talents.Through the optimization research of CENTURY 's financial strategy,it summarizes five points for the optimization of financial strategy for China's growth-oriented high-tech enterprises: First,the financial strategy should match the company's development strategy;second,the fundraising strategy should be enriched.Fundraising channels to reduce financing costs;Third,investment strategy,should ensure R&D investment,strengthen talent incentives;Fourth,in terms of working capital management,should accelerate capital turnover and improve efficiency;Fifth,in terms of income distribution,should pay less dividends,stocks Dividends give back to investors.Through the optimization research of CENTURY 's financial strategy,it summarizes five points for the optimization of financial strategy for China's growth-oriented high-tech enterprises: First,the financial strategy should match the company's development strategy;second,the fundraising strategy should be enriched.Fundraising channels to reduce financing costs;Third,investment strategies should ensure R&D investment and increase R&D capitalization rate;Fourth,work capital management strategies should accelerate capital turnover and improve efficiency;Fifth,income distribution should be less dividends.Reward investors by stock dividends and implement stock options to motivate technical talents;Sixth,develop a rigorous financial strategy control program to ensure the implementation and implementation of the optimization plan.This paper takes the GEM high-tech enterprise as a research object,and optimizes its existing financial strategy.It is a useful exploration of theory and practice.It not only points the direction for the enterprise manager to optimize the existing financial strategy,but also China's other growth-oriented high-tech enterprises have provided experience and lessons for developing appropriate financial strategies.