| In the context of the transformation of real estate companies,Yihua Health used to be a small and medium-sized housing company.In 2014,it began to transform into medical care,and within two years,it stripped off the real estate business and completed cross-industry transformation.Both operating income and net profit The improvement is called the benchmark for the complete transformation of small and medium-sized housing companies.However,in order to achieve transformation,the company carried out a series of acquisition activities,making the company’s capital chain continue to be tight.Cross-industry transformation means a change in business direction,which will inevitably involve a lot of capital movements and increase business risks.Under such circumstances,it is particularly important to formulate appropriate financial strategies,rationally allocate corporate funds,reduce financial risks,and ensure sufficient funds to support business transformation.Based on this,the research question of this article is: Is the financial strategy implemented by Yihua Health in the process of cross-industry transformation appropriate?Few scholars currently conduct research specifically on the cross-industry transformation of small and medium-sized housing companies.Cross-industry transformation belongs to the category of corporate strategy.Existing studies have shown that financial strategy should be adapted to corporate strategy,and the financing and use of funds should be coordinated.Among the methods and tools used to formulate financial strategies,the financial strategy matrix has the advantages of simple operation and strong applicability,but the related research is mostly empirical research,and the application of this method in case studies is still relatively small.Therefore,based on the financial strategy theory,value creation theory and sustainable growth theory,this article first constructed the "enterprise strategy(cross-industry transformation)-financial strategy-value creation and sustainable growth-financial strategy matrix-improved financial strategy " Theoretical framework;then analyze what financial strategy Yihua Health has implemented,including investment,working capital management and financing strategies,to match its cross-industry transformation;afterwards,calculate and analyze the transformation period(2014-2016)and after transformation(2017-2018)The company’s economic value added and sustainable growth rate,construct a financial strategy matrix;finally observe the company’s annual value growth and surplus funds,determine the direction of the next year’s financial strategic planning,and then the company’s next year Compared with its actual practice,comprehensively evaluate whether its financial strategy is appropriate,and accordingly it can propose corresponding improvements.Through long-term research,this paper finds that the formulation of the company’s financial strategy during the transition period basically follows the principle of the financial strategy matrix: considering the decline in the overall investment profit rate of the real estate industry,the company decisively sold all its real estate business,and through acquisitions and equity participation The way was laid out in the medical field,so that the company successfully completed the transformation.However,after the transformation,the company lacked long-term planning for fund raising and use.Regrettably,the implementation of the company ’s financial strategy during and after the transition period did not bring about sustainable value creation.Finally,from the perspective of improving the return on investment capital,further reducing the cost of capital,in-depth analysis of the company’s capital investment and re-examination of the company’s financing arrangements,it proposes relevant improvements to all aspects of Yihua Health’s financial strategy.This can not only help Yihua Health achieve value creation and sustainable growth,but also provide reference for other small and medium-sized housing companies that are transforming across industries to formulate and implement financial strategies. |
