Financial Strategy And Implementation Evaluation Of Dahua Technology Co.,Ltd.

In China's public safety management,security companies play an important role.As China's economy enters the "new normal",competition in the industry is becoming increasingly fierce,the market growth rate is gradually slowing down,and hardware product profits are falling year by year.In such a large environment,traditional security companies will not be able to improve their competitiveness through pure hardware products alone.Therefore,the strategic transformation from a traditional product manufacturer to a high-margin integrated service finalist will be a new trend in the development of the industry.As an important part of corporate strategy,financial strategy plays an important role in corporate strategic transformation.Zhejiang Dahua Co.,Ltd.(hereinafter referred to as Dahua Co.,Ltd.),as a leading company in the industry,proposed a comprehensive transformation to a service provider in 2014.Therefore,this article selects Dahua as a case to analyze the implementation of the financial strategy in the transformation process of security enterprises,which has certain reference significance for the same industry.This article mainly analyzes the specific content and implementation effect of the financial strategy under the transformation of Dahua Co.,Ltd.to a service provider through a case study method.First,sort out the literature on corporate strategic transformation,financial strategy,and financial strategy and corporate performance.Subsequently,the basic situation of Dahua shares was introduced and SWOT tools were used to analyze the internal and external environment of Dahua shares.It was believed that the transformation of Dahua shares to service providers was in line with corporate development.Then,based on the relevant data of Dahua Co.,Ltd.'s transition period from 2012 to 2018,it analyzes the implementation of the financial strategy.The investment strategy can be summarized as building a "big security" product ecosystem,increasing R & D investment,diversifying emerging areas,and investing in global marketing service channels;in terms of financing strategies,using internal retained earnings,occupying commercial credit and targeted issuance,and short-term financing Securities and other methods to obtain corporate development funds;in terms of operational management strategies,strategies such as reducing costs and increasing efficiency,and accelerating inventory turnover;and adopting a stable dividend distribution policy to enhance investor confidence.Finally,the financial strategy implemented by Dahua is evaluated from the perspective of financial performance and financial strategy matrix.At the same time,appropriate optimization suggestions are proposed based on the relevant theories of the financial strategy matrix and the actual situation of the company.The purpose of this article is to study the financial strategy of Dahua Co.,Ltd.from the transition from a traditional product manufacturer to an application service provider,and to provide a reference for the formulation and implementation of financial strategies when a traditional security production company transitions to a service provider.And promote more successful security companies to successfully transform to service providers.