Research On BH Public Limited Company’s Internal Financial Leasing

Financial leasing one of the most basic and widely used non-bank financial forms in the world.Its essence is a financial transaction instead of traditional leasing.It uses "leasing items" instead of "financing" and requires the participation of three parties and two contracts.The financial leasing industry has developed rapidly in China in recent years.It is not only faster and more convenient than traditional financing models,but also can reduce financing risks and costs.In order to regulate,encourage and support the development of the financial leasing industry,the state has issued a series of management measures and preferential policies.More and more companies have begun to enter the financial leasing industry,and many of them are listed companies.In recent years,more and more listed companies have noticed the huge potential of the financial leasing industry.They will choose to invest in this industry as a lessee,lessor,or both,and extend the industrial chain to achieve the goal of revitalizing fixed assets and tapping new profit growth points.These also accelerated the development of financial leasing in China.Starting from within the group,BH public limited company built a financial leasing platform,while revitalizing heavy assets such as large cruise ships,while using idle funds obtained from financial leasing to obtain considerable financial income,and enjoyed tax concessions.Based on this case,this article analyses the benefits of BH public limited company ’s self-financing business from the aspects of business structure,taxation,accounting treatment,and asset activation.At the same time,it explains the current disputes about the business,and finally focuses on its universality and sustainability.It assesses risks and feasibility in both aspects,and provides advice to companies interested in conducting similar businesses.In the end,this article concludes that BH’s self-operated financial leasing business has reduced financing costs and benefited from tax savings.It has also gained income from wealth management products while revitalizing fixed assets,amplifying capital benefits,improving the company’s financial status,and obtaining New profit growth points.In addition,this model of sale and leaseback also laid the foundation for the company’s direct lease business in the future.At the same time as BH’s internal financial leasing,it also means that it has abandoned the reduction of interest rates,exchange rate fluctuation risks,and reduced intangible wear and tear risks of equipment brought by the financial leasing itself.These non-dispersible risks will be borne solely by the enterprise.The associated risk assessment becomes even more important.In addition,this business requires many conditions,and the laws and regulations involved are not only complex and changeable,so the generality of the business is not strong and the sustainability is not high.But this does not affect this self-operated financing leasing model as a choice for similar companies to revitalize their assets and increase their benefits.