Research On Financing Strategy Of Zhengtong Co.,Ltd. Under The Mode Of Financial Sharing

Since 2004,the prices of electricity and coal have been continuously rising,and the cost of power generation has also increased.Power generation companies are also facing fierce market competition.Meanwhile,power generation companies are also facing fierce market competition.The increase in on-grid power prices is far less than that of coal prices in the market.Under the influence of planned electricity,most companies have suffered losses of varying degrees.The influence of the overall environment is certain,but there must be problems in internal operation and management.Zhengtong Co.,Ltd.is a large-scale state-owned power generation group.It is currently facing an imbalance in its asset-liability ratio due to excessive financial expenses.The asset-liability ratio has led to a series of financing problems such as difficulties in granting credit to hundreds of banks,a large number of idle bills cannot be digested or realized,the current fund pool operation model is not efficient,and financial management system is uncompleted,employees lack professional financing knowledge training,and so on.Generally,with the continuous improvement of market maturity has created good external conditions for enterprises,the amount and complexity of financial information will increase accordingly.In order to achieve the effective process of dealing with such information,financial sharing center has emerged as the times require.In the face of such financing difficulties,this paper seeks to use the advantages of financial sharing model to find solutions.Combined with the actual operating data of the company to analyze the causes of financing problems: First,the financial expense burden is heavy.Because the company’s financing methods are too conservative,financial expenses have increased year by year,and the asset-liability ratio has become unbalanced year by year,which ultimately leads to banks’ reluctance to renew loans.Second is the excessive deposition of idle bill resources.There is no power of speech in the market trade,customers are used to setting with a large number of bills,while the company has limited ability to digest and precipitate bills and lacks disposable cash.Third,the current cash pool operation mode is not high efficiency.A cash pool of the Financial Property Rights Department is responsible for managing the cash pool of the whole company,which is too inefficient.Fourth,the financing financial management system is uncompleted.The financing managers of member units in the system are relatively young,the team lacks professional trainings,and the financial management system such as financing is not sound,so it is difficult to guarantee the smooth development of the business.Under the current policy environment and market environment,how to take advantage of financial sharing,develop new financing channels,and reduce financing expenses are issues which are worthy of in-depth consideration and research for large power generation companies.Based on the understanding of financing methods and financial sharing,combined with the company’s actual operating conditions,it is recommended that Zhengtong use the advantages of establishing a financial sharing center.First it should open up and consolidate existing bank loans and enrich financing channels such as policy loans and special projects in the short term.For long term,it should gradually transform to securities financing,with the long-term goal of issuing bonds,asset securitization,capital trust,and actively striving for listing.The second is to introduce a group-type bill pool to make full use of idle bill resources.Third,to improve the current single-operator cash pool mode,the financial department is responsible for the macro plan,and the financial sharing center is responsible for specific implementation and monitoring.Fourth is to expand specialized training to enhance the comprehensive ability of employees,establish and improve financing and other financial management system,launch on-line evaluation system to form a closed loop management to ensure the smooth progress of business financing.