Minghui Daqin Financial Strategy Research

Adhesive is an important intermediate product in chemical industry,which is also known as the MSG of modern manufacturing.Over the past 20 years,Chinese adhesive industry has been expanding its market scale to a striking extent,and local enterprises have been growing rapidly with the growth of asset size and research level.Nevertheless,the majority of adhesive competitors,lacking of technology accumulation,are still not afford to provide high-value production and stumbled by more and more severe homogenization competition.Nowadays growth rate of Domestic adhesive market gradually slowed down,local enterprises are facing greater pressure.Shanghai Minghui Chemical Co.,Ltd,known as one of the earliest local adhesive companies,makes a leading performance among all the competitors by outstanding asset scale management ability.It has abundant technology accumulation and research and design ability,and has remarkable market influence.It is necessary to analyze its own situation and combine with the external environment of the industry to formulate a financial strategy that is consistent with its own long-term development and maximizes the company's value.Thus,based on the theoretical knowledge of modern financial strategy,this paper introduces the influencing factors of financial strategy through the elaboration of financing strategy,investment strategy and dividend distribution strategy in financial strategy and the review of relevant literature,and takes the current situation of the industry and the actual situation of the company into consideration.On account of the above analysis,this paper concludes that the external risk the company is facing at present is the industry concentration and short-term capacity fluctuation during the industry transition period,while the external opportunities are the continuous growth of the downstream terminal demand,such as precision instrument automotive manufacturing automation and other segments,both of which means higher added value.The company's internal advantages lie in the customer resources and professional research and design strength.Its own weakness lies in the need to improve the size of assets,and the overall ability to resist risk is still weak.Generally speaking,the company should fully use its own advantages and apply its research and development ability and production capacity in the field of new adhesives with high added value.On the premise of differentiated development total strategy,this paper determines positive expansion strategy as the financial strategy.To better implement the financial strategy,this paper forecasts the operating conditions in the next three years and compile the income statement and balance sheet based on historical financial data of Shanghai Minghui Chemical Co.,Ltd.According to the quantitative calculation,the cash cap in the next three years reaches about 328 million.The company intends to introduce venture capital funds and other equity financing and medium-long-term bank loans for comprehensive financing,on other hand,the 15% cash dividend distribution policy is proposed to provide appropriate internal funds for the long-term development of the company and better immediate returns for shareholders,the company will also actively invest funds in industrial starch research and development project,industrial starch capacity expansion and sales network construction.In order to ensure the effective implementation of the company's financial strategy and timely feedback and the final results,the company shall simultaneously establish a comprehensive budget mechanism,financial early warning mechanism,supervision and incentive mechanism and other safeguard measures to improve the internal organizational structure and governance mechanism.This paper applies the modern financial strategy theory to the representative companies in the adhesive industry,which is of great practical significance to provide financial strategic support for the construction of the company's long-term value and core competitiveness.Domestic adhesive industry has not been related to financial strategy research,this paper is also the positive application of modern financial strategy theory in the field of adhesives.