A Case Study Of HD Company's Financial Strategy

In recent years,with the intensification of Sino-US trade,friction in the chip field has gradually become fierce.From the "ZTE Incident" to the "Huawei Incident",it demonstrates that our chip industry is highly dependent on imports,has a low self-sufficiency rate,and lacks some core technologies,all of which hinder the development of the industry.As the core part of the intelligent terminal,it is very important to the country's information security.Therefore,the government pays more attention to the development of chip industry,and introduces relevant policies to promote its healthy development.The chip companies who want to seek long-term development in the unpredictable competitive market must constantly adjust their strategic direction according to the market environment.As a core part of the corporate strategy,a good financial strategy can guarantee a stable and sufficient cash flow.Therefore,the research of financial strategy is very important for chip companies.This study takes the HD Company as the object,bases on the understanding of the background,significance,methods,content and such domestic and foreign studies,explains the meaning and content of financial strategy and other related theories,combines the public financial report data to analyze its operating conditions and financial capabilities,and uses the SWOT model to analyze its strategic environment.Next,the study uses the priority financing theory,the competitive advantage theory,and the signaling theory to analyze and evaluate the company's financial strategy from four aspects: financing strategy,investment strategy,working capital strategy,and dividend distribution strategy.Finally,give some relevant optimization suggestions.The main conclusion of this study is that HD companies should implement an expansionary financial strategy,strengthen the matching of financial strategy and corporate strategy,and steadily promote the implementation of strategies in the field of Internet of Things.Related suggestions are as follows: In terms of financing strategy,it could try some new financing channels and take advantage of debt financing;In terms of investment strategy,it should increase the foreign investment and develop diversified investment;In terms of working capital strategy,it should improve the utilization rate of funds and speed up the return of funds;In terms of dividend distribution strategy,it should adopt a moderate dividend policy and implement diversified equity incentive measures.