Research On Financial Strategy Of Resource

The non-ferrous metal industry is an important component of the global industrial chain.China’s non-ferrous metal industry also plays an extremely important role in the mainland’s economic growth.Company A is a leading company in China’s non-ferrous metal industry and the first A-share listed company with non-ferrous metal-related industries as its main business.Currently,Company A faces problems such as difficulty in improving sales profit margins,large fluctuations in product prices,and overcapacity under the current industry situation.In order to adapt to the changing environment and promote the overall development strategy of the company,Company A needs to explore and formulate a scientifically sustainable financial strategy to improve its competitiveness and profitability.Therefore,this study provides a scientifically effective financial strategy for Company A to better achieve its overall development strategy,and also has a certain help and significance for promoting the sustainable development and economic growth of China’s non-ferrous metal industry.Based on the financial strategy matrix theory,this paper conducts a detailed analysis of Company A’s existing financial strategy and proposes that Company A adopt a financially conservative strategic model to improve its financial situation.This strategic model can effectively achieve financial growth while ensuring stable growth of the enterprise under the premise of fully meeting market demand.First,it analyzes the position of Company A in the financial strategy matrix from 2017 to 2021,which is in the second quadrant,with positive economic value added but negative sustainable growth rate and sales growth rate.Secondly,through further analysis of Company A’s financial strategy environment,it is found that there is room for improvement in its debt-paying ability,operating ability,profitability,and development.At the same time,the political,economic,cultural,and technological environment in which Company A operates is conducive to its development.More importantly,Company A faces less threat from potential competitors because it is in a monopolistic position in the industry.However,Company A also has certain disadvantages,such as a greater threat from substitutes,lower bargaining power as a producer of self-produced mineral smelting,and stronger bargaining power as a buyer of imported copper ore.Company A itself has less bargaining power with its suppliers,etc.Thirdly,combining with the enterprise life cycle theory,several suggestions are given for Company A’s current situation: in terms of investment strategy optimization,it is necessary to seek synergies and promote benign transformation,drive innovation and improve the company’s core competitiveness,and develop circular economy to obtain profit growth points.In terms of fundraising strategy optimization,it is necessary to increase low-interest short-and long-term debt financing to replace short-term high-interest financing,strive for national policy funds,and guard against fundraising debt risks.When optimizing the dividend distribution strategy,two aspects should be considered: selecting the residual dividend policy and selecting the fixed dividend payout ratio policy.Finally,in view of the problems faced by Company A,some safeguard measures are proposed for financial strategy optimization: the company’s financial department’s ability to analyze and predict should be consolidated;a relatively complete information system needs to be established;a relatively complete environment should be provided for the implementation of financial strategy;and Company A needs to establish a relatively effective internal control system.This paper selects Company A as the research object and conducts in-depth discussions on the various problems faced by the company from 2017 to 2021.The optimization strategies and safeguard measures proposed in this paper can provide some new ideas and references for other non-ferrous metal enterprises to formulate financial strategies,and promote the healthy and sustainable development of the industry.At the same time,the methods and theories studied in this paper can also be applied to other industries,providing some reference and inspiration for enterprise decision-making.