Research On Financial Strategy Of SC Carbon Company

The Fifth Plenary Session of the Nineteenth Central Committee of the Communist Party of China stated that our country has shifted to a stage of high-quality development.The requirements of “high-quality”development not only refers to economy,but also involves society,culture,ecology and other fields.In order to achieve the high-quality development requirements of the aluminum carbon industry,aluminum carbon companies need to conduct an in-depth research on the aspects of “ quality,energy and material consumption,automation level,safety and environmental protection”,and maintain a win-win cooperation between upstream and downstream,which keeps the stability and high-quality development of the industry.Although the output of prebaked anodes declined in 2019,the situation of oversupply was not improved,even there was overcapacity.In the first half of 2020,although our country’s aluminum carbon industry withstood the outbreak of the COVID-19,the overall output has maintained positive growth and the benefits have improved.Despite all this,the subsequent development of the industry still face challenges.At present,some of the restrictive factors in the aluminum carbon industry mainly include insufficient capacity utilization,insufficient independent innovation capabilities,product quality to be improved,and environmental pressures.SC Carbon,as an aluminum carbon company matching with aluminum companies,produces prebaked anodes.SC Carbon’s life is closely related to electrolytic aluminum companies.In order to adapt to the development needs of the industry as soon as possible,SC Carbon needs to comply with the current trend of overcapacity of electrolytic aluminum,cautiously increases investment in new carbon production capacity to match the production capacity of electrolytic aluminum,and,increases investment in innovation,especially the investment of production equipment updating to improve the capabilities of company’s innovation,and improve the product quality at the same time.On the other hand,the carbon industry is also facing some opportunities.The goal of carbon neutrality is expected to promote the energy transformation of the electrolytic aluminum industry and stimulate a large number of emerging industries.For example,the rising demand for aluminum from energy vehicles will lead to an expected increase of aluminum prices,which will also drive up the price of prebaked anodes.The supply-side reform and carbon neutrality have prompted carbon companies to move to the southwestern of China,where is hydro-power advantageous areas.SC Carbon is located in the west of China,where is hydro-power advantageous area,achieving regional support,and logistics costs are lower than enterprises in Henan province.SC Carbon Company currently has the geographical advantage,which is matching with the transfer of electrolytic aluminum production capacity,and cost advantage of logistics.On this basis,SC Carbon Company needs to seize opportunities in the changing environment of downstream industry and fierce competition among homogeneous enterprises,in order to prevent risks and further enhance the company’s survivability and core competitiveness.In order to meet the requirements of economic development at this stage,in the future development requirements of aluminum carbon companies are technological innovation,green and sustainable high-quality development.SC Carbon’s net profit has continued to be negative in recent years,and the company’s overall operating efficiency has been poor.From the financial point of view,SC Carbon’s capital operation is tight,and it lacks a financial strategy system that is in line with the long-term development of the company,which will cause the company to be unable to adapt to the needs of future development.Therefore,it is of practical significance to reform the existing financial management.Starting from the theoretical research of financial strategy,this article analyzes the internal and external environment of SC Carbon Company,and points out the company’s existing problems and possible risks.On this basis,it uses the life cycle theory and the financial strategy matrix to analyze the current development stage of SC Carbon Company,the ability of the company’s value creation and the company’s sustainable development ability in a combined way.And this article try to put forward corresponding optimization suggestions for the existing problems,and explore a suitable financial strategy for SC Carbon Company’s current business needs and developmental needs.Finally,the corresponding safeguard measures are put forward for the implementation of the financial strategy,and they are evaluated and assessed by balanced scorecard.This article attempts to provide assistance for the financial strategy improvement of SC Carbon Company and some experience for many other aluminum carbon companies at the same time.It hopes to optimize their own financial strategies and promote the healthy development of the carbon industry.