A Study Of The Capital Operation Of Hunan Valin Steel Group

In the process of deepening the reform of our state-owned enterprises as well as exploring and probing the various forms of ownership of our enterprises, including the state ownership, how to make use of capital management to realize the growth of state-owned enterprises both in scale and competitiveness is of great significance.Choosing the Valin Group as the subject, this thesis makes a thorough analysis of its capital management and its actual implementation. Based on an exploration of the present theories available, it makes a general study of the process and the current situation of the capital management of Valin Group, taking into consideration, resorting to SWOT, the advantages and disadvantages in the government and management environment of this company as well as the opportunities and challenges it faces, and trying to find out the problems existing in its capital management and determine the reasons for the poor efficiency of its capital operation at present. On this basis, this thesis, through a systemtic and theoretical analysis, elaborates the package of relevant strategies Valin Group applies in its capital management from the following four perspectives: 1, How to perfect its capital management system; 2, How to pursue a model of the combination of both the growth of its pillar and that of its capital operation; 3, How to strengthen the risk management of its capital operation; 4, How to speed its resources integration. According to the guidelines of the capital management of Valin Group, this thesis goes on to analyze the several major examples of its capital operation and the resulting success experience: Through its first restructuring, which produces fairly good results, a majority of the company's subsidiaries become independent legal entities and market competitors that operate independently, assume responsibility for their profits and losses, exercise self-control and pursue self-development. By means of the second restructuring, the government, industrial and capital structure as well as the competitiveness of Valin Group have greatly improved; Through a merger with Mitaer, this company has introduced advanced technology and abundant capital from abroad, which further reinforces the overall strength of the company and lays a solid foundation for its future internationalization. Through a combinatioin of its capital management strategies, Valin Group has been strengthened both financially and technologically, which forms a good basis for the execution of its capital management tactics. Last of all, capital operation is a systemic project. To ensure a smooth implementation of the colossal project, Valin Group has established a set of safeguards and protective measures regarding its capital operation from such four angles as human resources management, risk management, system safeguard and cultural management, in an attempt to maximize its profits from a minimum of cost.