A Study On Financial Strategy Of CNTT Chinese New Turnout Technology Company

Financial strategy management is one functional strategy of corporation developmentstrategy. It plays a very important supporting role for corporation development strategy.As the development of corporation development strategy theory and change of corporationoperation environment, the question of how to adjust financial strategy to be suitable forenvironmental change faced by enterprise and update of enterprise strategy drives a directimpact on success of enterprise development strategy.Chinese New Turnout Technology Co., Ltd (hereafter “CNTT”) is the first key jointventure introduced by Ministry of Railway with adopting German technology and it isspecialized in high-speed turnout. It has realistic significance to focus on financial strategymanagement for realizing company’s long-term development. Under the developing stage,impacted by lack of sense of financial strategy, CNTT has failed to set up integralfinancial strategy system since its establishment. Facing the sudden change of overallmarket and reformation of ministry of railway in2011and combination of Ministry ofRailway with Ministry of Transportation defined by NPC and CPPCC in2013, it is urgentfor the Company to make financial strategy program as well as one financial developmentstrategy to be in line with company actual situation.This dissertation adopts relevant financial and strategic management researchmethods. By using the PEST and Porter’s Five Forces Model, external environment of thecompany has been illustrated. Combined with corresponding financial management status,the existed problems on financial management have been analyzed. The research fromfinancing strategy, investment strategy and income distribution strategy has been done. Itgives constructional suggestions for target, implementation and analysis of company’sfinancial strategy, with an intention of being reference for setting up company’s financialstrategy.