Financial Risks And Control On350,000Ton High-quality Wrapping Paper Project Of Shandong Bohui Paper Co.Ltd

Paper industry has become one of the national under-control industries after experiencing many years of rapid growth on production and consuming while facing issues such as resources constraints and environment pressure. In2008,343paper companies were operating in Shandong paper industry, with an annual revenue of RMB119.2billion, up12.1%YoY, which accounts for27.5%of national revenue. The totaled profit and tax reached RMB12billion, accounting for30.2%of the national figure, or up4.6%YoY. The profit realized stood at RMB8.5billion, accounting for34%of national figure or up8.7%YoY. The key economic indicators rank the first for consecutive14years.The diversified financing channeled for national industrial construction projects and the features of large amount of investment and long construction cycle time of paper project all bring some uncertainties for project investment. If taken other uncertainties such as raw material, market and operational costs into consideration, the financial risk analysis in the financial assessment is of significant importance as all the elements listed above will have dramatic impact on the feasibility of the project. Investors should have a scientific and detailed assessment on the project combined the economic and social benefits, then make the reasonable investment decision carry out effective risk management approach. The thesis applied both the project financing and project risk assessment analysis theories, and performed a thorough and comprehensive assessment on350,000Ton High-quality Wrapping Paper Project of Shandong Bohui Paper Co.Ltd, identified the potential risks and carried out scientific ways to safeguard the risks and finally lead to a scientific and reasonable conclusion, which provide a reference for similar project assessment in the industry.The thesis begins with a project status quo research, then analyzed the future of the project through analysis on macroeconomic environment, resources, market requirement, financing environment, environment protection etc. From a project financial perspective, the thesis designed reasonable financing plan on paper project, the come up with feasible financial plan and risk preventing approaches. Table of contents include introduction, project operating environment analysis, project investment assessment and financing plan, project financial analysis, project financial risk analysis and control, then conclusion.The thesis endeavors to tie the theories with the real situation of the350,000ton paper project of Shandong bohui closely, and focus on the empirical study, and avoid any possibility that the empirical analysis and the theory is disconnected, which is different from similar project assessment studies. Due to the limited capabilities of the author, some weaknesses surely exist in the thesis, such as the selection of the scope of financial indicators etc.