Research On Financial Strategy Of Real Estate Company

In the research of enterprise financial management, financial strategies are criticalcomponents and directly impact on the survival and development of enterprises. Recent years,the domestic real estate market gains rapidly development in a good opportunity, so as thecompetition in the industry. In this context, real estate companies begin to focus on the organicbusiness strategy, especially financial strategy. Compared to the past, the current environment inthe real estate business has already undergone major changes, especially in our increasinglyrobust legal system and competition rules. Currently, the majority of small and medium realestate companies have ushered in a real survival issue, namely large real estate enterprises toenter the second and third tier cities in the context of how to occupy the property in theincreasingly intense competition in the initiative, and the harvest from ideal economic interests.For small and medium sized real estate enterprises, the development and implementation ofeffective business strategies, particularly financial strategy is the key to deal with theseproblems. Compared with the rest of the strategy, corporate financial strategy is crucial, notonly affects the company’s financial management, but also affects the implementation of theoverall strategy.This article chooses the AD real estate company as the research object. After finishing studiesof investigating the relevant circumstances of the company, at the same time, in order to collectthe real estate business financial strategy for the various types of research literature as theresearch base. Through the "Porter’s five forces model" for the market to be analyze, understandand master the company financial condition for the period2011-2013, summarize thecompany’s funding strategy、the investment strategy and the income distribution strategy onthe exposed problems, such as the narrow channels of financing, investment and financialstrategic convergence is not close, income distribution and other more casual at the same time,through the "SWOT" model to study the company’s internal and external environmentcorresponds, including internal strengths and weaknesses, external opportunities and threats,although the accounts receivable of AD company is fine and with the advantage of goodgovernment relationship, but the company is not be established in a long time, it is lack ofexperience in finance group operation projects, it also need to face the threat of competition some large real estate companies. To help the company to carry out financial strategy work inbetter fund-raising strategies, in the fund-raising strategy, select real estate mortgage loans inthe development of the project cycle, when in the face of large scale projects with limited, selectoptional cooperative development; in investment strategy, choose low risk investment projectswith diversified development strategy; in allocation strategy, select a high percentage ofretention, lower dividend payments or dividend distribution policy through the above analysis.To promote effective implementation of financial strategies, this study also gives somesuggestions, for example regular the company’s financial indicators evaluation system.I hope this research can provide some useful reference for the sustainable development of ADreal estate companies, meanwhile, also provide a reference for the practice of various types ofSME financial strategy.