Optimizated Research On Financing Structure Of BDH Corporation

BDH Ltd. is representative of our country’s leading agricultural enterprises. Thecompany has a strong parent company-NK Group for support, which makes theproducts of BDH a high market share and is widely praised by consumers. With thedevelopment of the company, its operation issues are also increasingly prominent. In2012the company experienced a severe loss. As a listed company, the company’sgovernance and financial situation of suffering investors for comment. Except thedistrict internal corporate governance, the financial position is especially worried. Thecorporate finance structural is imbalance with large numbers of loans, and more than90%are short-term loans, which brings great risks to run a business. With the increasingcompetition in the industry, the profit margins is low itself, coupled with the affects byweather, national and financial institutions, the company should try to improvecorporate governance, optimize financing structure and then reduce risk. As ChineseAgricultural Listed Companies "first blue-chip", BDH Ltd.’s position is obvious. Manysmall and medium agricultural enterprises see it as a model. But over the past two yearsthe problems in the functioning of the capital has led the company to serious risks andlosses. These problems should be solved, especially the financing ones.Based on the problems of BDH Ltd.’s financing structure, the paper firstlydescribes the research background, purpose and significance, including theoretical andpractical significance. Combine with home and abroad current research, make theoryand reality together and present the research methods and research content of the article.Then analyze the BDH company overview, status of the financing structure, problemsand the cause of formation, so that readers have a basic understanding of finance onBDH Ltd. Then start the macro and micro analysis of the company’s financingenvironment. Macroeconomic environment contains the situation of the industry, theimpact of government and the influence of financial institutions. Macroeconomicenvironment is the basis of determining the Company’s financial success. It is verydifficult to go on the finance activities when the whole economic situation is notoptimistic. The micro-financing environment includes operation condition, financialcondition, Information disclosure and credit status analysis. Finally using the graylinear programming model, after the data collection of financing costs, the amount ofevery financial channel and so on, doing the processing of date, then design theminimum cost financing structure. And assess the designed structure, estimate thefeasibility. At last presenting some suggestions for enterprise business management,especially in terms of financing and capital operation, to promote corporate finance reforms and form strict internal management, which helps the company develophealthily.