Shidao Xinghao Cold Chain Logistics Park Project Financial Evaluation

With China’s rapid economic development, people’s living standards and qualityof life are increasing steadily in the same time.The pursuit of fresh, healthy anddiverse food made the requirement of food quality enhance step by step, so the controlof temperature,humidity and other factors for food during the whole logistics processis becoming more and more important, and all of these require cold chainlogistics.China’s cold chain logistics development levels are lagging behind,whichinfluence people’s life seriously.As the government promulgated laws and regulationsto promote the development of cold chain logistics, cold chain logistics zone sprungup rapidly. To avoid this phenomenon causing severe economic losses and waste ofresource, a financial evaluation is needed before investing the cold chain logisticsparks.This article is a financial evaluation for ShidaoXinghao Cold Chain LogisticsZone.After a detailed analysis of the current situation and cold chain market ofRongchengCity, we came to the conclusion that the Xinghao cold chain logisticsparkis with high social and economic benefits. Meanwhile the Xinghao cold chainlogistics park enjoys geographical edge.The scale and servicecapacitydo not exceedthe limit of cold chain logistics market in Rongcheng City.Then we use the index forinvestment estimation coupled with data from Xinghao Group and local price level toestimate the investment for Xinghao cold chain logistics zone. Combined with theactual situation of the company we give some advices about funding.We define the research rangeusing the theory of system dynamics and establishthe mathematical model of ShidaoXinghao cold chain logistics parkthrough causalitydiagramand flow diagram to identify the relationship among variables.We take theestimates of total investment, operating income,total cost and other data intomathematical model and draw a conclusion that the project is feasible.Meanwhile asthe project’s NPV is greater than zero with sensitivity analysis, we know the projecthas strong anti-risk ability and thus reprove that the project is financially feasible.