Study On The Capital Financing Strategy Of Shenzhou Technology Co. Ltd

Shenzhou Technology Co.Ltd was established in2011as a service provider for intelligent building. During the first few years’ management, the company has continuously enriched its business scope and increased its contract orders, but the actual money flow is always on the edge of deficit which has become the hidden danger for the development of the company and even become crucial to its survival.The characteristics of Shenzhou Technology Co. Ltd are of small scale and lack of controllable recourses, but at the stage of rapid development which in great need of money investment. So this thesis will focus on how to find a way of high efficient but low cost financing based on its current capital structure. This dissertation will illustrate it in five aspects which are as follows:The first part is introduction which will mainly cover the background and significance of Shenzhou Technology Co.Ltd and brief introduction of the research status at home and abroad and limitations of research content.The second part is about capital structure theory which will introduce traditional and modern capital structure theory and the development of capital structure theory. It will pave the way to carry out the research on the basis of the analysis of corporate finance by detailing the status of capital structure theory.The third part is the analysis of Shenzhou’s current financing status, including the shareholders’ equity ratio and debt ratio, fixed-rate mortgage and financial risk.The fourth part analyze the company’s financing demands from the perspective of product research, working capital and project in construction and the company’s existing problems in financing from the general factors that affect the company’s financing decisions.The fifth part will address the suggestions and solutions of Shenzhou Technology Co.Ltd’s financing from the analysis of financing conditions and ways of financing.