| With the growth of the economic power of China, more and more Chinese companies are not content with limiting their business scope within China and aiming to compete on the international stage. However, on the way to globalization, every company chooses different ways and has different gains. This is related with the company’s scale, culture and motive.At present, the overseas merger and acquisitions by states-owned conglomerates attract most attention. Whereas there is limited information of the benefit of private enterprises go globalization. This article analyzes the case of Zhejiang NHU Company Ltd. which is a listed company on Shanghai Stock Exchange. Based on the case study on NHU setting up overseas platform for globalization, the author compared the business operations before and after its globalization and dig out the information hidden under the figures on financials sheets to consolidate the improvement of profit after its globalization so as to figure out the motive of its action grounded on the interpretation of its stock holding structure.Based on the financial analysis on Zhejiang NHU Company Ltd. it is founded that the company enjoyed extra export tax rebate by setting up overseas platform company and took advantage of transfer pricing to enjoy the lower level of income tax rate outside China. Meanwhile, the overseas subsidiary acted as financing platform to get low interest rate bank loan in offshore market in order to decrease financial cost to boost the development of the company.With the result of the analysis, the author hopes to build a prototype for the small and medium companies which are undertaking globalization so as to avoid making mistakes in their own way of going abroad and to improve operation efficiency therefore enhancing their competence in the market. The companies which are undertaking globalization is contributing more and more to the economic development of China. |
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