Research On Financing Path Of Mengniu Dairy Company Limited

Dairy industry in our country is sunrise industry, maintains sustained growth in the past 15 years, in driven by the rise of the liquid milk which shown explosive growth in recent years. This paper investigate the Mengniu Dairy Company from its founding to the rapid development, listed in Hong Kong, to experience "melamine incident" to COFCO directional issuance, was acquired in the whole process of financing path were retrospectively analyzed, and put forward the problems produced in the process of high cost of financing, asset structure is irregular, financing channel sameness, and give a reasonable optimization strategy for related enterprise reference.After more than 10 years of development, Mengniu Dairy has completed 1116 th from China’s dairy industry leader in the development process. During this development, Mengniu encountered a variety of financial problems. Mengniu has been taken since the rapid expansion of the way, which only rely on its own funds is unable to support the development, but it still maintained the stable and rapid development, in the process by several times the mass of the equity financing, under the support of investor funds, which improves management and its business development strategy safeguard. Nowadays, most of the enterprises in our country have various financing problems, such as shortage of funds, unreasonable financing structure, sameness financing mode and high financing risk. Restrict the further development of Mengniu financing model has certain characteristics, in general, can provide sufficient funds for the development of enterprises, is worth us studying and using for reference, but there are also some problems and hidden dangers.The Mengniu Dairy Group Co., Ltd. is a case in this research, first introduces the theory about the financing path selection briefly, brief overview and research on the existing financing theory and related literature, especially the enterprise life cycle theory. Secondly, introduce Mengniu Dairy since its inception, the main financing process and in the process found and pointed out the existing problems. And then, considering the financing process of internal and external environment, we will analysis on the path of Mengniu Dairy financing problems, including on early virtual management, introducing risk investment and speed up the rapid development of the company, after the listing and directional issuance of equity financing, etc., and then analyzes the Mengniu Dairy in the process of financing risk. For example, the risk of early in the process of private equity financing risk of losing control of the business is too high; the risk preparedness and resistance capabilities of external capital structure caused by the unreasonable difference and meet the financial crisis, the entrepreneurial team lost control of the company; financing path over reliance on equity financing; finally, put forward countermeasures for Mengniu dairy company financing path optimization. From the analysis of venture capital exit mechanism and reasonable market forecast, selection can match with the enterprise business strategy and financing strategy, strengthen the optimization of ownership structure, capital structure, broaden the financing channels, and according to the specific stage of the life cycle to choose appropriate financing strategy, reduce financing risk & cost, in order to get maximum of enterprise value.The main purpose of this research is to hope that through the study of Mengniu Dairy financing path, combined with the enterprise life cycle theory and the pecking order theory, summed up the experience of Mengniu Dairy industry financing and provide suggestions for the future development of the financing; find out suitable for the financing of small and medium-sized enterprise strategy model, to peer companies, state-owned companies and listed companies and give some enlightenment in refinancing, optimize capital structure and broaden the financing channels and so on. In force to SMEs in the competition obtain rapid, stable and healthy development in the new economic environment.