Research On The Financing Path Of Jilin Yarong Technology Corp.

Small and medium-sized enterprises(SMEs)are not only an important force in China’s national economic and social development, but also a new growth point of the market economy, which play a positive role in promoting employment and improving people’s living standards. But undeniably, technology oriented SMEs are generally facing financing difficulties and the traditional mode of financing can hardly meet their high-risk, high investment financing needs. The lack of endogenous financing, as well as financial institutions’ "credit crunch" and the capital market’s discrimination, have seriously hindered the normal financing of SMEs, and even affected their long-term, healthy and rapid development. The party and government have attached great importance to the financing difficulties of SMEs. Reducing the social cost of financing has become a focus of the "new normal" economic regulation. The State Council promulgated consecutively a number of policy documents, requiring financial institutions to adopt comprehensive measures and make efforts to shorten the process of corporate loans, reducing financing costs, encouraging the development of direct financing, enlarging the financing guarantee function, accelerating the development of small and medium financial institutions and alleviating the problem of high financing costs of SMEs.Jilin Yarong Technology Corp. as a science and technology enterprise in Jilin Province, is not only a company in the newly emerging strategic industry of the province, but also one of the National Equities Exchange and Quotations(NEEQ) listed companies. It is a subsidiary of the Listing Corporation Jilin Jien Nickel Industry Co., Ltd., mainly engaged in secondary battery cathode materials research, development, production and sales. After years of investment and operation, the company has a firm basis of personnel, technology, products and customers with strong core competitiveness and good sustainable development capacity. In recent years, in order to solve the problems of the insufficient capacity, transformation and upgrading, the company identified the construction of "battery materials and power battery R & D and production base project" and “increasing R & D investment to expand the field of lithium ion battery” as its strategic objectives. Thus, the company is facing a large financing needs, but financing difficulty is precisely the bottleneck to this kind of science and technology SMEs. Based on domestic and foreign financing theory, using a comprehensive literature research method, comparative analysis method and financial analysis method, and combined with the actual situation and financial indicators of the company, this dissertation is a in-depth analysis of the status of corporate financing path, existing problems and their causes and puts forward the reasonable suggestions on how to improve the company’s financing path. The research content of this paper will in the following aspects produce positive effects: firstly it will help the company design a financing path, and have a positive impact on the sustained and healthy development of the company; secondly it provides reference and inspiration to other science and technology SMEs’ financing path design; thirdly it puts forward corresponding suggestions of solving the problem of SMEs’ financing in our country.The innovation of this paper is that, in addition to the in-depth research and analysis of the traditional financing path, the financing issues on the NEEQ are described and analyzed. Although the NEEQ has been flourishing in recent years, and has become an important part of the multi-level capital market in China, in a way the NEEQ is also a newly emerging thing, and on both the macro level and micro level, the market is still in the stage of continually exploring and improving. The research and analysis of the NEEQ in this paper, will provide the necessary reference for other listed companies or quasi listed enterprises in a certain range, but also have a positive impact on the market management for decision making.