The Research Of ZTS Group’s Capital Management Mode

Chinese 13th plan of five-year national development is delivering new opportunities and challenges to railway construction group. However, in the process of catching opportunities for continuous development, the intricacy of organizational structure, the spatial dispersion of project construction, the slowness of capital return rate, the over-length of capital chain and so forth issues are restraining the development rate of the railway construction group; meanwhile, the drawback of the group’s capital daily management is gradually manifesting itself, such as the inadequacy of capital centralization, the inefficiency of capital utilization and so forth. From the perspective of financial management, its core content is the management of capital, the rationalization and effectiveness of capital management can promote the long-term development of the enterprise. Thus, with the continuous expansion of the scale of railway construction group and in the view of the group’s development status quo and target, it is critical for the railway construction group to reform its current capital management mode, introduce and practice target-matching capital management mode, overcome the obstacles emerging in the group’s development process, strengthen the group’s capital management, which is also the primary research content in this dissertation.This paper chooses ZTS Group as the research sample, based on the data collected from the group; means of writing primarily adopted in this dissertation include Document Research, Method of Comparative Analysis and Case Analysis. Moreover, based on the investigation into the problems existed in the group’s capital management mode, and by referencing to the domestic and foreign theoretical research results, as well as the group real situation, the author aims to propose optimization advices to the group’s capital management. This paper is divided into five chapters:The first chapter is the introduction-this chapter is about the significance, background, contents and methodologies of the study; in addition, the overview of the related research literature. The second chapter is about the concepts and theoretical basis. It mainly expounds the group’s capital management theory, and the comparison of advantages and disadvantages in the group’s 5 existing capital management modes. The third chapter is about the ZTS group’s capital management mode and problem analysis. This chapter mainly bases on ZTS group’s current capital management modes to sort out the problems in the process of capital management and the analysis of the reasons. The fourth chapter is about the reform of capital management mode. This chapter puts forward the optimization scheme, which is the conjunction of Internal Banking and Finical Corporation, to the group’s capital management, based on its existing problems. The fifth chapter is about the conclusion and vision. Through the research, this paper suggests the ZTS group should choose a new mixed mode of capital management-Internal Banking and Financial Corporation. The new mode will help to improve the financial management status is not clear, the enterprises have delinquent loan by Internal Bank, the group’s capital management financing problems, the ability to cope with risk, internal control and supervision’s ability, etc. It will help the group to achieve the strategic objectives, effectively reduce the cost of raising capital for the group’s income. At the same time the group should pay attention to the budget management, risk management, internal control, etc. The value of this dissertation includes:1. substantially enriching domestic corporation groups’ capital management methodology; 2. comprehensively understanding the current situation and problems of ZTS group capital management mode; 3. systematically put forward the new mode and measures of the capital management of ZTS group.