The Analysis Of Orient New Energy Co., LTD Financial Leasing

Photovoltaic industry is an important part of national economy in our country, it is able to convert the abundant solar energy resources to electricity and alleviate the situation of global energy increasingly nervous. Since March 2013, photovoltaic enterprises in China gradually recover, but related financial products has not yet been born. Commercial Banks in China still think photovoltaicenterprises are the capacity of industry, so it’s too difficult for photovoltaic enterprises to obtain credit from Banks funds, the lack of money become a bottleneck restricting the development of photovoltaic enterprises. But the financing lease mode can meet the financing needs of photovoltaic enterprises. For financial leasing companies, Photovoltaic industry as the real estate industry belongs to the capital-intensive industry. When the project is starting, it needs lots of money, but the project completed, it can produce stable cash flow, in line with the financing lease "a subject matter, the two contracts, the three parties". For photovoltaic enterprises, financing lease way can alleviate the problem of the financing difficulties, the enterprises can not only obtain funds by means of direct lease, can also revitalize the existing fixed assets through after-sale leaseback.In June 2015, the government of Chizhou decided to built a photovoltaic power station with a total installed capacity of 170 mw in Guichi distict, and wanted to cooperate with the Orient New Energy Co., LTD. It’s estimated that the project would need about 1.7 billion construction funds, so it’s difficult for the Orient New Energy Co., LTD to complete the project construction only by its own capital accumulation. So this article wants to analysis the management situation of the Orient New Energy Co., LTD and design a set of financing lease for the company so that it can obtain enough investment funds.Firstly, this article mainly through two aspects to analyze the feasibility of the project:the enterprise qualification and the macro-environment. To be the lessee of the investigation, this article analysises the financial factors and non-financial factors. In terms of non-financial factors, this article discusses the business scope, enterprise organization structure and personnel structure, scientific research ability, and the recent major event of merger, acquisition and reorganization. In terms of financial factors, this article mainly ananlysis the company for nearly four years of balance sheets, profit and cash flow status and the corresponding financial index for quantitative analysis, a comprehensive inspection of the enterprise’s ability to repay debt and asset quality in the future. In terms of the macro environment of project status, this paper annalysis the photovoltaic industry development prospects, market demand and the national policy support, etc.Secondly, based on the analysis of the Orient New Energy Co., LTD enterprise qualification and macro factors, this paper argues that the enterprise can invest the photovoltaic power station in Guichi district with the professional technology and strength. Besides, the enterprise operates greatly and profitability rises steadily. So this article decided to design a credit line of 80 million financial leasing scheme for the company and the deadline for three years, the interest is 5.145%, a floating interest rate, margin is the amount of financing for 15%, consulting service charge is 5% of the credit line, the rent according to the way of repayment of principal and interest waiting for the forehead the quarterly payment, quarterly payments is 7237096.30 yuan. In the meantime, this article evaluates the effect of the project for the financial leasing company by the method of IRR. For the Orient New Energy Co., LTD, this project can also reduce the initial cost of the photovoltaic power station and the repayment pressure.Finally, in order to ensure the financing lease of the Orient New Energy Co., LTD smooth implementation of the project, this paper argues that the following aspects should be paid attention to:first, we should review the file of the contract strictly, clear obligations of both parties; Second, we should complete the due diligence and on-site inspection, identify the information authenticity of the lessee; third, we should perfect the process of financing lease business, can not blindly pursue efficiency while ignoring the necessary procedures; fourth, we must scrutiny the authenticity and completeness of the leased asset strictly, avoid malicious fraud; fifth, we must complete guarantee measures, adherence to transfer the risk of the last line of defence; sixth, we need to keep a close touch with the lessee after-sales, and make contingency plans, once the lessee has some operation accidents, financial leasing company can take timely measures to enable the company to minimize the loss.