The Research On Investment And Financing Program Of Second-stage Projects For Chongqing Tiantai

The goals of investment are to enhance enterprise competitiveness, reduce risk and access to a greater future expected earnings profits. This income continued a longer period of time, the higher the level of profits, the higher risk and more difficulties as well as a corporate financial resources. The competitiveness of enterprises must pay great attention to investment opportunities. How to correctly grasp the opportunities when they come. The size of the investment determines the scale of financing from the decision-making process and corporate financing capacity which depends on the ability of macro funding scale, financing costs, the use of investment or the state of recovery is carry into directly effect or limit of the investment scale.The Aluminum Company of Chongqing Tiantai has a lower position in the market and weak anti-risk capability because of smaller-scale capacity in the industry. Enterprise is facing the risk of shutting down as low levels of technology and equipment, such as the current grade of 130(after technical improving 170KA)electrobath of 160KA is a basic minimum level. The industrial policies of government is to control the total of electrolytic aluminum production capacity expansion and encourage greater degree of concentration, the joint of aluminum and eletricity and direct supply aluminum liquid. At present, the policies of national aluminum industrial are to speed up the process of survival of the fittest and conducive to the sustainable development of the industry; Then it improves the access of electrolytic aluminum industry and supply a broader market space for the enterprises with a certain size and advantages of resources and technical. Electrolytic aluminum consumption growth of China’s aluminum industry has become the biggest driving force for growth and development opportunities. The investment of second-stage projects for Chongqing Tiantai is brought forward on such a background and its implementation has great significance for development strategy of company.This paper does study investment and financing strategies on the second-stage projects of Chongqing Tiantai based on theory research. The main research of project investment and financing strategies are the investment-benefit analysis, capital and financing channels and the financing package for the design and analysis. Firstly we make capital investment budget, 10-year project input-output forecasts, 10-year project cash flow estimates and 10-year project list and table service shareholders of this project, and access to three key indicators of effectiveness which are the internal rate of return, net present value of the financial, and investment recovery period. Secondly we carried out a analysis of capital-raising and channels which are including sources channels of funding, raising capital and debt financing. Finally, we combines the background the project , the company’s specific circumstances into account, as well as economic factors and non-economic factors to design science financing schemes, and determine the financing of reasonable size and the timing, and financing the cost of the analysis and design of the structure of financing, and the optimization program.