Research On Financial Sustainable Growth Of New Material Listed Companies

New material industry is one of the strategic emerging industries that China focused on fostering and developing during the “twelve five” period. It has important strategic significance for supporting the entire strategic emerging industries, promoting the transformation and upgrading of traditional industries. In recent years, new material industry is developing rapidly, industrial scale is expanding and the average annual growth rate has reached more than 10% since 2012. Under this circumstance of rapid development, it is likely for new material enterprises to excessively concerned with the growth rate, resulting in enterprise resource constraints and making it difficult to ensure the long-term development of enterprises. Therefore, it is important for researching sustainable growth of new material listed companies based on the financial perspective.This paper is divided into five parts. The first part discussed the background and significance of the research, summarized and reviewed views on literature, and introduced the research content and research methods. The second part elaborated theoretical basis of financial sustainable growth and chose Higgins model as the measure standard of new material enterprises sustainable growth rate after comparing the four sustainable growth models. The third part selected data from 2010 to 2014 of 140 new material listed companies as sample, using descriptive statistics, Wilcoxon signed-rank test,factor analysis and regression analysis to research the Sample Firms' financial sustainable growth situation and its influencing factors. Research show that new material listed companies has not achieve financial sustainable growth and present general excessive growth. Conclusion also show that profitability and solvency have significantly positive correlation with financial sustainable growth and operation ability, research and development ability have significantly negative correlation with financial sustainable growth. The fourth part selected the Times New Materials as a specific case.After analyzing the company's financial status and financial sustainable growth, we found that the company has some problems in profitability, operation ability and solvency. All of these produce adverse impact on company's financial sustainable growth. Therefore, we put forward some targeted advice, including strengthen cost control, strengthen credit management, accelerate inventory turnover and so on. In the last part, we summarized this paper and put forward policy recommendations.