A Study On Development Strategy Comparison Of King Long And Yu Tong On The Basis Of Financial Analysis

Over the past 30 years,China bus manufacturing industry develops very fast with the rapid development of China economy.On the basis of advantage of large scale of domestic market,the volume of bus manufacturing and sales in China has been No.1 in the world.King Long and Yu Tong as the leading companies of China bus manufacturing industry have been in the group of the biggest bus manufacturers in the world.From the financial analysis' point of view,this article compares King long and Yu Tong's financial statements,financial indicators,financial indicators decomposition analysis of 5 years,analyzes and assesses the financial performance,operation situation and strategy.According to the analysis and assess of the development strategy of the two companies as well as the development situation of companies and the development trend of industry,it makes some recommendations of the future development strategies for the two companies.This paper consists of 7 charters.Charter 1 outlines the background,contents and significance,frame work of the study.The overview of the background includes features of bus industry,development status,competition situation,development trend as well as the brief introductions of King long and Yu Tong which make some preparation for the further study of the following charters.Charter 2 is the analysis of 5 years' financial statements of King Long and Yu Tong.Charter 3 makes comparison between King Long and Yu Tong of the financial indicators which include profitability,capital operation capacity,assets liquidity,liability situation,and performance in capital market.Charter 4 makes the decomposition analysis of influence factors of the profitability,cash flow creation capacity,risk control capacity,growth capacity,value creation capacity.Charter 5 assess and analyze the financial policies and the financial strategic matrixs of King Long and Yu Tong.Charter 6 makes analysis and assessment about development strategies of King Long and Yu Tong,and provides recommendations about the development strategy of King Long and Yu Tong on the basis of industry development situation.Charter 7 is the summary and conclusion.We get the conclusions from the financial analysis and strategy analysis:Yu Tong's performances on profitability,cash flow creation capacity,growth capcity,value creation capacity are much better than King Long.The huge cost advantage of Yu Tong constitute the key competitiveness advantage to King Long.On the background of the huge demand of China bus and coach market,Yu Tong seizes the historic opportunity and takes the strategy of low cost by the production mode of large scale and standardization to achieve the huge cost advantage.